According to the Hebei Inspection and Quarantine Bureau, in October, Hengshui City's garment industry experienced a sharp decline in value, falling by over 60% year-on-year, largely due to rising cotton prices. Exporters of textile fabrics have shifted from pure cotton to polyester-cotton blends, showing a simultaneous drop in both quality and quantity. This change reflects the growing pressure on manufacturers to adapt to fluctuating costs.
The surge in yarn prices has been a key driver behind this shift. Cotton yarn prices have soared from 24,000 yuan per ton at the start of the year to 40,000 yuan per ton. This increase is partly attributed to poor weather conditions during the cotton planting season, which negatively impacted both yield and quality. As global economies recover, demand for textiles and garments has improved, but supply has struggled to keep up. Speculators and cotton farmers have held back sales, creating shortages and further pushing up prices. Additionally, export restrictions from India and a significant drop in Pakistan’s cotton production have added to the challenges faced by the industry.
Hengshui’s garment exports mainly consist of middle- to low-end OEM products. Cotton accounts for 60% to 70% of the cost of these products. With rising raw material prices, production costs have increased, leading companies to adopt a more cautious approach when accepting orders. This has resulted in a notable decline in recent export volumes.
Experts predict that high cotton prices will persist in the coming months, given ongoing production cuts and inflationary pressures. To stabilize their export performance, local authorities in Hengshui are advising garment enterprises to accelerate the transformation of their business models. This includes building independent brands, enhancing product value, and reducing reliance on middlemen. By directly engaging with retailers, companies can secure higher-margin orders and better control costs.
Moreover, maintaining strict quality standards and ethical practices is essential. Some foreign clients may request products with mixed polyester and cotton materials but falsely label them as containing more cotton than they actually do. In such cases, companies must adhere to domestic and international regulations to avoid legal and reputational risks. Building trust through transparency and reliability remains crucial in today’s competitive global market.
Shaoxing Xiaotrain Imp.&Exp Co., Ltd , https://www.xiaotrain.com