Cotton Prices Are High, And The Textile Industry Is Struggling.

May, Dongguan clothing

Textile enterprises cost new heights

The reporter learned from search web that as at the end of June, the cotton price index and the province to factory price were respectively 129 cotton price 18950 yuan / ton, 229 level 18700 yuan / ton, 329 level 18500 yuan / ton.

As the main producing area of cotton, Xinjiang area was attacked by hail in the early June. According to statistics, nearly 20 thousand mu of cotton were destroyed.

In the case of reduction in production, domestic cotton prices also surged from 16650 yuan per ton in May to more than 18000 yuan per ton.

Although Dongguan textile and garment enterprises use cotton as raw material relatively little, they rely heavily on raw materials such as cotton downstream products, cotton yarn and so on.

According to the data of Guangdong price center index platform, the price of first grade white cotton yarn per ton has been hovering at 19000 yuan to 22000 yuan, and the cost of production has been unprecedentedly high.

Enterprises may stop production and decompress

In May this year, the clothing trade in Dongguan increased by nearly 40%. The sharp increase in orders seemed to let textile enterprises see the bright spot. On the other hand, domestic cotton production declined, and high prices brought heavy production costs to enterprises.

"Almost all textile enterprises did not expect that.

Gao Yupeng, Deputy Secretary General of the city textile and garment industry association, analyzed, "many textile and garment enterprises are making OEM. They can only earn small profits through quantity. If production costs are further improved, stopping production is their only choice."

A person in charge of a company who does not want to be named said, "we can only reduce production costs through management links."

Professional viewpoint

Local enterprises have anti risk ability

People in the industry are worried about the textile and garment industry. Chen Ruo's cost price will not change again. A new round of industry reshuffle will be staged.

"Under the background of high cost, large enterprises have relatively sufficient capital flow, and they can persist in the case of declining profits. A small number of small workshops and small businesses with weak capabilities are likely to die."

These people said.

However, Gao Yupeng is optimistic about the textile market. He believes that after the financial crisis, the local enterprises have already had some ability to resist risks, and the government is also vigorously supporting the clothing.

Whether it is a large enterprise of free brand or a small workshop for processing materials, it is suffering from high cost.