Cotton Prices Have Risen To The Highest Level Of &Nbsp In 10 Years, And The Conduction Effect Still Needs Time.

Zhengzhou commodity exchange

The rise of cotton prices in the whole cotton industry chain showed a gradual decline in the pmission process. Among them, the spinning enterprises became the biggest winners, and some enterprises doubled their gross profits, while the most downstream clothing brand enterprises almost kept the same pace, and all of them digested the cost pressure caused by the rising cotton prices.

Some spinning enterprises have made a lot of money in raising cotton prices this year.

Semi annual report shows that China's largest textile enterprise 02698.HK, the gross profit margin of cotton yarn business in the first half of this year was 15.7%, compared to 7% last year, nearly doubled.

According to the data of China's first textile network, the profit of domestic cotton mill has surged sharply since March of this year, and the theoretical profit of cotton mill in June has reached 4600 yuan / ton.

Cotton varieties C32s in January this year, the price was about 21 thousand yuan per ton, to the end of June to 27 thousand yuan or 28.6%, while the 328 spot cotton price rose from 18 thousand yuan per ton to 18 thousand yuan, or 20%, and cotton yarn rose much higher than that of cotton, which contributed to the soaring cotton yarn business performance.

When the wave of price rises was pmitted to clothing enterprises, the strength was greatly weakened.

Wang Qian said: "clothing enterprises, especially brand clothing enterprises, have a very strong ability to digest costs. For example, a garment with a retail price of 1000 yuan may cost only 100 yuan. The change in cotton prices has little impact on these enterprises."

For the impact of the rise in cotton prices, the seven wolves replied: "since the beginning of this year, the price of raw materials such as cotton has indeed been on the rise, which has a certain impact on the textile and garment industry. However, the seven wolves insist on providing the best quality products to consumers at the right price. Under this principle, the seven wolves have not yet digested the impact of rising costs by improving the garment factory price. Seven wolves have been improving the operation efficiency of enterprises and optimizing the management process, so as to improve the operation performance and reduce costs."

People from apparel companies such as Mei bang and nine herdwang also said that there was no price hike at present. An industry insider said that most of the brand clothing enterprises sell clothing products ahead of time in the form of ordering products. The price of clothing in autumn and winter has been finalized in spring. Generally, prices will not be adjusted because of the rise or fall of cotton prices later.

Insiders said that the price rise from cotton to clothing takes a certain time.