Cotton Imports Rose Nearly 40% &Nbsp; Textile Companies Were Struggling To Digest.

Jiangsu is a big province of textile and garment industry. In the face of heavy pressure of raw material prices, most of Jiangsu textile and garment enterprises, which account for 70% of private enterprises, can steadily digest and maintain certain profits.

But if cotton prices continue to rise, the textile and garment industry will face difficulties.

"Cotton prices are likely to run for a long time and stabilize at 20 thousand yuan per ton."

"First Financial Daily", "price increases have internal reasons, in the past few years has been around 10 thousand yuan (ton) around low, in fact, is not normal."

Analysis shows that in recent years the world

On the international market, according to data from the International Cotton Advisory Association (ICAC), global stock of cotton in 2009/2010 ended 5 consecutive years of high storage.

At home, cotton prices are also rising.

In October 25th, the cotton price of the main contract of the Zhengzhou futures exchange increased by 1255 yuan per ton in May 2011 compared with the previous trading day, reaching 5% of the daily limit, and 26 days continued to rise.

At the same time, due to the increase in cotton farmers' income, the cotton planting area will continue to decrease.

In the past two years, China's cotton planting area has been reduced by about 14 million mu.

Shandong Dezhou Cotton Association said that the cotton planting area in Dezhou was reduced by more than 10% in 2010/2011.

Because of the generally good profits of cotton spinning enterprises this year, and in the downstream garment enterprises, raw material costs are only a part of the total cost, so they can also be hard to digest.

Exports, Nanjing customs data show that the first three quarters of Jiangsu port to the United States, the European Union and Japan export textile and clothing increased by 60.2%, 9.7% and 8.5% respectively; during the same period, Jiangsu port exports to ASEAN ASEAN textile and apparel increased by 89.5%.

But analysts pointed out that if cotton prices continue to rise, the industry will have overall difficulties.

According to the China Textile Industry Association data, the average profit margin of China's textile industry in 2009 was only about 3%.

"The profits in the first three quarters are relatively good, but we should see that the increase in exports is mainly due to the low base last year."

Wang Qianjin said.

He believes that in the coming period, the export enterprises are faced with the double factors of rising costs and RMB appreciation, and the pressure of raising prices will be great.

Garment companies have begun to raise prices, which is one of the measures to increase the cost of digestion, but it is also very difficult.

Ma Wenfeng, an analyst with Beijing orient Agricultural Consulting Co. Ltd., said: "it is hard to say whether we can digest the cost by raising the price. Look at the situation of the Canton Fair. If the price of the Canton Fair is high, it can digest, otherwise it will be difficult."