Fujian: Cotton Yarn Prices Soared &Nbsp; Downstream Knitting Enterprises Are Facing Losses.

It opened in February 9th and ended in February 14th, in just five days.

The downstream knitting enterprises are facing losses.

"After last Spring Festival, the price of cotton yarn has risen to a certain extent. We have expected it, but we didn't expect so much in a short time."

Wu, who runs a textile enterprise in Quanzhou, said that if we want to hoard cotton yarn before the festival, we must lay millions of funds. Most small textile enterprises do not have such capital strength except a few large textile enterprises and professional cotton yarns.

"The factory can't stop when it starts. Now, I don't need to run out of stock in a few days."

Mr. Wu said helplessly that he was trying to raise some capital and prepare more goods.

Knitting companies also say that the average profit margin of the textile industry is around 15%, but some cash settled trading margins are often below 10%.

In view of the soaring trend of cotton yarn prices, some pre - season orders will not only make less money, but may even be at a loss.

Garment enterprises increased by 20%

Compared with the tremendous pressure encountered by knitting enterprises, the clothing enterprises of private brand have generally indicated that they have not yet reached the unbearable degree.

"From the end of last year to the beginning of the Spring Festival, we have made up about 5000000 of the fabrics, and all of them are in storage."

Xiamen Langyi fashion Chairman Liu said that the fabric that had been put into storage basically can meet the production needs of spring clothes, and even contains some summer wear needs.

But after the Spring Festival this year, the price of raw materials such as cotton yarn and the increase of labor costs still affect the judgement of future price trend of garment enterprises.

"After the Spring Festival, the cost increments of several factors are almost 20% of the total before the festival, which is quite alarming."

Chairman Liu believes that although the current fabric reserves can meet the needs of production, the price rise of clothing is expected to be quite clear.

In this regard, Xiamen engaged in online brand clothing production enterprises believe that online consumer groups are more sensitive to price, and rashly raise the price will inevitably lead to the loss of some customers brand.

On the other hand, compared with the rising pressure of raw materials, manpower and channels under the line brand, the main cost pressure of the network brand comes from the price of raw materials, which should delay the time of price adjustment of the network brand.