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    Raw Material Prices Fell &Nbsp; Why Did Enterprises Not Dare To Purchase Easily?

    2011/5/16 11:23:00 27

    Raw Material Prices Fall

       Cotton price Bullish expectations weaken, recent Textile and clothing The purchasing intention of enterprises has not been improved correspondingly. In recent days, journalists have visited relevant enterprises to understand that the two quarter orders of many enterprises, in the pressure of the new round of export and domestic sales, have been increasing gradually in the past quarter and facing the crisis of shrinking business.


    Both domestic and Export business According to Infiniti clothing and weaving company, compared with last year, export business is difficult to do this year, and the market pressure is increasing sharply. "There are more uncertainties this year, including the appreciation of the renminbi, the instability of raw material prices, and the sharp reduction in orders." Wen Zuohai, assistant general manager of the company, told reporters a little helplessness. "Raw materials fell slightly, but compared to last year, it has gone up a lot, and we dare not buy it easily."


    It is understood that at present, many export blocked enterprises are trying to increase the share of the domestic market, but many people think that the pressure on the domestic market is even greater. The survey shows that although the sales willingness of cotton enterprises is strong, the enthusiasm of textile enterprises is not high, and the actual turnover in the market has not increased significantly.


    Inis clothing and weaving company, which has been making OEM for big Brand Company and hongxingerke for a long time, has a taste of it. According to manager Xing Xing of Inis production department, "compared with the same period last year, the order volume has dropped a lot. The quarterly increase in orders is not expected. On the contrary, the funds and inventory pressure are relatively large, and the purchase of raw materials is not so aggressive." He concluded that the biggest pressure on the domestic market comes from the unsmooth flow of funds. "The domestic market is widely used to settle accounts with acceptance bills of exchange. 1 million of the acceptance bills cost 3000 yuan. In addition, the increase in labor costs has virtually increased the pressure of funds."


    It is reflected that not only the traditional clothing enterprises, but also some small and medium enterprises that are taking the high-tech route, are also facing the risks mentioned above. Yesterday, the manager of the seven color cloud clothing and weaving company of Bao Gai town told the reporters about the confusion. "Raw materials have recently dropped, but compared with the price of raw materials in the past two years, the overall upward trend is quite clear. Among them, the profit space has gone up relatively slowly, and the profit margins are small, such as the color of dye, which has increased by 10% from spring to now." Fu manager believes that under the general trend of rising prices, the most defective products are processed products and have not raised the corresponding prices, which means that the profitability of the industry is declining. "In this way, our order volume has dropped by 10% to 15%. The competition is really fierce. Now we can only rely on increasing development efforts to further improve the production technology to compete in the market."


    The price of raw materials has dropped slightly, but how long will the market remain in the market without price? Market analyst Zhou Tuoying believes that at present, the international commodity price shocks, but the international cotton price decrease is relatively small. At present, domestic and foreign cotton prices are hanging upside down. At present, domestic cotton prices generally are 2000 yuan to 3000 yuan lower than the international cotton price per ton, which means that the domestic cotton price has a limited decline. Textile and apparel as an optional consumer goods, the terminal price has not risen substantially in 2011, and the consumption potential is huge. With the strengthening of de stocking, the willingness to purchase related products will gradually increase.

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