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    Clothing In The "Stock Door" &Nbsp; Cotton Prices Fell By More Than 10000 Yuan.

    2011/8/8 18:19:00 46

    Decline In Inventory Cotton Prices

    At present, many garment enterprises are encountering.

    Stock

    Plagued, new orders are not booming, and cotton prices are all along.

    Last year, the situation was quite the opposite.

    Hongyun

    Cotton prices increase with the growth of clothing orders.

    Rise


    In August of this year, Li Ming (alias), a clothing trade company, would not go to Pinghu's two partners, because the two partners usually made clothes for a clothing listed company from August to December.

    In August this year, the two partners took the initiative to find Li people to do the order, because the order that the listed company could not support until the end of the year.



     

    China's cotton net domestic price monitoring system data show that the price of domestic 328 grade cotton dropped from around 29 thousand yuan per ton in February 7th this year to about 19 thousand yuan in August 7th, diving nearly 10 thousand yuan per ton.

    The high inventory of domestic garment enterprises leads to a reduction in the number of new orders, thus reducing the demand for cotton, which is one of the reasons why cotton prices have plunged sharply.


    An official with an annual income of about 100 million yuan in Pinghu told the first Financial Daily reporter that the number of clothing orders received by the company decreased by 10% in the second half of this year, and the profit margin of production dropped from 15% in previous years to about 5% this year.

    Another person in charge of the business also said that the number of clothing orders has decreased.


    Last year, Pinghu's clothing enterprises had a good profit.

    Li people said that at that time there were so many export and domestic sales lists that Pinghu's clothing companies couldn't get through the list. Li could only look for orders from Anhui's clothing factories, and there were still some orders that could only be rotten in the drawer of the desk because there was no factory processing.

    Because of the strong demand, the price of domestic grade 328 cotton went up to 31 thousand yuan per ton in November 2010.


    For a while.

    At present, some garment enterprises are in stock.

    Mire

    One industry insider told reporters that the stock of a sportswear company in Fujian could be sold for a full year.


    In 2010, Li Ning Co's inventory value was 806 million yuan, an increase of 27.5% over 2009; in 2010, Li Ning Co receivables amounted to 1 billion 610 million yuan, an increase of 50.5% compared with 2009.

    Affected by this, Li Ning Co in June this year, in the fourth quarter of 2011, the new product orders, clothing and footwear products ordering volume decreased, is expected to make Li Ning Co annual sales revenue decreased by about 5%.


    002269.SZ also suffers from inventory problems.

    In 2011, a quarterly report showed that the amount of apparel in the United States was 3 billion 160 million yuan, an increase of about 600 million yuan compared to the value of 2 billion 550 million yuan at the beginning of this year. For the enterprises of such a scale, according to a reasonable 1 billion 500 million yuan inventory scale, about 1 billion 500 million yuan or more of the inventory was produced.


    Li people said that in Hangzhou, some brands of clothing stalls, cotton padded jacket, down garments, each stall stock in the number of 20 thousand ~3, the stock amount reached 6 million ~700 million, under normal circumstances, the proportion of inventory in general 20%~30% is normal, but this year's inventory ratio is close to 50%, due to the need to digest a large number of inventory, the number of orders for new products decreased significantly, the clothing enterprises around the new quarter of the number of orders reduced by 30%, so the demand for cotton will also be greatly reduced, cotton prices are not surprising.


    The head of a Pinghu business is beginning to worry about the sharp fall in cotton prices.

    He said that cotton prices fell sharply, which could theoretically reduce the production costs of enterprises. This is a good thing. Cotton prices dropped by 10 thousand yuan, or 1 tons, to 40%, but labor prices did not drop.

    Inflation

    The total cost of garment production has not been reduced by 40%, but overseas customers believe that cotton prices have dropped so much that the price of clothing has to decrease proportionate, which will make the profits of the enterprises have a further decline.


     

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