The Current Situation Of The Apparel Industry: The Downturn In The Clothing Industry Has Dragged Down The Price Of Cotton.

Another year's bumper harvest season, new cotton in Xinjiang and across the country began to appear sporadically, and cotton farmers found this year's harvest.

The price is particularly low! Reporters learned that the purchase price of seed cotton in Wuhan was only 3.9~4 yuan a kilogram, a sharp decline compared with 2010, farmers hard to grow cotton for a year, the income per mu is only about 500 yuan.

The continuing slump in cotton prices is mainly due to the blocked export of downstream textile and garment industries, and the decline in export orders of many enterprises. Experts estimate that the worst time for textiles and clothing industry may not yet come.

In a small town in Caidian District of Wuhan, cotton and corn are common crops for local people.

Aunt Zhao, a cotton grower, told reporters that this year she planted two acres of cotton in her family. However, when her family's cotton had not been picked yet, she was still making pesticide for cotton yesterday morning.

However, some of the farmers' cotton has been listed sporadically. Aunt Zhao hurriedly went to investigate the purchase price this year to see how many crops could be harvested this year.

But the result was astonished. The merchants who received cotton were only quoted at 3.9~4 yuan a Jin, which was lower than last year, which is much lower than the previous year. The cotton of Zhao Auntie's family was sold for 5 yuan the year before yesterday. After the sale of Zhao aunt, the market price continued to rise, and the highest price rose to nearly 7 yuan.

For the cotton industry, this year's low takeover price is not surprising to them. In fact, cotton prices have been falling for nearly 2 years since the record high in late 2010. The cotton futures price of the Zhengzhou Mercantile Exchange has fallen to less than 20000 yuan / ton from the current 34000 yuan / ton.

"Cotton prices will rise, and we can only expect the textile and garment industry to recover."

Sun Liwu said.

The demand for cotton in China is 9 million 800 thousand tons this year. The cotton output in 2011/2012 is 7 million 200 thousand tons and the import volume is 3 million 360 thousand tons.

This year, the demand is shrinking dramatically. It is expected to be less than 8 million tons. The output of 2012/2013 is not yet conclusive, but the output of Xinjiang is expected to be 3 million 200 thousand tons, an increase of 120 thousand tons compared with last year, and Xinjiang cotton production accounts for more than 40% of the national cotton output.

While demand has declined, cotton imports have increased significantly this year.

The significant increase in cotton imports is mainly due to the fact that the price of imported cotton is far below the price of domestic cotton. At present, the price of imported cotton is 3000 yuan / ton cheaper than domestic cotton, and the recent difference has narrowed. In the peak period of 5 and June, the difference reached a maximum of 5500 yuan / ton, which led to a significant increase in cotton imports this year.

"As a whole, this year's cotton market is a shrinking demand and a relaxed supply pattern. Next, the state will collect and store it, which will push cotton prices to a certain extent, but the estimate will not rise too high.

The real recovery of cotton prices also needs to wait for the textile and garment industry to recover. "

Sun Liwu said.

However, the industry's views on textiles and clothing industry are not optimistic.

Speaking of the prospect of the garment industry in the coming year, the responsible person of Baima garment city admits, "the worst is yet to come".

Cai Huijuan said that the order of June is just over, but the consumption of winter clothing hasn't started yet in October. "It is estimated that the conduction effect will be postponed for a year.

The mode of operation, the establishment and improvement of terminal sales channels, and the right to price fixing will be the way for garment manufacturers to survive in the future.

Reporter: what is the reaction of the parties to the cotton market?

Farmers: growing cotton profits are getting thinner.

Aunt Zhao expressed disappointment at such a takeover price.

Zhao aunt told reporters that this year's weather in Wuhan is not good, the rain is too little in the process of cotton growth, so a lot of cotton has been destroyed, estimated output will be less than last year. In addition, cotton purchase price is not good this year, and other costs are rising.

Aunt Zhao told reporters that he could earn more than 1000 yuan a year, averaging more than 500 yuan per mu, not enough for the city people to have a meal.

Export: clothing orders drop by 2/3

"Cotton prices continue to slump is mainly due to the macroeconomic impact, textile and garment industry in the past two years is very depressed."

Sun Liwu, an analyst with Zhuo Chuang information cotton, thinks that the demand for cotton in China was 9 million 800 thousand tons last year, and the demand is less than 8 million tons this year.

The reporter understands that the export situation of garment industry is very difficult this year.

Zhang boss, who opened a factory in Fujian, has been doing cotton processing and children's clothing business for ten years. "We bought cotton from Xinjiang and Indonesia and then processed it into cloth. The average daily cotton consumption this year is 8 tons, equal to the amount used in previous years.

Although the volume of processing has not decreased, inventories have increased significantly this year. "

Zhang said that the stock of their factory has increased by 30% this year. "The increase in inventory means that sales have dropped by 30%.

However, 60% of the cloth produced is used for processing children's clothing and 40% exports. After the inventory increases, the cloth we use for ourselves is used up, and export is not ideal.

According to the relevant person in charge of the wholesale market of Baima, many Iraqi businessmen used to buy all kinds of garments from China to ship wholesale to Dubai. But this year, Iraq's channel operators have a backlog of inventory. A Iran importer has reduced orders by 2/3 this year, mainly because the depreciation of the country's currency relative to the renminbi has directly led to the doubling of its wholesale cost in China.

Domestic sales: a sharp slowdown in growth

There has been no obvious downward trend in domestic sales, but the growth rate has slowed down significantly.

"In the past year, our sales volume will rise by 25%~30% on average, and this year's current level of orders is basically flat."

Special brand

The sale of Xie Chun Feng has a special garment processing plant in Hangzhou. "Although cotton prices have gone down, we can hardly feel that our cost is rising."

According to its introduction, with the rise of labor costs, the improvement in the treatment of employees has far exceeded the effect of a slight drop in fabric costs. "We basically did not feel the impact of falling raw materials on the cost."

Cai Huijuan, a brand agent who focuses on the domestic market, told reporters that "the order meeting has just been completed in spring and summer. According to the current situation, the average order quantity has increased by 30%. However, the current order quantity can not immediately reflect the current situation."