Rongcheng'S Clothing Industry: Cotton Prices Plummeting Industry Is Miserable

From the peak of last year to 34 thousand yuan per ton to 18 thousand yuan per ton, domestic cotton prices have experienced a tragic dive. Reporters interviewed yesterday learned that since the beginning of this year, low cotton prices have not brought benefits to Fuzhou garment enterprises, which is actually a signal of "the overall weakness of the market" this year.

Cotton price diving is not up to artificial price increase.

Last year, cotton prices, like the roller coaster, went through two waves of soaring and plummeting, and reached a historical high of 34 thousand yuan per ton in March last year. But then the deterioration of the European debt crisis caused the global commodity market to dive, and the international cotton price began to decline continuously. At the beginning of August, the price of China's main port of imported cotton was generally down, and the national weighted average price of grade 328 cotton was 18325 yuan per ton, a drop of 41.3%.

Act as Clothing textiles The main raw material, the decline of cotton prices, should bring benefits to garment and textile enterprises. However, a reporter survey found that most clothing and textile enterprises indicated that the actual benefits were limited.

At present, there are more than 200 garment enterprises in Fuzhou. Reporters contacted 5 clothing companies yesterday and learned that the fabric 30%~60% used by these garment companies needed cotton. They basically purchased raw materials from the cotton mill and did not buy cotton directly. In addition, taking into account the production cycle, they usually purchase about six months in advance for production. At present, the price of cotton yarn in the cotton mill is 36 thousand yuan per ton, and the price has not changed much.

In addition, even if cotton prices fall to enterprises, the actual benefits are limited. because Cotton price The decline is mainly affected by the "price advantage" of small and medium enterprises. For many models of clothing enterprises, the cost of falling cotton prices is far from being able to compensate for the increase in labor costs and research costs. Taking a garment as an example, the proportion of raw materials in cost is decreasing, and the proportion of labor cost has increased from 15% to 30%, and the proportion of energy cost has increased from 10% to 15%.

Orders for fabrics were reduced by three or four.

In many garment enterprises in Fuzhou, cotton prices continue to decline, the actual release is "the market overall weakness this year" signal. Therefore, enterprises are more worried about this.

Fuzhou City Garment industry The relevant responsible person of the association said that the sale of clothing stores this year is an indisputable fact. Many enterprises have a large backlog of spring and summer clothing, and the orders for autumn and winter wear have also been reduced by half over the previous years. "This year's clothing enterprises overall cloth orders than in previous years has dropped by 30%~40%, so is brand enterprises." Xiao Jingquan, the head of a medium-sized clothing enterprise in Fuzhou, said that the demand for cotton was reduced and the demand for cotton yarn was reduced. Cotton could be said to be oversupply, and even if the price dropped much, they did not want to buy it.

In fact, the recent weakness of the terminal clothing market can be seen from the price of clothing sales. At present, almost all clothing stores in Fuzhou city are selling discounts and summer wear. Many of the autumn and winter clothes that have just been listed are also included in the discount, and ninety percent off of the super low discount is not uncommon.

Fluctuations in raw material prices, apparel orders fragmented

The sharp fluctuation of raw material prices has affected the OEM enterprises. The outstanding performance is the fragmentation of clothing orders.

It is reported that some garment enterprises used to mainly engage in OEM production with large volume of shipments. They made small profits according to the processing of foreign orders, and took the path of "small profits but quick turnover". Under normal circumstances, the list of less than 1000 pieces in the past will not be answered, because the order is too small, no profit. However, over the past two years, the price of clothing raw materials has fluctuated greatly, especially in this year's international economic downturn. The orders for foreign trade garments in OEM production have shrunk seriously, and enterprises have to start taking orders from home to maintain their livelihood. The threshold for placing orders has also decreased from 1000 to 300.

During the interview, some garment factory officials told reporters that the list they took was mostly a small list of 100 pieces of ~200 processed for clothing shop, and there was little profit.

In the face of the current development predicament, clothing enterprises hope that the state will continue to improve the structural tax reduction policy this year, carry out a unified tax burden on the cotton textile industry, and give a certain proportion of tax return to the labor intensive enterprises such as cotton textile industry. Wu Jintu, President of Fuzhou garment industry association, believes that in the face of all kinds of pressure, clothing enterprises should enhance their added value in terms of fabric, style design and brand.