Quanzhou Clothing Enterprises Will Be Cautious And Lengthy Single &Nbsp, And Goods Will Come In Quickly To Cope With Fluctuations In Raw Material Prices.

Some time ago, Cotton price The continuous rise caused the whole Spin Industry chain's strong concern. However, Rise The market began abruptly in November 10th, and the cotton price in the domestic futures market hit a record high of 33720 yuan / ton from November 10th to 24000 yuan / ton, which has recently recovered to around 27000 yuan / ton.

The sharp fluctuations in the cotton market have increased the operational risk of enterprises. How will the fluctuation of cotton prices affect the downstream textile and garment enterprises?

Short term will remain high concussion

"The current cotton price is still high." Chen Cangsong, vice president of Hongyuan Group, said that cotton prices began to decline in November 10th. However, taking the most used 328 three grade cotton in Quanzhou textile and garment enterprises as an example, even the lowest point of this fall is 24 thousand yuan / ton, which is still high for textile and garment enterprises, because the price at the beginning of the year is only 14 thousand yuan / ton.

This view is also recognized by Ye Dongming, an analyst at China World Trade Center futures Quanzhou business hall. "Judging from the latest wave of market prices, the rise point of cotton price is 18800 yuan / ton in September 10th, the highest point of zhengmian futures is 33600 yuan / ton in November 10th, the lowest dropped to 24180 yuan / ton, and in December 24th it rose to 27740 yuan / ton." Ye Dongming said, "in fact, the market's rise of 18800 yuan / ton is historically high."

For the future trend of cotton prices, ye Dongming said that from the current situation, the market fundamentals are not enough to support cotton prices continue to rise, on the one hand is the regulation of national macro policies, on the other hand, the rise of cotton prices will inevitably lead to the rise of end products, thereby affecting the demand for textile and clothing and cotton demand, and the adjustment of the market itself will lead to a fall in cotton prices. In addition, the margin standard for cotton futures contracts has increased to 12% since November 26th. These are bad factors. However, due to the impact of cotton production cut and domestic cotton demand gap, the drop in space is not large. Cotton prices will remain high and volatile in the short term, fluctuating at about 27000 yuan per ton {page_break}
 

Cotton enterprises are not easy to store up goods.

Large fluctuations in cotton prices disrupt the normal production and operation order of enterprises. Insiders said that large textile enterprises will face the challenge of capital turnover caused by fluctuations in cotton prices, and small businesses even face the threat of shutting down production. It is understood that when cotton prices rose wildly, cotton companies scrambled for hoarding. Now cotton prices are in a period of adjustment. The price of cotton plants has become more and more confused by cotton prices.

It has been learned from the work that most textile and garment enterprises are in a wait-and-see state because of the general psychology of "buying or selling but not buying." "If the cotton price rises by 10 thousand yuan per ton, if the enterprise reserves 2000 tons, it will need to occupy more than 20 million yuan of liquidity." Chen Cangsong said, "generally speaking, the raw material inventory of textile enterprises will remain at about 2 months, but since the beginning of this year, the rise of cotton prices has allowed a large number of textile enterprises to reduce the amount of cotton reserves and reduce the storage period to 20 days."

Although the recent cotton prices have been reduced to some extent, most enterprises do not have the bottom of the trend of cotton in the future. "The market outlook is uncertain, and no one dares to rush to buy large quantities." Jinjiang, a textile enterprise responsible person said, now the general orders are quoted at the current price of the market, if the current price of goods hoarding, cotton prices down, downstream customers will ask for price cuts, high hoarding cotton will affect corporate profits, or even lose money.

"How much to fill, fast forward and fast out, not long Dan Dadan, has become a common strategy for textile enterprises to cope with fluctuations in raw material prices." Chen Cangsong said.

Clothing prices will not be affected temporarily.

The cotton price which has been rising for some time has made many garment enterprises raise the price of terminal products, especially the clothing in autumn and winter. Due to the large quantity of cotton, the average increase is more than 2. Then, will the fluctuation of cotton prices affect the price of terminal clothing?

"The recent cotton price volatility has not been transmitted to clothing production links." In this regard, many garment manufacturers have said. It is understood that from cotton to clothing finished products, it has to undergo more than ten processes such as cotton ginning, peeling, spinning, weaving, dyeing, cutting, sewing, ironing, packaging and so on, plus wholesale, retail and other links. The price is lagging behind. Even for fast fashion companies, the product design and production cycle take half a month.

"From the entire apparel industry, it is usually started six months to three quarters to design second years of autumn and winter clothing. For most garment factories, most of the fabrics purchased are for next spring, summer wear, even autumn and winter. Therefore, the current cotton price fluctuations will not affect the prices of the products that have been listed, and the fluctuations in cotton prices will eventually be transmitted to the finished garments, which will have a lag period of about half a year. PEAK group's relevant responsible person said.

"If cotton prices rise slowly, they can be digested in the process of industrial chain conduction. But the fluctuating price of a day is obviously not enough for companies. A garment industry insider said that considering the inevitable shortage of cotton raw materials in the future, many springs enterprises have increased the development of non cotton fibers. Haitian, Feng Zhu, Hongyuan and other enterprises have developed bamboo fiber, corn fiber and other regenerated fiber fabrics, and seven wolves and nine Mu Wang have also increased the use of new fabrics. In addition, textile and garment enterprises also reduce raw material consumption by adopting new highly efficient processes and equipment.