Ningbo Clothing Cost Pressure Increased Sharply &Nbsp; Fourth Quarter Export Situation Is Grim.

In September 26th, China's cotton price index reached 20644 (20644 yuan per ton), a record high in ten years.

The chain reaction caused by soaring cotton prices is constantly being pmitted to downstream industries such as weaving, printing and dyeing, clothing and so on.

It is reported that at present

Cotton prices rose by more than 50% in one year.

According to professional analysis, due to the impact of the international financial crisis in 2008, cotton prices were once in a doldrums, which affected cotton growers' enthusiasm for planting cotton, and the cotton planting area in the whole country decreased significantly.

After the financial crisis, foreign orders surged, cotton demand increased sharply, cotton production and demand gap appeared, thus prompting cotton prices to rise.

Since October last year, cotton prices have soared all the way, increasing by more than 50% per ton.

After entering the September, cotton prices rose significantly faster.

As of September 26th, China's cotton price index has risen from 18002 in early September to 20644, or 14.8%.

Cotton prices continue to skyrocket, leaving many export oriented textile companies in a tight encirclement.

Jin Bo, general manager of Ningbo VICCO rising carpet Co., Ltd. said that the company's export volume is expected to reach US $30 million this year, up by more than 20% over last year, but its actual profit has declined.

"The price of raw materials is too high. The average cost of acrylic fiber used by our company has increased by more than 15% over the same period last year."

Cotton prices are even higher. Many textile companies in Ningbo are very cautious about export orders.

"We are going to open the Canton Fair next month. We have recently stopped taking new export orders. After the Canton Fair, the price is clear."

The head of a large textile enterprise in Xiangshan, Ningbo said.

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"Since the beginning of the year, the import price of raw cotton has been rising steadily, which has a very negative impact on the export of the company, and many of the small profits of foreign trade orders are not answered."

According to Jin Yanping, manager of Foreign Trade Department of Zhejiang Huafu color spinning Limited by Share Ltd, the average import price of raw cotton in the first half of this year was 1706 US dollars per ton, up nearly 30% compared with the same period last year, which basically digested the increase of export products.

Ningbo customs statistics show that in the first 7 months of this year, the city's textile and apparel exports totaled $5 billion 510 million, an increase of 17.6% over the same period last year, an increase of 22.5 percentage points below the total export volume of Ningbo.

Under the pressure of cost, the export situation of our textile and garment industry in the fourth quarter is not optimistic.

Autumn winter wear prices may rise

Mao Xinbin, a researcher at the Ningbo Institute of foreign trade and economic research, said that from the perspective of industrial chain pmission, textiles are the front-end of the industrial chain as the producer goods. According to the law, the price rise of cotton will drive the price of cotton yarn to rise, which will eventually lead to the clothing of terminal products.

In fact, some of the recent Autumn prices have just gone up.

"The price of a brand garment in Wenzhou is 15% higher than that of the same period last year. Clothes are expensive, but profits are thinner than before."

In a clothing store in Kai Ming Street in downtown, manager Li confirmed the news of the rise in clothing prices.

"Cotton prices will rise by 50%, and the retail price of clothing should be increased by at least 30%. Enterprises will be able to digest cost pressures."

People in Ningbo clothing association believe that the price of autumn winter clothing may rise this year.

"For the rising cost of cotton prices, Ningbo textile enterprises can only digest part of their own.

It is estimated that the price of textile products will be increased by about 15% next month.