Cotton Prices Hit A Record High Of &Nbsp; Garment Companies Are Losing Profits.

Whether at home or abroad,

Facing the craziness of cotton price, the most difficult to bear is the downstream textile enterprises.

This year, quite a few.

Mr. Wang, a vice president of a textile export enterprise in Jiangsu, told me that with the rising cotton prices, the price of cotton yarn is almost "one day, one price", and the sales situation is unusually hot. "Now it is generally a full cash pick up, or even a shipment to be shipped, which is likely to last until the end of the year".

Mr. Wang further said that as the price of raw materials continues to rise, the cost pressures of downstream garment enterprises are also rising. "Cotton mills are constantly raising prices, but clothing export is very difficult to raise prices, even if it is mentioned, it is far behind the cost increase."

Industry experts pointed out that since the beginning of this year, with the rising cotton prices, the profits of fabric manufacturers such as cotton yarn in the middle reaches are almost the highest level in history. "At least from the upstream to the middle reaches, the pfer of cost is relatively smooth". For the clothing and other products of the terminal, the overall price increase of the industry has started one after another, but the export price is still more difficult, so export profits are being squeezed.

Entering "golden nine silver ten"

For the international market, the Financial Times reported that the rise of cotton prices has gone beyond the rise of industrial commodities such as crude oil and copper.

Reported that the world's largest cotton producer and importer - China's cotton harvest this year has been threatened by rainwater; the second largest cotton growing country in India, because of the export ban imposed by the government this year, has kept traders speculating on the future policy trend; and the fourth major cotton growers in Pakistan, the world's major floods and the sharp decline in production, has intensified the tension of global cotton supply.

The US Department of Agriculture estimates that the ratio of global cotton consumption to consumption has dropped to its lowest level in 15 years.

In view of this, the China Cotton Association has to issue "double high" industry warning to remind all parties in the industry: high cotton price means high risk, and cotton price is too high and too fast to rise, which is not conducive to industrial stability and healthy development.

Textile enterprises should pay close attention to domestic and foreign cotton production and textile situation changes, calm analysis, rational response, guard against business risks, do not follow the trend of speculation.