Mainland cotton futures prices rose 60% on March 3, while yarn prices also rose 30% from last year’s low, some industry sources said, cotton prices will increase the price of clothing and towels and other cotton fabrics by at least 10%.
According to mainland financial network reports, mainland cotton futures on March 3 reached 16,385 yuan (RMB, the same below) per ton. From the low point in the first half of last year, it has risen by about 60% so far.
And the price of cotton has been rising rapidly since the second half of 2020, which has led to yarn prices rising all the Time as well. As of March 3, the main price of cotton yarn on the Zheng Stock Exchange stood at 24,235 yuan per tonne, up more than 30% from its low in April 2020.
Shaoxing, Zhejiang Province, a yarn factory director Ji Guomiao said that the biggest problem facing the enterprise is that the price of raw materials cotton has been rising. Because yarn enterprises are the first to receive orders after production, so after the contract is signed, the shipping price is difficult to modify, and raw materials continue to rise during this period will lead to a significant increase in costs, compressing the profit space of enterprises. In addition, the high price of over yarn also makes it difficult for downstream fabric mills to accept.
In addition to yarn, spandex and other textile raw materials prices have also risen sharply, which has also led to the cost of yarn downstream fabric mills are also further elevated.
Some industry insiders said that although the current yarn price increases have led to a wait-and-see mood in downstream fabric mills and garment factories. But the price of upstream raw materials will eventually be transmitted to the downstream, fabric and clothing prices will also rise together.
Zhejiang Zhuji Jeliya Textile Group Chairman Shi Lei said: the price of raw materials may have risen 60%, but to the finished towel above, the increase of about 10%.
However, some industry insiders said that the current domestic clothing companies doing wholesale goods, gross profit margins are generally low, so a short period of time too fast rise in raw material prices will raise the price of clothing, the impact will be greater in the pricing of clothing around 80 yuan.
For one of the reasons for the rise in mainland cotton prices, commentary understanding Wen Xiaogang said, the second half of last year, the Chinese Communist Party because the Australian government to pursue the Chinese Communist Party to cover up the truth of the Chinese Communist virus, so that the virus spread in the world, the Chinese Communist Party is infuriated by this, the embargo on many commodities in Australia, including cotton, coal, etc., but the Chinese Communist Party’s move did not make the Australian government yield, but led to the mainland market of cotton Instead, it has led to a shortage of cotton and coal in the mainland market, which has contributed to a rise in the prices of these commodities.
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