Cotton prices are like roller coasters.
After the general upsurge in March just passed, the garment industry rose a bit. However, the prices that followed it were different from those expected at that time, and they all went down in anticipation of rising tone. From February 18 this year, the highest level of 34,500 yuan per ton, to May 25, 25,830 yuan per ton, which makes the middle reaches of the textile enterprises lamented, but the downstream has been a good price of the clothing business is a bitter pleasure.
As cotton's main raw material for textiles, some people are happy and worried about the price increase.
"The pricing is already set, and the price of raw materials and fabrics is falling. Isn't it a good thing for the brand owner to drop the pie?" said Xu Zhida, deputy general manager and executive director of Peak Sports. "The drop in raw materials will increase profits by one or two points!
Mecoxlane's director of public relations, Indo said that for mecoxlane, a clothing sales model that omits intermediate links as much as possible, the reduction in raw material costs is a good news, which means that the profit margin is getting bigger, and the price given to consumers is also competitive.
The same kind of company also holds the same type of company, Vanke Eslite, and its insiders said that although the decline in raw material prices will not be immediately reflected in terminal sales, it seems to be positive in the long run.
According to researcher Tang Yu from the Institute of Medium-Term Research, “The price of cotton is transmitted to terminal clothing companies for a little longer, and the clothing brands have more control over the bargaining power. They are relatively proactive and the impact is not too great; the middle textile companies have to negotiate on the upper and lower sides, and they are relatively passive. There is still a considerable amount of inventories to be digested by enterprises. Large-scale textile companies will pay less attention to procurement at the right time, but it is difficult for small companies to absorb the capital to repatriate their inventory, and it is even less likely that they will buy less. At this time, small-scale textile enterprises The hardest."
In the previous upsurge, textile companies have "tuned goods." Inventory pressure makes the textile enterprises in the middle reaches of the industrial chain appear particularly difficult, and it is also one of the reasons for the decline in cotton prices.
According to the report released by the National Cotton Market Monitoring System, as of April 11th, the yarn sales rate of textile companies was 84%, the lowest level since September 2008; the number of days of inventory was 26.5 days, an increase of 13.1 days compared to the previous month, and it was March 2009. The highest level since.
Lower prices are also inevitable in the eyes of apparel brands. Xu Zhida said that the general increase in the industrial chain caused by the substantial increase in raw materials prices at the beginning of the year resulted in a reduction in external orders and a decrease in market demand. At this time, inventory can not be digested, and the market supply is also sufficient. The price of cotton is very natural.
"Inventory can not digest digestion means that the market demand is small." Tang Yu said.
According to Dongxing **'s research report, on May 4, a large textile group in Shandong lowered the purchase price of lint cotton. The purchasing price of lint cotton for level 2 was 25,200 yuan per ton, and all lint levels were reduced by 500 yuan per ton compared to April 28. This price may again affect the market's confidence.
However, Tang Yu questioned the continued decline in cotton prices. In his opinion, in most years, the output of chemical fiber and textile products in May and June are relatively low, and textile companies are in the stage of sales inventory. Cotton imports will be less and less after June, and the market will have Warmer.
"According to the study, cotton prices will stabilize in the middle or late May, and there will be a marked increase in June, which will continue until August, and then the market price will be stable," said Tang Yu. "Spot this year will probably stabilize between 28,000 yuan and 29,000 yuan per ton, and the industry will not exceed 30,000 yuan per ton."
After the general upsurge in March just passed, the garment industry rose a bit. However, the prices that followed it were different from those expected at that time, and they all went down in anticipation of rising tone. From February 18 this year, the highest level of 34,500 yuan per ton, to May 25, 25,830 yuan per ton, which makes the middle reaches of the textile enterprises lamented, but the downstream has been a good price of the clothing business is a bitter pleasure.
As cotton's main raw material for textiles, some people are happy and worried about the price increase.
"The pricing is already set, and the price of raw materials and fabrics is falling. Isn't it a good thing for the brand owner to drop the pie?" said Xu Zhida, deputy general manager and executive director of Peak Sports. "The drop in raw materials will increase profits by one or two points!
Mecoxlane's director of public relations, Indo said that for mecoxlane, a clothing sales model that omits intermediate links as much as possible, the reduction in raw material costs is a good news, which means that the profit margin is getting bigger, and the price given to consumers is also competitive.
The same kind of company also holds the same type of company, Vanke Eslite, and its insiders said that although the decline in raw material prices will not be immediately reflected in terminal sales, it seems to be positive in the long run.
According to researcher Tang Yu from the Institute of Medium-Term Research, “The price of cotton is transmitted to terminal clothing companies for a little longer, and the clothing brands have more control over the bargaining power. They are relatively proactive and the impact is not too great; the middle textile companies have to negotiate on the upper and lower sides, and they are relatively passive. There is still a considerable amount of inventories to be digested by enterprises. Large-scale textile companies will pay less attention to procurement at the right time, but it is difficult for small companies to absorb the capital to repatriate their inventory, and it is even less likely that they will buy less. At this time, small-scale textile enterprises The hardest."
In the previous upsurge, textile companies have "tuned goods." Inventory pressure makes the textile enterprises in the middle reaches of the industrial chain appear particularly difficult, and it is also one of the reasons for the decline in cotton prices.
According to the report released by the National Cotton Market Monitoring System, as of April 11th, the yarn sales rate of textile companies was 84%, the lowest level since September 2008; the number of days of inventory was 26.5 days, an increase of 13.1 days compared to the previous month, and it was March 2009. The highest level since.
Lower prices are also inevitable in the eyes of apparel brands. Xu Zhida said that the general increase in the industrial chain caused by the substantial increase in raw materials prices at the beginning of the year resulted in a reduction in external orders and a decrease in market demand. At this time, inventory can not be digested, and the market supply is also sufficient. The price of cotton is very natural.
"Inventory can not digest digestion means that the market demand is small." Tang Yu said.
According to Dongxing **'s research report, on May 4, a large textile group in Shandong lowered the purchase price of lint cotton. The purchasing price of lint cotton for level 2 was 25,200 yuan per ton, and all lint levels were reduced by 500 yuan per ton compared to April 28. This price may again affect the market's confidence.
However, Tang Yu questioned the continued decline in cotton prices. In his opinion, in most years, the output of chemical fiber and textile products in May and June are relatively low, and textile companies are in the stage of sales inventory. Cotton imports will be less and less after June, and the market will have Warmer.
"According to the study, cotton prices will stabilize in the middle or late May, and there will be a marked increase in June, which will continue until August, and then the market price will be stable," said Tang Yu. "Spot this year will probably stabilize between 28,000 yuan and 29,000 yuan per ton, and the industry will not exceed 30,000 yuan per ton."
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