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China's textile enterprises operating in bleak state
31
Dec '11
Many textile enterprises are operating in a bleak state and have limited production or shut down their factories, well before the New Year holidays, reveals a recent survey among textile enterprises.

Cotton prices have started strengthening in recent days, but cotton yarn prices have not witnessed any change.

Currently, most textile companies are operating on very low margins or even losses, bringing enormous pressure on textile business.

Cotton purchases for the state reserves have definitely halted a further dip in cotton prices. As of December 26, the state purchased 1.88 million tons cotton in total.

This has resulted in significantly reducing supplies in the market.

Fibre2fashion News Desk - China

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