Home / Knowledge / News / Textiles / Weak cotton price fails to cheer up Chinese textile firms
Weak cotton price fails to cheer up Chinese textile firms
03
Jun '13
The price of cotton has fallen considerably since its high of over 30,000 yuan/ton witnessed a couple of years ago. But, this has failed to cheer up the Chinese textile firms.
 
Currently, domestic cotton prices show a weak pattern, but Chinese textile enterprises are not very optimistic, according to experts.
 
They say there is still a large difference in prices of domestic and international cotton and this becomes a major problem for cotton textile enterprises in China.
 
It is because foreign companies usually calculate price in relation to prevailing international cotton prices when they place orders, but since Chinese enterprises use cotton procured at domestic prices to produce cotton yarn, their profits are squeezed.
 
According to an industry analyst, the cost of raw cotton generally accounts for 70 percent or more of the cotton yarn production cost. For production of one ton of cotton yarn, at least 1.1 tons of cotton is needed. Currently, the raw material cost is about 21,000 yuan/ton, while the price of cotton yarn is 26,000 yuan/ton. It means Chinese cotton textile enterprises will have to endure a loss of 2,000 yuan while producing one ton of cotton yarn, when about 7,000 yuan is added towards cost of labour, energy, transportation, finance and other costs.
 
This huge price difference in Chinese and imported cotton is forcing some textile firms to switch to manufacturing of fabrics from synthetic fibres that are extracted from petroleum and petrochemical products. 
 
The drop in international oil prices in recent time is also helping these textile firms to switch to manufacturing of synthetic fabrics made from nylon and polyester.
 

Fibre2fashion News Desk - China


Must ReadView All

Uzbekistan wants joint ventures with Hungarian textile firms

Textiles | On 20th Feb 2018

Uzbekistan wants joint ventures with Hungarian textile firms

Uzbekistan has offered Hungary to create joint ventures in the two...

Vietnam’s textile & garment exports up 10.68% in 2017

Textiles | On 20th Feb 2018

Vietnam’s textile & garment exports up 10.68% in 2017

Vietnam came very close to achieving its 2017 textile and garment...

From left: Tania Polonnowita Wettimuny, MD, Hellmann Sri Lanka; Bart de Vries, Global COO Air & Sea Hellmann; Deshamanya Mahesh Amalean, Chairman, MAS Holdings; & Shirendra Lawrence, COO, MAS Holdings

Textiles | On 20th Feb 2018

Hellmann and MAS form joint venture HMSC

Hellmann Worldwide Logistics and MAS Holdings have formed Hellmann...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Top executives
Textile industry

GST has levelled the playing field to an extent

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search