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Cost of non-woven raw materials witness a dramatic surge
23
Jun '08
The prices for non-woven cloth used in making shopping bags have surged by nearly 20 percent in the last 10 days from about 17,000 yuan per ton to nearly 20,000 yuan per ton.

Relatively, the cost of production for the same has also gone up substantially during the period from 14,000 yuan per ton to over 17,000 yuan per ton. Industrial experts are of the opinion that compared to earlier times when prices of raw materials remained unchanged for at least a month, now, there is a constant fluctuation in the prices and nearly everyday.

The new policy prohibiting the use of plastic shopping bags has forced a large number of manufacturers to invest in the production of non-woven ones. However, at this pace, the output of these non-woven bags is likely to exceed the domestic demand for it.

Entrepreneurs are therefore suggested not to blindly invest in the non-woven cloth industry because even now the amount of investment in the sector is massive. Manufacturing companies may possibly end up producing more bags than can be consumed by the domestic market.

Fibre2fashion News Desk - China

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