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Cotton fabric exporters wary of new orders
16
Nov '09
Recently, a textile exporter based in the Keqiao Textile Trade Zone declined a big order of cotton fabrics from France. Giving reasons for the same a spokesperson of the company said, “It is not that we don't want to accept big orders, but it is the current rise of cotton prices that makes us dare not take big orders.”

Since the last 2-3 months, the export scenario has improved to a large extent, but many enterprises dealing in cotton textiles are in a dilemma when taking orders, due to supply shortage and rising prices of cotton.

Another exporter, who mainly deals in cotton fabrics and blends of nylon/cotton fabrics, said, “Our orders increased significantly in recent two months, but short supply and rising price of cotton have led to rise in prices of gray fabrics, so we dare not accept big and regular orders as well as dare not fix price at negotiation.”

He added by saying that, the recent orders that they have accepted are orders to supply 500,000-600,000 meters of fabrics, mainly from small customers and which accounts for about 30 percent of their whole year's business volume.

Cotton spinning enterprises are most sensitive to price fluctuations of cotton. Since this year, prices of cotton yarn 40s and 50s have generally increased by more than 10 percent or about 3,000 Yuan per ton and price of 80s count cotton yarn has increased from 37,000 Yuan per ton to nearly 50,000 Yuan at present.

The big drop in cotton supply in market circulation is the main reason which has pushed up the prices of cotton all the way up this year. High procurement costs make cotton-spinning enterprises more cautious in production.

Experts say that usually cotton price declines in September after new cotton arrives in the market, but it is difficult to make judgment this year, but instead this year, actually cotton prices have moved up instead and further price increases will depend on situation of cotton harvest.

Fibre2fashion News Desk - China

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