Home / Knowledge / News / Textiles / High cotton prices bewilders textile mills
High cotton prices bewilders textile mills
04
Dec '09
Recently, raw materials market of the textile industry is witnessing skyrocketing of prices led by cotton, which has surprised the downstream sector, which has been caught unawares and was totally unprepared for the flare up in prices.

In the face of a still fragile recovery of global economy and slow export prospects, the industry is widely concerned that textile enterprises that are still in weak conditions may stoop or even sink under the pressure of ever-increasing prices.

Traditionally, cotton spinning enterprises stock up their cotton inventories, by taking advantage of low price when new cotton arrives in the market in September, each year, but this year, cotton supply has been short and the high prices have kept these enterprises away.

Cotton price has increased from 13,000 Yuan per ton to a high of 15,700 Yuan per ton, since early September, due to expectations of a decline in cotton production and also a renewed demand for the white gold from textile mills.

As cotton prices keep ascending the graph, companies have changed their strategy and are significantly reducing the amount of their purchase and inventory.

Currently, viscose staple fiber price has maintained steadiness at 18,500 Yuan / ton, viscose filament yarn price remains stable at 34,000 Yuan / ton, while the mainstream price of cotton pulp hovers around 11,600 Yuan per ton.

According to back of the envelope calculations, without taking into account the factor of inventory cycle of raw materials, and based on the current purchase price of cotton linter at 7,000 Yuan / ton, price of cotton pulp inclusive of tax will reach 12,900 Yuan per ton, while that of viscose staple fiber will reach 20,000 Yuan per ton.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: rawpixel.com from Pexels

Textiles | On 18th Jul 2018

Hike in import duty on textile-apparel by India beneficial

The Indian Government’s decision to raise import duty on textile and...

Moments of EPA signing in Tokyo. Courtesy: Twitter handle of Jean-Claude Juncker

Textiles | On 18th Jul 2018

EU and Japan sign Economic Partnership Agreement

European Union and Japan have signed an Economic Partnership...

Courtesy: Tego

Apparel/Garments | On 18th Jul 2018

Tego plans to expand product range in 2018-19

Tego, a company that creates premium athletic gear for modern...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Paolo Ocleppo
Sandvik Hyperion

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

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

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search