Home / Knowledge / News / Textiles / Textile firms can bear higher cotton cost
Textile firms can bear higher cotton cost
09
Feb '10
According to a recent survey by the cotton industry, cotton-spinning enterprises have received adequate orders from fourth quarter of 2009 onwards, due to which, they have maintained full operational rates.

If raw cotton accounts for about 60 percent in the costs of cotton yarn, then the cost bearing capacity of cotton price will be as high as 3,000 Yuan / ton. Therefore, textile enterprises can withstand higher cotton price. A rough calculation shows that textile enterprises can bear the highest cotton cost up to 18,000 Yuan per ton.

At present, after the release of 2.6 million tons of state cotton reserves, the State still holds 1.50 million tons of cotton reserves, so the cotton stocks that can be used to control the market are limited. Issuing additional import quota will be a double-edged sword, though it can increase domestic supply, it will also boost international cotton price.

Two months later, when getting into April and May, it will be cotton planting period, generally the State would not release cotton-control policies during the period, while cotton planting area will be the main concern in the market.

In addition, textile enterprises will operate at full capacity and start production of summer orders. Cotton demand will increase and supply will be tight, by then, cotton price will be encouraged to go higher or rebound.

Entering June, pre-purchased cotton imports under quotas issued in earlier time will be gradually shipped into China, cotton demand will get into off-season and cotton price will decline sharply due to some factors, such as news of increase in cotton cultivation areas.

From mid-September to December, weather factors will become the focus of market attention, while foreign orders for Christmas and winter clothing will come in, consumer demand will once again become dominant concern.

But at this time, new cotton and old cotton will be used interchangeably and cotton price may witness a substantial rally, if the arrival of new cotton is not smooth or supply is tight.

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 20th Feb 2017

Kate Spade & Company Q4 net sales climb 9.8%

For the three months ended December 31, 2016, net sales at apparel...

Courtesy: Ralph Lauren

Apparel/Garments | On 20th Feb 2017

Ralph Lauren hires senior executives for leadership team

Ralph Lauren Corporation, a global leader in clothing, marketing and...

Textiles | On 20th Feb 2017

WeaveUp tool helps Materialised deliver samples in hours

The partnership by WeaveUp, a developer of designing software tools...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Lynda Kelly
Suominen Corporation

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

Paolo Ocleppo
Sandvik Hyperion

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

Steve Cole
Xerium Technologies

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

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

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 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search