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

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

Gap, Athleta to increase use of sustainable fibres

Gap, one of the world's most iconic apparel and accessories brand and ...

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Tony Ward
Tony Ward

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

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

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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