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Chinese textile sector facing severe cost pressures
Mar '10
When the economic turmoil stuck the world in 2008, prices of many textile commodities came tumbling down along like those in other industrial sectors. But as the economies of several countries, began to witness a slow recovery in 2009, prices once again started ascending.

First, prices of cotton and man-made fibres shot up through the roof, particularly of cotton, driven by demand on back of the recovery. Cotton prices alone zoomed up by around 50 percent on news of a shortfall in production and also due to rising demand.

In 2009, five different types of textile raw materials witnessed an annual increase of over 100 percent in 2009, 12 kinds of products recorded an increase of over 50 percent and just two types of textile commodities registered an increase within 10 percent.

Secondly, labour costs continue to increase as textile and apparel factories find it increasingly difficult to recruit workers and thirdly energy costs like those of coal and electricity too are on the rise, putting severe cost pressure of the textile sector.

Fibre2fashion News Desk

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