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Domestic textile demand enters off-season
01
Jun '11
Domestic prices of most chemical fibres declined by different degrees on May 31, due to the impact of recent drop in cotton price, and light demand from downstream sector.

Among them, viscose staple fiber fell to 21,300 Yuan / ton; caprolactam dropped to 26,300 Yuan / ton; nylon chips reduced to 28,700 Yuan / ton and nylon FDY dropped to 33,600 Yuan / ton.

Domestic textile demand has entered off-season; orders from enterprises have relatively reduced.

As a labor-intensive industry, the textile industry employed lots of cheap labor in the past. But now the industry is witnessing labor shortage and worker's wages have risen 20-30 percent.

Clothing exports cannot extend its competitive advantage, meanwhile Yuan appreciation has also brought greater cost pressures to the industry, which is expected to threaten gross margins of enterprises.

Fibre2fashion News Desk - China

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