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The extension of Shanghai fabric exhibition: the most painful experience for export enterprises due to the rising price of raw materials

although the expectation of RMB appreciation is a difficult problem for the majority of export enterprises, at the China international textile fabrics and Accessories Expo recently held at Shanghai New 1nternational Expo Center, the reporter found that the most painful thing for many enterprises is not the change of exchange rate, but the price rise of raw materials such as cotton and chemical fiber

Shanghai sinaze import and Export Co., Ltd. is a silk fabric production and export enterprise. At the booth, the colorful silk fabrics are very good-looking, but Miss Luo, the export salesman, has a dignified face. She told reporters that in the past year since October last year, the price of white silk, the raw material for silk fabric production, has doubled. At present, the market price of each ton of white silk has exceeded 340000 yuan. Although the company has its own factory, but because the fabric export price can not catch up with the price rise of raw materials, so the export is basically unprofitable. She said that compared with the appreciation of the RMB, the rise in the price of raw materials will cause more damage to enterprises

located in Lanxi, Zhejiang Province, Jinsuo Textile Co., Ltd. is a large-scale textile enterprise specializing in the production of denim fabrics and clothing, with an annual export value of more than US $30 million. According to a salesman who did not want to disclose his name, since the second half of this year, some companies have been afraid to take orders, because the price of raw materials such as cotton yarn has risen too fast, which has caused the cost to rise. Foreign businessmen are unwilling to bear the cost, and they can’t digest it, so they have to take orders less. Take cotton yarn as an example. 1n August this year, the price per ton was 35000 yuan, and now it is 44000 yuan. At present, cotton yarn is almost a price a day, a rise is 1000 yuan to 2000 yuan, people are thrilled

according to some exhibitors and professional visitors attending the textile fabric exhibition, the main reason why the price rise of raw materials has become the most headache for China’s textile export enterprises is the imbalance of market supply and demand. 1n China, although the purchase price of cotton has increased a lot this year, the benefits of cotton farmers are not much, so the enthusiasm of cotton farmers has not improved significantly. 1n addition, frequent natural disasters this year will lead to a slight reduction in domestic cotton production. 1n the international market, the cotton fields of the United States, the world’s largest cotton exporter, have decreased and the output has declined, while 1ndia, the world’s second largest cotton grower, has issued export restrictions this year. Pakistan, one of the major cotton growers, has suffered a major flood disaster this year, resulting in a sharp decline in cotton output. These factors have resulted in the decrease of cotton supply and the rise of cotton price

at present, China has become the world’s largest textile and garment export country, and the demand for raw materials such as cotton is rising. Last year, China’s cotton import volume accounted for about 1 / 3 of the world. According to the statistics released by the General Administration of customs, from January to September this year, China’s clothing exports reached 93.488 billion US dollars, and textile yarn and fabric exports reached 56.327 billion US dollars, respectively, exceeding the historical high of 7.35% and 12.97% in the same period of 2008. The rising international and domestic demand and the shortage of textile and garment raw materials have become the main obstacles to the export of textile fabrics and other textiles in China, and may affect the development of China’s textile industry within a certain period of time

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