2021 is still a bit special for many industries, because since the beginning of this year, many products have experienced price increases. It seems that except for the decrease in pork prices, the prices of other commodities are increasing. Including daily necessities, toilet paper, aquatic products, etc., prices have been raised without exception.
Including the textile market, various raw materials have also experienced price increases. More importantly, with the return of textile orders from India and other Southeast Asian countries, domestic textile companies have now taken on a large number of orders. However, an increase in orders should be a good thing, but many companies are worried. Against the background of rising raw materials, the profits of these textile companies have been repeatedly compressed, and there are even cases where they are afraid to accept orders.
Data show that from January to May 2021, the country’s textile and apparel exports were US$112.69 billion, a year-on-year increase of 17.3%. Clothing exports in May alone reached US$12.2 billion, a year-on-year increase of 37.1%. However, the prices of reserve raw materials and textile raw materials have been rising continuously, and the ex-factory price of cotton yarn has been adjusted “once a day” or even “twice a day.” Many people are curious about this: Is the peak production season for the textile industry coming? In fact, the pressure faced by enterprises is foreseeable.
For the textile industry, cotton yarn can be said to be the raw material with the greatest demand. However, starting from the second half of 2020, the price of cotton has continued to rise, and yarn prices have also been affected. Rough statistics show that the cost of gray fabric production by enterprises has generally increased by 20% to 30%.
While the prices of upstream raw materials are rising, downstream companies do not have much “right to speak.” Do not dare to increase the retail price at will, otherwise you will easily lose customers. This is why we say that while order volume increases, corporate profits decrease.
Changes in the prices of raw materials such as fabrics have caused the wholesale price of a common pure cotton quilt cover to increase by 8 yuan. For downstream companies, price increases are inevitable if they want to maintain profits. However, in order to maintain customers, only small adjustments can be made to prices.
Facing the current situation, many textile companies have some “regrets” because the textile industry market was in a downturn last year due to the impact of special circumstances. This year, many companies have begun to cautiously stock up on goods, and they basically buy as much raw material as they need. Unexpectedly, raw materials have increased sharply this year, and many of the orders in hand are based on market prices from the year before. Naturally, profits will disappear under this increase.
In the context of successive adjustments in textile raw material prices, some companies have discovered new business opportunities. To a certain extent, the fabrics of some clothes do not necessarily have to be made from raw materials such as cotton yarn. Many people may not have thought that plastic bottles can also be used to make clothes. Nowadays, this market also has a specialized process, including recycling waste plastic bottles through multiple processes such as cleaning and sorting to produce regenerated fiber filaments.
The performance of this filament is actually the same as that of virgin fiber filament, and there is no difference even in the feel. On the one hand, waste plastic bottles can be consumed, which is equivalent to protecting the environment; on the other hand, it can save costs for enterprises. Using waste plastic bottles to produce clothes can be said to be a good choice in the context of rising raw material prices. </p
