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Shoes And Clothing Industry Raw Material Prices Rise Raw Material Procurement Should Be Cautious

2012/9/19 12:45:00 23

TextileRaw MaterialsProcessing EnterprisesTextile And Garment Export

 

The market has long been concerned.

U.S.A

The third round of quantitative easing (QE3) recently landed on its boots, and the global commodities immediately rose as soon as the policy came into effect.

The raw materials related to shoes and clothing have entered the rising channel. The price of natural rubber has rebounded sharply under the background of global liquidity easing. The weekly increase has reached 6.98%. In the context of rising oil prices, the raw material of chemical fiber has also been on the rise. Polyester, nylon and polyester staple fibers have risen slightly.


Raw material procurement is more cautious.


Wei Wei, a Longwei textile specialist in Fujian, has been paying close attention to QE3 recently. "The impact is not showing yet, but it is expected that raw materials will rise in the future, especially downstream products such as chemical fiber and plastic."

Take nylon 66 30D as an example. At the end of July, the purchase price of Longfeng textile was 35 thousand and 500 yuan / ton. In September 17th, the price of Fujian Changle raw material market, nylon 66 30D had reached 41 thousand and 300 yuan / ton.


"According to past experience, quantitative easing policy will affect the trend of commodities, thereby directly affecting the procurement price of raw materials for textile and footwear enterprises."

Huang Qingfa, deputy general manager of Tianyu chemical fiber, told reporters that the price of the main raw material imported from the company was 23 thousand yuan / ton from the end of August to 25 thousand yuan / ton.

However, Huang Qingfa said: "the rise in downstream demand has led to a rebound in prices, but QE3 has also played a catalytic role."


Although most enterprises expect the price of raw materials to enter the rising channel, many enterprises have said that they will not increase the inventory purchase temporarily, but that they should make moderate purchases according to the downstream order quantity under the premise of keeping the minimum inventory limit.


Mid stream manufacturing industry under pressure


The strength of commodities is also favorable to the upstream raw material processing enterprises to a certain extent.

"Imported polyamide chips from abroad, produced as polyamide Silk raw materials, and then supplied to them."

Textile enterprises

From overseas orders to products shipped back to the country, it usually takes about a month, if the nylon chips are in a price rising channel, for example, the original order is 25 thousand yuan / ton, after a month to 28 thousand yuan / ton, the difference of 3000 yuan in the middle is equal to the profit, because the price of nylon yarn is rising at the same time.

Huang Qingfa said.


"Manufacturing enterprises in the middle reaches are under relatively heavy pressure."

Wei Wei told reporters, "the pricing of textile products is generally affected by two factors: one is raw materials, the other two is downstream demand.

If the price of raw materials increases and the downstream demand is not strong, enterprises will usually sacrifice part of their profits for the order.


However, in Fujian Province

Textile and clothing

In the eyes of Chen Cangsong, Secretary General of the export base chamber of Commerce, the most influential QE3 is export oriented enterprises. On the one hand, the rise of raw materials has further increased the cost of enterprises; on the other hand, if the RMB enters the revaluation channel again, it will further weaken the competitiveness of export enterprises and squeeze the already small profit margins of enterprises.

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