Shandong's cotton import prices rise at the peak and approach the limits of the enterprise

Since the beginning of this year, the import price of cotton at the Shandong Port has been steadily increasing. Following the breakthrough of the US$1800 per tonne in June, the average import price in July reached US$1912 per ton, continuing to set a record high since January 2003. Qingdao Customs analysis believes that the high cotton price has already approached the limits of textile companies, and the domestic autumn and winter clothing price pressures have been highlighted.

Since the beginning of this year, the monthly import volume of cotton at Shandong Port has started to decline. Imports in March reached a peak of 154,000 tons during the year, after which monthly imports gradually declined. With the arrival of the off-season cotton consumption, under the influence of tightening global cotton supply and the sentiment of the cotton market, the import of cotton at the port of Shandong has begun to decline since June. In July, the number of imported cotton reached 60,000. t, a year-on-year decrease of 17.7%, a decrease of 22.4% qoq, the lowest since October 2009.

At the same time, the monthly average import price of cotton at Shandong Port has increased since January this year to reach US$1717/ton. Following the breakthrough of the US$1800 per ton level in June, the average import price in July reached another record high, reaching US$1912/ton. , year-on-year increase of 44.1%, a 3.5% increase from the previous quarter and continuing to set a record high since January 2003.

Qingdao Customs analyzed that the main reason for the increase in import volume of cotton at the port of Shandong during the first 7 months of this year was that the production of China's textile industry maintained rapid growth during the first half of this year, and the domestic cotton supply gap expanded. At the same time, the global cotton supply is in short supply, and international cotton prices have risen sharply.

It is worth noting that the purchase cost of high-priced raw materials has approached the limit for textile and garment companies, some companies have reduced the scale of production, and the price increase measures for finished clothing have been formulated. It is reported that since the beginning of this year, the retail price of branded clothing has generally risen by 10-15%. Due to the time lag of the upward pressure on cotton prices, plus autumn and winter clothing materials far more than summer products, it is expected that the wholesale price of apparel products will increase by 10-15% this fall and winter. At that time, the textile and garment export situation will also be adversely affected.