Apparel industry is facing huge price increase in yarn, this is because of the cotton price increases in the global market. Poor supply from the cotton producer is the main cause. China is not the difference.
Cotton prices extended rally to a new height recently in China according to a Chinese media, Global Times.
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| Cotton prices reached new heights in China (Photo: china.org.cn) |
The average spot price for grade A cotton was RMB22,817 (US$3,392.86) per ton recently according to the China Cotton Index, recording a new height. The price hikes have been fueled by a decrease in production while demand has continued to rise, the National Development and Reform Commission said.
Ongoing cotton price hikes have already dried up profits at smaller textile firms and forced some to raise prices as well as stockpile the raw material, which has acted to drive prices up further, reported Global Times.
In order to ease the price pressure, the China Cotton Association released 600,000 tons of cotton from the country's reserves this August, and an additional 400,000 tons this month.
Source: Journal for Asia on Textile & Apparel, 29/09/2010
Ongoing cotton price hikes have already dried up profits at smaller textile firms and forced some to raise prices as well as stockpile the raw material, which has acted to drive prices up further, reported Global Times.
In order to ease the price pressure, the China Cotton Association released 600,000 tons of cotton from the country's reserves this August, and an additional 400,000 tons this month.
Source: Journal for Asia on Textile & Apparel, 29/09/2010
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