This year, the price of cotton has fallen sharply. This is a good factor for textile companies, but at present it has become an important reason for the difficulties of Zhejiang small and medium-sized textile companies. Jinhua, a corporate business manager, said: “The current market price of 32 cotton yarns is RMB 32,500/ton, and it is RMB 1,300/ton during a single week. Our purchase price for cotton yarns is RMB 37,500, which is based on the current market price, which is a loss of 5000 yuan per ton. Around Yuan.†He also revealed that in Keqiao, Shaoxing, last year, when cotton prices were high, they were sold. As a result, companies with losses of tens of millions of books this year have been found everywhere.
Xiaoshan, a cotton textile company executive said: "I do not know how to deal with this group of cotton yarn. Even more unbearable for me, is the old inventory is not digested, the new inventory is still increasing, I dare not stop working, this year recruitment is already difficult, if I Dismissed workers, then the market conditions improved, if there is no skilled workers, but also delay things. Seeing stocks continue to increase, yarn prices fell every day, this day, really harder than in 2008." Rising labor costs also reduce the textile companies profitability.
The manager of the supply department of a textile company in Lanxi City said that the increase in wages in previous years was generally between 5% and 7%, which doubled this year and reached a range of 15%-25%. In the past, the ratio of labor costs to total costs was nearly 7%. This year it is expected to be as high as 10%. "Last month's wages for workers last year were 1,500-1600 yuan, and this year it was 3,000 yuan. Some skilled workers have a monthly salary of 3,500 yuan." Clothing companies report that due to the recent resumption of the debt crisis in Europe, European customers began to increase their time in terms of payment, from the original 30 days to 90 days, some even longer, reaching 120 days. After digesting the inventory of high-priced cotton yarn, the drop in cotton prices will reduce the cost of textile companies, but rising labor costs will become a long-term pressure on textile companies.
Xiaoshan, a cotton textile company executive said: "I do not know how to deal with this group of cotton yarn. Even more unbearable for me, is the old inventory is not digested, the new inventory is still increasing, I dare not stop working, this year recruitment is already difficult, if I Dismissed workers, then the market conditions improved, if there is no skilled workers, but also delay things. Seeing stocks continue to increase, yarn prices fell every day, this day, really harder than in 2008." Rising labor costs also reduce the textile companies profitability.
The manager of the supply department of a textile company in Lanxi City said that the increase in wages in previous years was generally between 5% and 7%, which doubled this year and reached a range of 15%-25%. In the past, the ratio of labor costs to total costs was nearly 7%. This year it is expected to be as high as 10%. "Last month's wages for workers last year were 1,500-1600 yuan, and this year it was 3,000 yuan. Some skilled workers have a monthly salary of 3,500 yuan." Clothing companies report that due to the recent resumption of the debt crisis in Europe, European customers began to increase their time in terms of payment, from the original 30 days to 90 days, some even longer, reaching 120 days. After digesting the inventory of high-priced cotton yarn, the drop in cotton prices will reduce the cost of textile companies, but rising labor costs will become a long-term pressure on textile companies.
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