Although exchange rate fluctuations have long been a challenge for most export companies, during the recent China International Textile Fabrics and Accessories Exposition held at the Shanghai New International Expo Center, reporters observed that many businesses are more concerned about rising raw material costs than currency appreciation.
Shanghai Xinze Import and Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk textiles at its booth. However, sales representative Luo Yan looked visibly troubled. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled, with the current market price for white factory yarn exceeding 340,000 yuan per ton. Despite having its own production facilities, the company is struggling to remain profitable as export prices cannot keep up with the rapid rise in raw material costs. "Compared to currency appreciation, the impact of raw material price hikes has been far worse for us," she said.
Jinsuo Textile Co., Ltd., based in Lanxi, Zhejiang, is a large-scale textile enterprise specializing in denim fabrics and garments, with annual exports exceeding 30 million US dollars. A salesperson from the company, who preferred to remain anonymous, mentioned that the firm has been hesitant to accept new orders since the second half of this year. The sharp increase in cotton and other raw material prices has made it difficult for foreign buyers to agree on pricing, forcing the company to accept orders even if they are unprofitable. As an example, Cotton Yarn was priced at 35,000 yuan per ton in August, but now costs 44,000 yuan. "It’s almost a daily price hike of 1,000 to 2,000 yuan, which is really concerning," the salesperson added.
According to several exhibitors and industry professionals at the exhibition, the surge in raw material prices has become the biggest headache for Chinese textile exporters due to imbalanced supply and demand. While the price of cotton has risen sharply this year, farmers haven’t seen significant profit increases, so their enthusiasm for planting hasn’t improved much. Additionally, frequent natural disasters have led to a slight decline in domestic cotton output. On the global stage, the U.S., the world’s largest cotton exporter, has seen a reduction in both planted area and production. India, the second-largest cotton producer, imposed export restrictions this year, while Pakistan faced severe flooding, drastically cutting its cotton output. These factors have contributed to a tight supply situation and soaring prices.
China is now the world's largest textile and garment exporter, and demand for raw materials like cotton continues to grow. Last year, China accounted for roughly one-third of global cotton imports. According to data from the General Administration of Customs, from January to September this year, China’s clothing exports reached $93.48 billion, and textile yarns and fabrics exports totaled $56.327 billion—both records that exceeded the historical highs of 7.35% and 12.97% respectively compared to the same period in 2008. The combination of rising international and domestic demand and a shortage of raw materials has become a major obstacle for China’s textile exports, potentially affecting the industry’s growth over the next few years.
Shanghai Xinze Import and Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk textiles at its booth. However, sales representative Luo Yan looked visibly troubled. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled, with the current market price for white factory yarn exceeding 340,000 yuan per ton. Despite having its own production facilities, the company is struggling to remain profitable as export prices cannot keep up with the rapid rise in raw material costs. "Compared to currency appreciation, the impact of raw material price hikes has been far worse for us," she said.
Jinsuo Textile Co., Ltd., based in Lanxi, Zhejiang, is a large-scale textile enterprise specializing in denim fabrics and garments, with annual exports exceeding 30 million US dollars. A salesperson from the company, who preferred to remain anonymous, mentioned that the firm has been hesitant to accept new orders since the second half of this year. The sharp increase in cotton and other raw material prices has made it difficult for foreign buyers to agree on pricing, forcing the company to accept orders even if they are unprofitable. As an example, Cotton Yarn was priced at 35,000 yuan per ton in August, but now costs 44,000 yuan. "It’s almost a daily price hike of 1,000 to 2,000 yuan, which is really concerning," the salesperson added.
According to several exhibitors and industry professionals at the exhibition, the surge in raw material prices has become the biggest headache for Chinese textile exporters due to imbalanced supply and demand. While the price of cotton has risen sharply this year, farmers haven’t seen significant profit increases, so their enthusiasm for planting hasn’t improved much. Additionally, frequent natural disasters have led to a slight decline in domestic cotton output. On the global stage, the U.S., the world’s largest cotton exporter, has seen a reduction in both planted area and production. India, the second-largest cotton producer, imposed export restrictions this year, while Pakistan faced severe flooding, drastically cutting its cotton output. These factors have contributed to a tight supply situation and soaring prices.
China is now the world's largest textile and garment exporter, and demand for raw materials like cotton continues to grow. Last year, China accounted for roughly one-third of global cotton imports. According to data from the General Administration of Customs, from January to September this year, China’s clothing exports reached $93.48 billion, and textile yarns and fabrics exports totaled $56.327 billion—both records that exceeded the historical highs of 7.35% and 12.97% respectively compared to the same period in 2008. The combination of rising international and domestic demand and a shortage of raw materials has become a major obstacle for China’s textile exports, potentially affecting the industry’s growth over the next few years.
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