The price of cotton soars: Henan garment company is “very calm”

The decrease in cotton production led to Zhengzhou's cotton sales price keeping pace with the country's uniform price increase, but Henan's apparel companies are very calm and did not issue price signals.

Due to the low price of domestic cotton in 2008, the cotton planting area in 2009 contracted and the output declined. The reduction in planting area and catching up with inclement weather caused a sharp reduction in cotton production in Xinjiang, leading to soaring cotton prices. On August 2, China's cotton price index reached 18,229 yuan/ton, while on August 3, 2009, this index was only 13,144 yuan/ton.

Zhang Bo, who has been engaged in cloth wholesale business in Zhengzhou Textile World for 15 years, said that since the Spring Festival, the price of cotton fabrics has kept rising. The price increase of cotton fabrics reached a new high since 2003, basically the price of cotton fabrics of each category. The increase was more than 20%.

The increase in cotton prices will inevitably lead to increased costs for the use of cotton fabrics, but Henan's clothing companies are very calm. According to Li Gang, the secretary general of the Henan Garment Industry Association, raw material costs account for less than 50% of garment processing costs. At present, garment processing companies in Henan have the ability to absorb the cost increase caused by the rise of cotton fabrics, and garment prices remain stable.

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