Although currency appreciation has long been a challenge for most Chinese export companies, at the recent China International Textile Fabrics and Accessories Exposition held at the Shanghai New International Expo Center, reporters found that many firms are now more concerned about rising raw material costs than exchange rate fluctuations.
Shanghai Sina Ze Import & Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk fabrics at their booth. However, salesperson Luo Yan looked visibly troubled. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled. The current market price for white factory yarn has surpassed 340,000 yuan per ton. Despite having its own factory, the company is struggling to make profits because export fabric prices have not kept up with the sharp increase in raw material costs. She emphasized that compared to the impact of currency appreciation, the soaring cost of raw materials has hit the company harder.
Jinsuo Textile Co., Ltd., located in Lanxi, Zhejiang, is a large textile enterprise specializing in denim fabrics and garments, with annual exports exceeding 30 million U.S. dollars. A sales representative, who preferred to remain anonymous, revealed that the company has been hesitant to accept new orders since the second half of the year. This is due to the rapid rise in cotton and Cotton Yarn prices, which have led to increased production costs. Foreign buyers are unwilling to absorb these additional costs, forcing the company to take orders despite the pressure. For example, cotton yarn prices rose from 35,000 yuan per ton in August to 44,000 yuan now. Prices change daily, increasing by 1,000 to 2,000 yuan per day, causing significant concern among industry players.
According to several exhibitors and professional visitors at the textile exhibition, the surge in raw material prices has become the top issue for Chinese textile exporters. This is largely due to an imbalance between supply and demand. While the purchase price of cotton in China has risen significantly this year, farmers haven’t seen much benefit, so their enthusiasm for growing cotton hasn’t improved. Moreover, frequent natural disasters have slightly reduced domestic cotton output. On the international front, U.S. cotton production has declined due to smaller planting areas, while India, the world’s second-largest cotton producer, imposed export restrictions this year. In Pakistan, major flooding has severely impacted cotton production. These factors have led to a tight global cotton supply 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 imported approximately one-third of the world’s total cotton. According to data from the General Administration of Customs, from January to September this year, China’s clothing exports reached $93.48 billion, while textile yarns and fabrics exported amounted to $56.327 billion—both surpassing historical highs by 7.35% and 12.97%, respectively, compared to the same period in 2008. The rising demand for textiles, combined with a shortage of raw materials, has become a major obstacle for the Chinese textile industry. It could hinder the sector’s growth over the coming years.
Shanghai Sina Ze Import & Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk fabrics at their booth. However, salesperson Luo Yan looked visibly troubled. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled. The current market price for white factory yarn has surpassed 340,000 yuan per ton. Despite having its own factory, the company is struggling to make profits because export fabric prices have not kept up with the sharp increase in raw material costs. She emphasized that compared to the impact of currency appreciation, the soaring cost of raw materials has hit the company harder.
Jinsuo Textile Co., Ltd., located in Lanxi, Zhejiang, is a large textile enterprise specializing in denim fabrics and garments, with annual exports exceeding 30 million U.S. dollars. A sales representative, who preferred to remain anonymous, revealed that the company has been hesitant to accept new orders since the second half of the year. This is due to the rapid rise in cotton and Cotton Yarn prices, which have led to increased production costs. Foreign buyers are unwilling to absorb these additional costs, forcing the company to take orders despite the pressure. For example, cotton yarn prices rose from 35,000 yuan per ton in August to 44,000 yuan now. Prices change daily, increasing by 1,000 to 2,000 yuan per day, causing significant concern among industry players.
According to several exhibitors and professional visitors at the textile exhibition, the surge in raw material prices has become the top issue for Chinese textile exporters. This is largely due to an imbalance between supply and demand. While the purchase price of cotton in China has risen significantly this year, farmers haven’t seen much benefit, so their enthusiasm for growing cotton hasn’t improved. Moreover, frequent natural disasters have slightly reduced domestic cotton output. On the international front, U.S. cotton production has declined due to smaller planting areas, while India, the world’s second-largest cotton producer, imposed export restrictions this year. In Pakistan, major flooding has severely impacted cotton production. These factors have led to a tight global cotton supply 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 imported approximately one-third of the world’s total cotton. According to data from the General Administration of Customs, from January to September this year, China’s clothing exports reached $93.48 billion, while textile yarns and fabrics exported amounted to $56.327 billion—both surpassing historical highs by 7.35% and 12.97%, respectively, compared to the same period in 2008. The rising demand for textiles, combined with a shortage of raw materials, has become a major obstacle for the Chinese textile industry. It could hinder the sector’s growth over the coming years.
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