Although exchange rate fluctuations have long been a challenge for many export companies, during the recent China International Textile Fabrics and Accessories Exposition at the Shanghai New International Expo Center, reporters found that for many firms, the most pressing issue isn't currency appreciation—it's the soaring cost of raw materials like cotton and synthetic fibers.
Shanghai Sina Ze Import & Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk fabrics at its booth, but salesperson Luo Yan looked visibly concerned. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled, with white factory yarn now selling for over 340,000 yuan per ton. Despite owning their own factory, the company is struggling to make a profit because export prices can't keep up with the rapid rise in raw material costs. "Compared to the impact of currency appreciation, rising raw material prices are causing more damage," she said.
Jinsuo Textile Co., Ltd., based in Lanxi, Zhejiang, is a large textile company specializing in denim fabrics and garments, with annual exports exceeding 30 million U.S. dollars. A sales representative, who preferred not to be named, revealed that the company has been hesitant to take new orders since the second half of this year. The reason? Raw material prices, especially cotton and Cotton Yarn, have surged too quickly, and foreign buyers are unwilling to absorb the increased costs. As a result, the company is forced to accept orders even if they’re unprofitable. For example, cotton yarn was priced at 35,000 yuan per ton in August, but now it’s up to 44,000 yuan. "It’s almost a daily price hike of 1,000 to 2,000 yuan—this is really scary," the representative said.
According to several exhibitors and industry professionals at the exhibition, the sharp increase in raw material prices has become the biggest headache for Chinese textile exporters due to imbalances in supply and demand. While the price of cotton has risen significantly this year, farmers haven’t seen much benefit, so their motivation to grow cotton hasn’t improved much. Additionally, frequent natural disasters have slightly reduced domestic cotton production. On the international front, the U.S., the world’s largest cotton exporter, has seen a decline in both planting area and output. India, the second-largest cotton producer, imposed export restrictions this year, while Pakistan, another major grower, suffered from severe flooding, causing a sharp drop in cotton production. These factors have led to a global shortage of cotton, pushing prices higher.
China is now the world’s largest exporter of textiles and apparel, and the demand for raw materials continues to grow. Last year, China imported about 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 exports totaled $56.327 billion—both reaching historically high levels, up 7.35% and 12.97% respectively compared to the same period in 2008. The rising demand for textiles and the shortage of raw materials have become major obstacles for China’s textile exports, potentially affecting the industry’s growth in the coming years.
Shanghai Sina Ze Import & Export Co., Ltd., a silk fabric manufacturer and exporter, showcased vibrant silk fabrics at its booth, but salesperson Luo Yan looked visibly concerned. She explained that since last October, the price of raw silk—essential for producing silk fabrics—has doubled, with white factory yarn now selling for over 340,000 yuan per ton. Despite owning their own factory, the company is struggling to make a profit because export prices can't keep up with the rapid rise in raw material costs. "Compared to the impact of currency appreciation, rising raw material prices are causing more damage," she said.
Jinsuo Textile Co., Ltd., based in Lanxi, Zhejiang, is a large textile company specializing in denim fabrics and garments, with annual exports exceeding 30 million U.S. dollars. A sales representative, who preferred not to be named, revealed that the company has been hesitant to take new orders since the second half of this year. The reason? Raw material prices, especially cotton and Cotton Yarn, have surged too quickly, and foreign buyers are unwilling to absorb the increased costs. As a result, the company is forced to accept orders even if they’re unprofitable. For example, cotton yarn was priced at 35,000 yuan per ton in August, but now it’s up to 44,000 yuan. "It’s almost a daily price hike of 1,000 to 2,000 yuan—this is really scary," the representative said.
According to several exhibitors and industry professionals at the exhibition, the sharp increase in raw material prices has become the biggest headache for Chinese textile exporters due to imbalances in supply and demand. While the price of cotton has risen significantly this year, farmers haven’t seen much benefit, so their motivation to grow cotton hasn’t improved much. Additionally, frequent natural disasters have slightly reduced domestic cotton production. On the international front, the U.S., the world’s largest cotton exporter, has seen a decline in both planting area and output. India, the second-largest cotton producer, imposed export restrictions this year, while Pakistan, another major grower, suffered from severe flooding, causing a sharp drop in cotton production. These factors have led to a global shortage of cotton, pushing prices higher.
China is now the world’s largest exporter of textiles and apparel, and the demand for raw materials continues to grow. Last year, China imported about 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 exports totaled $56.327 billion—both reaching historically high levels, up 7.35% and 12.97% respectively compared to the same period in 2008. The rising demand for textiles and the shortage of raw materials have become major obstacles for China’s textile exports, potentially affecting the industry’s growth in the coming years.
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