Uprising yarn prices!!!!!
Cotton yarn price is increasing in the global market. In last 10 years or so it is in its highest peak. Every week the price is fluctuating, and sometimes situation is getting very difficult for Garments manufacturers to quote price of a garments order. Because yarn is the first thing you should think of while quoting garments for the buyers and it is the 40% of the manufacturing cost.
But no one is absolutely sure – why the price is so high? How high this price will go up and what will be the future of the garments business. In my opinion, this trend of yarn price hike is mainly because of the “after affect of the recession” and bad weather or natural condition in cotton supply area has been a great influence. In this article I have defended my views in the yarn price hike situation –
While the clouds of recession started clearing, the wheels of textile industry started spinning as a successful story. With more than 50% of the production being exported, companies started posting profits. Currently, a situation has come where the textile industry needs to face the music. Prices of cotton and yarn are skyrocketing, thereby affecting the overall profits of apparel businesses. Yarn prices increasing from March this year, and no one could give us idea that where it will end.
There is an increasing trend in the prices of yarn for the past one year. Due to increase in prices of cotton, yarn prices have simultaneously increased by 100%The Chinese currency is going to get stronger and stronger. The Chinese wages of the workers also are going up.
Is China still the country for Australian buyers to place orders ? Very truely to tell you that it is still a “YES” to the question.Vietnam, Cambodia, India, Bangladesh are indeed cheaper countries to place orders. However the order volume they require is big. They quantity they talk is in dozens instead of pieces. Also their auxiliary facilities, such as fabric, embroidery, handwork, washing, accessories factories are still not as sophisticated and good as those in China. Also their responsibility to you, mutual understanding with you and their workers’ mentality towards on the job from those countries are low that one might suffer a even bigger loss at the end after placing an order over there just because of the attractive pricing at the beginning
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