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Price Chain: Strong? Fragility?

2010/11/11 14:05:00 53

Price Chain

  

Statistics show that China's September

CPI

It has hit a new high for 23 months, exceeding 3% warning lines for many months.

Inflationary pressure

Has been rising significantly.


The price trend from the commodity market can be verified. This year, from "garlic you ruthless", "beans you play" and "Jiang You Jun", to the current "sugar high" and "Ping what"...

The price of agricultural and sideline products has been "full flowering" trend.


As one of the agricultural products.

Cotton price

Step by step has brought our country.

Textile industry chain

The prices of rear products and alternative products are rising in turn.

When will the pressure on the raw material terminal continue to ease? Can the sub industries and even the distribution channels absorb the upstream cost effectively? Especially after the end of the current cotton boom, how will the enterprises adjust and digest the raw material stocks purchased at high prices?


Although the price pmission at the front of the industrial chain is very smooth, it extends to the middle end and the terminal of the industrial chain.

According to the statistics of National Bureau of statistics, in 2010 1~9, the apparel price index (PPI) of our clothing products increased by only 1.8%, and the consumer price index (CPI) of clothing products decreased by 1.1%.

According to information from the market, the price of home textiles and clothing products this year is far higher than that of the front end products. For example, some domestic textile brands have increased their retail prices by about 20% since April.

Under the pressure of too much cost, many enterprises have begun to use polyester cotton instead of pure cotton.


And clothing products from the fourth quarter of this year will see the order, brand enterprises generally rise 10 to 15%.

Although the terminal products are affected by many factors such as chain pmission links, the sensitivity to raw material cost is relatively low, and the cost absorptive capacity is strong. But facing the endless flow of raw materials, the price rise will also become a reality that has to be faced.

Some experts say that the terminal products are raw materials in the first two months before digestion. According to this deduction, prices will rise more in two months.


Although from now on, the domestic and foreign sales situation improves, the terminal demand signal will be uploaded.

But the affordability of terminal consumption can not be magnified by the increase of market demand. Once consumers do not pay the price, that is, the collapse of consumer bearing capacity, the bottom-up demand will be weakened.

At that time, the production links and circulation channels on the industrial chain will jointly pay for the poor price pmission.


In the first three quarters of 2010, China's textile industry handed over outstanding pcripts, supporting the recovery trend after the two quarter of 2009. However, we should also see that in the face of the rising cost this year, the pressure bearing capacity and price pmission ability of different links in the industrial chain are different, so the profit situation of different sub sectors is different. This also gives a further balance between the supply capacity and demand ability of the future industry, and puts forward a new proposition of balance and convergence.

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