The pressure of cotton prices has been pmitted to the upstream dyestuff industry.

In April 26th, I learned from the China International dyestuff industry and Textile Chemicals Exhibition held in Shanghai

"We must be losing money in the first quarter of this year."

The largest single production in China

This is the first loss in the past few years.

"Last October, businesses began to feel the market environment was deteriorating."

Huang Hongying introduced that cotton prices rose last year, and many of their downstream buyers abandoned cotton yarn business to make chemical fibers, and the market orders fell rapidly.

"Generally 3-5 months are the traditional peak season for textile and clothing consumption, but this year's peak season is not prosperous."

Huang Hongying said that she felt that this year's exhibition was rather cold and cheerless. It was estimated that the high price of cotton would last for 1-2 years.

(editor's note: Fitch said the international credit rating agency, Fitch) said that with the rise in cotton prices at the first wavelength since the 90s of last century and the rising labor costs in China, many American brand clothing makers from NorthFace, Lee jeans to Levi s will be forced to raise their clothing prices this year, up 15% from last year.

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Reactive dyes are mainly used in cotton, linen and other textiles.

According to the data of China Dyestuff Industry Association, at present, hundreds of enterprises producing reactive dyes in China are producing 500 thousand tons per year, but the market demand is only 350 thousand tons this year.

"The industry generally estimated that half a year to shuffle, but I can not see that a month may be a business to raise prices, is the death of a live horse on the outcome."

Domestic dyestuff leading Zhejiang Longsheng group Limited by Share Ltd sales director Xie Jiangang judge, because of low production threshold of reactive dyes, small factories, small orders, most enterprises are afraid of losing.

Public data showed that by the end of 2009, the bulk commodity prices of cotton were 14873 yuan / ton, and in 2010, they had risen to 32000 yuan / ton. In April 26, 2010, China's cotton price index was 28300 yuan / ton.

At the same time, the "safety" requirement from downstream textile and garment enterprises is also promoting the reshuffle of the dyestuff industry.

Tian Liming, Secretary General of the China Dyestuff Industry Association, said that at present, some large textile and garment enterprises began to list their own "list of chemicals restricted substances", and put forward many prohibitions on the dyes for purchase.

Tian Li Ming said that in order to help dye enterprises attract more buyers, the association has launched the "certification list of chemical testing and certification enterprises" with the international authoritative inspection and certification agency Tianxiang group, providing guidance to downstream buyers.

"Generally speaking, certification can increase the trust of downstream dyeing and garment enterprises and increase orders."

Xie Jiangang said that for many enterprises, the pressure from environmental certification is even greater than the pressure of the market downturn.