Cotton price increase effect shows Shenyang prices will increase in autumn and winter

The domestic cotton price has surged by nearly 50% over the past six months, driven by a decline in cotton production and rising demand. This price increase has now reached the consumer level, with some clothing wholesale and retail businesses in Shenyang raising their prices by as much as 15%. It is anticipated that the impact on autumn and winter clothing will be even more significant. According to an official from the Liaoning Provincial Textile Association, cotton prices have risen from 13,000 yuan per ton to 19,000 yuan per ton within just half a year. Despite this, the textile industry in Liaoning has seen a substantial improvement in profitability. The main reasons for the profit growth are twofold: first, higher apparel prices combined with increased raw material costs have put pressure on consumers, while second, many companies had secured sufficient cotton supplies in advance, allowing them to benefit from the subsequent rise in textile product prices, which also contributed to stock value appreciation. Currently, there are 20 textile enterprises operating in Liaoning, with annual cotton production reaching 100,000 tons. However, the total annual cotton demand from these textile companies amounts to 200,000 tons, creating a significant gap. To meet this demand, many companies rely on cotton sourced from Xinjiang, where production is more abundant. This reliance highlights the growing challenges faced by the local textile industry due to limited domestic supply. With the ongoing price volatility and increasing demand, it remains to be seen how long this upward trend in cotton prices can be sustained, and whether the textile sector will continue to benefit from these market conditions.