China'S Textile Raw Material Prices Rose By 44 - 65%

Investigations by foreign research institutions show that prices of textile raw materials and yarns, including synthetic and organic chemical raw materials, have risen by between 4 and 60% from the end of last year to the beginning of this year.

Cotton prices have surged nearly 70% since November 2008, but some have attributed the price surge to yarn businesses, saying they have squeezed production in recent years.

There is no denying that most of the raw materials of non cotton textiles are oil products, and the monopolistic petrochemical industry has strong pricing power.

For all monopolist, the pursuit of profit is the inevitable choice.

However, raw materials monopolist rarely realizes that soaring raw material prices in the upper reaches of 2010 may lead to a weak market for downstream textiles and clothing, while at the same time damaging the relevant manufacturing industries.

Some experts point out that the possibility of China's economy being dragged to the bottom of the valley is increasing due to the double squeezing of monopolistic prices of international raw materials and domestic materials.