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In describing his response to the international financial crisis, most corporate official told reporters that their approach is “energy saving, technological innovation”, few people told me that he is in fact lower price in exchange for a portion of the market.

The major hazards to the financialfendi bags
crisis of shrinking demand. According to the law of supply and demand effects on prices, supply exceeds demand, prices will inevitably drop. When the company is facing cash flow problems of survival trial, fendi
so the profit is no alternative choice.

“It was a little profit or no profit have to sell products, or funds are not working, businesses have to close down.” A linen company bosses told reporters.

In such circumstances, none other companies selling into a lot of linen choices. Thus, 1 to 2 months to increase the export trade, Price has appeared the phenomenon of decline.

It is understood that hemp textile industry, the average profit margin at 3%, while that for the rest of the profits are minimal. At the same time, post-crisis era, the rising production costs and further increase the “trap” of depth.

Hemp particularly large number of employment, production and 1 ton of yarn of labor in about 500, about one ton of cotton yarn production of 10 times. This year’s “labor shortage” phenomenon is more serious than in previous years. Chinese New Year in previous years, when it is borne in the shortage of workers chanting, this year seems to have sustained the momentum. Higher wages to workers, to improve the accommodation, the linen business recruitment is still a clunker. It is Hemp production because of the difficult conditions, the factories have higher humidity and temperature. “Hemp and the workers make more than up, more people choose to the restaurant Duan Panzi, at least the environment is the better restaurants.” Reporter, a jute mill in Zhejiang Zhuji interview with a local said.

Mentioned difficulties with the prices of the products correspond to that raw material prices rose linen momentum. According to a number of companies from Europe and returned in person in charge, now the voice of the European flax raw material prices especially strong. Estimate will be the next action, raw material prices will face a new round up cycle.

If this behavior and the global price rise of natural fibrous materials, “collective” behavior of prices linked to price increases of such raw materials is more likely.

Tags: response to the international

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