No Essay

643 words - 3 pages

Fabric pricing factorsIf you are in the specialty fabrics industry, you're aware of the sharp price increases that have occurred in recent months. As a buyer, you anticipate the increases and try to minimize them. As a seller, you pass through the increases in a way that is consistent with what your competitors are doing, and you explain the factors driving the increases to your customers.While the use of fabrics for graphics applications continues to grow rapidly, it is still relatively small compared to the quantities being used worldwide in the apparel, home furnishings, automotive and industrial markets. It is for those traditional textile markets that most yarns and fabrics are produced. When it comes to pricing, supply and ...view middle of the document...

Flooding in Pakistan in 2010 destroyed most of its cotton crop and reduced global supply, which triggered the spike in cotton fiber prices. Countries that would have exported much of their cotton in 2010 kept it for domestic processing or held it in speculation that the prices would continue to rise.The average price for cotton fiber over the past 40 years has been about 62 cents per pound. In January 2009, the price was about 50 cents per pound. In 2010 it was 75 cents per pound. By January 2011, it rose to $1.50 and it peaked in March at $2.12, an unprecedented high price.As cotton prices rose, fabric producers began to use more polyester and poly/cotton blends, which drove polyester prices up sharply. At the same time that cotton prices were rising, crude oil, the primary raw material used for making polyester, rose from $40 per barrel to over $100. Just about everything that could happen to put upward pressure on prices (tight supply, strong demand, high raw material costs) has happened.Many of the changes affecting fabric prices impact the cost of other printable materials. Through all of this volatility, we need to remind ourselves and our customers that an image printed on fabric conveys a message of high quality and lasting value. That will not change.On this article we can se the change in demand for fabrics in 3 years time and how they its increase as we move on, that due to the new clothing industry, and in highly demand for graphical industry, fabric is a important agriculture and raw material that it will effect other items for example:Increase in price of fabrics XED= %Qd b Decrease in demand of clothes %P aOrIncrease in price of fabricsIncrease in demand of plastic

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