China : Price hike should have a transiting period, flax summit

Seventh China Flax Industry Summit was held at Zhaorong group in Daqing City, Heilongjiang province, on November 11. Many local leading flax industrial companies attended the meeting. The participators’ spindles reached 400,000.

The summit set the price ceiling for imported material, and readjusted the price bottom for exported flax products, according to the local flax-cut market trend and the bearing ability of local flax textile manufacturers. The meeting confirmed the guidance price for flax marketing, in order to promote the healthy and continuing development of the whole industry.

It is learned that in Europe the flax-cut output exceeded 140,000 ton in 2005, due to fast expanding areas and bumper harvest for years running. So the market price of flax-cut was hard to rise. But by the end of this August, the rainy weather during the harvest season in Europe reduced the production. French flax-cutting supplier raised the price by 25 percent by one time.

With flax material price suddenly hiking, the price of made-ups could rise in a short time. Chinese manufacturers generally regarded that it could be understood that European suppliers’ had the price raised to protect their flax farmers.

However, having the price increased by 25 percent for just one time was violating the market economic rules. Flax material price could advance, but there should be a transiting period.

China’s flax textile industry has obtained a fast growthin recent years and takes nearly 70 percent of the world total production, becoming the world largest flax textile industry with abundant and various products.
 
China’s production techniques and products quality both approach the world first class level, having brought new vital force into the old industry.

The participators felt, the boom of China’s flax textile industry has droved the development of European traditional flax planting industry. European growing industry is benefited from China’s flax textile industry. So only by seeking cooperation between China, European flax growing industry could realize mutual development.

 
Fibre2fashion, News Desk - China