Cotton Prices

13.10.2010

13.10.2010

In spite of a high rise in cotton prices, the Dingelstädter Strick GmbH holds the retail prices for the specialised trade stable towards the competitors. On account of the very in the long term ordered threads (from 1 to 2 annual productions) the company can fall back on a mixing calculation which intervenes only restricted in the pricing. The next spring / summer production is already prepared completely and is covered by available thread amounts. That’s why the Dingelstädter Strick GmbH can renounce price increases for the specialised trade. "If the "speculation" on the raw material world market continues, no manufacturer would go past with a prize adaptation", according to senior manager Erhard Schminke. However, it remains to be seen how the market reacts in long-term. The past has proved several times that higher cotton prices have also led to an expansion of the cultivation surfaces. So the price calmed down again. Result: in the short and medium term the Dingelstädter Strick GmbH has sufficient contracts, so that it will come to no price increases towards the specialised trade!

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