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Fanela

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+44 (0)1530 517 777

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www.fanela.co.uk

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Fanela has undoubtedly perfected t shirt screen printing methods with even better machinery and a superb team of experienced and dedicated staff, but the company will be hard pushed to keep their costs as low as they currently are as the cost of cotton is set to rise. And whilst t shirt screen printing sales are definitely on the up, there is likely to be a slight re-evaluation of price structuring as inevitable changes take place in the market.

The good news is that sales are most definitely increasing. One of Fanela's clients provides a large volume of screen printed t shirts for the souvenir industry, and as their orders with Fanela increase exponentially it is clear that more tourists are arriving in the UK. And of course summer helps the t shirt screen printing industry hugely – it is t shirt weather after all!

The bad news though is that the cost of buying a new t shirt, before it even gets screen printed, may have to rise in the next few months.

Cotton prices all over the world have jumped as a severe shortage bites. In Asia, the situation is so acute that Pakistan has slapped a 15 per cent duty on cotton exports and India has banned exports altogether to try and keep prices under control.

If price rises are sustained, as many industry experts expect they will be, these increases will eventually have to be passed on to customers. Fanela hopes to minimise the impact on its customers, but a slight price change is pretty much inevitable.

Analysts say that cotton consumption is expected to rise by an incredible 2.8 per cent this year, and in China alone, cotton prices have gone up more than 7 per cent in the last two weeks and a supply deficit is expected to last throughout the year. This year's adverse weather in China is the main reason behind the supply shortage - a significant amount of the Chinese cotton crop has failed due to heavy snowfall.

The supply situation is expected to ease next year as more cotton is planted and as better weather hopefully settles in to the new growing season, prices though are likely to remain higher for a while. But rest assured, Fanela is already looking at ways to add value to their product so that they are still the best t shirt screen printing company, with the best prices, around.