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Fabric Cost Calculation: A Comprehensive Guide to Understanding the Breakdown

Updated: May 21




Introduction: Understanding the cost components of fabric production is crucial for manufacturers to ensure accurate pricing and maintain competitiveness in the market. In this comprehensive guide, we'll delve into the key factors influencing fabric costs, providing insights into the intricacies of cost calculation for different types of fabrics.

1. Raw Material Cost Calculation:

1.1 Non-Stretch Fabrics:

For fabrics without elasticity, such as cotton, the raw material cost is calculated based on the yarn usage per meter. Taking into account factors like fabric shrinkage during dyeing, we use the formula:

Raw Material Cost=(EPI×Width×0.65)/Warp Yarn Count×Yarn Price per GramRaw Material Cost=(EPI×Width×0.65)/Warp Yarn Count×Yarn Price per Gram

For instance, considering a standard cotton fabric with an EPI of 128, a width of 63 inches, and a warp yarn count of 21, the raw material cost is calculated.

1.2 Stretch Fabrics:

For stretch fabrics (weft or warp elastic), the process involves restoring the finished fabric specifications to the loom state. The yarn usage per meter is then computed using a similar formula, considering the specific characteristics of each stretch fabric type.

2. Weaving Costs:

Weaving costs are primarily associated with weft density and the type of weaving machine. Generally, weaving costs for cotton fabrics on air-jet machines are calculated as Weaving Cost=Weft Density/2.54×0.1Weaving Cost=Weft Density/2.54×0.1.

3. Dyeing, Printing, and Finishing Costs:

3.1 Dyeing Costs:

Dyeing costs vary depending on the type of fabric and season. Reactive dyeing costs for summer fabrics are around $1.5 per meter, while winter fabrics can cost approximately $2.8 per meter.

3.2 Printing Costs:

Printing costs depend on factors like the number of color sets and fabric width. Generally ranging from $2 to $5 per meter, the costs increase for complex prints.

4. Other Costs:

4.1 Inspection, Rolling, and Packaging:

Additional costs for inspection, rolling, and packaging typically amount to $0.1 per meter.

4.2 Value Added Tax (VAT):

VAT, usually at 17%, is applied to the total cost. For customers not requiring an invoice, a 3% discount may apply.

Conclusion:

Understanding the intricacies of fabric cost calculation is essential for manufacturers aiming to provide accurate pricing. This guide provides a comprehensive overview of the various cost components involved in the production of fabrics, ensuring that producers can make informed decisions and maintain competitiveness in the market. For specific fabric types and unique requirements, consulting with experienced production facilities is recommended to obtain precise cost estimates.

By adhering to these guidelines, manufacturers can optimize their cost structures, enhance product quality, and navigate the complexities of the textile industry effectively.

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