Chemical Fiber Industry Is Looking Forward To The Export Tax Rebate Callback.

This year, the price of viscose staple fiber has dropped by about 30% in half a year.

The whole industry is facing tremendous pressure. The chemical fiber industry is looking forward to the export tax rebate.

"This is just a rational return."

For the outside world, "the export tax rebate rate of chemical fiber products decreased last year, which has caused a fatal blow to chemical fiber enterprises."

On this issue, Mei Gang, deputy general manager of Henan Ocean Chemical Fiber Group Co., Ltd. (hereinafter referred to as marine chemical fiber), told reporters in July 10th that "the price of this year has dropped by about 30% compared with the same period last year, but it is still normal compared with previous years, mainly because the appreciation was too great last year".

Tax rate reduction

This stems from the adjustment of export tax rebate rate last year.

In June 18, 2007, in order to gradually reduce China's external trade surplus, the Ministry of Finance and the State Administration of Taxation, the national development and Reform Commission, the Ministry of Commerce and the General Administration of Customs issued the Circular of the Ministry of Finance and the State Administration of Taxation on lowering the export tax rebate rate for some commodities, which has been implemented since July 1st.

The export tax rebate rate reduction related to the chemical fiber part, is the 12 major categories of viscose fiber and its products, including viscose filament, short staple direct export products and filament yarn downstream and yarn dyed dyed printing woven fabric, short fiber blended products downstream.

The tax rebate rate dropped from 11% to 5%.

This result has a direct impact on the direct export of viscose filament and staple fiber, which has a greater impact on the export of viscose filament.

Last year's adjustment coincided with the relatively high price of viscose filament and staple fiber, and the low demand season is coming.

It is reported that this adjustment involves all kinds of products with viscose fiber, and has spread to other fiber varieties such as polyester staple fiber blended with viscose staple fiber.

Last year, especially in the first half of the year, the chemical fiber industry was at its best, but this year the situation is quite different.

According to the website statistics, viscose staple fiber prices have continued to decline this year.

Taking 1.5D*38mm's staple as an example, the price fell by about 30% in half a year.

Xinxiang chemical fiber, which produces filaments, expects its net profit in the first quarter to decrease sharply from 1~6 to 50% over the same period last year.

According to the data of the NDRC, China's chemical fiber industry achieved a profit of 3 billion 720 million yuan in the 1~5 months of this year, a decrease of 26.8%, while its growth rate was 2.2 times in the same period last year.

These data also verify the argument of the ocean chemical fiber Mei Gang.

Urgent need to solve difficulties

Amid the downturn in the chemical fiber industry, the good news is frequent: the government is studying the policy of raising the export tax rebate rate for textile and garment, which may increase by 2~4 percentage points.

Industry analysis, this will have a good impact on the chemical fiber industry.

Because even if other factors remain unchanged, the export rebate rate raised by 2~4 percentage points alone will increase profits of export enterprises by 2~4 percentage points.

Moreover, the export tax rebate rate callback will promote the growth of textile and garment exports, and the demand of downstream enterprises will be restored, thereby stimulating the sales volume and price recovery of chemical fiber products.

Reporters from Henan provincial chamber of Commerce received interest. At present, the export volume of the entire chemical fiber industry is also in a downward trend. Many enterprises may be in a wait-and-see state, and expect the export tax rebate rate to be callback as soon as possible.

However, Mei Gang believes that the export tax rebate rate is unlikely to increase in the short term, and for the viscose industry, the current downturn is worldwide, and it will take some time to get out of this state estimate.

In response, Pang director, Henan import and export tax administration of the State Administration of Taxation, told reporters that "from the current situation, the appreciation of RMB is continuing and the trade surplus is increasing.

Personally, I believe that the current export tax rebate rate will remain for a period of time, and the possibility of a pullback in the short term is unlikely.

As for listed companies, Ren Jing, senior analyst at Guotai Junan Securities, said that the overall chemical fiber industry is not optimistic. In fact, Xinxiang chemical fiber has predicted that Shandong Hailong may be slightly better in the first half of the year.

However, according to the analysis of the industry, although the chemical fiber is in the doldrums, but in the medium to long term, especially viscose fiber, because of its natural cellulose regenerated fiber, it has more advantages than synthetic fiber, such as product performance, natural degradation, environmental protection and regeneration. It has broad prospects for development, especially its viscose filament yarn, which is one of the key industries in China's "11th Five-Year" period, and the big trend is optimistic.