Textile Industry With Internal And External Troubles Drag On Spandex Industry

The spring river heating duck prophet, the textile industry's cold and warm, as the upper chain of production chain Spandex Enterprises can be said to be deeply aware.

If we take stock of the operation of the textile industry this year, "internal and external troubles" will undoubtedly be a true portrayal of the current industry.

At home, the acceleration of RMB appreciation, the tightening of monetary policy and the reduction of export tax rebate reduced the profit margins of enterprises. The growth of prices of main raw materials and energy resources all exceeded the increase in factory and retail prices. The new labor contract law entered into force, resulting in a large increase in per capita labor remuneration in the textile industry, and the export competitiveness of enterprises was continuously weakened.

Under pressure, the cost of textile and garment industry has been rising and operating is more difficult.

In the first 5 months, there were 10498 loss making enterprises in the textile industry, and the total industry deficit expanded to 22.85%, an increase of 1.57% over the same period last year.

Internationally, China's textile and garment export figures in the first half of 2008 are not optimistic.

According to statistics of the first textile network, in May of 2008, China's total export of textiles and clothing was 71 billion 316 million US dollars, up 12.42% over the same period last year.

Among them, export clothing and accessories were 37 billion 643 million US dollars, up 7.03% from the same period last year, the increase is lower than the national average level, and 11 percentage points lower than the same period last year.

United Securities believes that if the total export volume of textiles and clothing is almost zero, the export volume of clothing will decline.

Upstream spandex industry has also been implicated, most of the domestic Spandex Enterprises for the second half of this year's market appears to lack confidence.