Report On China'S Cotton Textile Industry In 2008

Since 2000, China's cotton textile industry has been developing rapidly, and its output value, profits and exports have been growing at a high speed. In 2007, the production capacity of cotton spinning has reached nearly one hundred million spindles, which has made important historical contributions to the development of China's textile industry.

Since 2007, the industry has encountered serious difficulties due to the adjustment of the national macro policy and the change of market demand at home and abroad.

In the first half of 2008, the industrial situation was even more serious.

We have noticed that for many years, the industry has attached great importance to the growth of production capacity. The extensive economic development mode is more obvious, ignoring the environmental governance and energy conservation, ignoring the optimization of industrial structure, which is one of the reasons for the current industrial difficulties.

Faced with difficulties, the industry associations believe that we should conscientiously implement the Scientific Outlook on Development, vigorously improve the contribution rate of technology and brands, promote independent innovation and technological progress, strive to optimize the structure, pform the mode of economic development, and take the road of economical development, and strive to minimize the pressure and impact.

1. Current development of cotton textile industry

(1) the production of yarn and cloth continued to grow, and the growth rate dropped considerably. The pfer of gauze production capacity to the central region was more obvious.

According to the National Bureau of statistics, 1-5 tons of yarn produced 8 million 340 thousand tons, an increase of 11.65% over the same period last year, an increase of 9 percentage points.

The provinces with the largest output remain Shandong and Jiangsu, accounting for 47.8% of the total output of the country. This year, 12 provinces, including Xinjiang, Inner Mongolia, Shanxi, Shaanxi, Sichuan, Guangxi, Guizhou, Heilongjiang, Heilongjiang and coastal areas, have seen negative growth in output.

Although the other coastal areas have maintained growth, the growth rate has dropped significantly, with the increase in Jiangsu and Shandong respectively by 19.46 and 5.3 percentage points respectively. The growth rates of Fujian, Jiangxi and Zhejiang have decreased by 19.57, 32.7 and 14.42 percentage points respectively.

Especially cotton spinning province Jiangsu yarn production increased by only 1.63%.

It is worth noting that the yarn production of Henan and Hunan provinces in the central region has maintained an increase of 40.43% and 26.72%, an increase of 7.68 and 9.67 percentage points, reflecting the characteristics of the coastal areas moving to the central region.

In the 1-5 months of this year, the output of cloth was 21 billion 700 million meters, an increase of 7.63%, a decrease of 4.6 percentage points over the previous year.

A total of 13 provinces showed negative growth in cloth production, and almost all provinces increased their output.

Among them, Jiangsu, Zhejiang and Fujian fell by 11.25, 6.32 and 13.49 percentage points respectively.

The largest increase in output of cloth was Hunan, Jiangxi and Anhui, with 78.7, 54.08 and 21.63 percentage points respectively.

The sharp decline in the output of gauze reflects the current situation of shrinking market demand, sluggish sales of products and extremely difficult industries.

(two) textile exports continued to grow, with a sharp drop in growth.

According to customs statistics, textile exports in the 1-5 months of this year amounted to 67 billion 983 million US dollars, an increase of 15.31%, of which cotton textiles and cotton garments exported 27 billion 96 million US dollars, an increase of 7.85%, an increase of 4.05 percentage points lower than that in April, a decrease of 17.5 percentage points over that of the same period last year, of which the export of cotton garments was 18 billion 164 million US dollars, which increased by 3.01% only, with a sharp decrease in the growth rate and a decline of 29.75 percentage points.

The decline of garment export growth directly affects the production and demand of cotton textiles.

The main export countries and regions of cotton products maintained a 58.5% growth rate except the EU's quota restrictions. The negative growth or the sharp decline in the growth rate of the other countries appeared.

Exports to Hongkong declined by 15.86%, exports to the United States decreased by 0.74%, exports to Canada declined by 35.05%, exports to Mexico dropped by 57%, and exports to Japan increased by only 1.99%.

The export of pure cotton combed yarn and pure cotton fabric decreased by 7.9% and 3.44% respectively. This year, the export of cotton yarn dyed fabric is 481 million 600 thousand meters, of which the denim is 191 million meters, up 11.9% and 19.08% respectively. The blended yarn dyed fabric is 137 million 600 thousand meters, of which 56 million percent of blended denim is 22.11% and 16.71%, respectively, and the export of dyed fabric shows a good trend.

(three) the economic benefits of the whole industry have kept steady growth, and the profit margins of enterprises are low. Most enterprises are facing serious difficulties.

In the 1-5 months of this year, the main business income of cotton textile enterprises above Designated Size reached 347 billion 600 million yuan, an increase of 18.5%, an increase of 7.55 percentage points.

Profit 12 billion 320 million yuan, an increase of 15.9%, an increase of 34.5 percentage points.

The average profit margin of cotton textile industry in 1-5 months was 3.54%, lower than the average level of 3.93% at the end of 2007.

Through data analysis, the profit growth of cotton spinning is completed by 1/3 enterprises (3645 households). The profit of the 1/3 enterprise is 12 billion 80 million yuan, accounting for 98% of the total profit of cotton spinning, with an average profit margin of 7.82%. These enterprises have strong competitive power in focusing on technological pformation and improving the added value of products.

Of course, many of these enterprises have non main businesses such as real estate development, securities investment income and the extension of industrial chain.

The current situation is that most enterprises (7040 households) that account for 2/3 face serious difficulties. The profit is only 240 million 600 thousand yuan, accounting for 1.95% of the total profits of cotton spinning. The average profit margin of these enterprises is only 0.124%, which is basically at the edge of losses.

The loss of cotton spinning deficit companies was 2 billion 364 million yuan, an increase of 66.3% over last year.

The deficit of state-owned enterprises reached 51.65%, an increase of 21.6 percentage points over the same period last year.

The above data show that the polarization of cotton spinning industry is further aggravated, accounting for 67.4% of the total employment of 2/3, and the rise and fall of these enterprises is related to the employment and social stability of a large number of migrant workers.

(four) investment in fixed assets has declined, and the momentum of rapid growth has weakened.

This year, due to the negative impact of macroeconomic changes, industry investment slowed down significantly. In 1-5, the textile industry invested 91 billion 700 million yuan, an increase of 16.82%, and the number of new construction projects decreased by 3.94% over last year.

The cotton textile industry actually invested 23 billion 849 million yuan, down 3.46%, and 608 new cotton textile projects, down 16.14% from last year.

According to the investigation, a spinning machine factory has reduced its spinning cradle by 50% this year, and the sales volume of other textile machinery enterprises has dropped sharply.

According to a textile machinery company, 550 thousand spinning machines sold in domestic market in 1-5 months, down nearly 50% compared with the same period last year, and 192 air-jet looms, down 38.7% from the same period last year.

According to customs statistics, imports of spinning machinery decreased by 22.5% in 1-5 months, and loom imports dropped by 18.87%.

The rapid development of the industry has begun to slow down and the pace of technological progress has slowed down.

(five) current market survey Bulletin

According to the cotton textile association of China sampling survey of cotton textile enterprises:

Order situation: 50% of the surveyed enterprises thought that the order in the first half of 08 was worse than last year, the average decrease was 22.46%, while only 8.3% of the enterprises increased over last year.

- boot rate: 31.43% of the enterprises surveyed were less than last year's start-up rate, 60% of them were flat last year, and 8.57% were slightly higher than last year.

- product inventory: the 61.1% enterprises' inventory increased by the survey accounted for larger liquidity, 25% of the enterprise inventory was flat last year, and 13.9% of the enterprise inventory decreased compared with last year.

The price of the main products: the sales prices of the main products, including high count yarn, medium and low count yarn, high count and high density fabric and ordinary fabric, which have been investigated by more than 50%-79%, are all lower than that of last year, and only 23.3% of the enterprises' premium yarn prices are rising.

54.8% of the company's high count yarn, 62.9% of the high density and high density fabric and 92.8% of the enterprise's combed yarn profits were reduced, and the profits of 15%-18% producing high count yarn and high density and high density fabric increased.

Labor costs rise: 86.1% of the surveyed labor costs have risen sharply, rising by an average of 12.3% over last year.

Raw material cost: the raw material price of 75% of the surveyed enterprises increased by 7.16% compared with last year.

The cost of energy pportation: 73.53% of the surveyed enterprises thought that the cost of energy pportation increased by an average of 7.16%.

The cost of energy conservation and emission reduction: 61.54% of the surveyed enterprises invested more and more in energy conservation and emission reduction, and the cost in this regard increased by 7.36% on average.

The results of the sample survey show that most enterprises face serious difficulties, and 20-30% enterprises still maintain strong competitiveness.

Two, the main problems facing current industrial development.

(1) the cost of various means of production has risen sharply.

Since 2007, the prices of production factors such as raw materials, water, electricity, steam, packaging, logistics, industrial land and so on have been fully increased in the cotton textile industry, and the cost pressure of enterprises has been increasing.

According to statistics, over the past 07 years, the cost of raw materials and energy prices increased by more than about 60000000000 yuan for Enterprises above Designated Size, about 1/2 of the total profits of Enterprises above designated size.

The raw materials increased by 3.2%. According to the survey conducted by the textile industry association at the beginning of the year, the price of raw materials of Guangdong small town chemical fiber increased by 30%, the price of auxiliary materials increased by 3-5%, the price of steam in Zhejiang increased by 50%, the price of water in Zhili town increased by more than 20%, the price of packaging materials in small town increased by 20%, the logistics cost of Fujian Changle increased by 100-200 yuan / ton, the rent of Zhangcha factory building in Guangdong increased by 30%, and the land tax in Shandong ocean, Zhejiang and Shengzhou increased by 2-4 times; in the first 5 months of this year, the domestic three grade cotton price increased by 5 yuan / ton compared with the same period last year, while the price of the combating carded cotton yarn was basically the same as that of last year, that is to say, the production of one ton of yarn, only one cotton, reduced the profit of yuan yuan / ton. 08 years of growth continued to increase, according to the National Bureau of statistics, 1-2 month textile

In 2008, the prices of all production factors showed a trend of further acceleration. The prices of main raw materials, energy and other means of production in the first quarter of the survey increased by 10% over the previous year.

It is estimated that the total material input cost of the whole industry will increase by 135 billion yuan over the whole year, which is about 1.1 times that of the previous year.

(two) rapid rise in labor costs

According to statistics, in 2006, the average per capita wage of textile workers was lower than that of the rest of the country. 30.34% per capita wages in Shaanxi and Xianyang provinces reached 17156 yuan in 2007, while the average per capita wage of cotton textile enterprises in Xianyang was only 12000 yuan. In Luoyang, the average annual wage of workers in 2007 was 19000 yuan, while the average wage of cotton mill workers was 12000 yuan, and the wage gap was relatively large.

In the past 2002-2006 years, the per capita wages of the textile industry increased by 12.48%, while the average annual growth of other industries in the whole country was 14.14%. The disparity of the per capita wage between the textile industry and other industries has nearly doubled in four years.

To stabilize the workforce, the wage level of textile workers must be raised faster than the national level so as to narrow the income gap gradually.

According to the survey, the average monthly salary of the textile industry in the eastern coastal area is 1300-1500 yuan, which has increased by more than 15%. The increase in the wage rate in 08 years is expected to be no less than the growth rate in 2007. The increase in wage level has further increased the labor costs of enterprises and intensified the difficulties of enterprises.

(three) the appreciation of the renminbi and the reduction of the export tax rebate rate bring serious difficulties to export enterprises.

The textile industry is the largest net earning industry. The export of cotton textile and cotton garments accounts for 41% of the textile exports in the 07 years. The rapid appreciation of RMB makes it difficult for the enterprises to take orders. The appreciation of RMB is over 6.19% in the 07 years, and the loss in the textile enterprises is about 62 billion yuan. The exchange loss of the enterprises above Designated Size accounts for 5% of the export delivery value.

The export tax rebate rate has been reduced to 11%, so that the value added tax of export products will account for 6% of the export volume.

RMB appreciation has exceeded 6.92% in 08 years and 1-6 months. If RMB appreciation is 10%, the whole industry will lose 143 billion yuan.

(four) cotton import slip tax policy, cotton purchase and processing value-added tax high and low and unreasonable policy and "two machine" import levy 17% VAT to increase the cost of enterprises, inhibit technological progress and industrial upgrading.

1. at present, the implementation of the cotton slip policy has made imported cotton prices more than 7% of domestic cotton. In 06-07, the average import tax rate of imported cotton enterprises was about 10%, which greatly increased the burden of enterprises.

The state's policy of protecting farmers' income in the process of market economy has not reached the result of protecting farmers. Cotton producers and intermediate circulation sectors have not received enough profits. The cotton textile industry has assumed high taxes. Most of the enterprises have difficulties. The number of enterprises stopping production and half stop production has increased. The demand for cotton has reduced the sales of cotton in Xinjiang. However, China's cotton textile enterprises are at a disadvantage in international competition.

Abolish or reduce the sliding duty rate. The 1% import tax rate is most cotton spinning.