Textile And Garment Market Recovery "Blurred"

　　 第107屆中國進出口商品交易會(廣交會)第三期5月1日在廣州開幕。紡織服裝類作為收官之戰的主兵力，能否在日益緊縮的利潤空間里以提價求得市場復蘇，可謂霧里看花撲朔迷離。

On the 1 day, the third issue of the Canton Fair continued to be held at Pazhou Exhibition Hall. There are 17 exhibition areas, including 5 categories of textile and clothing, footwear, office, luggage and leisure products, medicine and health care, food and special products, and concluded in May 5th.

Whether the turnover of Chinese export enterprises can be resumed in the Canton Fair is widely concerned by all circles. The situation in the first two phases can only be said to be cautiously optimistic, but it still brings no hope for the third stage exhibitors.

However, in the three phase of the Canton Fair's textile and garment enterprises under the problem of cost control under the "internal and external troubles", it is obviously difficult to recover the growth, and its prospects are complicated and confusing.

According to statistics from the General Administration of customs, China's textile and apparel exports totaled about 167000000000 US dollars in 2009, down 10% from the same period last year.

In the first two months of 2010, the trend of export decline finally increased by nearly 30% over the same period last year.

However, in March, the decline was reversed by the rising costs and barriers to trade.

Industry experts point out that the average net profit margin of Chinese textile and garment enterprises is between 3% and 5%, and some enterprises have less than 3% profit.

If the cost and price of other production factors remain unchanged, RMB appreciation will be 1 percentage points, and corporate profits will also be reduced by 1%.

Because the bargaining power of Chinese textile and garment enterprises and foreign manufacturers is very weak, the possibility of raising prices is almost zero.

The cost increase of textile industry started from the end of 2009 is the largest in recent years. The labor cost and shipping cost of some enterprises have increased by about 3%. Textile enterprises have limited space to compress their own cost by themselves, and the upgrading of trade barriers has also increased the difficulty of export.

A textile enterprise in Ningbo said that the overall economic rebound in the international market will bring certain market recovery to the textile and garment enterprises, but the enterprises are suffering from the rising cost. Even if this year's Fair will increase, the profit will not be asserted as soon as possible.

Shanghai Pegasus said that the export of the company in March dropped by 15% compared with the same period last year, while raw materials such as cotton yarns were rising fiercely in recent days, and the company was competing with purchasers to raise prices, hoping that the other side could make concessions on the price.