Review: 10 Year New Year's Start &Nbsp; Textile Profit Increase

According to the National Bureau of statistics, China in 2010 1~2 months

In 2010 1~2, the total industrial output value and sales output value of textile enterprises above scale increased by 27.05% and 27.08% respectively, and the ratio of production and marketing was 97.90%, the highest level since 2008.

In addition, profit growth has changed significantly in statistics and is also affected by low base factors in the same period last year.

On the whole, the efficiency of China's textile industry is constantly improving and its development is still improving.

Textile industry quicker than national industry

In 2010 1~2, industrial profits above designated size increased by 119.7% over the same period last year, which is 45.11 percentage points higher than that in the textile industry.

However, if the profit base of 1~2 months in 2008 was calculated before the outbreak of the financial crisis, the average industrial profit above the national scale in 2010 1~2 increased by 17.4%, while the textile industry increased by 62.71%, reflecting the fact that the actual growth of the textile industry was more obvious. In 2009, the low base of 1~2 months had less impact on the whole textile industry than the national industry.

For example, from the analysis of 10 different sub sectors of textile industry, the profits of Enterprises above Designated Size in different sub sectors have achieved rapid growth.

Among them, the profit growth rate of cotton spinning, silk, chemical fiber and textile machinery industry is more than 1 times, and the growth rate of chemical fiber industry has reached 86.45 times.

Great contribution to cotton spinning, chemical fiber and garment industry

On the absolute level of increase in industry profits, the total profit of textile industry increased by 9 billion 748 million yuan in the month of 2010 1~2.

The profit growth of 1~2 in the chemical fiber industry is particularly prominent, which is similar to that in cotton spinning industry.

Since the first quarter of 2009, the market prices of domestic chemical fiber products have been rising continuously, and the industry boom has continued to rise, which has accelerated the rebound in the efficiency of the industry.

According to the index of China textile fiber price index, in February 2010, the average monthly price of polyester staple fiber was 10479 yuan / ton, an increase of 30.92% over the same period last year. The average price of nylon DTY, nylon FDY and nylon POY were 26660 yuan / ton, 25707 yuan / ton and 24300 yuan / ton respectively, representing a significant increase of 44.11%, 62.08% and 59.03% respectively.

Viscose staple average price in February has risen to 19120 yuan / ton, an increase of 57.71% over the same period.

Similarly, from the export market, the export volume of chemical fiber products, including synthetic fiber and man-made fiber, increased by 83.48% in 2010, and the average export price increased by 8.63% over the same period last year, 1~2.

The profit margin of the chemical fiber industry is also very significant. In 2010, 1~2 rose to 3.81%, up 3.74 percentage points over the same period.

On the base factor, in 2009 1~2, the profit of chemical fiber industry dropped by 110.54% compared with the same period last year, and the chemical fiber industry was in a low ebb.

Difficult to sustain high growth in the late period

From the perspective of the current development of the textile industry, although domestic sales are still good and exports have gradually resumed, but the constraints on raw material costs, labor and exchange rate and other issues, the industry's later level of profitability is still not optimistic.

In March 2010, domestic 328 cotton prices had risen to 15561 yuan / ton, an increase of 34.58% over the same period last year, and the pressure of cotton spinning enterprises continued to increase.

With the continuous recovery of the global economy, the demand for crude oil has also entered the recovery channel. The average price of WTI crude oil in March was 80.72 US dollars / barrel, an increase of 79.22% over the same period last year, an increase of 7.16% over the same period.

Driven by oil prices, PTA and other chemical fiber prices continue to rise, the profits of chemical fiber enterprises are also constrained.

Meanwhile, the Nanjing wool market index and the Australian raw wool index are also rising, and the cost pressure of the wool textile industry is also increasing.

The adverse effects of the sharp increase in iron ore imports will also gradually spread to the textile machinery industry.

In terms of employment, textile enterprises in Jiangsu, Fujian and Guangdong raised the minimum wage standards respectively, which increased by 12%, 24.5% and 21.1% respectively. In 2010 1~2, the total number of textile enterprises in the three provinces above designated size was 4 million 211 thousand and 300, accounting for 40.72% of the total number of textile enterprises in the country above scale, and the labor cost in the textile industry increased significantly.

In addition, the appreciation of the renminbi will have a serious impact on textile export enterprises.

Since 2001, the fluctuation of monthly profit growth of Enterprises above Designated Size in textile industry has shown that the change of profit growth rate from 2009 to early 2010 is similar to that in early 2002, which has also strengthened our judgement on the possible decline of profit growth in the late stage of the industry.