Textile Exports Face Three Pressures

Faced with the gratifying export performance in the first half of this year, Mr. Shi, who has been engaged in textile export trade in Keqiao for many years, is under a lot of pressure. He said that at present, the appreciation of RMB, the rising of raw materials and the European sovereign debt crisis are undoubtedly the three "sword" hanging on the top of export enterprises.

Anxiety:

RMB appreciation is high

Since the central bank reaffirmed its reform, the central parity of the RMB against the US dollar has continued upward.

"RMB appreciation has once again been active, and the profit margins of enterprises have been narrowed."

Mr. Zhang, a manager of a curtain household textile enterprise in Shaoxing, bluntly said, "there may be losses in some long bills and large orders."

After the reopening of the exchange rate reform, the RMB rose by more than 4% on a single day.

It's already approaching 5%.

The floating ceiling is a shock to China's export trade.

As the most competitive industry in our county, the textile industry will feel the shock wave of RMB exchange rate elasticity.

Anguish:

The sound of raw materials is rising.

The price of raw materials and the rising cost of labor have been the unresolved worries of textile exporting enterprises.

Mr. Shi personally complained about the price rise of raw materials: at the end of last year, 20 cotton cabinets were ordered by the middleman to Pakistan cotton production enterprises, but only two cabinets have been sent to us now.

With the boom of international cotton prices, production enterprises refused to supply the remaining cotton yarn on the grounds of shortage.

According to Chinese customs statistics, in January this year, the price of textile yarn and textile fabric exported by China increased by 5.88% and 7.77% respectively in April.

Pressure:

Euro crisis continues to deepen

From the beginning of this year to June 25th, the depreciation rate of the euro against the RMB has reached 14.73%.

Some experts pointed out that the current EU economic situation is uncertain, China's textile and clothing exports to the EU growth momentum "inflection point" may arise.

Although 90% of China's textile and clothing exports are now settled in US dollars, the depreciation of the euro is limited.

But as the adverse effects of the European sovereign debt crisis are expanding, the impact is still unpredictable.