Under Pressure, The Industry Is Worried That The Overall Competitiveness Of The Textile Industry Will Be Challenged.

As a dominant industry in China, the textile industry experienced unprecedented pressure in the first half of this year. Labor costs rose, the appreciation of the renminbi was expected, and the prices of raw materials surged. Under the pressure, the profits of many enterprises were cut down, and the industry has even begun to worry that the overall competitiveness of the industry will be challenged.

Labor is scarce and rising.

Since the beginning of this year, the lack of coverage has occupied an important position in the major media.

As a representative of the labor-intensive industry, the textile industry has a more direct and profound sense of lack of employment.

The head of the import and Export Department of a textile enterprise in Weifang, Shandong, told reporters that even when engineers were short of work, engineers should be caught up in the production line. "Not only is the workers working, but the managers are also working. When they are busy, the production line and containers are normal."

It is noteworthy that the shortage of workers is not only in the eastern coastal areas, but also in Hunan, Sichuan, Inner Mongolia and other provinces and regions.

"Almost all factories have their production lines idle, because they are short of labor, so it is very difficult to make full use of their production capacity."

A person in charge of a linen textile enterprise in Hunan province said.

In the absence of a thorough solution to the problem of shortage of workers, a wave of nationwide wage increases has brought new confusion to textile enterprises.

It is understood that this year, a total of 27 provinces and municipalities to raise or plan to raise the minimum wage standards, Jiangsu, Zhejiang, Guangdong and other foreign trade provinces, the adjustment range is more than 10%, and some provinces even more than 20%.

In recognition of this wave of pay increases, vice president of a silk enterprise in Zhejiang also told reporters that the industry is facing difficulties today. "The pressure brought by the pay increase to the textile industry in the second half of this year is likely to exceed the impact of exchange rate fluctuations".

The exchange rate is like a fog in the fog

In addition to the labor force, another important topic in the first half of the year is also closely related to the textile industry, which is the RMB exchange rate.

The average profit margin of 3% to 5% has become the consensus of the industry. If the RMB exchange rate appreciates one point, it is very likely that the meager profits will disappear.

Amid such worries, many textile companies had to be cautious when taking orders in the first half of the year.

In June 19th, the central bank's remittance decision was made public.

Based on market supply and demand, we adjust it with reference to a basket of currencies.

How high will the price of raw materials go up?

If labor force and exchange rate fluctuations originate from domestic pressure, soaring raw materials will be a major problem in the global textile market.

In the June China Manufacturing Purchasing Managers Index PMI, which was released in early July, the purchasing price index of textile industry was as high as 76.6%.

A person in charge of a textile enterprise in Nanjing, Jiangsu, told reporters that they should take cash to factories and other goods every day.

Because the price agreement signed before is totally out of the question, the price given by the factory almost varies from day to day.

Take cotton as an example, statistics show that from December last year, cotton prices rose by more than 30% year-on-year for 5 consecutive months.

Market participants generally expect cotton prices to exceed 20 thousand yuan per ton in the second half of the year.

In view of the textile industry in the first half of the year, there are industries.