Rising Prices Of Raw Materials And Appreciation Of The Renminbi Make The Textile City Plunge Into The Ice.

In the first half of the year,

In the first half of the year, we felt the smell of "warming up".

Since the beginning of this year, the global economic situation has been getting warmer and warmer, and the textile industry of Shaoxing county has continued to improve.

According to introducing, in February, Shaoxing county has realized self export 530 million US dollars, an increase of 234.6% over the same period, which is 70 percentage points higher than the average level of the whole city.

From 1 to February this year, the total export volume of the county has reached 1 billion 150 million US dollars, up 73.6% from the same period last year, which is 14 percentage points higher than the average level of the whole city.

Among them, Shaoxing textile and clothing export growth has been particularly eye-catching. Only in the first two months of this year, the export volume of these products has reached 1 billion 67 million US dollars, an increase of 74.89% over the same period, which is 9 percentage points higher than the average level of the whole city.

At that time, the head of the Shaoxing foreign trade and Economic Cooperation Bureau pointed out that in February, the Spring Festival holiday was encountered, but the monthly export value was still one month higher in recent years. This shows that the export of foreign trade is coming out of the shadow of the financial crisis and gradually recovering the growth trend.

Since then, the export situation of Shaoxing textile industry has maintained a good growth momentum.

Mr. Wang is the head of a textile export company in Qian Qing, and received an external order in April.

For this sample, Mr. Wang finally waited until 2 midnight in the printing and dyeing factory, and the proofing master arranged the schedule for him.

"Although it is already late in the evening, there are still a long queue of customers in dyeable factories."

Mr. Wang told reporters that if he did not wait for himself beside the machine, he would probably be put in another team.

In June, Shaoxing county also hit a new high of export in a single month.

According to statistics, in June, Shaoxing achieved import and export value of US $1 billion 80 million, an increase of 34.9% over the same period last year.

Among them, exports of US $807 million 270 thousand, an increase of 46.91% over the same period last year, has set the highest monthly import and export value in the county.

Shaoxing County Foreign Trade and Economic Cooperation Bureau responsible person pointed out that this year, the global market has been significantly warmer led Shaoxing county's exports, especially in the US market rebound significantly.

Secondly, the price of export products has also risen significantly, due to the rising price of raw materials.

In addition, foreign buyers are importing products for sale after "de Stocking". All these objective reasons have led to a resumption of export growth in Shaoxing county.

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Since September, traders have been feeling "cool" for a while.

However, despite the popularity of Shaoxing's export performance in the first half of the year, the county's textile industry is still in danger, especially in the second half of the year.

In the past September, the textile industry was just like the weather, and many cold currents attacked Shaoxing textile industry together.

First, after a quiet period in early August, cotton broke out again in September, or even more than 20%.

Reporters learned that in August, the state sold cotton reserves to stabilize cotton prices for some time, but it did not last long. In September, cotton prices rose again and faster than ever before.

In September 30th, China's cotton price 328 index showed that cotton prices rose to 22684 yuan per ton, up nearly 10 thousand yuan a tonne over last September's price and 4600 yuan more than one ton at the end of August.

Affected by this, the price of domestic cotton yarn has risen accordingly. For example, the price of 32S cotton yarn produced in Huaian in Jiangsu has reached 36 thousand yuan per ton at the end of September, up by 15 thousand yuan compared with the price in October of last year, which is nearly 4000 yuan higher than that at the end of June.

Affected by the price of cotton, T/R raw materials have been followed up.

The trend chart of viscose filament yarn price index shows that in September 21st, the price was quoted at 35800 yuan per ton, while in September 30th the price rose to 37500 yuan per ton, and in ten days it increased 1700 tons.

The T/R fabric operator of the textile city has shouted that the offer to customers has already been very high, but it has not kept pace with the higher prices of raw materials.

Secondly, raw material supply is unstable, and the foreign trade environment is not optimistic.

In September, the RMB exchange rate hit the biggest monthly increase since the reform.

Reporters learned that since September, the appreciation of RMB has increased significantly.

In the calculation of the central parity of RMB against the US dollar, there were 9 new trading days since September.

At the spot market closing price, the exchange rate of RMB against the US dollar closed at 6.6912 in the last trading day in September, compared with the closing price of 6.8074 on the last trading day of August, and the exchange rate of RMB against the US dollar rose by 1.74% in September, the largest monthly increase since 2005.

At the same time, the effect of energy saving and emission reduction in Shaoxing textile industry began to appear in September.

Reporters learned from the relevant authorities in Shaoxing County, in August 8th, the Ministry of industry announced the elimination of backward production capacity list of enterprises, Shaoxing county has 40 printing and dyeing enterprises listed, involving elimination of backward production capacity of 710 million meters, must be completed by the end of September.

In late August, the equipment was completely cut off, water cut, steam broken and sealed.

"From the procurement link, to the production process and even to the trade links, every link in the textile and foreign trade industry can not be saved."

Mr. Zhang, an operator of the textile market in the north, told reporters that the textile industry in September experienced a wave of cold waves. Many business owners could only take the lead to avoid the risk.

If the exchange rate increases by nearly 2% a month, it means that foreign trade exports lose 2% of the profit margin.

In the second half of the year, it is a question whether the pick up is still unanswered.

Though stimulated by the global economic rebound, Shaoxing textile industry looks impressive, but affected by factors such as raw materials, exchange rate and capacity reduction, Shaoxing textile enterprises also feel that their business is getting more and more difficult.

Mr. Zheng is the chief executive of a foreign trade company in textile city. He mainly deals in all kinds of bags and fabrics.

In his view, the grey cloth factory is the most powerful voice in the whole industry chain. Because the price of raw materials is one price per day, the earlier the grey cloth is, the lower the price.

So now he stares at the grey cloth factory every day, hoping to get the grey cloth at an early date.

It is not easy to make cloth factories.

Shaoxing County Qixian a weaving enterprise staff told reporters that because of the high price of yarn, some yarn quality has obvious defects, shoddy, coarse yarn filling fine yarn and so on.

Similarly, the foreign middlemen in the textile city are having a hard time.

A wholly foreign-owned enterprise in the China World Trade Center District of korbei mainly exports the British market. The products are dominated by trousers.

Although the prices of raw materials are rising frequently, British customers refuse to raise the price of trousers.

This means that the original profits of enterprises have been thinned by higher costs.

Reporters also learned from the parties concerned that in fact, as early as August, the export of textile and clothing products in Shaoxing county has shown signs of falling.

According to statistics, from 1 to August this year, Shaoxing County exported 4 billion 770 million dollars of textile and clothing, an increase of 34.9% over the same period last year.

But in August, it exported $650 million, a decrease of 15.5% compared to July.

In August, from the point of view of exports, the EU, ASEAN, Brazil and the United States were the main export markets of Shaoxing County, and the four accounted for 38.2% of the total value of textile and clothing exports in the same period.

It is noteworthy that the export growth of general textile and clothing trade in the county is much higher than that of processing trade.

From 1 to August, Shaoxing County exported 4 billion 650 million dollars of textile and clothing in general trade mode, an increase of 36.9%, and exported 120 million dollars in processing trade, down 14%.

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Increase added value of products and enhance bargaining power

Such a complex situation has made Shaoxing's textile industry breathless, but it has also made them more aware of the immediate problems.

Many entrepreneurs have come to realize that the survival environment of the textile industry has undergone tremendous changes, and the pformation and upgrading is imminent.

"In this market, the products with high added value have great impact, but the products with high added value are more secure than ordinary low-end products."

Ms. Dai, the head of a foreign trade company in Keqiao, told reporters that the profit level of the company's products is decreasing due to the rising cost, but the low end products demand is not high, and the scope of operation can also be large. Although the impact is not great, the potential risks can not be ignored.

"If the products with low added value are slightly careless in terms of quotations, production timing and raw material procurement, they will probably lose money."

Ding, a marketing manager of a foreign trade company in Fuquan Town, Shaoxing, also told reporters that it is more and more important to improve the product's personality by designing and increasing production processes, so as to improve the added value and bargaining power of products.

Simply attracting customers through price advantage will become more and more difficult to survive.

At the same time, the textile industry in Shaoxing has a high degree of dependence on foreign trade, but exchange rate problems, trade barriers and other issues are common. Domestic textile industry is increasingly valued by Shaoxing textile enterprises.

"We must take the road of branding and personalized domestic sales."

A deputy general manager of a printing and dyeing enterprise in an Chang County, Shaoxing, told reporters that compared with foreign trade, the domestic market is more stable, but the competition is equally fierce. It is not easy to succeed.

Therefore, his company is committed to product design, green ecology, brand marketing efforts, ready to sell in the domestic market "tight encirclement".

Some professionals believe that the manufacturing capacity of Shaoxing textile industry is strong, but the bargaining power of the market is not satisfactory, especially at this moment of internal and external troubles.

In this regard, he also believes that local textile entrepreneurs should be aware of the confusion ahead, abandon the vicious competition means to win at a low price, rely on the manufacturing capacity and product quality of enterprises to speak, and improve the industry's "right to speak".