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    Textile Industry Will Enter The Adjustment Section In The Fourth Quarter

    2010/10/29 23:29:00 44

    Four Quarter Of Textile Industry

     

    China Textile and garment industry boom index report and related industry data show that the three quarter of the textile industry boom continues to improve, export volume, number of employees, profits, fixed asset investment and other indicators have increased to varying degrees year-on-year growth rate.


    In the three quarter of 2010, the textile industry boom index was 101 points, up 1.1 points from the previous quarter, showing signs of heat.

    The prosperity index of the garment manufacturing industry in China was 99.1 points, which was basically the same as last quarter, and showed a downward trend.

    Overall, the economic performance of the textile industry is better than that of the garment industry.


    From the domestic demand, after initial seasonal adjustment, the sales revenue of textile industry was 735 billion 170 million yuan in the three quarter of 2010, an increase of 23.5%, an increase of 11.8% compared with the same period last year, and the sales revenue of garment manufacturing industry in the three quarter was 298 billion 170 million yuan, an increase of 19% over the same period, a 12.5% increase in the ring.

    Exports remain strong.

    After initial seasonal adjustment, the export volume of the textile industry in the three quarter of 2010 was US $57 billion 350 million, an increase of 29.1% over the same period last year, an increase of 40.6% over the previous year, reaching a record high. In the three quarter, the export volume of garment manufacturing industry was 38 billion 640 million US dollars, up 26.1% over the same period last year, basically returning to the historical average growth level.


    Fourth quarter, the textile and garment industry continues to uplink pressure, mainly due to rising prices of raw materials.

    Affected by the rise of cotton prices, the purchase of polyester staple fiber and viscose fiber products instead of cotton yarn has promoted the price of some chemical fiber products.

    The sustained rise in prices of raw materials pushed up the ex factory price of textile products in the first half of the year.


    It is worth noting that the rising price of raw materials such as cotton and chemical fiber played a significant role in promoting the profitability of the textile industry in the first half of the year.

    This is mainly because the price of intermediate products rises with the rise of raw materials and rises more than that of raw materials, and profits increase with the increase of costs.

    Take the yarn industry as an example, the cotton yarn industry has achieved 16% growth in the first half of this year, and the growth rate has been around 10% since 2000.

    The textile industry boom index also shows that the ex factory price index of textile products in the first three quarters is located in the red signal area.

    However, with the depletion of raw materials purchased at low cost, the newly purchased raw materials will compress the profit margins of textile enterprises.

    Therefore, the boom of cotton yarn industry has experienced a high point, and the possibility of slower growth in the four quarter is greater.


    The increase in the cost of raw material prices is mainly due to the digestion of clothing and other final product manufacturers. Due to the time lag in cost pmission (generally from raw materials to garments, it takes about 6 months), the impact of rising raw material prices on the garment industry has only begun to appear in the three quarter. This is also the main reason for the slight decrease in the profit margin of the garment industry in the three quarter.

    This trend will continue in the fourth quarter, and the total profit of garment manufacturers in the fourth quarter may be further compressed.


    Although the growth of the textile and garment industry is facing greater pressure in the four quarter, in the long run, textile and clothing as an important part of big consumption will benefit from the policy guidance of "12th Five-Year plan" to expand domestic demand, improve people's livelihood and increase residents' income.

    At present, there is still a clear gap between urban and rural incomes. The per capita consumption of clothing in rural areas is only 1/6 of that of urban residents. The comprehensive improvement of urban and rural residents' incomes, especially the increase of the income of the middle and low income groups, will greatly enhance the demand for textile products in the apparel industry and the industrial chain.

    In the long run, there will be huge room for growth in the domestic market of textile and garment enterprises in the next 5 years.


    At present, adjusting the structure is still the theme of the development of the textile and garment industry.

    Some unfavorable factors in the short term accelerated the pformation and upgrading of the industry, prompting enterprises to speed up the development of the two ends of the smile curve, improve the design and development level of the front end and the brand marketing ability of the rear end, and improve the profit margin of the enterprises by increasing the added value of the products, which is the only way for the structural adjustment of the industry.

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