Hebei Textile Industry Profit Growth Is Facing A Larger Downward Pressure.

In October 29th, the provincial government information office held a press conference to announce that the price of raw cotton has exceeded 25000 yuan / ton, which is about 90% higher than that of the same period last year.

Geng Shuping said he expects cotton in Hebei this year.

Meanwhile, in the first three quarters, 1093 cotton spinning enterprises registered in the Statistical Bureau in the whole province realized 80 billion 570 million yuan of main business income, an increase of 23.78% compared with the same period last year, and realized a profit of 4 billion 40 million yuan, an increase of 23.43% over the same period last year. 123 of the loss making enterprises decreased by 15.75% compared with the same period last year, and the total loss was 225 million yuan, down by 29.68% compared with the same period last year.

In 1-8, our textile and clothing exports were US $2 billion 430 million, an increase of 46.33% over the same period last year.

On the one hand, the soaring price of raw cotton has led to a substantial increase in cotton yarn prices and a shortage of supply. Some enterprises have been forced to temporarily suspend production because of soaring cotton prices. On the other hand, the production and efficiency of textile industry in our province still maintain an increase of more than two figures.

There are three factors in Geng Shuping's analysis.

First, since 2009, cotton prices in Hebei have been lingering in the trough. After entering the first quarter of this year, in the face of increased international demand, import cotton prices continued to rise, pulling domestic cotton prices up.

Two, since the beginning of this year, considering the cost of labor, a large number of Southern orders have been sent to the north.

Three, part of the cotton textile enterprises to diversify into the real estate, investment guarantees and other fields, to a certain extent, also increased the overall effectiveness of the textile industry.

It is predicted that the textile industry is expected to face greater downward pressure on the fourth quarter profit growth on the basis of high cotton prices, no appreciating trend of RMB appreciation and no pressure on energy saving and emission reduction.

"The possibility of a fall in cotton prices in the first quarter of next year is unlikely."

Geng Shuping is most worried about the decline in the efficiency of some enterprises, affecting the lives of cotton enterprises employees, bringing instability to society.

He hoped that the government and all sectors of society would pay attention to the textile industry and the staff of cotton enterprises.