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    Rabbit Year "Opening Up" Difficult To Cover The Operation Pressure Of The Textile Industry

    2011/3/3 10:05:00 42

    The Rabbit Year Of Textile Industry

    At the beginning of 2011, China's textile industry exports and domestic sales both welcomed the "opening up" industry.

    Exit

    And domestic retail growth rate has exceeded expected performance, indicating that China's textile industry is still living in the good development of the upward range, but the excellent growth data performance behind, we still have to face calmly.

    The operational pressure of China's textile industry has not decreased in 2011, and the risk factors still need to be treated with caution.


    Export growth exceeds expectations


    According to the customs data of China, the export volume of textiles and clothing in January 2011 was US $21 billion 618 million, an increase of 38.58% over the same period last year, and the growth rate was 14.99 percentage points higher than the 23.59% in 2010.

    Among them, textile exports amounted to 8 billion 243 million US dollars, an increase of 47.48%, and garments and accessories exported 13 billion 376 million US dollars, an increase of 33.61%.


    Export of textiles and garments in China in recent years


      


     

     


    Source: China Customs


    In January, the export performance of China's textile industry was good, showing a relatively high growth rate, which was mainly influenced by multiple factors.

    First, the demand for global replenishment remains strong.

    According to data from the US Department of Commerce, business and business in the United States since 2010

    manufacturing industry

    The demand for replenishment has been showing growth momentum.

    As of December 2010, its business inventories grew by 8.06% compared with the same month last month, and manufacturing inventories grew by 7.93% over the same month, up from 1.07 in November 2010 and 1.19 percentage points in the same period.


    Second, the smaller export base in the same period last year also pushed up the export growth figures for January this year.

    According to China's customs data, in January 2010, the export volume of textiles and clothing reached US $15 billion 958 million, which was only 2.31% higher than that of the same period in 2009.


    In addition, we can see clearly that the phenomenon of centralized import and export before the Spring Festival is very prominent.

    In 2011, the Lunar New Year began in early February. In January, it became a concentrated action period for import and export trade. This is also an important reason for the rapid growth of textile and clothing exports in January this year.


    Domestic sales start a good start


    While the export data show an expected growth rate, China's textile domestic demand market also has the momentum of "rabbit" flying forward.

    According to the Ministry of Commerce monitoring data, in January 2011, the sales volume of 3000 key retail enterprises in China increased by 26.6% over the same period last year, and the rate of increase was 7.6 percentage points faster than that in December.

    Among them, sales of clothing products increased by 37.2% over the same period last year, which is 10.6 percentage points higher than the average growth rate of retail sales.


    At this stage, under the macro economic environment in China, the consumption enthusiasm of residents is rising, and the domestic consumption situation is still strong.

    The high growth of the domestic demand market will continue to play an important supporting role in the operation of our textile industry.


    January 2011

    Retail enterprises

    Sales growth of key products


      


     

     


    Source: Ministry of Commerce


    Prudent treatment of risk factors


    Although the export and domestic market data of China's textile industry showed a "good start" in January, we still have to face it calmly.

    The operational pressure of China's textile industry has not decreased in 2011, and the risk factors still need to be treated with caution.


    First of all, the high level of raw materials will continue.

    In 2010, driven by factors such as the worldwide cotton production reduction and the recovery of the world economy, the improvement of domestic textile enterprises and the increasing demand for cotton, China's domestic cotton prices rose strongly, and in the international market, the soaring price of cotton also led to the highest price since the American Civil War.

    Entering the 2011, the price of raw materials in the industry has not been stabilized, especially cotton prices are still rising rapidly, and with its influence and drive, the pattern of polyester staple fiber prices is rising after the Spring Festival.

    In 2011, domestic cotton supply and demand gap will continue to become an important support for high cotton prices. The arrival of interest rate increases and the influx of hot money will also make commodities, including cotton, continue to be sought after by capital, and the high price of cotton will continue for a certain period of time.


    Secondly, in recent years, the problem of rising wages will still be an important cost pressure for textile enterprises in 2011.

    After the Spring Festival, "labor shortage" has once again become the focus of media attention. Continuing to raise wages has become a problem that enterprises have to face.

    Some experts even suggested that "the era of cheap labor costs in China has ended."

    For our labor-intensive industries, the rising cost of labor will still be an important problem for enterprises.

    {page_break}


    In addition, at the beginning of the new year, the central bank continued to increase monetary control.

    Continuing the tightening policy in the fourth quarter of 2010, the central bank raised the deposit reserve ratio by 0.5 percentage points in January 20, 2011. In February 9th, the benchmark interest rate for RMB deposits and loans was raised by 0.25 percentage points in February 9th. In February 24th, the central bank continued to raise the deposit reserve ratio by 0.5 percentage points.

    The central bank has repeatedly emphasized the use of interest rates, differential reserve system and RMB exchange rate policy to control liquidity and inflationary pressure. This shows that the government's firm determination to push forward the pformation of economic growth mode also prompts the majority of enterprises to make financial preparations for raising financial costs and tightening the funding environment.

    At the same time, interest rate increase will further strengthen the pressure of RMB appreciation, which will have a certain negative impact on China's textile export enterprises.


     
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