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    RMB Appreciation Accelerated &Nbsp; Textile Exports Are Hard To Find New Buyers.

    2011/5/3 9:41:00 38

    RMB Appreciation Textiles

    although Cotton price In recent years, the international market has fallen back to China. Textile and clothing The weakening of demand and the acceleration of RMB appreciation will undoubtedly increase the difficulty of export trade for the textile and garment enterprises exhibiting at the 109th Canton Fair, and hardly see the appearance of new overseas buyers.


    Sang Qingdong, deputy director of the general manager office of Jiangsu sainty (600287, stock bar) Limited by Share Ltd yesterday told the first financial daily, the first quarter of 2011. Exit The result is not bad. This is mainly the order received at the end of last year. From January this year, the demand for textile and clothing in the international market showed a weakening trend. Because the global economy has not yet fully recovered, the European and American customers are in the market. Purchase It is not very active. It is expected that exports will slow down in the second half of the year. In view of the bad situation, we will not dare to raise prices at this Canton Fair.


    "No new customers have been found at this Canton Fair. They are all old customers. Judging from the current trend, our export orders for the whole year will be roughly equal to that of last year. The appreciation of RMB has increased and the pressure on export of enterprises has been increasing. We hope to speed up orders and shipments and minimize the impact of exchange rate fluctuations. Recently, the industry has heard that textile and garment export tax rebates will be lowered or we are also worried about being affected. Sang Qingdong said that this year, domestic and foreign markets are not as good as last year, and domestic sales are also difficult to reduce pressure on the export market.


    Since April, the pace of RMB appreciation has speeded up significantly. In April 29th, the central parity rate of RMB against the US dollar was 6.4990, breaking through the 6.5 important barrier at a single stroke and making the exchange rate reform a new high since then. Since the beginning of this year, the renminbi has appreciated by about 1.9% against the US dollar, and last year the renminbi appreciated by about 3.1% against the US dollar. Textile and garment enterprises generally reflect that since the opening of the third phase of the Canton Fair in May 1st, it has been significantly affected by the appreciation of the renminbi, and the competitive advantage of China's textile and garment export prices has been further lost, and some export orders may be lost.


    Lin Yan, manager of the cotton textile department of Hangzhou light industrial technology import and Export Co., Ltd., told reporters yesterday that cotton prices have dropped to below 30 thousand yuan / ton since March, and the pressure on raw materials has been relatively reduced. However, the gross profit of the company is still falling all the way. Currently, the biggest impact is the fluctuation of the exchange rate of the people's currency. The company adopts the measures such as forward lock up, US dollar loan and other measures to deal with the appreciation of the renminbi, and has just increased the exchange rate insurance coefficient through the price adjustment.


    Lin Yan said that the exchange rate has great impact on the business order. The yuan has recently depreciated to the euro, the pound and the Russian rouble. To some extent, some customers in these areas have increased procurement, but the overwhelming majority of the clients are still settled in US dollars, and the impact of the appreciation of the RMB against the US dollar is relatively large.


    "Renminbi appreciation As well as labor, transportation and other costs continue to rise, the price of this Canton Fair increased by 5%~20% compared with the previous Canton Fair. It is estimated that most customers can not accept this magnitude, and the final turnover of large orders can rise by 5%. Now the cost of China's textile and garment manufacturing export is catching up with Eastern Europe. The price advantage is gradually losing and the price is rising. There must be some orders to Vietnam and other Southeast Asian countries. Relatively speaking, the old customers are relatively stable. These customers take into account the cost and risk of changing new suppliers, and know the appreciation of the renminbi through the course of many years' cooperation, and the pressure faced by the Chinese textile and garment enterprises. They can accept the price rise to a certain extent, and the new customers turn around when they hear the high offer. Lin Yan said.


    Lin Yan added that although the cost of textile and clothing in Southeast Asia is also rising, the increase is smaller than that in China, and has an advantage in price. With the transfer of a number of domestic enterprises to Southeast Asia, the upgrading of production equipment and technology has been speeded up. The gap between Southeast Asia and China's textile and garment manufacturing is getting smaller and smaller. In addition, Southeast Asia in textile and clothing tariffs and other aspects are also more favorable than China. The sense of crisis that Chinese textile and garment export enterprises catch up with is gradually increasing.

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