Major Problems Facing Textile Enterprises: Rising Prices Of Raw Materials

Despite many orders and rising prices, because of the worry about the change of exchange rate and raw material prices, textile enterprises generally avoid the risk by avoiding the long list. This is the situation in the third phase of the 109th Canton Fair, which ended in May 5th. In the order signed at the fair, the short and medium term accounts for 9%, and the order for more than 6 months is only 10%.

It is reported that after the economic crisis in 2008, the textile industry is short and medium. Order It began to dominate, but the reasons for this year have changed. The main reason for the short and medium term orders in the previous two years is that buyers are more cautious about the latter market, mainly based on phased replenishment, and unwilling to make longer orders. This year, the situation is quite different. Because of the frequent changes in exchange rate and raw material prices, export enterprises generally dare not sign long lists or even dare not accept them. Ministry of commerce data show that China in 2010 Export enterprises The average profit margin is 1.47%, and this year 1~2 month, further down to 1.44%.

The rising price of raw materials is the biggest problem facing textile enterprises. The annual cotton price increase in China from 2005 to 2010 is 5%, 3%, -5%, -5%, 40% and 86% respectively. In addition, the difficulty of recruitment and the appreciation of the renminbi caused the export cost of the industry to rise by 10~20%. In order to shift the cost pressure, the textile enterprises could not raise the quoted price. In March this year, the order price of textile enterprises generally increased by 15%~20% compared to the same year, and the price increase was similar to that at the Canton Fair.

China's textile and apparel exports in the first quarter of this year amounted to US $48 billion 627 million, up 23.96% over the same period last year. In February, the export volume of single month exceeded second US dollars for the past 20 billion times, a new record high, continuing the rapid growth trend in 2010.

However, the reasons behind the increase in export volume have changed stealthily this year. Editor in chief, Wang Jin, said that in the 2011, the "leading role" in promoting the overall export growth of China's textile and clothing has changed from quantity growth to export price rise, and also shows that export enterprises are facing increasing pressure of cost transmission.

Wang Qianjin believes that with the rising cost of domestic elements, the era of China's textile export products developing at a lower price has ended. And manpower by the end of 2007. Raw material price Compared with the rapid increase in exports and limited export prices, this year's situation is likely to show that China's enterprises have already exhausted their ability to tap potential in the face of cost increase, and will enter a process of corresponding increase in export product prices and cost prices in the future.