The Yangtze River Delta Survey: The Private Textile Industry Is In A Difficult Position And Can Not Afford To Hurt.

Editor's note: prosperity falls, great joy to great sorrow, one year, domestic

The National Bureau of statistics data show that since 2011, the growth rate of textile industrial added value has continued to slow down. In April, it was only 5.9% in the month, and last year the growth rate was 11.6%.

What's wrong with textile companies? In order to find answers, reporters recently visited some of them.

Prices plummet and businesses lose money to inventory.

Shaoxing area is located in the middle and northern part of Zhejiang province. There are many local private textile enterprises and China in the area.

Before entering the Textile City, there was no longer a busy scene, and the market seemed deserted. It was hard to imagine that it was a market with a daily average of 100 thousand passengers and a daily turnover of 180 million yuan.

Shi Jiamei, the sales manager of Xiaoshan Desheng Textile Co., Ltd., runs textile products in the market. She told reporters that textile and textile raw materials and yarn were mainly traded in the Textile City, and the prices of textile raw materials and yarns have dropped sharply in recent years.

It is understood that since March, domestic textile prices have dropped sharply.

Raw cotton and viscose have fallen to nearly 10000 yuan in the earlier period, and yarn prices also fell. Last week, the price of 32 pure cotton yarns in Qian Qing market was 31000~32000 yuan / ton, which fell by 1250 yuan in one week, compared with 40000~42000 yuan / ton in early March, which shrunk by more than 9000 yuan.

"The inventory of our company basically cleared before the crash, but most textile mills are very high inventories, generally in about a month and a half."

Shi Jiamei said that the market was quite hot last year, and manufacturers were generally bullish and purchasing raw materials in large quantities.

Nowadays, high inventory becomes a problem. Many enterprises sell and sell at a loss.

Earlier overinvestment led to the current market oversupply. Shi Jiamei said that it was not virtual, which was in line with the normal market economy rule: blowing bubbles and squeezing bubbles, and the business cycle was the same.

The reporter visited a light yarn factory and found that piles of stock were easily visible and scattered around every corner of the factory.

Liu Qin (a pseudonym) manages a spinning mill in Xiaoshan. The annual output value of the more than 400 people is over 200 million yuan, which is already a large private textile enterprise in the area. Because of the high cost of cotton, the main production is 30 viscose yarn, and the yarn output is more than 700 tons.

"We have to sell at a loss, production can not stop, otherwise the pfer of funds week is very difficult."

Liu Qin seemed very helpless. At present, the factory has more than 400 tons of raw materials and 500~600 tons of yarn, which are all raw materials for high price purchase. The yarn stock is much higher than that of the normal two hundred or three hundred tons. According to the deficit of 1 tons, 5000 yuan has been calculated, and the total loss has been about five million yuan.

Rising costs are more difficult to manage.

In fact, at present, the difficulties encountered by textile enterprises are much more than the drop in inventory prices.

Labor costs, financial costs, utilities and other processing costs are related to the actual profits of enterprises, and these costs have been rising, making spinning enterprises more difficult to manage.

After the Spring Festival this year, there were frequent labor shortages in many parts of the country, the wages of workers rose and the cost of employment increased significantly, especially in Jiangsu and Zhejiang provinces.

Shi Jiamei said that the cost of local labor doubled over the previous year, and the cost of loaders increased from 15 yuan / ton to 30 yuan / ton. Woodworking cost 60 yuan per worker, and now it costs 200 yuan.

The wages of workers in Liu Qin's factory also rose rapidly, and the mobility of personnel was very large, which became a very troublesome problem in her operation.

"Labor cost is now the largest cost outside the raw materials of our enterprises, accounting for more than 1/3 of the total processing cost.

Last year, the salary of 1500 yuan ~1600 yuan / month is generally over 3000 yuan this year. The average wage of our factory workers is about 3500 yuan / month, which is 1 times higher than that of last year.

Liu Qin said.

Due to the change of China's population structure, the labor market structure has undergone great changes in recent years. The era of relative surplus of rural youth labor supply has passed, the demographic dividend is gradually disappearing, and labor shortage and labor cost increase will become a trend.

For textile enterprises, the financial and water utilities are equally burdens.

It is understood that the cost of borrowing by local banks in Zhejiang has reached the annual interest rate of about 10%.

At the same time, intensified electricity shortage highlights the rising cost of electricity generation. The rise of future electricity prices seems to be hard to avoid, and energy saving and emission reduction and power slug restriction will also affect the operation of enterprises.

Liu Qin calculated the accounts to reporters. The monthly labor cost in the factory is more than 1 million yuan, the water and electricity charges are about 1 million yuan, plus nearly one million financial expenses (mainly refers to the loan interest), the monthly total cost is about three million yuan, divided by the output of 700 tons, the cost of the yarn per ton is 4500~5000 yuan, according to the current price, the production of yarn does not make money.

"Spinning mill only spinning profit margin is not high, the normal profit of 1 tons of yarn is only a few hundred dollars, like last year's market profit of 1000 yuan per ton."

Liu Qin said.

It takes time for centralized demand to start.

Unlike previous years, the overall demand for domestic textiles this year is not very good.

The first textile network data show that in the first quarter of 2011, China's textile and apparel retail sales totaled 201 billion 400 million yuan, an increase of 22.3% over the same period last year, while the total exports of textiles and clothing were 49 billion 866 million US dollars, up 23.68% over the same period last year, and the growth rate was 8.24 percentage points faster than the same period last year.

The expected figures look beautiful, but excluding price factors is another.

In the first quarter of this year, China's textile and apparel exports to the world increased by 19.46% compared with the same period last year, of which textile prices increased by 24.31% compared with the same period last year, and clothing prices increased by 15.99% over the same period last year.

If we exclude price factors, we initially estimated that the number of textile and garment exports in China increased by 3.53% over the same period last year, which is 10.75 percentage points lower than that of 14.28% in the same period last year.

The price increase reflects the rising cost and slow volume, which is a fundamental problem for textile enterprises.

In April, domestic PMI data provided more evidence for weak demand.

In April 2011, the China manufacturing and logistics purchasing management index (PMI) released by the China Federation of logistics and purchasing was 52.9%, down 0.5 percentage points, with the new orders index and the new export orders index falling by more than 1 percentage points. The textile industry's multiple sub indices were all lower than 50%.

"The price is falling too fast, and the customers are taking a very small quantity, which is basically how much they buy."

Liu Qin said.

Shi Jiamei revealed that the demand for textile products is not good at present. Judging from the situation of Canton Fair this spring, textile enterprises' orders are not satisfactory. There are more short and medium bills, and a small quantity.

Since the resumption of the RMB exchange rate reform in June 2010, the RMB has continued to appreciate against the US dollar, and the current exchange rate has fallen below the 6.50 threshold.

Because the bargaining power of domestic enterprises is not strong, the appreciation of RMB will depress the export profits of textile and clothing to a certain extent, which is bound to have a negative impact on the growth of external demand.

"The market will probably be better by September, and some foreign orders will be coming down in the middle of the year. It will take some time for the demand to pick up."

Shi Jiamei said.

To eliminate inventory, digest costs and wait for demand to start, the domestic private textile enterprises are in the most difficult period.

"From the perspective of our enterprises, the situation is worse than the financial crisis. Last year we basically made it back, but we don't know what will happen afterwards."

Liu Qin was hurt. She was still waiting for the next spring of the textile industry.