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    Textile Export Hidden Trouble &Nbsp; Production Cost Advantage No Longer

    2011/6/27 14:32:00 53

    Textile Production Cost Advantages No Longer

    According to the figures, the export volume of the textile industry is not dismal in the first quarter when cotton price "roller coaster".

    Customs data show that cumulative exports in the first quarter

    Spin

    product

    clothing

    49 billion 866 million US dollars, an increase of 23.68% over the same period, and the increase was 8.24 percentage points faster than the same period last year.


    "This is the reason for the increase in the prices of export products. On the contrary, the export situation is not very optimistic."

    China

    cotton

    Gao Fang, the Secretary General of the association, said.


    In the first quarter of this year, the export prices of Chinese textiles and clothing increased by 19.46% over 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 the price factors were eliminated, the volume of textile exports increased by only 3.53% compared with the same period last year, and the rate of increase was 10.75 percentage points lower than that of 14.28% in the same period last year.


    High priced exports will inevitably affect foreign trade orders, and the pressure of RMB appreciation will lead to the loss of textile and apparel orders.


    "Some orders have begun to pfer to Southeast Asia, such as Vietnam, Bangladesh, Indonesia and other countries."

    Gao Fang introduced.


    H&M also confirmed this.

    H&M also has factories in Southeast Asia. Due to the increase in raw material costs, production costs and human costs, some of the low value-added products have been pferred to factories in Southeast Asia. "We have pferred some orders which are slightly complicated in European factories to China."


    In the first two months of 2011, the number of garments imported from the United States increased by 8.47% compared with the same period last year, while the growth rate of imports from Vietnam, Bangladesh and Indonesia was 19.25%, 31.26% and 17.43% respectively.


    In addition to the pfer of orders, cotton prices are uncertain, affecting enterprises not dare to receive orders or orders also become export worries.


    "Cotton price trend is not clear, now the order is little, there is also do not dare to pick up the big list."

    A person in charge of an enterprise in Heze, Shandong, regrets after attending the Canton Fair known as "barometer of foreign trade".

    The official said that the big bills and long bills were very "hot" and were more likely to take short-term orders with low risk and controllable costs, and buyers were also cautious about placing orders because of the uncertainty of cotton prices.


    By the end of March this year, the eight departments of the NDRC jointly formulated and promulgated the "2011 cotton temporary reserve plan". The scheduled execution time was determined from September 1, 2011 to March 31, 2012, and the provisional storage price was 19800 yuan per ton of standard grade lint to the warehouse.

    "Many buyers regard this as a psychological price. They use a little bit of procurement and who wants to spend more."

    Jiangxi a cotton mill said.


    If the price of temporary purchase and storage affects the psychology of buyers, the rumors of "reducing textile export tax rebate" will affect exports.

    In the 12th Five-Year plan, the textile industry was identified as a key producer of overcapacity, high pollution and high emissions.


    "At the beginning of the year, the rumors that the state will lower the textile export tax rebate has not been broken.

    Some enterprises are also hesitant.

    Zhu Lanfen, honorary vice-chairman of China Cotton Textile Industry Association, said.


    Affected by the previous financial crisis, the export tax rebate rate for textile and clothing products was raised from 11% to 16%, and this hearsay is 5 percentage points down to 11% of the tax rebate rate.

    If the export tax rebate is calculated in 2010, the export tax rebate for textile and garment will be reduced by 65 billion US dollars, equivalent to 1/3 of the profits of the whole industry.


    "Low value-added low price advantage is no longer suitable for China's textile industry."

    "China's production costs are no longer advantageous, and labor - intensive industries are no longer suitable for China," Gao Fang said.

    We need to work hard on products and R & D to increase the added value of products in order to hedge against the export disadvantage brought by the disappearance of price advantage. "


     

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    Rate Hike Is Expected To Increase &Nbsp; Cotton Is Still Difficult To Get Out Of The Weak Situation.

    In recent years, cotton rebounded sharply due to the rebound in the dollar index, coupled with the plain sales of downstream cotton yarn, and it is still difficult for the latter cotton to get out of the disadvantaged situation.

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