Textile Industry Suffers From Internal And External Troubles And Chemical Fiber Companies Are Suddenly Emerging.

Rising raw material prices, rising labor costs, shrinking foreign trade orders, weak domestic demand and financing difficulties.

Many factors restrict China's textile industry is facing many tests.

Recently, reporters went to Wujiang, Jiangsu, a gathering place of China's textile industry, and learned that, in the first half of this year, China's textile enterprises were gradually suffering from internal and external problems. The situation of small and medium-sized textile enterprises and natural fiber textile industry deteriorated further, and chemical fiber enterprises were seeking breakout because of their comparative advantages.

The Shengze town of Wujiang is a Chinese traditional one.

The latest figures released by the General Administration of Customs show that from 1 to May this year, China's textile and apparel exports totaled US $88 billion 835 million. From the sales amount, there are some signs of shrinkage in the growth of textile and clothing exports.

From January May, the export volume of textiles and clothing was 20 billion 338 million US dollars, an increase of 23.77% over the same period last year, down 9.76 percentage points from the 33.53% growth of the same period last year. The growth rate of textile and clothing also slowed down significantly compared with the first 4 months of this year.

"The appreciation of the renminbi and the reduction of foreign trade orders directly led to the decline in the sales volume of small and medium-sized textile enterprises with low-end textiles as the main products."

Cai Yanhua, Secretary General of Wujiang textile chamber of Commerce, told the economic reference daily that China's textile industry relies heavily on exports. Some enterprises are relatively single products with relatively small scale and foreign trade.

This is "foreign aggression" and "internal worry" is the first to bear the brunt of the rise of raw materials.

"The lowest cotton price has risen from about 12000 yuan / ton to about 34000 yuan / ton, and now it has dropped to about 24000 yuan / ton, and the price is still high. Cotton yarn has risen from 30 thousand yuan per ton to 60 thousand yuan per ton, and the variety is doubled."

Wen Hao, deputy general manager of Jiangsu Hengli Chemical Fiber Co., Ltd., told the economic reference daily that not only natural fiber prices are fierce, but also the cost of chemical fiber materials is rising.

In addition, there is an increase in labor costs.

According to Cai Yanhua, during the second half of last year to the first half of this year, the labor cost of Wujiang textile enterprises rose by 20%, and the monthly salary of textile workers rose to 3500 yuan to 5800 yuan.

Textile industry sources revealed that under the dual constraints of high cost and declining sales, textile enterprises' profits were further compressed: the average net profit of the industry was around six points in the past. According to the current situation, the profit may be only four points.

"The internal and external problems, plus small and medium-sized enterprises.

It is reported that in the recovery process after the financial crisis, loose monetary policy has led to a large scale expansion of the downstream industries in the textile industry. However, because of the long construction cycle, the textile and raw materials industry has generally lagged behind the downstream in terms of the construction period and the production time for at least one and a half years. The imbalance between supply and demand has led to a high profit margin and no inventory in the chemical fiber industry, and the capital chain is relatively loose.

In an interview with reporters in Wujiang, reporters learned that, in the background of the overall decline of the domestic textile industry in the first half of this year, the chemical fiber textile industry has obtained a great development which has never been seen before. Cotton yarn has increased sharply last year, resulting in a significant gap between cotton yarn and chemical fiber. The downstream garment factories can not accept such a high price of cotton yarn, forcing the Loom factory to find alternative raw materials.

"In 2008, the price of polyester was about 18000 yuan / ton, and the price of cotton yarn was 15000-16000 yuan / ton. Now the cotton price has risen to 23000-24000 yuan / ton, and the price of polyester still lingers around 18000 yuan / ton. This shows that as raw material, polyester can maintain a stable price."

Wen Hao said this year's constant force.

"Feel that the chemical fiber market has suddenly expanded a lot. Our gross profit margin last year and this year is the largest in recent years, with an average gross margin of around 30%."

Wen Hao said, at present, the market demand direction is to locate porous and ultra-fine special fiber products, that is, the performance is close to natural fiber alternatives. At this point, Hengli Chemical fiber is relatively advanced in domestic research and development, and its R & D fabrics have entered the global supply chain system of N Ike, A didAs, TOYOTA automobile and other brands.

Cai Yanhua, Secretary General of Wujiang textile chamber of Commerce, said that every crisis is an opportunity for the industry. In the long run, the use of synthetic cotton materials will be the trend of the times and the direction of the upgrading of the textile industry.