China'S Flax Industry Is Overly Dependent On The International Market.

The increase of raw materials will directly increase the production of enterprises.

Since the beginning of this year, China's flax industry has been weighed by factors such as fluctuation of raw materials, rising exchange rate, inflation and interest rate increase. Over 90% of the textile industry of small and medium-sized enterprises has been tested.

In July 22nd, China's Flax trading market and industrial and Commercial Bank of China will launch the online commodity trading market financing business nationwide.

"Banks are generally unwilling to accept the collateral assets of SMEs because of their preference for fixed assets mortgages. Some banks even regard the textile industry as a sunset industry."

Yao Jianchun, general manager of China's Flax trading market, told the "International Financial Daily" that the financing environment is very tight at present. Through the way of warehouse receipt pledge, the backlog of inventory can be converted into working capital to ease the financing difficulties of small and medium-sized textile enterprises.

"Two ends in the outside" pattern

In fact, the difficulty of financing is only one of the problems to be solved urgently in China's Linen Industry.

In recent years, the planting area of flax has been shrinking and highly dependent on imported flax.

According to customs statistics, in 2010, China imported 142 thousand and 200 tons of flax raw materials, an increase of 33.68% over the same period last year, and imports amounted to US $235 million, an increase of 50.36% over the same period last year.

Meanwhile, the export linen yarn 23 thousand and 200 tons, an increase of 61.25% over the same period; exports linen fabric 161 million meters, an increase of 34.99% over the same period; exports of hemp clothing (including Ma 30% above) about 1 billion 643 million, an increase of 9.67% over the same period; export price 5.82 U. S. dollars / piece, an increase of 2.87% over the same period.

"Relative industry of China's Hemp textile industry"

Hu Tingting, general manager of Zhejiang Ming Rui Linen Textile Co., Ltd., the main yarn, pointed out that Normandy, France is the world's first producer of flax, while domestic flax farming is not very industrialized. Although Xinjiang and Heilongjiang also produce flax, the quantity is relatively small.

"At the same time, the gap between domestic and foreign retting technology has also allowed more foreign traders to designate flax from France."

Seeking "pricing power"

"Raw material prices will increase directly.

"Boycott capital" is also the purpose of establishing China's Flax trading market.

Yao Jianchun pointed out that the agreement between the Chinese flax trading market and the French Flax Textile Association agreed that the annual price increase of flax raw materials would be between 10% and 20% based on the reasons of order persistence and inflation.

"In fact, any sharp rise and fall will be disadvantageous to the sustainable development of the whole flax industry. In order to maintain the healthy development of the market, we must resolutely resist the malicious speculation of flax raw materials."

It is understood that the Chinese flax trading market has been jointly sponsored by China's Linen Textile Association, China Chemical Fiber Corporation, JINDA Holdings Limited, and Zhejiang Xiang Xiang group.

In this regard, Chinese textile expert Wang Qian said in an interview with reporters, "the establishment of China's Flax trading center will promote the linen industry to move forward in a good direction, which will make pactions more convenient and pparent, thereby constantly strengthening industrial concentration and forming pricing mechanism."

Strengthening terminal development

According to the "12th Five-Year linen textile industry development plan", at the end of 12th Five-Year, the proportion of domestic market and export market reached 1: 1.

During the "12th Five-Year" period, linen textile fiber usage increased by an average of 8% annually, and it was expected to reach 1 million 250 thousand tons (including other hemp fibers) in 2015 and 2 million tons in 2020.

It is a long way to go to achieve this goal.

In the view of analysts, the market development of domestic flax products is immature, and consumers' recognition of flax products is low, which is one of the factors that restrict the development of Linen Industry in China.

"Domestic flax market is relatively small at present, but flax as a traditional textile raw material is a kind of fiber with excellent properties, and there will be a good development prospect in the future."

Wang Qianjin believed that