Industry Perspective: The Zombie Survival Of Textile Enterprises

"I believe this crisis is even more serious than in 2008, and compared with three years ago, the government will no longer be saved like that."

Li Xiuhua, chairman of Zhejiang Huzhou Li Hua Textile Co., Ltd., speaking of the plight of the textile industry today, said that this year's crisis is a bit like "boiled frog in warm water". It is not as aggressive as the international financial crisis in 2008. However, under the influence of multiple factors, many textile enterprises are heading for a predicament.

"You can hardly find out which straw is the last thing that killed the camel."

"Three wastes and two high"

"Silk house" or history

Huzhou has been a famous "Silk house" in history.

However, this title will become an eternal history in the next few years.

"10 years ago, Huzhou City

It is understood that even in the remaining 14 reeling enterprises, now more or less reduce production.

Like the Silk Road this year, 4 groups of reeling machines had to be shut down.

"Each group can reclaim 30 tons per year, and 30 tons of raw silk price is 10 million yuan, reducing the 4 group, and the enterprise will reduce by 40 million yuan."

The large scale production and production reduction of silk reeling industry in Huzhou originated from the cocoon price in recent two years.

"Cocoon prices, 9 yuan per catty a year ago, began to soar last year, rising to 16 yuan per catty, and now it has risen to 23 yuan per catty."

Ling Lanfang said that the price of raw materials has skyrocketed, but the price of terminal products can only go up slightly.

"Flour is more expensive than bread, and silk reeling enterprises are mostly negative profits, and stop production and reduce production is inevitable."

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Wang Wei, Secretary General of Zhejiang Silk Association, said that China's cocoon production accounts for more than 70% of the world's total. The balance between supply and demand of cocoons is mainly regulated by the domestic market, and the demand for the final products of the silk industry depends mainly on the international market.

"In these two markets, silk enterprises have no pricing power and become" sandwich biscuits ", and the profits in the middle are reduced step by step.

Huzhou's silk reeling industry is also subject to tight resources such as water, electricity, land and labor resources.

"Cocoon prices will be running at a high level for a long time. The loss of silk reeling industry will be difficult to reverse in a short time.

Judging from the continuous sharp decline of silk reeling enterprises, the reeling industry will be inevitable if it retreats from Huzhou.

Roller coaster for cotton spinning enterprises

Unlike silk mills, which are trapped in raw silk prices, cotton textile companies are in a predicament of soaring cotton prices.

"Now the textile enterprises are sad!"

Li Qi, a business manager of a textile company in Shaoxing, told reporters that her company hoarded more than 100 tons of 32 pure cotton yarn last year when the price of cotton rose all the way.

However, since the beginning of this year, cotton prices have also dropped sharply as cotton prices have fallen all the way.

"In December last year, 40 thousand yuan / ton bought, now the price is only 30 thousand yuan / ton, every ton of cotton yarn loss of more than 10 thousand yuan."

Li Qi told reporters the trend of cotton prices from last August to now: in August of last year, cotton prices were 17 thousand yuan per ton, which began to soar in September, and rose to 33 thousand yuan per ton in two months, almost doubled. By February this year, it had reached a historical high price of 35 thousand yuan.

However, from March this year, cotton prices suddenly turned down, the price of cotton per ton, with 3 days down 500 yuan fast down, the same time less than two months, cotton prices fell to 22 thousand yuan per ton, a ton of more than 10 thousand yuan.

In this spring's Canton Fair, the short list of textile enterprises' export orders increased sharply, reaching 90% of all orders, and the long list was only 10%.

Unlike the previous two years, the unwilling to sign the order is no longer a buyer, but rather a production enterprise.

"Textile enterprises do not have no orders to answer, but dare not answer them.

The price of raw materials fluctuates violently, and the exchange rate has been rising.

Li Xiuhua said.

Even in these short lists, the profits from exports are very thin.

"In fact, in terms of volume, our orders in the first half were 15% more than that of last year, but we didn't earn half of it last year, and several orders were net loss."

Li Qi refused to disclose the specific figures of corporate profits, but she said that although the company often takes more days off during the power outage, the boss has not yet closed the idea of closing the factory. "He wants to take a look at it for a while. After all, if the workers are gone, it will be even harder for them to be recruited when they are in good shape."

Large scale closure of the virtual reality

Then, does the textile industry appear such as ye Tan's "70% of enterprises stop production, cut production" status?

Ma Zhouyong, director of construction and Management Committee of China Textile City, has given reporters a set of more optimistic figures: the turnover of China's light textile city group reached 38 billion 885 million yuan in the first half of the year, an increase of 15.84% over the same period last year, and the turnover reached 4 billion 106 million yuan in the spring fair, an increase of 10.3% over the previous period.

"Textile enterprises in June and July are themselves off-season production, and can not be compared with the peak production period."

Li Xiuhua also believes that "70% textile enterprises stop production and reduce production" is exaggerated.

However, he immediately admitted that he knew that a large weaving enterprise in Huzhou, "New South China weaving", had already shut down one of the two factories.

Liu Aihua, Secretary General of Zhejiang cotton textile industry association, told reporters that she has been researching in Shaoxing, Xiaoshan and other places in recent months, and has a lot of understanding of the plight of textile enterprises.

"Many large textile enterprises in Shaoxing regard enterprises as financing platforms and engage in real estate development and other businesses, while small businesses can not get loans at all."

"The reduction in the number of enterprises does not mean that the industry is in good condition.

Enterprises are in the "zombie" state, like vegetative people, though they still exist, but can we say that it is not a crisis?

Ye Tan said.