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Cotton Price Increases By Roller Coaster &Nbsp; Sichuan Clothing Exports Drop By 40%

2011/8/20 10:26:00 39

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Cotton Price Sichuan Clothing

Reporters learned from the Chengdu customs, 1-7 months this year, Sichuan

Exit

Clothing $710 million, a sharp decrease of 42% over the same period last year.

Customs analysis said that the main reason for the sharp decline in exports was domestic.

cotton

The rising prices push up the cost of enterprises, and the accelerated pace of RMB appreciation also leads to further compression of the profit margins.

Phenomenon:

clothing

Exports fell 40% year-on-year

According to statistics,

Sichuan

The main way of clothing exports - General trade exports in the 1-7 month of this year, exports of clothing for 580 million U.S. dollars, a significant decline of 41.3%.

And the other way of trade mainly based on tourism shopping is down by 46.5%.

Among them, private enterprises, as the main force of clothing export, have the greatest impact on export volume.

It is understood that 1-7 months in Sichuan private enterprises export clothing 510 million US dollars, a significant decrease of 50.6%, accounting for 72.1% of the total value of exports.

Chengdu customs officials pointed out that since November 2010, the trend of clothing exports in Sichuan has risen to a decline. At the beginning of the year, it has been declining for 4 consecutive months, and has fallen to a new low since June 2009. Since then, it has been hovering at the bottom until the export scale began to rebound in July.

Reason: continuous increase in production costs

Why did Sichuan's clothing export go down sharply? The person in charge told reporters that the continuous increase of production cost is the main factor.

Cotton prices have gone up and down in the past year.

"Recently, domestic cotton prices have been hovering at high levels. The phenomenon of purchasing raw materials and purchasing factory products at higher prices" is very obvious.

In terms of labor cost, most of the employees' wage increase is generally between 10%-30%, especially in the textile and garment industry.

In addition, the phenomenon of "labor shortage" is spreading to the central and western regions, and many enterprises have difficulty recruiting workers and idle capacity.

In addition, the official said, "the accelerated pace of RMB appreciation has further squeezed the profit margins of enterprises. Many enterprises are afraid to take long lists and large orders. The export enthusiasm of enterprises has been greatly reduced, and the price advantage of China's export enterprises is rapidly declining."