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    Demand Recovery Is Hard To See. Textile Industry Is Trapped In "Double Kill"

    2011/11/23 9:31:00 3

    "Cotton price" roller coaster "not only hardships cotton farmers, but also our middle and small enterprises in the middle of the textile industry chain.

    Henry, owner of cotton mill in Xiajin County, Dezhou, Shandong, lamented, "from September to the beginning of the Spring Festival, cotton processing enterprises are busiest. But as far as I know, 95% of the enterprises in Xiajin county have already stopped production like mine.

    Some enterprises simply declared bankruptcy and started selling machinery.


    "It can be said that this year is the most difficult year in history, which is more difficult than the 2008 financial crisis."

    Sun Rigui, chairman of the group, regrets that there are two main reasons for the industrial predicament: first, the cotton price has gone up and down, which has aggravated the risk of enterprise operation; two, it is difficult to see the dawn of the recovery in Europe and the United States due to the financial crisis, and the weakening of consumer demand has led to a reduction in orders.

    "Past

    Europe and America

    Customers buy Shirts, buy one dozen, and now buy them for pieces. How big is the difference? "


    Many surveys in Shandong found that the situation of "not making money" is prevalent in all aspects of the textile industry chain.

    From cotton growers, cotton purchasers to cotton processing enterprises, cotton textile enterprises, and then to cotton finished products enterprises, there is no exception.

    The business people and industry experts interviewed by China Securities Journal believe that the cost of raw materials in textile enterprises is the highest.

    Cotton price

    Roller coaster

    sharp

    The risk of cost control has been enlarged and the old pain of textile industry can not be changed for decades.

    In the past few years, with the increase in China's accession to the WTO, in recent years, with the rising price of production factors, including the labor force, and the weakening or disappearance of many dividend policies, China's textile industry should not only deal with the "grab sheet" of some Southeast Asian countries, but also face shrinking orders due to the weak demand in Europe and the United States.

    This has become a "new wound" in the textile industry.


    They believe that the old textile industry may be relocated to export predicament next year.

    To deal with the old pain, the relevant departments should co-ordinate the layout of raw material production, and enterprises should improve their market adaptability.

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