Experts Comment On How Cotton Prices Are Tied Up In Textile Industry Transformation

2010 - 2011 cotton year, at home and abroad Cotton price Showing a sharp wave of "double first and back waist".

The driving force of China's textile and clothing export growth is changing from quantity driven to price driven. From 1 to September this year, the number of actual exports increased by only 2.8% after deducting price factors, which meant that the export volume of many products had stagnated or even decreased compared with the same period.

2010 - 2011 cotton year, at home and abroad cotton The sharp fluctuation of prices has seriously affected the pace of transformation and upgrading of the textile industry. Last year, because of the soaring cotton prices, many factory directors were concerned about cotton, because the profits brought by cotton operation far exceeded the profit brought by technological upgrading and management upgrading.

In the first three quarters of this year, cotton and so on. Raw material Under the influence of fierce price fluctuations and slow international market recovery, the total output value of China's textile industry is still growing at around 30%. However, Wang Tiankai, President of the China Federation of textile industry, said: "this shows that the effect of structural adjustment of textile industry is beginning to show. Some of the dominant enterprises already have bargaining power. It also indicates that our market environment is becoming more and more complex. The general processing enterprises in the textile industry are still facing great risks. Especially stabilizing cotton prices has become a major issue affecting the whole world, and must be straightened out as soon as possible. industry chain "

Affected by factors such as rising cost of comprehensive factors and tight funds, industry The growth rate dropped month by month.

In the first three quarters of this year, China's textile industry grew faster than last year, but production slowed down obviously. From 1 to September, China's textile enterprises above Designated Size realized a total industrial output value of 3 trillion and 955 billion 793 million yuan, an increase of 28.98% over the same period last year, and the growth rate slowed down 1.05 percentage points compared with the first half of this year, slowing down 2.64 percentage points compared with the first quarter.

Domestic demand market to China textile industry The supporting role of operation is further consolidated. In the first three quarters, the sales value of textile enterprises above designated size was 3 trillion and 867 billion 126 million yuan, an increase of 29.22% over the same period last year, of which domestic sales amounted to 3 trillion and 196 billion 970 million yuan, an increase of 32.04% over the same period last year, and domestic sales accounted for 82.67% of the total output value, up 1.77 percentage points over the same period last year.

Domestic sales continued to boom. industry With the acceleration of internal structural adjustment and the enhancement of operation quality, the profitability of China's textile enterprises has increased over the same period last year. From 1 to August, the total profits of textile enterprises above Designated Size totaled 167 billion 27 million yuan, up 36.37% over the same period last year, and profit growth outperformed sales growth. In the same period, the profit margin of the whole industry was 4.99%, an increase of 0.23 percentage points over the same period last year.

However, the growth rate of profit has continued to fall due to factors such as the increase of comprehensive factor costs and tight funds. The profit growth rate from 1 to August dropped by 4.78 percentage points compared with the first half of the year, down 17.2 percentage points compared with the first quarter.

Export growth continued downward trend. Cotton yarn And cotton woven fabric clothing The number of exports decreased by 24.5% and 10.5% compared to the same period last year.

Since the beginning of this year, the international comparative advantage of China's textile industry has not been significantly weakened due to various negative factors at home and abroad. In the first three quarters, the trade surplus of textiles and clothing reached US $173 billion 564 million, an increase of 24.77% over the same period last year, and the share of the national trade surplus also increased from 115% to 162%.

"The driving force for the rapid growth of China's textile and clothing exports is changing from quantity driven to price driven." Wang Tiankai introduced that from 1 to September this year, the total export volume of textiles and clothing in China amounted to US $190 billion 717 million, an increase of about 24% over the same period last year. Among them, the export price of textile and clothing has increased by 20.9%, and the actual export volume has increased by only 2.8% after deducting price factors. Among them, there are factors such as raw materials, labor and other comprehensive costs that have to raise prices, and there is a relative rise in the overall bargaining power of products.

However, the increase in export volume is mainly driven by price, which means that the export volume of many products has stagnated or even decreased compared with that of the previous year, of which cotton products are more prominent. In the first three quarters, the export volume of cotton yarn, cotton, cotton knitted apparel and cotton woven garments decreased by 24.5%, 3.3%, 3.1% and 10.5%, respectively.

In addition, export growth continued to decline. Excluding the Spring Festival factor, China's textile and clothing export growth rate reached its peak in March. It began to decline in April. After a slight rebound in July, it fell to a new low this year. The textile export growth rate dropped to 16.5% and the garment export growth rate dropped to 13.8%.

The sharp rise and fall of cotton prices affect the transformation and upgrading of the textile industry, and we need to straighten out the industrial chain as soon as possible.

2010 - 2011 cotton year, affected by factors such as excess capital liquidity, slow recovery of world economy and restricted export of some countries, domestic and foreign cotton prices show a rare trend of "double first and later cut".

Severe fluctuations in cotton prices have seriously affected China's textile industry. "Market competition is not possible without price fluctuation, but no worse than price volatility. Cotton prices have become the biggest problem in the textile industry at present." Wang Tiankai introduced that cotton prices, such as cotton spinning, chemical fiber, clothing, home textiles, textile machinery and so on, were all affected by the sharp rise and fall of cotton prices.

The steep rise and fall of cotton prices have greatly affected the pace of transformation and upgrading of the textile industry. "Last year, because of the soaring cotton prices, many factory directors were concerned about cotton, because as long as cotton works well, it will far exceed the profits brought about by technological upgrading and management upgrading." Wang Tiankai said that the original intention of cotton slip tax and import quotas is to protect the interests of cotton farmers, but the market economy should straighten out the stakeholders of the industrial chain from the terminal. Today, cotton prices in Pakistan and other countries are cheaper than those in China. If we do not cancel the cotton sliding duty (according to the market price standard, the import tariff is imposed on different grades of tax rates), which is characterized by high commodity prices, low tax rates, high tax rates at low prices and import quotas, China's textile industry can only import large quantities of cotton yarn to participate in international competition.

"We have been looking for a fair competition environment and pursuing a relatively stable price for cotton. If we rely on imported cotton yarn, cotton spinning industry will fall, no one will buy cotton, and cotton farmers will lose their teeth. Therefore, the cotton problem should be jumped out of the respective interests of agriculture and textile industry to study and straighten out the whole industrial chain. Wang Tiankai said.

"Financing" has become a common problem of enterprises.

In addition to the sharp fluctuations in cotton, financing has become another problem affecting the operation of the textile industry. The frequent tightening of monetary policy this year has led to an increase in the cost of capital raising and a significant increase in interest expense.

According to the statistics of National Bureau of statistics, from 1 to August, the financial cost of China's textile industry increased by 34.49% compared to the same period last year, much higher than that of the main business revenue growth of 4.48 percentage points during the same period. "In the recent research conducted by the Federation," financing "has surpassed" orders "as the first difficult problem commonly reflected by enterprises. Wang Tiankai said.