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    Textile Market Faces Big Test

    2012/3/5 14:13:00 26

    Textile Market Examination

    The textile and garment export data and PPI index released by relevant agencies in recent years both fell down, and the advance of the textile industry became more and more difficult in January.

    Experts believe that at least the first half of this year, textile industry will still be in a period of consolidation and upheaval.


    The related textile and garment export data and PPI index released by the relevant agencies in recent years have both dropped. In the spring of the spring, the pace of the textile industry's advance is more and more difficult.


    Customs statistics show that textiles in January 2012

    clothing

    Exports of US $21 billion 520 million decreased by 0.5%.

    Among them, the export of textiles was 7 billion 680 million US dollars, down 6.8%, and clothing export was 13 billion 840 million US dollars, an increase of 3.5%.


    In February 9th, the National Bureau of statistics released data showing that the factory price (PPI) of industrial goods rose by 0.7% compared to the same period last year, a decrease of 0.1%.

    The purchasing price of industrial producers rose 2% compared to the same period last year, down by 0.3%.


    Experts interviewed pointed out that the pressure on the textile industry since 2011 is escalating, and the market is also pessimistic.


    Weak data refraction textile industry dilemma


    Xie Fangming, director of the industry department of China Textile Information Center, said in an interview with our reporter that the decline in export data in January was mainly affected by the factors of the Spring Festival holiday, but the overall situation is still not optimistic.

    "Eliminate"

    Price

    The increase is much more severe.


    Data show that PPI rose by only 0.7% over the previous year, or a 26 month low.

    The weakness of PPI data means that domestic industrial producers will continue to bear pressure in the near future.


    Since mid 2011, manufacturing industry has mutated, and the industry has been almost hit by death, especially in the textile industry.

    Export oriented textile industry has been seriously affected by the international economic crisis, and domestic labor costs have been increasing.

    The textile industry, especially shoes, caps and toys, which are relatively low in technology, have been pferred to emerging markets such as Southeast Asia and Eastern Europe, such as Bulgaria and Poland.

    "However, China's textile industry is not an advantage, because its industrial chain is complete, its workers are of high quality and well-equipped, and it still has great attraction for foreign customers."

    Xie Fangming said.


    Media reports said that in 2011, Jiangsu and Zhejiang had more than 30% of them.

    Spin

    Garment enterprises went bankrupt and went out of business.

    And Guangzhou, Dongguan, Wenzhou and other domestic textile and garment market collapse is even more serious.

    Xie Fangming pointed out that the trend of "polarization" is becoming increasingly prominent, "some big companies have already received orders for June, and for some small businesses, they face the test of life and death."


    Xie Fangming also pointed out that, in the domestic aspect, the difficulty of recruiting enterprises continued in 2012. Due to the lack of orders and shortage of labor, the operating rate of enterprises is very low at present.

    The growth of textile and garment retail sales is weak, which may be dragged down by a larger base.

    Considering the policy of promoting consumption and expanding domestic demand in 12th Five-Year, the domestic market is still facing the sun.


    Internationally, "exports to Europe continue to" lose the Mai Cheng ", because the textile and garment production cycle is relatively long, this decline may continue to 2013.

    In the EU countries, the situation in other countries is very serious except that the situation in Britain is slightly better.

    Xie Fangming said that at the recent French TXETWORLD Exhibition (France international fabric exhibition) and the PV Exhibition (Paris first visual top fabric exhibition), the attendance of audiences dropped sharply, which reflected the global textile industry's recession.

    "But a little comfort is that the US market is heating up slightly," he added.


    Pressure on textile industry remains unchanged


    In 2011, textile and apparel exports totaled 247 billion 890 million US dollars, a record high, and the total export volume for the whole year was 20%.

    This year, whether China's textile and clothing exports can maintain this growth rate? Xie Fangming believes that in 2012, there were many variables and the export situation was still difficult.


    The Baltic Cape ship index (BCI), released in January by the business community, shows that the domestic bulk market is still weakening.

    For the textile sector, the weakness of the consumer market, the helplessness of the economic market, and the recent pressure on the industry remain.


    From the point of view of the key textile products, no matter the lint market or the PTA market, the strong rebound in the first half of this year is weak.


    Some analysts believe that from the downstream industry performance, domestic and foreign market demand continues to slump, supply and demand is still in a relaxed supply pattern, which can be predicted that this year's cotton market is still not optimistic.


    PTA analyst Xia Ting also predicted that in 2012 Asian PTA producers will face the pressure of overcapacity, while the demand for terminal textile market is still not optimistic, and the imbalance between supply and demand will dominate the PTA market.

    PTA is the main raw material for the production of polyester, and polyester is the most widely used synthetic fiber currently, accounting for more than 60% of the world's synthetic fiber output.

    China's polyester fiber accounts for 60% of world output.


    According to price monitoring, domestic PTA spot price (East China market) began to decline in February, and now the price is 8950 yuan / ton, compared with 9150 yuan / ton in early February, or about 2.19%.

    The main reason why PTA price is difficult to maintain at high level is insufficient demand.

    The polyester Market in the lower reaches is light and stocks are increasing. Most factories have increased incentives to stimulate sales.

    Xia Ting believes that demand factors will still dominate the trend of PTA in the short term.


    Although the textile raw materials market rose slightly in January, the downstream market fees remained desolate, and the raw material market was extremely cold.

    Even at the end of the year, the golden period of the industry has never happened.

    The rise in clothing prices has been a hot topic in 2011, but there is a strange phenomenon in the clothing industry. The price increases are small. No matter consumption or export volume, there is a serious decline. The inventory is serious, which will cause a fatal blow to the whole industry.


    Xia Ting believes that from the two important raw materials of the textile market, the textile industry will still be in a period of consolidation and recovery during the first half of this year.

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