There Is No Suspense In The Textile Industry Slowdown This Year.

"Good data and bad feeling" is the image generalization of Gao Yong, vice president of China Textile Industry Federation, on the operation of the textile industry in 2011.

Xu Weimin, chairman of Jiangsu Dong Du Textile Group, described the business situation of last year with "no danger".

In any case, 2011 was a very unusual year for the textile industry. The cotton prices and the volume of exports were close to zero growth. The financing difficulties of small and medium-sized enterprises and so on, and the operation track of the whole industry in series.

At the seventh China Textile round table forum held recently, Wang Tiankai, President of the China Textile Association, said that because of the tight internal and external environment, the textile industry in the first half of this year is not optimistic. The growth rate of the textile industry above the scale of the whole year will further slow down.

"Crazy" cotton price

Cotton prices in 2011 seemed to ride on roller coaster.

In the first ten days of March, domestic cotton prices once exceeded the high point of 31 thousand yuan / ton, but the low price in August dropped by about 60% compared to the March high.

With the start of the national cotton purchase and storage policy in September,

Zhao Boya, chairman of China Textile Group, believes that supply and demand are tight and speculative.

"Last year, domestic cotton prices fluctuated sharply, which were related to many factors, such as increase in output, demand changes, credit contraction and market speculation."

Wang Tiankai said that China's cotton price mechanism has not yet been integrated with the international market, and there is a lack of institutional guarantee to effectively curb fluctuations in domestic cotton prices and balance the interests of all interested parties.

"The experience of 2011 reminds us again that only by actively adjusting the product mix and taking the route of differentiation and high-end can we maintain a dominant position in the fierce market competition."

Zhao Boya said, "this year's textile industry will still be based on complexity and uncertainty, but there still exist opportunities in the market trend. We need to be keen to catch and grasp."

Exports encounter "grab a single robbery"

According to the survey results of China Textile Corporation, about 15% of the small and medium-sized processing enterprises in the eastern part are in a state of shutdown or semi shutdown.

In the first ten months of last year, the proportion of 9 exports exceeded 20%.

Textile small and medium-sized enterprises in the export dilemma, on the one hand, the slow recovery of the global economy and the continued spread of the European debt crisis, but also highlights the embarrassment of China's textile and clothing export "robbed single".

Relying on lower raw material and labor costs and more preferential policies and measures, textile and garment export competitiveness of developing countries such as India, Pakistan, Vietnam and Bangladesh has improved rapidly in recent years.

The price driven growth is another major feature of China's textile and garment export last year.

Wang Tiankai said that last year, the growth rate of textile and garment exports in China was close to zero, and the promotion of product prices was the main driving force for the export growth of the industry.

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This year's slowdown is inevitable.

As Gao Yong said, the textile industry in 2011 did look "pretty".

According to statistics, in the 1~11 months of last year, the textile enterprises above Designated Size reached 49526 billion yuan in industrial output value, an increase of 27.5% over the same period last year, and the textile enterprises above Designated Size realized a total profit of 215 billion 500 million yuan, up from the same period last year.

But behind the bright data is a series of hidden worries.

Wang Tiankai admitted that the development of textile industry will continue to tighten this year, and the situation in the first half of this year is even more severe.

Feeling the arrival of 2012, Xu Jianmin, general manager of Sanyang Textile Co., Ltd., gave the answer: "very painful."

"Last year is difficult, but this difficulty is largely a national macro-control."

Xu Jianmin said that this year is different. In the face of the complicated situation at home and abroad, enterprises must stick to their position and create "exciting points" constantly, while looking up the road and pulling their cars down.

Wang Tiankai suggested that for this year's textile predicament, we must first pay attention to the operation of small and medium sized enterprises and coastal processing enterprises, and give financial and structural tax cuts and other policy support.

At the same time, textile enterprises also need to strengthen self-discipline, prevent excessive competition, and do well in structural adjustment.

It is revealed that China Textile Association will focus on strengthening industrial policy research this year, and strive to make breakthroughs in key policy areas such as cotton circulation system reform and textile enterprises' burden reduction.