Current Situation Analysis Of Cotton Textile Industry

2011, China

Achievements and problems in cotton textile industry

(1) good start in 12th Five-Year.

In 2011, China's cotton textile industry still achieved good results under difficult circumstances, and successfully completed the smooth convergence of "12th Five-Year" and "11th Five-Year" and achieved a good start.

1, the gross industrial output value and labor productivity increase steadily.

In 2011, the total output value of Industrial Enterprises above Designated Size in China's cotton textile industry reached 1 trillion and 570 billion yuan, an increase of 30% over the same period last year, and labour productivity (calculated by gross industrial output value) was 610 thousand yuan / person.

Although faced with the severe situation of poor production and marketing in the second half of the year, enterprises actively adjust themselves to adapt to market changes, strengthen internal management, and increase or maintain enterprise efficiency through efforts to increase labor productivity.

2, the effect of industrial pfer is obvious.

In 2011, the actual investment volume of China's cotton textile industry in the eastern, central and western regions was 96 billion yuan, 58 billion yuan and 13 billion 800 million yuan respectively, representing an increase of 29%, 56% and 53% respectively, accounting for 49%, 42% and 9% of the actual investment volume of the national cotton textile industry, of which the eastern share decreased by 5 percentage points from the previous year, and the central and western regions increased 4 and 4 percentage points respectively.

3, stimulating domestic demand has achieved certain results.

In the case of weak international demand, the effect of expanding domestic demand is further apparent in the pformation of foreign trade enterprises into the domestic market.

In 2011, the domestic output value of cotton textile industry was 1 trillion and 300 billion yuan, accounting for 92.9% of the sales value, which was 0.7 percentage points higher than that of the previous year.

Some domestic enterprises should strengthen their brand building from the long-term perspective of the domestic market and make full use of the advantages of sales channels.

(two) multiple difficulties are more prominent.

1, raw material price fluctuation

The fluctuation of raw material prices is very important to the production and operation of enterprises. In 2011 1~8, the price of cotton raw materials fluctuated greatly. Whether it was the production and sale of cotton textile enterprises or the orders of downstream enterprises, they became cautious. Some of the original demand could not be converted into orders in time, and the orders were characterized by small batch and tight delivery, especially the order price close to the cost line, which significantly reduced the profit margins of enterprises.

Until the policy of purchasing and storage has been released, the price of raw materials has stabilized. However, the adjustment of price is not the pattern of market supply and demand, which makes it difficult for manufacturers to get out of difficulties.

2, intensified competition in the international market

In 2011, the export of China's cotton textiles was blocked. Although the amount kept increasing, most of the reasons were the pull of high price growth, and the negative growth of export volume has been going on for some time.

The reasons include: international demand is weak, international political situation is not stable, RMB appreciation rate is relatively large, trade protectionism measures are repeated, and international competition is intensified.

Faced with many factors, China's export situation is facing a severe test. To shake off this dilemma, we need to actively develop new markets and fundamentally change the pattern of over reliance on traditional markets.

3, capital pressure

In 2011, the asset liability ratio of China's cotton textile industry was 55.4%, down 1 percentage points from the previous year, and the turnover rate of current assets was basically the same as that of 2010.

In order to effectively control inflation, in 2011, the Central Bank of China issued 6 policy of raising the deposit reserve ratio and raising interest rates 3 times, which caused tremendous financial pressure to the enterprises which had difficulty in capital circulation because of poor production and marketing. Many of them broke down and had to stop production or go bankrupt.

In addition, textile enterprises continue to continue lending difficulties, but have not yet improved.

4, the increase in labor costs is obvious, and the pressure of recruitment increases.

In 2011, the production cost of cotton textile industry increased significantly. Labor costs continued last year, and all kinds of welfare benefits were constantly improving, but the problem of "recruitment difficulty" existed simultaneously.

The working environment and shift system of the textile industry are not favored by the post-80s and the post-90s. The shortage of skilled workers leads to a structural shortage of labour.

Labor cost and recruitment pressure become the bottleneck for cotton textile industry to break through in a short time.

The growth rate of gauze production is lower than that of last year.

According to the statistics of National Bureau of statistics, in 2011, the total yarn production of 3988 spinning enterprises above Designated Size reached 28 million 940 thousand tons, an increase of 12.43% over the same period last year. The growth rate dropped by 1.3 percentage points over the previous year, and 3627 cotton weaving enterprises above Designated Size reached 62 billion meters in total, up 11.61% from the same period last year, and the growth rate dropped by 7.8 percentage points over the previous year.

Judging from the absolute quantity, the output of yarn and cloth has been steadily rising since March. The yarn output is higher than that of the previous year, and the output of cloth is lower than that of the previous year. Because of the adjustment of the division standard of Enterprises above Designated Size this year, the annual sales income of more than 5 million yuan is raised to more than 20 million yuan, which shows that the concentration degree of spinning enterprises is higher than that of weaving enterprises.

Judging from the year-on-year growth rate, the monthly output of yarn output increased year-on-year growth rate in May, reaching a year-on-year minimum value.

Since the fourth quarter, the output of yarn has increased slightly, and the output of cloth has steadily decreased. The annual output of cloth has not increased faster than that of yarn. This further shows the weakness of downstream market demand and the adjustment of product structure.

Fluctuations in market prices of raw materials and gauze

(1) cotton market at home and abroad

Stage 1: continuation of the upward trend at the end of last year

At the beginning of 2011,

Stage two: rapid decline after loosening

After March 8th, cotton prices began to turn downwards and experienced two waves of decline. By the end of August, the international demand had been greatly weakened, and the textile downstream demand and the enthusiasm for purchasing cotton had slowed down.

Stage three: stabilizing and picking up and stabilizing the reserve price

In early August, the state announced the policy of temporary purchasing and storage.

The international cotton price has been falling all the way, the center has moved deeper and deeper, and the pattern of cotton price inversion at home and abroad has ended, and the price difference has gradually increased.

In terms of cotton futures in Zhengzhou, the monthly closing price of the near delivery month is close to the overall domestic stock market. Since the end of February, the overall gravity center has shifted downward, and the price has gradually been higher than the spot price after the national day.

Since March 2011, the international cotton market has seen a strong atmosphere for many reasons, including the increase in global cotton production, the decrease in consumption, the negative news of the global economy, the uncertain macroeconomic environment and so on.

(two) the chemical fiber should play a certain substitute role.

Generally speaking, viscose staple fiber follows the fluctuation of cotton prices. After the national day, cotton prices have stabilized and viscose staple fibers have fallen again. The difference between the two has gradually expanded to about 4000 yuan / ton at the end of the year.

The price range of polyester staple fiber is relatively small, and the price range is between 10000~15000 yuan / ton.

(three) domestic yarn prices are falling, and spinning companies' profits are squeezed.

Beginning in March, yarn prices fell faster along with the decline in cotton prices. Especially after the purchase and storage started in September, cotton prices remained relatively stable, and yarn prices continued to fall, resulting in the squeezing of profit margins in spinning enterprises when raw material costs remained basically unchanged.

From the price difference between 329 cotton to factory price and 32 pure cotton combed yarn and 40 pure cotton combed yarn, the relative fluctuation of the former is slightly smaller, and the latter trend is obvious.

By the end of December, the price difference was only 6260 and 11150 yuan per ton, including cost of labor, energy and operation. The profit margin of textile enterprises, especially the spinning enterprises of pure cotton road, was gradually weakening in the past international competition.

Since the fourth quarter, the price difference between domestic and foreign yarns has been increasing. The price of yarn in India and Pakistan has even been lower than that in domestic 329 grade cotton. From the perspective of price factors, the yarn of medium and low grade conventional products in China no longer has the price advantage in international competition.

(four)

Taking the pure cotton 32 grey fabrics as an example, the overall trend of cotton and yarn price changes is the same, but in contrast, the change of grey cloth is slightly smaller, and its speed varies with yarn price at a slower speed than that of yarns followed by cotton prices.

It is noteworthy that since the price of cotton in September was stabilized, the price of yarn and grey cloth did not stop. However, it continued to decline along with the fundamentals of market supply and demand imbalance and gradually approached the cost bottom line of production and operation. Due to the slowing down of cost support, the profit margins of enterprises were squeezed.