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    Three Links Between Raw Materials, Processing, Trade And Textile Industry

    2012/6/8 16:34:00 15

    Textile IndustryEconomic IndicatorsSurvival Pressure

    The industry operation data released recently by China Textile Industry Federation put the problem of mutual restraint between the three main links of raw materials, processing and trade on the table.


    China

    textile industry

    The Federation said that compared with previous years, the downward trend of economic indicators is obvious, and the operating pressure of the industry continues to increase.

    From January to April this year, the textile enterprises above Designated Size reached 1 trillion and 677 billion 58 million yuan in total industrial output value, an increase of 13.11% over the same period last year, and the growth rate dropped by 17.43 percentage points compared with the same period last year. The growth rate of industrial sales output decreased by 17.62 percentage points compared with the same period last year.

    In terms of industry operation efficiency, nearly 20% enterprises with large scale losses and losses increased by 120% compared with the same period last year, with a profit margin of 4.5%, 0.66 percentage points lower than the same period last year.


    The change of textile industry index is directly reflected in the operation level of enterprises.

    Sun Chengbiao, head of Suqian Hengda textile raw materials Co., told reporters that at this time of the past year, the volume of cotton trade could reach more than 100 tons per day. Now the volume of trade is tens of tons per month, and there is still credit on account.

    The current situation of cotton textile raw material trade is deeply disturbing to the head of the enterprise.


    An internal document of China Textile Industry Federation shows that in 2012, the total number of Chinese textile industry has increased from about 13000000 in 2000 to 20 million people, and the number of Enterprises above Designated Size (annual sales income of 20 million yuan) has reached 36 thousand and 700 households.

    What is worrying is that this huge employment industry is encountering a difficult stage.

    Sharp drop in trade volume and small profit margins make some enterprises face enormous pressure to survive.


    Sun Huaibin, spokesman of the China Textile Industry Federation, told reporters that in the first 4 months of this year, the total retail sales of Enterprises above designated size were

    Clothing and shoes

    The retail sales of needle and textile products increased by 15.6% over the same period last year, down 7.9 percentage points from the same period last year. After deducting the price factor, the actual growth rate of retail sales was only 11.6%, down 11.2 percentage points from the same period last year.

    However, the growth rate of textile and garment retail sales in the past year will generally be seven or eight percentage points higher than the total retail sales in the whole society.


    In the textile industry, the domestic market scale accounts for about 80% of the whole industry.

    Sun Huaibin said that in the ideal state, the domestic demand growth rate should reach 15% within the year. If this goal can not be realized, China's textile industry is likely to face greater difficulties.


    External demand data is also not optimistic.

    In the first 3 months of this year, China's textile and apparel market share in the United States and Japan was 35.58% and 72.03%, respectively, representing a decrease of 4.55 percentage points and 2.92 percentage points respectively, compared with that in 2011, of which the market share of cotton products was the most obvious.

    In addition, from January to April this year, the export volume of textiles to ASEAN increased by only 2.69% over the same period last year, down 59.66 percentage points from the same period last year.


    In view of the declining trade situation of the textile industry in the international market, China Textile Industry Federation still focuses its attention on the raw material price difference while objectively describing the external factors.

    The analysis shows that the high price of domestic cotton has increased the production cost of textile enterprises and reduced the Chinese textile enterprises in the international market.

    Competitive advantage

    Data show that in the first 4 months of this year, China exported 71 billion 3 million US dollars of textile and clothing, up 1.07% from the same period last year.


    According to the view of the China Federation of textile industry, in 2012, if the price difference between domestic and foreign cotton is not narrowed, the situation of China's textile and garment export will continue to be severe.

    Statistics show that as of May 25, 2012, the domestic grade 328 cotton price was 18853 yuan / ton, and the international market cotton price was 83.3 cents / pound. The price of 1% cotton duty and value-added tax was 13393 yuan / ton, and the cotton price in the international market was lower than the domestic market price 5460 yuan / ton.


    Another analysis is that the high price of cotton is closely related to the purchase and storage of related departments and the mass storage of cotton merchants.

    At present, the inventory of cotton in China is about 4 million tons. If new cotton is listed in September, inventory will face new pressure.

    More pessimistic, if the domestic cotton prices remain strong, the negative effects will involve the entire industrial chain.


    Narrowing the price difference between domestic and foreign cotton is the primary factor affecting the operation of the industry this year.

    The survey shows that the gap between domestic and foreign cotton prices that Chinese enterprises can digest can only be less than 1500 yuan per ton.

    To this end, the China Federation of textile industry suggests that when the state stores cotton to store and store, it will adopt a financial subsidy way, and impose a price limit.

    Stabilize domestic cotton prices

    We should narrow the price difference between domestic and foreign cotton, increase the quantity of cotton imports every year until the abolition of the double management restrictions of cotton import quotas and sliding tax, and at the same time, raise the export tax rebate rate of textile industry.

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