The Economic Situation Of China'S Textile Industry Is More Severe.

"Production, domestic sales, exports, investment and economic benefits all slow down.

At present, the textile economic situation is more severe. "

Reporter from May 31st China

The conference on industry economic operation held by the Federation (hereinafter referred to as "China spinning union") was informed that with the intensification of the macroeconomic environment and the fact that the overall operation of the textile industry slowed down in the first half of April, the industry's judgement on the economic situation of the textile industry in the whole year was even less optimistic than that at the beginning of the year.

Sun Huaibin, director of China Textile Economic Research Center and spokesman of China Textile Industry Federation, said that in the first 4 months of this year, China's textile industry showed a trend of slowing down, which was manifested as: slow growth in production and investment; and textile and clothing export prices.

The number of exports increased negatively, and the growth rate of industrial profits dropped significantly.

In the first half of 2012, the industry continued to face higher external risks. Further improvement of risk control and response capability is still the top priority.

According to Sun Huaibin analysis, in 1~4 months, China exported 71 billion 3 million US dollars of textile and clothing, an increase of 1.07% over the same period last year, which is a sharp drop compared with the year-on-year increase of 19.8% in 2011.

"1~4 months, China's textile and clothing exports decreased by 2.23% over the same period last year. This is a very dangerous figure, indicating that our foreign markets are losing."

Sun Huaibin said.

At the same time, the downward trend of domestic economic growth also slowed down the demand for textile and clothing.

In 1~4 months, the clothing retail sales in China increased by 11.6% after deducting the price factor.

Another serious signal comes from the decline in the economic efficiency of the industry.

In 1~3 months, the total profits of textile enterprises above Designated Size amounted to 53 billion 704 million yuan, down 1.77% from the same period last year, and the growth rate was 55.34 percentage points lower than that of the same period last year. The profit margin of sales was 4.5%, down 0.66 percentage points from the same period last year, and the deficit of Enterprises above designated size was 19.67%, and the amount of losses increased by 120% over the same period last year.

The industry situation is unfavorable, and the export situation is grim.

This year, 1~3, the three largest textile and apparel market in Europe, America and Japan dropped 6.55% from the global textile and apparel market year-on-year. The growth of international demand has been weak for a long time.

The demand of developed countries has decreased, and the textile industry of China's emerging economies such as Southeast Asia has also declined. For example, 1~4 months, China's exports of ASEAN's textile products increased by 59.66 percentage points year-on-year.

China Textile Alliance believes that behind the grim appearance, in addition to market demand and international competition pressure, domestic and foreign cotton spreads continue to widen as an important factor in the export situation.

"The spread of cotton prices at home and abroad has weakened the international competitiveness of China's textile industry."

Sun Huaibin analysis said that since September 2011, the price of cotton in the international market has dropped sharply, which is about 1000 Yuan different from the domestic cotton price. At the beginning of 2012, the price difference of cotton at home and abroad was about 3000 yuan; and as of May 25th, the price of domestic grade 328 cotton was 18853 yuan / ton, and the cotton price in the international market was 83.3 cents / pounds. After 1% duty and value-added tax, the price was 13393 yuan / ton, and the cotton price in the international market was lower than the domestic market price 5460 yuan / ton, and the price difference continued to widen.

Compared with India, another big cotton producing country, China's cotton price is higher than India cotton price of 7000 yuan / ton ~8000 yuan / ton, while Pakistan's cotton yarn price is even lower than that of China's cotton price.

The serious inverted cotton price directly causes domestic cotton spinning enterprises to bear too high raw material costs.

The serious loss of market orders resulted in an overall negative growth in the export of cotton textiles and clothing in China.

Statistics show that 1~3 months, China's cotton textile industry profits fell by 3.6% over the same period last year, which is just as bad for cotton spinning enterprises whose profits are not high.

At the same time, the 1~3 profit of chemical fiber industry, which is closely affected by cotton prices, has dropped by 46.6% compared with the same period last year.

It can be seen that the cotton price problem has also become the main reason that affects the overall profit of the textile industry.

In the face of the grim reality, the textile industry hopes to distribute the quotas of imported cotton, and distribute it to the production enterprises on the basis of the quotas, limit the price and store it, stabilize domestic cotton prices, and narrow the price difference between domestic and foreign cotton, so as to ensure the smooth operation of the textile industry.

"According to historical data and enterprise's reflection, domestic and foreign cotton price difference is controlled at less than 1500 yuan per ton, and the textile industry's economic indicators are expected to reverse the downward trend.

If the cotton price problem can be solved as soon as possible, although the external demand is sluggish and domestic demand is slowing down, the textile industry will still be able to rely on its own structural adjustment and pformation and upgrading to ease the problem of insufficient market demand.

"In the long term, we should deepen the reform of the cotton circulation system, improve the macro control mechanism of cotton, increase the quantity of cotton imports every year until the abolition of the dual management restrictions of cotton import quotas and sliding tax, so as to achieve the market docking of internal and external cotton prices and play a regulatory role in the market mechanism."

Sun Huaibin said.

To ensure the smooth operation of the textile industry, the China Textile Federation suggests that the departments concerned should effectively solve the problem of "high levy and low deduction" (value-added tax levy 17% deduction 13%) which has long troubled the development of cotton spinning, cocoon silk and linen textile industry, and timely raise the export tax rebate rate of the textile industry, and curb the serious situation of the decline of China's textile and clothing exports.

At the same time, the industry itself should speed up pformation and upgrading, move towards the high-end industry chain, and enhance its core competitiveness.