The Downturn In The Domestic Textile And Garment Industry Is Hard To Change In The Second Half Of The Year And Will Continue Until The First Half Of Next Year.

"Domestic textile

The downturn is unlikely to change in the second half of the year, which is likely to continue until the first half of next year.

In the activities of the "Xinjiang cotton related enterprises' mainland operation" jointly organized by Zheng Shang and Xinjiang securities regulatory bureau, Liang Baohua, deputy general manager of Limited by Share Ltd of Dai Yin Textile Group, revealed the plight of the textile industry.

Under the background of the European debt crisis, the main export market demand growth in Europe, the United States and Japan is weak, and the difference between the inside and outside cotton prices is too large, which indirectly affects the competitiveness of China's textile and garment enterprises. The upstream and downstream of the domestic industry chain is more pessimistic about the market outlook, and another "cold winter" in the textile industry has arrived.

The Dai Yin textile and Garment Group, located in Tai'an, Shandong, has more than 10000 employees, and has 300 thousand spindles, 1000 looms and 3500 sewing machines.

In 2011, the company achieved an annual sales revenue of 3 billion yuan and an export volume of US $150 million.

"From 1 to April this year, the profit of textile production is still normal, but there will be little profit margin by May. It is expected that there will be a small loss in June."

Liang Baohua said that this is because the imported cotton has been delivered in succession, if it is used domestically.

The situation may be even worse.

According to his understanding, the surrounding part of the textile industry with the size of Dai Yin is even worse. The operating rate has remained at around 50%, and some employees have been in arrears for two or three months.

It is also understood that the domestic textile leading enterprise, Shandong Wei bridge, is not very good at present, and its operating rate is only 50%.

According to Liang Baohua, though domestic

Faced with the predicament of export, the competitive advantage of domestic textile and garment industry has been gradually reduced or smoothed. However, due to the increased export strength in recent years, Dai Yin has invested in Sri Lanka and set up a trading company in the US, with two or three hundred people specializing in export business, and its export volume is increasing year by year.

He admitted that in the past two years, the increase in export profits was not obvious, mainly through the increase in exports to maintain the level of profits.

According to the reporter's understanding of Dai Yin Textile Group, the ordinary workers engaged in clothing production are mostly young people, and the monthly wages are generally around 2500 yuan.

According to the relevant personage, if wages are below this level, it will be difficult to recruit workers locally.

Shandong Dezhou Cotton Association Ma Junkai also said that due to rising wages and electricity costs and the continuous decline in yarn prices, Dezhou's small and medium-sized textile enterprises, producing pure cotton yarn enterprises are in a state of loss, blending enterprises are also in the micro deficit or low profit.

Although the textile enterprises are in a difficult situation, most enterprises are afraid to stop production. Because of a downtime, employees are easy to lose. It is difficult to recruit workers again when they return to work, so they have to bite and stick. But the rate of start-up is generally not high, and the total is 60% to 70%.

The lack of operating rate of textile enterprises directly led to the sluggish demand for cotton, especially domestic cotton.

According to Guo Chao, a staff member of Shandong Shandong cotton group, the Tianyuan warehouse company's Zhangqiu warehouse under the company's normal condition is generally six thousand or seven thousand tons, but now it is close to thirteen thousand tons, mainly the real estate cotton.

He believes that the domestic demand for high-grade cotton is mainly digested by Xinjiang cotton, and the demand of low grade cotton has shifted to the relatively cheap imported cotton from India.

And Shandong near Qingdao port, the import of cotton is relatively convenient, and has the price advantage, making the local real estate cotton has been neglected.

"This year's cotton price of 20400 yuan / ton will definitely be" aristocratic price "in the next year.

Zhou Feng, chief accountant of Shandong Shandong cotton group, said.

Faced with the current predicament, many domestic textile enterprises have been forced to pform.

Liang Baohua said that under the current circumstances, Dai Yin Textile Group has reduced the inventory of raw materials and products.

Raw material inventory is usually maintained for one month, and products are also sold at a price.

As the company's customers are mostly long-term orders, sales are basically stable at present.

"Our products also appropriately increase the use ratio of chemical fiber raw materials, which is mainly based on the requirements of foreign purchasers".