In The 1-5 Months Of This Year, Nearly 20% Of Textile Enterprises Suffered Losses.

Recently, the Ministry of industry and Commerce disclosed that, due to the slow growth of domestic and foreign demand and the high price of cotton at home and abroad, the loss of China's textile enterprises above Designated Size rose to 18.6% in the first five months of this year, and the deficit of loss making enterprises increased by more than twice that of the same period last year. The Ministry of industry and Commerce expects that the textile industry will not be able to improve significantly in the second half of this year, and that more medium and small enterprises will face the risk of being eliminated.

Domestic demand for exports is both weak.

China's first half of 2012 released by Ministry of industry and information technology Textile industry Running situation analysis report shows that in 1-5 months, the total profit of textile enterprises above Designated Size amounted to 91 billion 700 million yuan, down 2.4% from the same period last year, and the deficit of enterprises reached 18.6%, up 5.4 percentage points compared with that of the previous year. The deficit of loss making enterprises increased 128.5% over the same period last year, and the growth rate increased by 122 percentage points over the same period last year.

The weakness of exports and domestic demand is the main reason for the poor performance of the textile industry, the report said. In the first 5 months, China's textile and apparel exports were US $90 billion 600 million, an increase of only 2.1% over the same period last year, far below the 8.7% growth rate of the total merchandise exports of the country, of which exports to the EU dropped by 11.2%.

In the domestic market, the price growth rate and the lack of market confidence also affect the growth rate. The retail sales of clothing, shoes and hats and needle textiles increased by 16.2% compared with the same period last year, and the increase was 7.3 percentage points lower than that of the same period last year.

At present, the macroeconomic situation at home and abroad is in a downward trend as a whole. The impact of the European sovereign debt crisis is still spreading, and the subsequent impact of the international financial crisis continues to emerge. The international market remains in a slump and there is a big uncertainty in the outlook. In 2011, the global import volume of textiles and clothing increased by 8.6% over the previous year, compared with an increase of 3.4% in the 1-4 months of this year. EU demand declined significantly. In 1-5 months, China's exports to the EU dropped by 11.2%. The domestic market is also affected by factors such as high prices and lack of market confidence.

Domestic and foreign cotton prices vary widely

Ministry of industry and Commerce pointed out that since last year's fourth quarter, domestic and foreign Cotton price The difference is constantly widening. As of July 5th, cotton prices at home and abroad were about 4500 yuan / ton. The increasing price difference between domestic and foreign cotton has seriously weakened the international competitiveness of China's textile industry.

Data show that the number of cotton yarn exports decreased by 9% in the 1-5 months compared with the same period last year, and cotton yarn imports increased by 78% compared with the same period last year. The imports of pure cotton fabrics increased by 133% compared with the same period last year, while the export volume of cotton products decreased by 3.4% over the same period last year. The cotton mill of China Cotton Textile Association has seen a loss of 40% of its textile products, and less than 30 thousand spindles of spinning enterprises have cut production and production close to 50%. Xinjiang is mainly producing cotton spinning primary products. At present, the loss of textile enterprises has reached 65%, the sales revenue of the whole industry has dropped by 25%, and the loss of the whole industry has exceeded 300 million yuan.

More small and micro enterprises or out in the second half

According to the Ministry of industry and commerce, the textile industry will continue to be in a difficult position in the second half of the year. The export of textile and clothing will continue to grow at a low level. The overall efficiency of the industry will decline sharply, and the deficit and loss will be expanded. More small, medium and micro enterprises will face the risk of being eliminated.

However, according to the Ministry of industry and information technology, following the double reduction of deposit rate and interest rate, more "steady growth" measures are expected to come out, which will become an important support for the operation trend of the industry.

When exports are in the doldrums, people in the industry place their hopes on domestic consumption.

Changjiang Securities analyst Lei Yu analysis said that with the CPI's record low of 23 months, with the support of the "steady growth" of the second half of the year and the support of the two or three line urban consumption, the consumption of the textile and garment industry in the second half of the year is expected to pick up, including the growth of the home textile and other sub sectors.

Exergy analysis

Reducing interest rates to ease pressure on SMEs

The recession in the textile industry will be eased.

Last week, the central bank lowered the benchmark interest rate for Renminbi deposits and loans of financial institutions. Textile analyst Xia Ting believes that interest rate cuts will be a great benefit to the textile industry with high financing costs and tight capital flows, which can effectively alleviate the financial pressure of the textile industry. Data show that in 1-5 months, the interest expenses of textile enterprises above designated size increased by 28.6% over the same period last year, which is 18.4 percentage points higher than the revenue growth rate. A large amount of interest expense has become a bottleneck restricting the development of textile enterprises.

In addition to cutting interest rates, the textile industry has also received favorable adjustments in the export tax rebate policy. Since July 1st, new regulations on export tax rebate have been implemented in China. "Although the export tax rebate has not been raised, the export tax rebate has become more dependent on the textile industry. It has relaxed the time limit for enterprises to declare tax rebates and adjusted some of the export commodities to tax exemption, which will make many enterprises better off." Xia Ting said.

Policy

Textile industry is expected to get a tax cut.

He Yanli, inspector of the industry coordination department of the NDRC, said recently that the urgency of the textile industry will be alleviated in the short term through structural tax cuts and price stabilization of raw materials.

It is reported that at present, the price of international cotton is obviously lower than that of the domestic market. Some traders import large quantities of cotton. They pay 20% down payment and a small fee for the port warehouse, while waiting for the opportunity to sell these cotton at a better price. domestic market 。