The Actual Export Volume Is Still Negative. Textile Industry Urgently Needs To Adjust The Quota System.

According to the situation report of the textile industry in May, since 2012, under the influence of macroeconomic environment, domestic and international market demand has weakened. The slowdown in the economic growth of China's textile industry is still continuing, and the growth rate of major economic indicators has decreased significantly compared with the same period last year.

Profit margins of foreign trade enterprises are thin.

at home and abroad

A direct impact brought by the upside down is the sharp drop in orders for China's foreign trade enterprises.

Because the international cotton price is about 4000~5000 yuan lower than the domestic cotton price per ton, the production cost of the domestic spinning and weaving enterprises is much higher than that of the domestic raw materials. With the increasing cost of domestic labor, the cost of the spinning and weaving enterprises eventually increases. In order to maintain the Limited number of orders, the price of the foreign trade products can not be set too high, so that the textile enterprises can only seek the living space in the small profits.

People in the industry say that many small and medium enterprises have been shutting down to reduce their losses. This year's overall sales situation is not very optimistic.

The monthly report of the textile industry released by the national development and Reform Commission in May also showed that the growth rate of major economic indicators such as production, export, domestic sales and profits in textile industry decreased significantly compared with the same period last year.

Among them, two key indicators of export and domestic sales are still not ideal.

In 2012 1~5, China exported 90 billion 642 million US dollars of textiles and clothing, an increase of 2.06% over the same period last year, an increase of 24.47 percentage points lower than that of the same period last year, which is 6.64 percentage points lower than that of the same period in the same period last year.

First textile network analyst Wang Qian said that if the price rise factor is deducted, the actual export volume of the textile industry is still negative growth.

Domestic sales are not optimistic.

China's cotton textile export orders have dropped and the international market share has declined. Can exports turn to domestic sales to help enterprises open the ice breaking trip? According to the first textile net, the domestic textile and garment retail market has not been significantly improved. This year, 1~2, the number of retail sales of 100 key retail enterprises nationwide increased by 5.1% over the same period last year, 15.2% in March, 20.3% in April, and 12.2% in May. The growth rate has dropped by 10 percentage points from the normal level in previous years.

According to the situation report of the textile industry in May, the growth rate of domestic sales of textile industry has slowed down obviously, due to the slowdown in domestic demand growth.

In the 1~5 months of this year, textile enterprises above Designated Size achieved 1 trillion and 757 billion 158 million yuan of domestic sales value, an increase of 13.44% over the same period last year, and the growth rate dropped by 18.51 percentage points over the same period last year.

According to media reports,

Downstream clothing industry has been experiencing high inventory problems in recent years.

Insiders said that if the current national inventory of clothing sold out, it may not be sold in three years.

Nowadays, there are three traditional solutions to solve the problem of high inventory in clothing enterprises: discounts, electricity providers and direct battalions.

However, the discount sale is generally a common way of dealing with the over season goods by the apparel textile companies, and can not be included in the conventional processing plan. This method is equivalent to reducing the gross profit margin of the enterprises, and the excessive discount will also cause damage to the enthusiasm of the agents. The enterprises entering the electric business field are equivalent to signing the "price war" document, which is the low price, and if the product is unsalable again, the discount space is very small, the risk of enterprises having high inventory is bigger, the operation cost of the store is very high, and the enterprise has a more secure cash flow level to pay for all kinds of operating expenses, and it is not a "mass populace" plan.

Thus, export to domestic sales is not a smooth road. China's spinning and weaving enterprises are still facing internal and external troubles, facing unprecedented development difficulties.

However, Zhu Beina, President of the China Cotton Textile Industry Association, said that although China's textile industry faced many problems this year, she believed that China's textile industry still had development because China had a relatively complete industrial chain advantage.

How can cotton spinning enterprises break?

According to the global textile network data, as of 2011, the number of ring spinning, rotor spinning and loom in China reached 120 million, 2 million 320 thousand and 1 million 260 thousand respectively, and the spinning production capacity reached 50% of the total output of the world.

Industrial Enterprises above Designated Size realize industrial output value of 5 trillion and 478 billion 650 million yuan, an increase of 26.8% over the same period last year.

However, due to the serious upside down of domestic and foreign cotton prices, the domestic export growth of China's cotton textile industry has been declining. China's cotton spinning enterprises, especially the foreign trade enterprises, are facing internal and external troubles and face enormous challenges.

Insiders say that if we want to solve the mystery, we may need to reform the relevant industrial system and enterprises themselves.

Quota system needs adjustment

Due to the intensification of the global financial crisis in the context of global cotton production, the supply and demand has been seriously unbalanced. The most recent fall in international cotton prices has occurred after the financial crisis. The difference between domestic and foreign cotton prices has also been expanded to 4000~5000 yuan per ton and insufficient import quotas.

According to the World Trade Organization agreement, China's annual cotton import quota is 894 thousand tons, a preferential tariff of 1%, and the imported cotton imported from quotas is 5%~40%.

The Levy of sliding duty is equivalent to setting a bottom line for imported cotton prices, aiming to reduce the impact of imported cotton on domestic cotton market and ensure the cotton farmers' income.

However, there is a gap of nearly 3 million tons between China's cotton output and textile industry demand. This means that no matter what the cotton price is, there are more than 2 million tons of cotton rigid demand to be imported through paying high sliding tax.

At the same time, the national cotton purchase and storage price policy has played an important role in improving cotton growers' planting intention, stabilizing domestic cotton prices and avoiding severe fluctuations in cotton prices.

But the other result is that domestic cotton prices are hard to reduce by the support of reserve price, and domestic and foreign cotton prices hang upside down, resulting in high cost of China's cotton textile industry and a certain resistance to the export of textile and clothing.

At present, Australia's cotton is 18000 yuan / ton, and India's cotton is more than 16000 yuan / ton. However, due to the quota system, enterprises can't import by themselves, while the same quality cotton in the country needs 21400 yuan / ton to buy.

The China Textile Import and export chamber also told the media that the current quota of cotton import quotas should be appropriately increased, and that the national finance should be a suitable choice for some cotton losses.

High value-added route

Since the beginning of this year, the export of China's textile industry has been weak, especially the order production and export textiles which have been considered to occupy the international competitive advantage.

In the first 3 months of this year, China's textile and apparel exports to Japan increased by about 7% compared to the same period last year. During the same period, Japan's imports of similar products from Vietnam and Kampuchea grew by more than 40% over the same period.

And part of it

Its origin changed from China to Vietnam and Bangladesh and other Southeast Asian countries and regions.

The reality has already sounded the alarm - China's advantage in raw materials is not obvious.

If we want to continue to seize the overseas textile market share, we must find another way to improve the added value of products, which has become a problem that every export enterprise must face.

Ma Junkai, Secretary General of Dezhou Cotton Association, said that the only way out for the industry is to take the high-end route through technological pformation.

Only by taking the road of high added value can enterprises become lucky in the tide of big shuffling.

Wang Tiankai, President of the China Textile Industry Federation, also said that the sustained and healthy development of the textile industry must continue to promote structural adjustment and pformation and upgrading of the textile industry. Only in this way can we reduce the operational risks of the industry.