Finding A Breakthrough In The Plight Of The Textile Industry And Turning To The High-End Market

Imported

Although there are advantages in price, but the yarn is low, and the quality and grade can not meet the needs of enterprises. The high-grade cotton yarn produced in China still has absolute advantage.

"Orders have been reduced much, and the decline in profits is more obvious.

The price of cotton yarn in India and Pakistan is even lower than that in our cotton. Under such circumstances, of course, there is no market for our cotton yarn business.

At this point, we basically can not compete with the international community.

The head of a cotton textile enterprise in Shandong complained to reporters.

This is not just a worry for a cotton spinning enterprise leader.

Due to the upside down of domestic and foreign cotton prices, the order and profit of domestic cotton spinning enterprises are decreasing continuously, and the pressure on inventory is increasing.

The low end market is losing gradually.

Since the fourth quarter of last year, the price difference between domestic and foreign cotton has been widening. At present, the price difference per ton is as high as 5000 yuan.

It is precisely because of low foreign cotton prices, India and Pakistan and other countries low-priced cotton yarn products entered the Chinese market smoothly, importing cotton traders, yarn traders, fabric companies have taken a look at the advantages of imported yarn, making domestic cotton yarn production enterprises collectively trapped.

According to the latest statistics of the General Administration of customs, in May this year, 125 thousand tons of cotton yarn imported in China increased by 14.74%, an increase of 143.45% over the same period last year, 45 thousand and 600 tons of export cotton yarn, an increase of 13.76% over the same period, an increase of 35.96% over the same period last year, a net import volume of 79 thousand and 400 tons, an increase of 15.30% over the same period, an increase of 345.52% over the same period.

In September 2011 ~2012 May, China's total imports of 917 thousand tons of cotton yarn, an increase of 24.90% over the same period, the cumulative export of 285 thousand and 600 tons of cotton yarn, 15.79% lower than the same period last year.

It can be seen from the data that the advantages of China's cotton yarn in the world are also gradually losing.

"In the low-end cotton textile products, China has lost its price advantage."

A person in charge of Shanghai new textile import and Export Co., Ltd. said that India, Pakistan, Vietnam and other countries had occupied a part of China's market share in the United States by virtue of lower cotton yarn price and labor cost advantage, and even a large American T-shirt company set up factories in Bangladesh, South America and other places, and then exported products to China.

"At present, domestic and foreign cotton yarn prices vary so much each ton, the profits and orders of enterprises are affected by different levels."

Tang Ping, general manager of Jiangsu Huaqiang Textile Group, told reporters that at present, the wages of Chinese workers are increasing. The cost of raw materials, electricity, freight and other costs has continued to rise, which has increased the cost to enterprises. But in this case, the gap between domestic and foreign cotton yarn prices has affected the operation of enterprises and aggravated the difficulties of enterprises.

"The price difference is too big, we can not compete with foreign cotton yarn."

Liu Yang, general manager of Jingzhou Rong Hai Textile Co., Ltd. also said helplessly.

He counted the accounts for journalists. Taking the price of pure cotton yarn at present for 32 cases, Pakistan is 24500 yuan per ton, while the domestic price is 26000 yuan per ton, with a difference of 1500 yuan per ton.

"In this case, many yarn companies have imported cotton yarn, and our orders have been reduced a lot."

Liu Yang told reporters.

It is not only the two companies that are affected, but Wei Guo Gang, sales manager of Limited by Share Ltd, Guangzhou branch, Hunan cloud brocade group, even said: "in the current situation, our enterprises have not thought about making money, as long as they do not lose."

India and Pakistan accelerate to enter the Chinese market

As a matter of fact, India and Pakistan cotton yarns have greatly improved their international status and share by virtue of their abundant cotton resources and low cotton price. Among them, the products of low count cotton yarn have a great impact on China's domestic market.

Taking 32 cotton free combed yarn as the example, the price of Pakistan has been lower than the domestic price for a long time. In May, the average price difference between the two months was over 1000 yuan / ton, compared with April, the increase was 48%, while the average price difference in the first half of June was further expanded to about 1340 yuan / ton compared with May.

Low price also allows importing cotton traders, yarn traders and fabric enterprises to give most of the orders to the two cotton yarn enterprises in India and Pakistan.

Data show that imports of cotton yarn in China, Pakistan imports grew by 58.43% over the same period, India imports grew by 138.48% over the same period, accounting for 40% and 19% of the total imports of cotton yarn in China.

The gradual increase of share also makes India and Pakistan enterprises join in accelerating the expansion of the Chinese market.

From the end of March this year at the China International yarn exhibition held in Beijing, the gathering of these two enterprises can be seen.

At the yarn exhibition, Prateek Patodia, manager of KESHAR group from India, told reporters that as a textile enterprise that has been in operation for 20 years, the yarn products exported to China every year are growing at a certain proportion.

"In 2011, there were 5 container products exported to China. By 2015, our company's target is to export 15 containers annually."

Ayyaz Amjad Eaqi, general manager of Pakistan's eye care yarn factory limited, also said that they should firmly grasp these advantages, continue to improve the quality of products, and further explore the Chinese market, and dig out more business opportunities.

Medium and high end market potential

"Imported cotton yarns have no advantage in terms of price, but they do not have quotas. They do not require quantity."

A person in charge of a fabric enterprise in Suzhou told reporters that under the current complex situation, the choice of cheap imported cotton yarn has become a major measure for enterprises to reduce costs.

"At present, price is our first consideration."

But he also stressed that from the current situation, imported cotton yarn is low in quality and grade, but it can not meet the needs of enterprises.

Moreover, imported cotton yarn can not be charged on credit, which also has a certain impact on the capital flow of enterprises.

Insiders also said that although the price advantage of imported cotton yarn is outstanding, it is only limited to the middle and low grade market, and the middle and top grade cotton yarn produced in China still has absolute superiority.

Chinese cotton

Zhu Beina, President of the association, also pointed out that despite the many problems at present, the prospect of China's cotton textile industry is still good.

"From the future situation, the current difficulties are temporary.

Because China has a relatively complete industrial chain, this is one of our greatest strengths, and China is the largest cotton producing country with a complete chain of spinning, weaving, home textiles, printing and dyeing, and apparel industry.

In addition, Zhu Bei Na encouraged enterprises to increase the use of non cotton fibers, that is, to promote cotton.

And viscose staple fiber should be used; the product mix should be adjusted, the added value of products should be improved, and domestic demand should be maintained.

It is also a trend to pfer medium and low-grade textiles to other countries. We need to further accelerate industrial pformation and upgrading.