Analysis Of China's Textile Raw Material Market Economy Industrial Chain

China is the largest producer and exporter of textile and clothing in the world, and the supporting industry chain is complete.

First of all, from the perspective of capacity and output, the following chart shows that China occupies a pivotal position in the world's cotton, chemical fiber, yarn and weaving industries.

Secondly, from the industry scale, according to the National Bureau of statistics, in 2010, there were 33384 Enterprises above Designated Size in the textile industry, which created a total value of 28509 billion yuan (accounting for about 4% of the total industrial output value). About 18 million of the employed population were employed, 12 million of them were rural surplus labor force, and 100 million of the agricultural population provided about 7 million tons of natural fiber raw materials annually for the textile industry.

From the point of view of exports, according to the data of WTO, China's textile exports accounted for 30.7% of the world's textile exports in 2010. For the first time, it exceeded the European Union as the world's largest textile exporter, while clothing exports accounted for 36.9% of the world's clothing exports.

textile Clothing industry The sustained and stable growth is crucial to China's foreign exchange reserves, balance of payments, stability of RMB exchange rate, social employment and sustainable economic development. As a key component of the sustainable development of the textile industry, textile raw materials are the cornerstone of ensuring the steady and sustainable development of China's textile industry.

The raw materials of textiles are mainly made of natural fibers mainly made of cotton, chemical fibers mainly made of polyester, and cellulose fibers mainly composed of viscose fibers.

cotton

Cotton has a long history in China because of its natural comfort and outstanding performance, it is loved by consumers. However, due to the limitation of land resources, production and weather conditions, the development of cotton is difficult to achieve further growth. Moreover, cotton production, import and price have all been influenced by the policy of the state, and the degree of marketization is relatively low. The huge price gap between domestic and foreign cotton has led to a sharp reduction in the competitiveness of domestic textile enterprises this year.

As shown above, the price difference between domestic and foreign cotton gradually widened in 2012, and the price difference per ton reached 5000 yuan. The competitiveness of domestic cotton textile enterprises was greatly weakened and market share was quickly seized. According to customs data, in the first five months of 2012, China's cotton imports reached 2 million 580 thousand tons, an increase of 113.8% over the 1 million 210 thousand tons of the same period last year, while the import volume of cotton yarn in the first five months has exceeded 550 thousand tons, an increase of 55% over the 360 thousand tons of the same period last year, and the import of cotton yarn is expected to exceed 1 million 200 thousand tons this year. Among them, the import growth in India and Pakistan from the cotton producing area is particularly obvious, indicating that under the strong price advantage of foreign cotton, China's cotton textile industry has been greatly impacted in the market environment.

As cotton has been impacted, polyester staple and viscose staple have begun to partially replace cotton because of its price and Technological Development and advantages.

As can be seen from the above diagram, polyester staple fiber and viscose staple fiber have more price advantages than cotton. Mainly because these two products have been highly marketed, the prices at home and abroad are relatively close, and China has absolute advantages in production capacity (polyester staple fiber to 65%, viscose staple fiber to 65%), which is more representative in terms of price. {page_break}

Polyester fiber

In 1970s, China began to develop the synthetic fiber industry based on petroleum, and built four large-scale chemical fiber enterprises. Polyester, commonly known as "Dacron", has become a key development in chemical fiber because of its excellent performance and low cost. In 80s, the national complete set of large-scale, large-scale polyester production technology and the combination of technology and trade were introduced to produce direct spinning polyester staple fiber technology. A large number of polyester polyester enterprises with a certain scale were built, and supporting related industrial chains. After entering the 90s, with the deepening of China's reform and opening up and the continuous improvement of people's living standards, polyester polyester industry has entered a period of rapid development. Before the middle of 90s, polyester and polyester were still in short supply stage. The development strategy of polyester polyester industry was to develop the total volume, expand supply and meet the needs of people's "dressing".

Since 1998, China's polyester polyester industry has achieved unprecedented high-speed development with high starting point, low investment and large backwardness. The rapid growth of polyester products in downstream industries of polyester industry is the main reason for the rapid development of polyester industry. The technological progress of polyester and polyester technology has expanded the scale of polyester and polyester production equipment, increased efficiency, reduced investment and shortened the construction cycle. Especially the successful development of localization technology and equipment has greatly reduced the investment cost of unit capacity of polyester plant and reduced the entry threshold of the industry. At the same time, the participation of various types of competitors, such as state-owned, foreign capital and private enterprises, has brought vitality to the polyester industry at the same time.

It can be said that the development of China's polyester industry is also inseparable from the contribution made by imported raw materials. In the early days of the industry, the raw materials for polyester fiber production in China mainly depend on imports. With the continuous increase of downstream capacity, the corresponding raw material production capacity has been gradually established. But until now, China's PTA used in the production of polyester fiber still relies partly on imports (the main raw material for producing PTA is PX still relies mainly on imports), while MEG is still mostly imported from overseas markets. It can be said that without the international circulation of upstream raw materials, China's current dominance of the polyester industry can not be smoothly laid.

Figure: supply and demand situation of China's PTA

Figure: supply and demand situation of China's MEG

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Viscose fiber

Viscose fiber is a kind of regenerated cellulose fiber, which is made from natural cellulose, which is made of cellulose ester which is soluble in dilute alkali solution and then condensed and regenerated. It is the largest variety, the largest variety, the wide variety and wide variety of artificial fiber. The basic chemical composition of viscose fiber is the same as that of cotton. Moisture absorption, dyeability, breathability and textile processability are similar to cotton. The fabric made of viscose is smooth, soft, comfortable, and dyed bright.

In recent years, the production capacity of viscose fiber (mainly viscose staple) has been developing rapidly under the stimulation of downstream demand. At present, the capacity of the viscose fiber has accounted for 65% of the world viscose fiber production capacity. Its development is replicating the development mode of polyester fiber.

The raw material of viscose fiber comes from natural cellulose, which can be derived from wood, cotton lint, and grass fiber such as bamboo, reed, wheat straw and bagasse. Wood contains more cellulose, which is suitable for pulp raw materials. Cotton lint is a short pile that is stripped off lint and attached to cottonseed. The impurity is low, the pulping process is relatively simple and the yield is high, but the drawback is that the raw material source is unstable and the production process is seriously polluted. The cellulose content in grass fiber is low, ash content and pentose content are high. Bamboo, as a new type of pulp material, has been increasing in recent years due to the demand of bamboo viscose fiber.

China has used cotton pulp as raw material for viscose fiber production for a long time. An important historical reason is that domestic timber resources are difficult to be allocated to viscose fiber production. Cotton pulp is a byproduct of cotton processing. Once used as a waste material to be discarded or burned as fuel, its application in cotton pulp can turn waste into treasure. However, with the increase of viscose fiber production capacity, the supply of cotton lint can not keep up (mainly because cotton lint is only a by-product of the cotton industry, and its supply and quality vary with cotton production). Moreover, due to the environmental pollution caused by its own production, cotton pulp can not be stabilized and started normally, resulting in its low operating rate.

At present, the production capacity of domestic dissolving pulp has been increasing. But its main raw material, wood chips, is mainly imported from China due to the lack of domestic timber resources. Therefore, the cost is relatively high, and because of the instability of wood chips, the quality of dissolving pulp produced is relatively large. If the domestic dissolving pulp industry is to develop stably and healthfully, the raw material problem must be solved first, and this problem can not be solved overnight.

Compared with domestic enterprises, foreign dissolving pulp generally has its own stable timber supply, which can provide high quality products and stable supply. Under the condition that domestic cotton pulp and dissolving wood pulp are unable to supply quantity and quality steadily, imported dissolving pulp protects the downstream production and operation to a certain extent, and promotes the development of China's viscose industry, laying the foundation for the status of its viscose producing country.

　　 Conclusion: The development of China's textile industry is inseparable from the support of upstream raw materials. A stable and healthy raw material market is the foundation for ensuring the competitiveness of China's textile industry. Because of the stable wood supply, foreign dissolving pulp can provide high quality products and stable supply. By guaranteeing downstream production and operation, it can effectively help promote the development of China's viscose industry and lay the foundation for the status of China's Viscose producing country.

Thus, a rational and scientific view of the demand and reality of imported dissolving pulp will promote the further development of China's textile industry and enhance the competitiveness of the industry. Only by fully understanding and utilizing the market and constantly improving our competitiveness can we help the textile industry and all industries achieve healthy and sustainable development.