Textile Industry Is Facing Difficulties, And Textile Enterprises Are Facing Pformation Juncture.

Since 2012, the textile industry has been in a depressed state of operation. In July, many enterprises had already been struggling because of the lack of downstream demand. Enterprises in Shandong, Hebei and other places ceased production and limited production.

Insiders say that the current situation of the textile industry is not too much to be described by "sadness and everywhere".

The foreign trade import and export data released by the General Administration of Customs on 10 may show that in the first 8 months, China's clothing exports were 99 billion 480 million US dollars, down 0.7% compared with the same period last year, and textile exports were US $62 billion 510 million, down 0.7% compared to the same period last year.

According to the China Cotton Textile Industry Association's tracking research on 100 key enterprises, cotton yarn production decreased by 3% this year, and total profit decreased by 60%.

"Since the beginning of this year, the effectiveness of the textile industry has declined significantly, the output value growth has gradually slowed down, and the growth rate of fixed asset investment has decreased, showing a lack of confidence in investment," the Ministry of industry and Commerce recently introduced at the National Cotton Conference.

The head of a textile factory in Nanyang was very impressed. He said, "this year's domestic sales are lower than the same period last year, and the profit decline is larger, and the operation of enterprises is particularly difficult."

It is understood that from 1 to July, the profit margin of domestic textile enterprises was -1.03%, and the growth rate dropped by 4%.

In terms of structure, demand for cotton fabrics has declined, and demand for chemical fibers has increased.

Among them, imports of US cotton fabrics decreased by 6.31%, chemical fiber imports increased by 10.24%, EU cotton imports decreased by 23.89%, chemical fiber imports increased by 0.4%, Japanese cotton textile imports dropped by 24.27%, and chemical fiber imports increased by 1.97%.

The difference between inside and outside cotton prices hindered the development of domestic textile enterprises.

At present, the general trade import quota is basically used up. The cotton output in the new year has decreased slightly compared with the same period last year, but still higher than the normal year. The international cotton price may continue to fall, and the internal and external spreads or further expansion will result in a more severe situation for the textile enterprises.

"For the market in the second half of this year and the first half of next year, we are very worried that demand will not improve and there will be a period of cold winter."

Wang Qingcui, Deputy Secretary General of China Cotton Textile Industry Association, said.

The main raw material of the textile industry is cotton, in 2012 and abroad.

There is a growing trend of difference, which makes domestic cotton lack competitive advantage in price.

Zhang Yan, deputy director of the first cotton mill in Wuxi, believes that the textile situation this year is more severe than the financial crisis in 2008. In 2008, the international market was weak, and the domestic market was not bad. This year, the two markets at home and abroad are not ideal.

Textile enterprises face pformation juncture

This year, the export volume of textiles and clothing has declined sharply, and exported to US $162 billion from 1 to August, down 0.67% compared with the same period last year, and the decline in July has reached 3.1%.

Jiang Fan, director of the foreign trade division of the Ministry of Commerce, said: "judging from the current situation, although the current season is busy, the amount of enterprise orders is small, and mostly for trial orders, China's textile and clothing exports have reached a turning point."

China's export and investment driven economic growth mode is facing pformation. The stage of low cost expansion driving economic development has ended. The era of high cost of agricultural production and the return of industry will probably end.

Only by focusing on economic ills can China ensure the healthy development of the industry.

This year

The industry will face many challenges and need a long-term adjustment period.

We also know that to pform and upgrade, we must undergo certain pains, seek survival through pformation, respond to market changes, and change coping styles, so as to enhance the core competitiveness of domestic textile enterprises.