China'S Textile Industry Has Lost 18.4% Of Its Domestic And Foreign Cotton Prices.

Since 2012, foreign demand has been sluggish, domestic demand has slowed down and domestic and foreign markets have been slowing down.

The price spreads continue to widen and other factors. The textile industry has continued the trend of economic growth since last year. The growth rate of major economic indicators such as production, exports and investment has been slowing down and the efficiency has declined.

Huaibin, Deputy Secretary General of the China Federation of textile industry, said that the growth rate of textile industry continued to slow down in the first half of July this year. 37 thousand Textile Enterprises above Designated Size reached 3 trillion and 146 billion 710 million yuan in total industrial output value, an increase of 10.9% over the same period last year, representing a 18.8 percentage point decrease compared with the same period last year, representing a 3.8 percentage point decrease compared with the first quarter of this year.

Affected by the slowdown in the industry's economic growth, textile enterprises' investment confidence has declined, investment growth has slowed down and new construction projects have been reduced.

Before July, the total investment in fixed assets of the textile industry totaled more than 5 million yuan, 416 billion 400 million yuan, an increase of 16.9% over the same period last year, and the growth rate dropped 19.5 percentage points over the same period last year.

Domestic sales and exports are also not optimistic.

From 1 to July, the domestic sales value of textile enterprises above designated size was 2 trillion and 577 billion 30 million yuan, an increase of 12.5% over the same period last year, a decrease of 20.3 percentage points compared with the same period last year. Our total export of textiles and clothing was US $141 billion 580 million, up only 0.3% from the same period last year, a decrease of 25 percentage points over the same period last year.

If the price increase factor is deducted, the actual export volume of the textile industry will increase negatively, and China's textiles will be 1 to July.

Export prices increased by 2.9% over the same period last year, and the volume of exports decreased by 2.5% over the same period last year, down 5 percentage points from the same period last year.

Due to the concentration of external adverse factors, the pressure of enterprise development is too high, and the industry efficiency has declined compared with the same period last year, and the profits of cotton spinning and chemical fiber industry all have a negative growth trend.

From 1 to June, the total profit of textile enterprises above Designated Size reached 114 billion 790 million yuan, down 1.9% from the same period last year, the growth rate was 43.2 percentage points lower than that of the same period last year, and the sales profit margin was 4.5%, down 0.5 percentage points compared with the same period last year.

The loss of enterprises is 18.4%, and the deficit of loss making enterprises increased by 124.1% over the same period last year.

Sun Huaibin said that the problem of cotton price perplex industry development is still outstanding.

By the middle of August, domestic cotton prices had been more than 5000 yuan higher than that of the international market, and the spread of price increased by 67% compared with the beginning of the year.

According to the market demand and supply situation, it is hard to predict the difference between domestic and foreign cotton prices in the near future, and the new cotton temporary purchase and storage policy is about to start.

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The cost of production and other production factors continues to increase, and the problem of financing difficulties is not yet completely solved. In the first half of this year, interest payments for Enterprises above designated size increased by 29.5% over the same period last year, which is 19.8 percentage points higher than that of the main business revenue growth over the same period.

Coupled with the continued downturn in external demand and the fluctuation of raw material prices, the overall operation of the industry is still facing many risks. Further deepening industrial restructuring, accelerating the pformation of development mode, and resolving various external risks from the root cause are still fundamental tasks facing the whole industry.

Sun Huaibin said.