Raw Material Prices Strengthened In The Three Quarter, Textile Industry Profits Fell Collectively

Three quarter of this year

As the market grew stronger, 75% of the 20 products monitored rose, and only 5 products fell.

Insiders pointed out that the strong price of textile raw materials will lead to a collective loss of profits from the upstream and downstream enterprises of the textile industry.

Cost upward demand slowdown

Of the 20 products monitored by the business community, 15 products rose in price, accounting for 75%, and 5 products fell in price, accounting for 25%.

Among them, polyester filament, polyester staple fiber and acrylic fiber have bottomed out, the increase is 14.5%-18.8%; 328 grade cotton and Zheng cotton, viscose staple fiber, 30D spandex and 40D spandex gently rise 0.5%-3.5%; ICE phase cotton, 20D spandex, nylon filament plate fell slightly, or 0.7% -2.0%.

Since 2012, the growth rate of textile production has declined, and the demand for terminal textile has also been slowing down.

According to the authoritative data of the NDRC, exports of textile yarn fabrics and products and clothing decreased by 0.2% in the 1-7 months of this year. In July, exports of textile yarn fabrics and products and garments fell by 8% and 8.1% respectively.

From the export structure of 1-6 months in 2012, we can see that the fabric and finished products in textile industry have achieved a slight increase; the yarn quantity and price have dropped by 3% and 8% respectively, of which the cotton yarn price has dropped the fastest and the decline is 3.8% and 15.3% respectively. Besides, the export volume of knitted and shuttle garments has dropped 4%, and the export average unit price has increased 5%.

Upstream and downstream profit loss

Analysts pointed out that for textile raw materials, the rise

Most of them appear to be cost driven.

After entering the three quarter, upstream raw materials such as PTA, MEG and other products are actively rising. The upstream chemical fiber plant is under huge cost pressure. The manufacturers on the profit and loss line only have to be outdone, actively pursue and push forward the price of raw materials, but the weak demand of downstream demand can not support the continuous rise of the market.

The final result is that the upstream and downstream businesses are basically losing money during this period.

Data show that, with polyester staple fiber 1.4D * 38mm for example, the market price center of 7-9 months climbed from 9500 yuan / ton to 11050 yuan / ton, up 16.32%, but according to the cost formula of PTA * 0.865+MEG * 0.335+1000 yuan / ton, 7-9 months polyester fiber 1.4D 1.4D 38mm most of the time gross profit was negative, with an average profit of around -150 yuan / ton level.

After entering the "golden nine silver ten" textile and garment industry's traditional sales season, the demand for terminal textile has not yet been significantly active, compared with previous market psychological expectations there is a big gap.

Insiders said that the price of upstream raw materials was rising, and the cost pressure gradually shifted to weaving factories as the industry chain was postponed. However, the overall price rise of public fabrics was difficult.

Insiders said that because of the difficulty in pferring the cost, many textile manufacturers were forced to make arrangements to cut production or stop production, and once the textile enterprises stopped production due to losses, they reduced production.

The sale of raw materials will also have an impact and will directly damage the vital interests of chemical fiber factories.

It can be said that there is no harm to enterprises.