Hunan Huaihua Clothing Price Declines Reappear Textile Industry Fear Confidence Down

Production costs continue to rise, enterprise orders shrink, inventory increases, corporate losses seem to be difficult to reverse......

Severe form makes the city's major textile enterprises helpless.

Recently, a reporter survey found that this year, Hunan Huaihua textile industry widespread orders reduction, inventory increase, sales price reduction, cost increase and so on, production and marketing stamina is insufficient, the overall situation is not optimistic.

"Atrophy increase or decrease" linkage game

In September 30th, the cool breeze that had entered the early autumn did not blow away the worries of Liu Xu.

"Shrinking orders and rising costs" plagued this business.

For ten years, Liu Xu, who is 54 years old, is a manager of Jinfeng textile company, talking about the recent situation of the company. Lao Liu smiled bitterly. "The current grim situation makes people feel like pins and needles."

Jinfeng Textile Group Co., Ltd. is a large private textile enterprise with 200 thousand spindles and more than 2500 textile machines. The main production equipment has reached the advanced level in China.

It can produce all kinds of yarn, thread and cloth products. The main products are pure cotton combed, combed yarn, yarn, blended combing, combed yarn, yarn, slub, siro spinning, yarn and more than 40 varieties, and all kinds of pure spinning and blending grey fabrics have a high reputation in the market. They sell well in the whole country and Southeast Asia, the Middle East, Africa, Europe and the United States, and are well received by users.

Jinfeng textile, which has been brilliant for a while, is now facing a decline in orders.

The grim situation of increasing and rising costs, and other major textile enterprises such as Jinfeng Group Hongjiang Co., Ltd. and Anjiang textile Co., Ltd. are facing the same situation. Reporters learned from the Huaihua investigation team of the National Bureau of statistics, compared with the same period last year, the order has dropped by about 15%.

The main products are small yarn sales, small single room, long single, less short list, and the backlog of product inventory is up to two months, far exceeding the normal stock period.

It is expected that the number of enterprise orders may be further reduced after the National Day holiday.

Reporters in the survey report produced by staff showed that the price of cotton spinning yarn produced by Jinfeng Textile Co., Ltd. was 21651 yuan / ton in August, compared with 26103 yuan / ton in the same period last year, a decrease of 17.1% compared with the same period last year, and the price of cotton spinning fabric was 4.51 yuan / m, compared with 5.34 yuan / m in the same period last year, down 15.5% from the same period last year.

"Atrophy and increase or decrease" is launching a linkage game. The severe situation has plagued most of the textile enterprises in the city.

Clothing prices will rise and fall?

Cotton prices have been on a downward trend, but the market has just been listed.

Price, not only do not keep the "synchronization" with the price of cotton, instead of falling and rising.

During the national day, reporters visited several shopping malls in downtown area, and found that apart from the larger discount sale of seasonal garments, the price of clothing this year has increased by a certain margin compared with previous years.

Since the price of cotton has fallen, why does the price of clothing go up and down? "Cotton price has dropped a lot, but the impact on clothing prices is not obvious."

Mr. Zhao, a brand clothing agent in the urban area, admitted that the fabric has been greatly improved than in the past. 100% of the pure cotton clothes on the market are rare. Most of the garments are made of nylon, spandex, hemp and various fibers.

In addition, rising labor costs and high cost of sales channels are also one of the reasons for higher clothing prices.

It is not realistic to deduce that the price of clothing will go down with cotton prices alone.

Mr. Zhao said so.

Ms. sun, a clothing store in hizhou Road, said that the costs of labor, logistics, warehousing, store rentals are rising, and the cost of opening up clothing stores is rising. Although the price of cotton has fallen, it is not enough to reduce the price of clothing sales.

Later, the situation is more grim. During the interview, the reporter learned that Huaihua is not a traditional cotton planting area. The only cotton planting base is concentrated in Xupu, Chenxi, China, Hecheng and other counties.

In 2011, the cotton planting area in Huaihua was 39 thousand and 900 Mu and the output was 3065.2 tons, compared with 42 thousand and 200 mu in 2010 and 3636.12 tons in the same period, it decreased by 5.5% and 15.7% respectively.

Owing to the lack of rural labor force and the pformation of some cotton plantations into rice or other cash crops, the cotton planting area and output of Huaihua continued to shrink in 2012.

Leading to the tight supply of raw materials market in the textile industry, the gap needed to be pferred from Changde, Yiyang or Xinjiang to increase the cost of purchase.

According to the survey, the production of electricity in the city's textile industry has increased by an average of 0.037 yuan per hour since the beginning of the year, and the average wage of workers has increased by 5%-10%.

Fortunately, the purchase price of cotton is currently 170 million 920 thousand yuan per ton, down 8.3% from the same period last year.

It is expected to pick up later.

Due to inventory backlog, purchase and production costs rising, textile enterprises' capital chain pressure has increased.

Textile industry is a labor-intensive industry. It belongs to one of the most difficult financing industries.

Through investigation, the sources of funds for textile enterprises are generally secured installment loans and private lending.

In 2012, part of the bank lending rate rose to 30%-50% on the basis of the benchmark interest rate, while the higher interest rate of private lending led to a significant increase in the production cost of textile enterprises and further compression of profit margins.