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    Data Show That The Decline In Production And Sales Of Shanghai Textile Industry Is Expanding By Quarter.

    2012/11/26 9:17:00 11

    ShanghaiTextile IndustryProduction And Marketing Situation

    One falling leaf is indicative of the coming of autumn, Spin The industry is facing challenges. The Shanghai Textile Association predicts that many small and medium enterprises will be eliminated. "This year, CITIC insurance (in the textile industry) has an increase rate of more than 30%. As the main knitting in Shanghai clothing One of the exporters, Lu Longsheng, chairman of Shanghai Pegasus import and Export Co., Ltd., said that there was no compensation in his company last year, but this year there have been hundreds of thousands of dollars in compensation. The default of clients will directly lead to the bankruptcy of domestic textile enterprises. "I know a boss in Taiwan who opened a factory in Songjiang. Because of the bankruptcy of European customers, the money was confiscated, which led to his capital chain broken and had to close."


    Due to the continuous expansion of the cotton price gap between domestic and foreign cotton caused by the existing cotton management system, the domestic cotton price at present is 5000 yuan / ton higher than that of foreign countries, which has weakened the competitiveness of the textile industry, especially the cotton spinning industry chain.


    According to the three quarter Shanghai textile economic operation report provided by the Shanghai Textile Association to the Morning Post reporter, in the first three quarters, the industrial output value and sales volume of Shanghai textile industry increased year by year (a year earlier).


    In 1-9 months, 858 Industrial Enterprises above Designated Size in Shanghai's textile industry realized industrial output value (current price) of 59 billion 80 million yuan, down 7.1% compared to the same period last year, of which the reduction in September was 9.2%. Quarter by quarter, the year-on-year decline continued to expand, the first quarter fell 3.4% compared to the same period, the two quarter year-on-year decline of 3.6%.


    1-9 months, Shanghai Industrial Enterprises above the scale of textile industry realized sales value of 59 billion 48 million yuan, down 4.6% compared to the same period last year. The year-on-year decline also expanded by quarter, of which 3.9% in the two quarter, 2.9% in the first quarter, and 6.2% in September.


    "The net profit margin of textile and garment export enterprises is generally only 1%-3%, and the survival depends mainly on the state tax rebate. Moreover, after the tax rebate has removed the customer's price, the benefits that enterprises can enjoy is only about half. Therefore, if 16% of the export tax rebates are excluded from profits, most of the textile and garment enterprises are losing money." The Shanghai Textile Association wrote in its report.


    Exports fell more than domestic sales. According to the report, the volume of textile and clothing exports in Shanghai has been negative for 11 consecutive months. In 1-9 months, Shanghai textile enterprises realized export delivery value of 15 billion 694 million yuan, down 11.1% compared with the same period last year.


    Liu Yinfeng, Secretary General of Shanghai Textile Association, said that the traditional export market of the textile industry has been shrinking this year due to the European debt crisis. However, influenced by the rise in domestic costs, the international clothing retailers have increased their purchases from Southeast Asia and reduced the demand for Chinese enterprises.


    It is reported that domestic cotton price spreads caused by the existing cotton management system continue to expand. In the early July, domestic cotton prices were about 4500 yuan / ton higher than that of foreign countries. At present, the price difference has reached 5000 yuan / ton, which has weakened the competitiveness of the textile industry, especially the cotton textile industry chain. In addition, China's textile and clothing export products are still the main targets of Global trade protection this year.


    Lu Longsheng said that the reduction in EU orders this year is most obvious, and the dispute over the Diaoyu Islands has led to Sino Japanese disputes. Trade Orders from Japan have dropped rapidly, and orders for exports to the US remain single digit growth.

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