Our Textile Industry Is Booming In China Or Changing Cotton Purchase Plan.

Last year, China's cotton The reserve policy stimulated the demand for cotton in China's garment factories. The United States seized this business opportunity and increased its export to China. China will change its cotton yarn purchase plan, and the US textile industry will flourish or flash in the pan.

As the price of cotton in the United States has surged and the demand for domestic retail market is weak, the US textile factory has been dumping cotton yarns to China in search of huge profits. This year, the United States textile mill has increased nearly 4 times the sales volume of Chinese cotton yarn, and the textile industry in the United States is booming.

Reuters said that since last year, in order to reduce costs and omit a garment manufacturing process, Chinese textile mills no longer processed domestic raw cotton and started using semi manufactured products made from foreign cotton. China has formulated a cotton reserve plan, so textile mills can not buy Cotton with domestic price advantage. So far, China's textile mills mainly import cotton yarn from Bangladesh, Turkey, Pakistan and Southeast Asia.

China's cotton reserve program has greatly changed the pattern of textile trade in the United States. As the world's largest exporter of raw cotton, the United States exports 400 thousand tons of cotton yarn 85% or more per year, but this figure accounts for only a small part of the total cotton trade worldwide. Most trade volume appears in South American countries. Compared with some countries with lower labor costs, the competitiveness of the US textile industry is insufficient, but the low energy prices and sophisticated technology make up for this defect. Because of the use of high-tech machinery, American yarn is less labor intensive.

The plan has also had an important impact on the global market, which has changed the direction of Global trade flows and stimulated the prices of major raw materials. This year, China will change its cotton yarn purchase plan and cut it down. yarn The prosperity of the textile industry in the US may be short-lived.

John Robinson, a professor and economist at Texas A&M University, said that if China terminates its reserve plan, the prosperity of the textile industry in the United States will vanish in. John Bakane, chief executive of Frontier Spinning Mills, one of the largest textile mills in the United States, said that although China's reserve plan and the future of us energy policy remain uncertain, the US textile mill still has "opportunities". Parkdale Inc, another large textile mill in North Carolina, declined to comment.

Reuters also pointed out that China's cotton import growth is unprecedented. Last year, China has surpassed Mexico and Salvatore to become the third largest importers of cotton yarn after Honduras and Dominica. China imported the total amount of cotton yarn in the first four months of last year equivalent to the sum of 2011 and 2012. The International Trade Commission (ITC) said that the total yarn exported to China in the first four months of this year amounted to 2,23 million tons, an increase of 4800 tonnes compared with the same period in 2012.

Among the top ten yarn importing countries, China is the only non South American country. Stimulated by China, the total export volume of yarn in the first 4 months of this year exceeded 137 thousand and 600 tons, an increase of 15% over the same period last year. Even so, some people think beauty. Textile industry The boom is just a flash in the pan. Alasdair Carmichae, chairman of PCI Fibres, a textile consultancy, believes that the United States textile mill is facing great risks and prosperity is only short-lived.