Whether The Textile Industry Can Recover Rapidly This Year Is Generally Cautious

In the middle of this month, Nantong State Administration of Taxation announced that spin Industry research report. From January to September, the output growth of major products in the textile industry of the city rebounded, sales continued to grow, profitability improved, and taxes increased.

Increase in profit tax

The output of main products is an important indicator of the overall operating status of the industry. The data shows that from January to August, the city's total yarn output was 381600 tons, up 8.1% year on year, and the growth rate was 5.3 percentage points higher than that of the same period; The cumulative output of cloth is 1.847 billion meters, an increase of 1.8%, up 1.1 percentage points year on year.

The sales situation remained good. From January to September, the city's textile industry reported sales of 62.334 billion yuan, up 6.33% year on year.

The industry started and sales improved, directly driving the increase of profits and taxes. From January to August, the city's textile industry made a cumulative profit of 899 million yuan, up 1.25% year on year; The profitability of the enterprise was 55.5%, up 4 percentage points year on year. From January to September, the city's textile industry completed 2.068 billion yuan of tax revenue, up 5.53% year on year. From January to September, the tax revenue of the textile industry accounted for 10.46% of the city, up 0.14 percentage points compared with the same period. As a key support industry in our city, the textile industry has made significant contributions.

Enterprise expectations are cautious

However, the industry is generally cautious about whether the textile industry can recover rapidly this year.

The survey found that enterprises still have doubts about the price scissors formed by the protective acquisition of raw materials. In order to protect the interests of cotton farmers, the country has increased its cotton reserves, thus making the domestic cotton price about 5000 yuan/ton higher than the international market price. Although there are quota restrictions on cotton import and a sliding tax is levied, there is no quota restrictions on cotton yarn import. Some enterprises directly import cotton yarn for processing into finished fabrics for external sales, or directly import finished fabrics for external sales, which has a negative impact on the domestic cotton yarn and cotton weaving industry.

Lower sales prices also directly affect the profitability of enterprises. Industry insiders point out that in the case of lower raw material prices, buyers will force raw material manufacturers to reduce prices; When the price of raw materials rises, the customer will ask the supplier to execute according to the contracted order price. For cotton spinning and weaving enterprises, when the cotton price falls, the product price will fall, but the inventory of raw materials will drive up the enterprise cost; When the cotton price rises and the product cost increases, the contract price still needs to be executed for the signed order, and the sharp fluctuation of the price is unfavorable to the enterprise.

The increasing labor cost is also eating into the enterprise income. Last year, Nantong textile industry workers' wages increased by about 10%, and this year is expected to increase by more than 10%. In addition, the number of workers participating in endowment insurance, medical insurance, work-related injury insurance and other insurances increased, and the insurance base continued to increase, leading to an increase in enterprise labor costs.

The industry generally believes that there are still uncertain factors in the international market prospect, and there is little possibility of a significant improvement in demand, while the continuous monetary easing policies of the United States and Japan have further reduced the market competitiveness of Chinese products. According to a survey released by China Textile Association at the end of September, enterprises are relatively cautious about the international market expectations, and only 27.1% of the enterprises expect the future export orders to improve.