The Silk Is Difficult To Block The Cold.

Silk, one of China's oldest exports, is suffering from the burning and battalion of the crisis.

In the near future, the price of raw silk has plunged to make the business stranded.

Five leading enterprises in the industry have written to the Ministry of Commerce for assistance, and Chen Deming, the Minister of Commerce, has gone to and from the Ministry of Commerce in various parts of the country.

Ge Xunbing has been watching the computer almost every day for two months and watching the quotations of raw silk everywhere.

As a clerk in a silk sales company in Sichuan, his face was full of sorrow.

"International raw silk prices dropped to about 130 thousand yuan / ton from about 200 thousand yuan / ton in two months, and now they fall below the cost of acquisition."

Ge Xunbing told the China business newspaper reporter that this is the biggest decline in his silk business during the past ten years.

More worrying than price is that with the spread of the financial crisis, silk orders from all over the world have dropped sharply.

Customs statistics show that in October this year, China exported 763 tons of raw silk, down 20.02% from the same period last year.

"Conservatively estimated that industry orders have decreased by 30%."

Lu Yunsheng, manager of Sichuan silk import and export company, told reporters that some factories in Sichuan began to cut production or even stop production, and the collapse of Zhejiang enterprises in the same province of silk was even more severe.

When the market is facing big fluctuations, the silk industry shows its most vulnerable aspect.

Since last year's banking credit crunch, some textile companies have been able to borrow short-term loans for loans because they can not borrow money from banks, and their financial charges have increased by about 10%.

According to the statistics of China Textile Industry Association, the average profit margin of China's textile industry is only 3.9%, and most of the enterprises in this industry have no profit margin of 1%.

Another worrying problem is that the fear of reducing export volatility will affect downstream industries.

It is understood that China's silk industry has a high dependence on foreign trade, and the silk industry has difficulties.

Ge Xunbing said that at present, many enterprises are unable to implement the takeover agreement with sericulture households.

The biggest worry is that the raising cost of silkworm farmers has risen, while the market price has dropped sharply and profits have been severely damaged.

It is reported that the net benefit of silkworm farmers in silkworm breeding in 2007 was still more than 200 yuan, but only about 30 yuan in 2008.

Chen Xiangping, director of the Sichuan Silk Research Institute, worries that under the situation of rising grain prices, the biggest worry is that silkworm farmers cut down mulberry trees. If a large number of mulberry trees are destroyed, the whole industry will not be able to recover for four or five years.

In November 4th, the National Cocoon wire office issued a letter requesting "increasing market supervision."

"To prevent people from lowering prices and excessive speculation", the market once rebounded and raw silk rose to 145 thousand yuan / ton.

Reporter learned that in Nanchong, one of the main silk producing areas in Sichuan, the local government has analyzed the law of "tide ebb and flow" in sericulture through various forms.

But sang Nong worries that there is no special venture fund to ensure that they will not be affected by market risk in the next few years.

Recently, many leading enterprises in the silk industry of Sichuan, Chongqing, Jiangsu, Guangxi and Zhejiang have joined the Ministry of Commerce, hoping to save the silk industry with the state's administrative resources. Five.

As early as in October 23rd, the office of the Chengdu Special Administrative Region of the Ministry of Commerce launched a field investigation into the silk and silk production base of Sichuan silk import and Export Group Co., Ltd. and gave a report to the Ministry of Commerce.

Reporters learned that many officials of the Ministry of Commerce, including Chen Deming, Minister of Commerce, recently conducted a thorough investigation of the operation of silk enterprises in Guangdong, Zhejiang and other places, hoping to "rescue" the textile industry with confidence and encouragement of export rebates.

Wu Piguang, director of the Sichuan provincial SME Bureau, revealed that they had sent three people to Sichuan's main raw silk producing areas and made detailed reports to the Sichuan provincial government.

The reporter learned from the relevant departments of the Ministry of commerce that faced with the silk dilemma, the Ministry of Commerce will not only give support to confidence encouragement and export tax rebates, but also focus on improving the competitiveness of the cocoon and silk industry, continue to carry out the project of "mulberry shift to the west", improve the reserve system of factory silk, and subsidize the reserve cost of factory silk.

The establishment of sericulture development risk fund will also be on the agenda.

The strategy of redemption is also of great importance to the silk industry, which is facing a grim situation.

Reporter learned that faced with many difficulties in survival, some large domestic textile enterprises have begun to seek their own pformation path.

Such as the main attack on the domestic market; take the road of scale and differentiation.

Lu Yunsheng revealed that Sichuan was one of the major provinces of China's silk trade. The main markets in the past were concentrated in Indonesia and India dominated Southeast Asian markets. Now, faced with the crisis, some of the Sichuan silk enterprises are considering reducing production. Others are trying to open up Africa and Middle East markets with high value-added products.

But cultivating a new market is not an easy task. In the short term, it is difficult to increase the added value of products.

Ge said that the problem is that most of the enterprises engaged in silk trade have no domestic sales department and related personnel. They are particularly unfamiliar with the domestic market. They have become "outside wars and professional conduct, and civil war amateur". This change will take some time.

However, in the view of the industry, although the domestic textile industry is facing many difficulties, it also ushered in the opportunity of industry consolidation and upgrading.

Chen Xiangping pointed out that under the dual pressure of unfavorable export situation and domestic regulatory policies, the elimination of some small and medium-sized garment enterprises can alleviate the situation of oversupply of middle and low grade clothing, promote the upgrading of the textile and garment industry, and also promote the upgrading of the silk industry.