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    RMB Depreciation And Innovation Low Bring Opportunities To Textile Enterprises Or Challenge?

    2015/8/15 9:24:00 27

    TextilesImportsGuangdongCottonXinjiang

    In recent days, the Central Bank of China has sharply lowered the central parity of RMB, which has depreciated for two consecutive days.

    Spin

    The industry brings many good news.

    In Guangdong, it was learned that the devaluation of the renminbi played a positive role in boosting the local cotton textile industry.

    According to a cotton yarn trader in Guangdong, the profit of textile enterprises this year is better than that of last year. Cotton prices drop more than the price of yarn. As long as the enterprises are normally starting production, the profit of cotton yarn products is higher than that of last year.

    At present, the main problem is 6-8 months in the textile industry off-season, enterprise orders and sales situation is not ideal, cotton yarn stock larger, the recent depreciation of the RMB will have a positive impact on textile enterprises.

    Current India Pakistan yarn

    Imported

    The price is basically the same as the domestic yarn price. The decline of the RMB exchange rate will increase the price of imported yarn, and the competitiveness of domestic cotton yarn will increase significantly both in China and in the international market.

    The head of a cotton spinning enterprise in Guangdong said that the biggest difficulty facing spinning enterprises is not the high and low cotton prices, but the imbalance between the supply and demand in the downstream market.

    Over the past two years, Southeast Asian textile products have sprung up, and they have taken advantage of cost advantages to rob the international market. At the same time, due to the slowdown in domestic economy, domestic products are also in a predicament. Under the dual background of internal and external attacks, textile enterprises are struggling, especially in the past.

    Guangdong

    There are fewer and fewer cotton spinning enterprises in the province, and now they are mainly concentrated in western Guangdong and northern Guangdong.

    The fall in the exchange rate will alleviate the problem of excessive inventory in a certain extent, and will also bring benefits to future orders and sales.

    At present, under the superposition of the above favorable factors, some textile enterprises in Guangdong are actively replenishment of stocks to cope with the tension of raw materials.

    It is understood that Guangdong textile enterprises

    cotton

    Inventory turnover period is relatively short, roughly maintained in a month or so, which is relatively tight for normal start-up production and enterprises far away from the main cotton producing areas in the mainland.

    The head of the textile enterprise said that the cotton output in the mainland has been greatly reduced this year. When cotton enterprises do not buy enough seed cotton, they will not start easily, and the time to market cotton must be postponed.

    In order to prevent the inventory of new cotton enterprises before going public, some spinning enterprises decided to auction a certain amount of reserve cotton before the end of the cotton spinning.

    It is understood that although Xinjiang cotton can be listed early this year, the inventory of textile enterprises is relatively tight. Especially in the case of cotton production in the mainland, the contradiction between centralized demand of textile enterprises and the contradiction between cotton pportation and Xinjiang pportation will be highlighted or lead to great fluctuations in cotton prices. Therefore, the auction is suitable for the reserve cotton of enterprise products, and replenish cotton inventory is a wise choice for Guangdong textile enterprises, otherwise the loss may be greater.

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