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    Textile Exports Are Growing Slowly, But The Import Of Cotton Yarn Is Still Not Falling.

    2016/1/10 16:25:00 64

    Cotton YarnImport VolumeTextiles

    According to China Customs data, since 2011, the monthly import volume of domestic cotton yarn has increased rapidly, all over 100 thousand tons, and by 2015, it has remained at around 200 thousand tons, of which 7, 8, and September were 215 thousand and 700 tons, 207 thousand and 700 tons and 217 thousand and 800 tons, respectively, representing an increase of about 300% over the same month in 2003.

    2015 domestic

    Textile industry

    It is still weak, and most of the production is maintained by large and medium-sized enterprises. The products are mainly medium and high end products, and the low-end yarn market is weak and difficult to sell. In 2016, the market did not find significant changes and turnaround, business or improvement, enterprises still need to continue to develop new flagship products, and strengthen market competitiveness, so as to win a place in the market of "water and waves".

    According to the latest statistics of the General Administration of customs, in November 2015, China

    Imported

    159 thousand and 500 tons of cotton yarn, down 8.49%, down 2.91% compared with the same period last year. Despite the recent narrowing of domestic and foreign cotton yarn prices, the cost advantages of low spun yarn in India, Pakistan and Southeast Asia can not be ignored.

    Invest and build factories

    The trend has not been reduced. Some governments are also strongly supporting the development of the textile industry. It is expected that the impact of the outer yarn on the domestic yarn will continue or even increase.

    Besides, the impact of outer yarns is not only an impact on the domestic market, but also an inevitable impact on the export of domestic yarn.

    From the data, we can see that since 2003, the number of domestic cotton yarn exports has declined slowly, and the export volume of textiles has also increased slowly. Considering the factors such as rising prices and rising costs, the growth of the amount may be only a superficial phenomenon.

    Related links:

    After the depreciation of RMB, the overseas investment strategy of enterprises is different from that of frequent importing and exporting enterprises. Most enterprises choose overseas investment one or several times. Because the investment time is controllable, enterprises can rationally analyze and predict the foreign exchange market, and then choose a relatively suitable node for investment.

    In the interview, the reporter learned that in the past few years, the RMB was on the path of appreciation. In the process of trading with foreign businessmen, large scale export enterprises adopted the financial settlement method of locking exchange rate to avoid possible losses.

    "If a company signed a bank settlement rate with a bank 6.35 a year ago, it would not enjoy the benefits that the exchange rate exceeded 6.5 in these days."

    Apollo, general manager of Zhejiang Motorcycle Manufacturing Co., Ltd. told reporters that under the trend of RMB devaluation, many enterprises around the country had already begun to change this settlement mode, instead of the mode of instant settlement.

    Then, how should the importing enterprises respond? "Our LED chips and other raw materials need to be imported from abroad, and it is expected that the possibility of RMB depreciation will be expected. We should adopt appropriate pre stocking mode for these imported raw materials so as to avoid excessive losses."

    Pan Junbo told reporters.

    In this regard, Professor Huang Yanjun, School of economics, Zhejiang University suggests that, with the acceleration of the internationalization of RMB, it is possible for importers to adopt RMB settlement as far as possible when they enter the ocean trade. One can avoid the risk brought by the possibility of depreciation, and the two is more conducive to the clarity of enterprise financial accounting and speed up the operation of enterprise funds.

    In addition, the depreciation of RMB will also have an impact on overseas investment projects of enterprises.

    At present, with the upgrading of production factors such as labor cost in domestic manufacturing industry, the pfer of traditional labor-intensive industries to Southeast Asia has gradually become a trend.

    In particular, the Zhejiang businessmen, who dare to go out, take advantage of the national strategy of "one belt, one road" and so on.

    The Longjiang Industrial Park, which is located in Vietnam, is the state-level foreign economic and trade cooperation zone led by Zhejiang businessmen. At present, 35 enterprises have entered the park, and the annual output value of the park has reached US $3 billion.

    "In most cases, foreign investment is indeed settled in US dollars, but in the short term, we have not yet seen the change in the willingness to invest in the renminbi due to the depreciation of the renminbi."

    Weng Mingzhao, chairman of Longjiang Industrial Park, told reporters.

    "I don't think the renminbi will continue to depreciate, but even if it continues to depreciate, it will not affect the enthusiasm of enterprises to set up factories overseas."

    Huang Yanjun analyzed that there will be a profit callback process when enterprises invest in factories. Even if the RMB continues to depreciate, the profits earned by overseas branches will be more valuable when they are exchanged for us dollars from the US dollar to offset losses caused by the depreciation of the renminbi.

    From this perspective, Huang Yanjun believes that as long as overseas investment projects are expected to be profitable, devaluation is not necessarily a bad thing for overseas investment enterprises.


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