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    RMB Devaluation Is Low, But It Is Good For Textile Industry.

    2016/7/21 17:34:00 38

    ClothingEconomyUSAExport

    According to the latest news in July 20th, the spot exchange rate of RMB against the US dollar fell below the 6.7 barrier on July 19, setting a new low since November 2010. The central parity of RMB against the US dollar fell by 156 basis points, at 6.6961, a five and a half year low. With the depreciation of the renminbi, textile and garment export enterprises are generally regarded as being profitable.

    China's textile industry has been affected by the appreciation of RMB and the rising cost of labor and raw materials in recent years. clothing The competitiveness of the industry in the world's main markets has been weakening, and the main market share in Europe and the United States has been declining. But in the process of RMB devaluation, the performance of China's textile and garment export enterprises began to recover and increase slightly.

    Insiders pointed out that the depreciation rate of RMB against the US dollar is 1%, and the sales profit margin of the textile and garment industry will increase by 2% to 6%. Moreover, the scale of China's textile and garment industry ranks first in the world, and the impact of exchange rate changes on the industry is huge. The sudden sharp depreciation of the RMB, for the average profit margin of less than 10% of the textile and garment industry companies, the role of self-evident performance boost.

    According to statistics, 33 of the 56 listed textile and apparel companies which have export business have increased gross margins of foreign businesses, and the gross margins of foreign businesses of 23 companies have dropped compared with the same period last year.

    According to the latest data, from January to June this year, China's textile and apparel exports totaled 802 billion 870 million yuan, an increase of 2.1% over the same period, including 337 billion 970 million yuan in textile exports, an increase of 4.2%, and 464 billion 900 million yuan in clothing exports, an increase of 0.6%.

    The China Textile Import and Export Association disclosed in July 14th that it is mainly because of the world's main Economics The economy has not yet recovered significantly, and the demand for major markets is short of growth momentum. In the two quarter of this year, China's textile and clothing exports continued to grow, but with the expansion of the year-on-year base, the growth rate gradually narrowed.

    In January this year, China's textile and clothing exports increased by 29.02% over the same period last year. Textile and garment exports reached a climax in February, with an export volume of US $6 billion 300 million, an increase of 30.92% over the same period last year.

    From the above, China's textile and clothing exports increased considerably in January and February this year, but the growth of exports intensified the international trade frictions.

    In March 11, 2016, the two major markets of the European Union and the United States were almost at the same time causing difficulties to Chinese textiles. They were prepared to take measures to restrict the import of Chinese textiles. In April 1st, the EU increased the import tariff of Chinese textile and clothing from 9% to 12%.

    China's textile and garment export growth has declined after the European and American textiles crisis. According to the renminbi, China's textile and apparel exports in June amounted to 156 billion 390 million yuan, an increase of 0.9% over the same period, of which 59 billion 370 million yuan in textile exports, an increase of 2.5%, and 97 billion 20 million yuan in clothing exports, a decrease of 0.1%.

    According to insiders, the current severe and complex foreign trade situation makes China's textile and clothing exports still face greater downward pressure in the second half of the year, and the possibility of rapid growth is very small. However, the following three factors can help China's textile and garment exports maintain a stable trend and achieve a small increase: the export base in the second half of last year is relatively low; the RMB has accelerated depreciation against the US dollar; the steady foreign trade measures have been gradually implemented, and the ability of Chinese textile enterprises to withstand the pressure has been enhanced.

    It is worth noting that, according to the Fujian inspection and Quarantine Bureau, the EU and U.S.A New regulations on textiles and home textile products have been introduced, and the contents of nonylphenol polyoxyethylene ether (NPE) in textile products and the list of restricted substances have been updated. Textile and garment enterprises should pay attention to it.

    It is reported that the European Union recently issued the regulation No. twenty-sixth of 2016, limiting the NPE content in textile products, requiring that the content of NPE in textile products should not exceed 0.01% (100ppm). The transitional period of this regulation is 5 years. After the expiration of the transition period, products that do not meet the requirements will not be allowed to be sold in the EU market or imported by EU countries. NPE is widely used in cleaning, dyeing and washing processes in textile production. It is the most commonly used detergent and dyeing auxiliaries in textile and garment industry, accounting for more than 80% of China's market share.

    The American textile, apparel and Footwear Association recently released the seventeenth edition of the restricted substances list (RSL), which lists 12 or more categories of 250 or more prohibited or restricted substances used in clothing, footwear and finished products.

    Experts suggest that the relevant export enterprises should pay attention to the relevant laws and regulations of the United States on textile and apparel accessories and the latest requirements, strictly control the quality of raw materials, and constantly improve the production process and testing methods to ensure that Exit Textile and clothing products in the United States will not be notified or recalled for quality and safety issues.

    In the face of the restrictions imposed by Europe and the United States on China's textile and clothing industry, experts say that the new rules promulgated by the European Union and the United States will have a greater impact on clothing, indoor textiles, yarn and weaving production enterprises. To this end, the inspection and Quarantine Bureau should guide the garment export enterprises in the area to pay attention to the implementation of the EU NPE regulations, and grasp the detailed provisions of the regulations. At the same time, we should strengthen the detection of NPE content of raw materials and finished products, so as to avoid exceeding the limit requirement of EU products.


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