Labor Pains Intensified, Industry Accelerated Shuffle, 2019 Textile Industry Go Where To Go!

Thousands of troops have crossed the single log bridge, summarizing the word in 2018: it is difficult.

With the rising of international raw materials, the rapid rise of Southeast Asian textile industry and the uncertain factors of Sino US trade friction, there are double pressures of pformation and upgrading and environmental protection policy. The pessimism of the textile industry is spreading. Many textile enterprises are physically and mentally tired. The traditional textile industry with 3 trillion and 800 billion capacity has now reached the top of the draught.

At present, the textile industry is facing serious problems, such as financing difficulties, recruitment difficulties, vicious competition, market disruption, heavy burden on enterprises, low profitability and so on. The textile industry is facing severe tests, and the market shuffling is speeding up.

Since the outbreak of environmental policy in 2017, all kinds of environmental policies and regulations have been concentrated in 2018. In 2019, environmental protection and high pressure continued. Various environmental protection policies and regulations were implemented successively. A new round of central environmental protection supervision was launched in an all-round way, and environmental normalization became an inevitable trend.

In January 1, 2019, China's first law on soil pollution prevention and control, "soil pollution prevention and control law of the People's Republic of China", was formally implemented.

On the same day, known as "the most stringent in history", the "air pollution prevention and Control Ordinance (Amendment)" of Shanxi province has also been implemented in the strict regulation of pollution prevention and control.

Environmental policy continues to exert force. Just after entering the 2019, 183 printing and dyeing enterprises along the Yangtze River in Shantou have been shut down and shut down. The market of printing and dyeing has been greatly affected. The price of printing and dyeing materials has risen. For example, the price of disperse black ECT300% has increased by 42 yuan /kg, or 2000 yuan / ton, and other conventional varieties of dyes have also risen.

It is necessary to point out that under the pressure of environmental protection policy, the elimination of "scattered and dirty" enterprises is obviously eliminated, the market industry has been cleaned up, the orderly development of the industry, the sustainable development of the industry, the pformation of the textile industry, and the inevitable pain of the textile industry.

The complexity of the international environment, the situation in the Middle East, the changes in the situation, the withdrawal of the United States, the Israeli Palestinian conflict and other issues, such as OPEC, Saudi Arabia and Russia's major crude oil exporters, continue to decline in crude oil prices, but the recent rebound is obvious. After January 1, 2019, the international oil price is even in the seven consecutive rise. The PTA market is also rising. The price of its internal market has risen to about 6420-6500 yuan / ton, and the negotiation has gone up to 6270-6350 yuan / ton.

Although the price of crude oil can not fully determine the PTA market, there is a certain linkage between them.

In December 2018, China and the United States announced a consensus to stop each other from adding new duties, but did not rule out the possibility that the United States would still levy new tariffs. After all, the Trump administration had the possibility of repeating the spirit of "abandoning the contract" which they had repeatedly shown.

Secondly, the supply of textile raw materials is caused by the Sino US trade friction.

The United States is the world's largest exporter of cotton and China's largest importer of cotton.

All along, China's cotton market is in a state of insufficient supply, and a certain amount of cotton needs to be imported to meet the demand gap.

In 2017 1-12, China imported 1 million 153 thousand tons of cotton, of which 506 thousand and 300 tons were imported from the United States, accounting for 44% of total imports.

However, it should be pointed out that the total supply of cotton in China (including end inventory) in 2017 was 12 million 454 thousand tons, the total demand was 7 million 115 thousand tons, and the cotton import volume was 1 million 153 thousand tons, while the number of US cotton imports accounted for only 7.1% of China's demand, accounting for 4.1% of the total supply.

According to data from the US Department of agriculture, China signed a total of 1 million 500 thousand packages of US cotton in 2018, which still indicates that the United States plays an important role in China's cotton import market.

However, the shadow of Sino US trade war has already existed. For some textile enterprises which rely heavily on imported cotton, it is inevitable to take precautionary measures and choose multi-channel supply.

In recent years, the textile and garment industry in Vietnam and Bangladesh has been the most popular in Southeast Asia. Thanks to the continuous improvement of the industrial chain, and the salary level is only half of China's labor cost advantages, Vietnam's textile export enterprises have been favored by more and more European and American businessmen, and some of the orders from European and American markets have shifted to Southeast Asia.

Relying on its mature textile technology and relying on the relatively low cost of labor in Southeast Asia and preferential tariff treatment in Southeast Asia, such as Bangladesh's textiles sold to markets such as Japan, Canada and Australia, it can enjoy zero tariff treatment, including China.

It is true that under the pressure of overcapacity and domestic environmental policies, some textile enterprises have been fighting for Southeast Asia.

But at the same time, there are many problems in Southeast Asian countries, such as low culture, scattered discipline, low work efficiency, high cost of technical training, excessive wage and salary increase, poor government business environment, and high level of open industry.

On the whole, the textile industry in 2019 is more grim and more complicated. It is also hoped that the textile industry will become more sophisticated and valuable.