Rising Cost Is Not Enough For Fabric Companies To Shrink Profits.

A few days ago, Xiaobian heard the circle of friends complain that the profit of the grey cloth is too low, making textile too difficult!

No profit, no matter how hard the days are!

The low profit margins of the textile industry are well known.

The average profit level of Shandong's textile and garment industry is around 3%, while that of Jiangsu and Zhejiang is around 8%.

In Shandong Ruyi holding group, there is a fabric sold for sixty-eight thousand yuan per meter, and a price can buy a Rolls-Royce!

The same is the textile and garment industry, the profit difference is so large, what are the reasons for this?

Green tax to

In January 1, 2018, China's first green tax, the environmental tax law of the People's Republic of China, was formally implemented to replace the implementation of the 40 year pollution charge system.

According to the "environmental protection tax and tax scale", the lower limit of the tax stipulated by the environmental protection tax is: air pollutants equivalent to 1.2~12 yuan per pollutant; water pollutants equivalent to 1.4~14 yuan per pollutant; solid waste varies from 5 yuan to 1000 yuan per ton, of which hazardous waste is 1000 yuan per ton; industrial noise is paid according to the standard decibel number, which is paid by 350 yuan ~11200 yuan per month.

The maximum amount of tax shall not exceed 10 times the minimum standard.

"Environmental tax accounts for a relatively low proportion of taxes and fees paid by enterprises, generally less than 1%, so it does not constitute the main burden of enterprises." fee to tax "has little impact on the cost burden of enterprises.

Lin Xueying, general manager of Shaoxing Yong Yao Textile Co., Ltd., when he talked about "fee to tax", was more relaxed. "The purpose of collecting environmental taxes is to encourage enterprises to reduce emissions. As an enterprise, we should respond positively to the call of the government."

However, a number of enterprises have admitted that after the "fee to tax", the company's operating costs still rise.

Zhu Yun Hai, deputy manager of the development and Design Department of Zhejiang BABEI Textile Co., Ltd., told reporters that after the fee was changed to tax, the number of enterprises paying taxes was much higher than before.

"But in general, enterprises can still undertake the problem.

In order to ensure the interests of downstream customers, the company's product quotation has not risen.

Editor's comment: because the "green tax" is a fixed tax rate, that is, more emissions, more pay, less emissions and less pay.

Therefore, the difference of environmental tax burden will bring about differences in product prices and so on.

The environmental protection tax has forced the enterprises to take the initiative to reduce emissions and fulfill the responsibility of environmental protection with the "survival of the fittest", thus promoting enterprises to promote the pformation and upgrading of products, and develop products with higher added value and green and low-carbon products.

Dye up

The price of dyes is fierce.

It is reported that in April 4th, Jiangsu Yancheng decided to completely close the Xiangshui Chemical Industrial Park.

Xiangshui Chemical Industrial Park is an important chemical base in Jiangsu. It is also a subsidiary of several dye listed companies.

For a while, the dye industry started to rise in price surges and broke the tide.

Dyestuff is the main cost of printing and dyeing enterprises. The cost of dyestuff is higher than that of printing and dyeing enterprises.

Today, the cost of raw materials for dyes has risen from about 10% to 20%~25% today.

In the entire printing and dyeing industry chain, the printing and dyeing factory is in an awkward position. The upstream dyestuff company is in a concentrated position. Once there is any trouble, the dye companies take the opportunity to adjust the price of dyes. Because the dyestuff enterprises are relatively in the dominant position, the printing and dyeing factories are the downstream enterprises of dyestuffs, the number of dyeing factories is large, and they are scattered.

The surging price of dye has obviously brought a great impact to downstream enterprises.

"The dye fee has to rise, and considering the acceptability of our customers, we dare not go too far. The increase in dye fees is far behind the increase in dye."

Said a salesman in a dyeing plant in Shengze.

Editor's comment: for raw materials to go up, many printing and dyeing factories can not but accept, raise prices, pfer costs to the lower reaches, and follow up the trend of rising dye fees, and cloth boss's profits will shrink again.

The peak season is not prosperous.

In March this year, the small peak season is common.

It is now in mid April, and orders are still not improving.

Many cloth owners believe that this year's "golden three silver four" is afraid to be yellow!

In fact, the textile market has a "three up, three down" theory, and the three year boom cycle has arrived. Next, the fabric market will have a "cooling" signal, such as a slowdown in product price increase, a decline in turnover, and a contraction in production orders.

This year's products such as imitation silk, polyester taffeta and spring Asian spinning are not performing well.

"At present, we can probably make about 20 days on hand, but it's not easy to get a new one."

Wujiang area to the production of polyester taff textile factory responsible person said, "at present, although our price has not been adjusted, but the cost up, it is equivalent to reducing prices in disguise, then if the market is not good, it is estimated that the price will fall."

Shen Zong, another manufacturer of polyester taffeta, said it had already dropped 0.10 yuan / meter.

"Our factory has been placing orders, although the order volume is relatively stable this year, but the profit space has shrunk. Our price has fallen by 0.10 yuan / meter along with the raw material, and the profit is not very good."

It is understood that at present, some manufacturers have entered the "single mode" because the new products are not smooth. "The order is not good this year, our factory inventory is rising, and the profit is likely to be reduced."

Another textile boss, Wu general, said.

Even a person in charge of an enterprise in Chaoshan, Guangdong, who did not want to be named, complained bitteringly. This year, the enterprise is a semi shutdown state. After entering the traditional peak season, the basic state of the enterprise has not changed, and some enterprises around it also have such a situation.

Editor's comment: as the saying goes, "froze is three feet, not a day's cold."

At present, the entire fabric industry is facing many tests.

In order to solve the problem, fabric enterprises need to grasp innovative products and have a good market strategy so that they can become the plum of frost and AO Xue.