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    Exchange Rate Depreciation, Foreign Trade Textile Enterprises To Get Cheaper?

    2019/8/7 12:13:00 2

    Foreign Textile Enterprises

    Out of the high temperature and bid farewell to the rainy season, suddenly found that every day is clear blue sky, blue sky and white clouds. In fact, this phenomenon is not common in the major textile industries, which are "benefited from developed industries". Of course, we can see that this "gratifying" picture is inseparable from the efforts of environmental workers, but also from another perspective reflects the textile industry started worrying. The entire textile industry chain has not been fully utilized at present, making good use of every production capacity. Taking a textile city in Jiangsu and Zhejiang Province as an example, industrial electricity in May ended years of growth, down more than 3% last year and down more than 1.3% in June. In the past, the phenomenon of power restriction and power supply frequently heard in summer was seldom heard this year. Other factories have not increased the machine's plan in terms of machine indicators and surplus electricity consumption.

    Textile industry profits decline and losses increase

    Through the statistical analysis of the textile industry profit data released by the National Bureau of statistics in the past three years, the overall profit trend of the whole industry is decreasing, and the rate of decline is accelerating. The peak in three years, that is, the total profit in December, was 9.9% in 2017 December, and 35.98% in 2018.

       While the total profit is shrinking, the total loss of textile enterprises is increasing every year. The total loss is synchronized with the total profit every year, reaching the highest value in December each year. The total corporate deficit in December 2017 increased by more than 17% compared with 2016, and the growth rate in 2018 December reached 22.6%. On the other hand, the total amount of losses has increased substantially. The cake is getting smaller and smaller, and it will only be less and less in everyone's hands.

    The international situation is uncertain and corporate confidence is impaired.

    Recently, the international financial market is not very peaceful. First, the United States cut interest rates and imposed tariffs on Chinese exports. Then the RMB ended against the US dollar for a period of more than 10 years and less than 7, and began to break the 7 upward trend. All kinds of heavy news have caused much uncertainty about the gloomy world economic situation. The dollar and gold, which have been negatively correlated, have been surprisingly integrated. It can be seen that the global market lacks confidence and can only avoid risks through dollars and gold.

       In principle, the fall of the RMB against the US dollar is conducive to exports, and it should be a good news for textile exports. But the actual situation is not so, and do not say that the textile industry chain upstream PX and other raw materials import a lot, the rising dollar will certainly pull up the price of raw materials, and push up the cost of the entire industrial chain. Even ordinary fabric quotation, settlement and so on are facing embarrassment. In general, there is a gap of several months between the actual price and the final payment. If the quotation is the highest exchange rate in ten years, is it possible to ensure that the settlement price remains the same? It is estimated that every trader's heart is drumming.

    More importantly, the customers will not sit idly by the suppliers to eat all the exchange rate benefits. All kinds of counter-offer and pressure reduction are definitely needless. A supplier who has been engaged in foreign trade for many years complained to us that from the end of 2016 to the beginning of 2017, the exchange rate of RMB against the US dollar was also higher than 6.9. But the foreign trade customers soon realized this point. Let's call them the part of the exchange rate change and earn more money before we agreed to give the full amount of money to us. Finally, there was no way to call them more than 9000 yuan before they received all the money. This situation is by no means an individual phenomenon. In the face of extra profits, there is always no shortage of people who want to divide.

    This year's textile market is not surprising. The main keynote is falling. In fact, after one or two years, every textile man's mentality has been calm. After all, he can't accept it. The only surprise is what unexpected situations will happen in the world, and whether it will continue to fight the confidence of the textile industry. But in general, "the wolf is crying too much", nobody will take it seriously.

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