Textile companies are in dilemma
According to the foreign trade import and export data issued by the General Administration of Customs on the 10th, in the first 8 months, Chinaâ€™s clothing exports reached US$99.48 billion, a decrease of 0.7% year-on-year; textile exports were US$62.51 billion, a year-on-year decrease of 0.7%. According to a survey conducted by the China Cotton Textile Industry Association on 100 key enterprises, this year's cotton yarn production fell by 3%, and total profit fell by 60%.
"Since this year, the benefits of the national textile industry have apparently declined, the growth rate of production value has gradually slowed down, and the growth rate of investment in fixed assets has declined, which shows the lack of investment confidence," said Rui Long, the Ministry of Industry and Information Technology, who recently introduced the National Cotton Situation Conference. The person in charge of a textile factory in Nanyang was deeply impressed. He said, â€œThis year's domestic sales are lower than the same period of last year, and the efficiency decline has been relatively large, and business operations are particularly difficult.â€ It is understood that from January to July, the profit rate of domestic textile companies was -1.03%, and the growth rate dropped by 4%. From a structural point of view, the demand for cotton fabrics decreased while the demand for chemical fibers increased. Among them, the US imports of cotton fabrics decreased by 6.31%, chemical fiber imports increased by 10.24%, EU cotton fabric imports decreased by 23.89%, chemical fiber imports increased by 0.4%, Japanese cotton textile fabrics decreased by 24.27%, and chemical fiber imports increased by 1.97%.
The difference between cotton prices inside and outside China has hindered the development of domestic textile companies. At present, the import quota for general trade is basically used up, but the cotton production in the new year has decreased slightly compared to the same period of last year and is still higher than normal years. The international cotton price may also continue to fall. If the price difference between domestic and foreign countries expands further, textile companies will face a more severe situation. "For the market in the second half of this year and the first half of next year, we are very worried that demand will not improve, and the winter will still have a period of time," said Wang Qingcui, deputy secretary-general of the China Cotton Textile Industry Association.
The main raw material of the textile industry is cotton. In 2012, the spread of cotton at home and abroad showed a trend of continuous expansion, which made domestic cotton lack of competitive advantage in price. Zhang Yan, deputy director of the first cotton textile factory in Wuxi City, believes that this year's textile situation is more severe than that of the 2008 financial crisis. In 2008, the international market was weak and the domestic market was still good. This year, both domestic and foreign markets are not satisfactory.
Textile companies face a transition
Since the beginning of this year, the export volume of China's textiles and garments has dropped sharply. From January to August, it exported 162 billion U.S. dollars, a year-on-year decrease of 0.67%, and the decline rate in July was 3.1%. According to Chang Fanfan, the Department of Foreign Trade of the Ministry of Commerce, â€œFrom the current situation, although the current season is busy, there are few orders for companies, and most of them are tentative orders. China's textile and apparel exports have already reached the turning point.â€
The development model of China's economic growth driven by exports and investment is facing a transition. The phase of low-cost expansion to stimulate economic development has ended, and agricultural production has become more costly, and the era of back-fed industries may end. China can only ensure the healthy development of the industry if it is focused on solving the chronic problems of the economy.
This year's textile industry will face many challenges and will require a long-term adjustment of the operating period. We also know that in order to achieve transformation and upgrading, we must experience certain pains, survive through transition, respond to market changes, and change coping methods so as to enhance the core competitiveness of domestic textile companies.
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