Consumption does not force the textile industry to shrink across the board

It is not only the silk industry that has shrunk but the entire textile industry. After the silk (mulberry silk) weaving industry broke the sluggish market, the Cotton spinning industry came one after another with a price- and market-free signal, followed by the polyester-led chemical fiber industry. It also announced that the huge profits era has gone.

“A customer just returned to Europe after completing an order and asked for a reduction of several hundred items per product. This was difficult to imagine in the previous market.” Chen Yuewu, general manager of the six division of Guangdong Textiles Import & Export Co., Ltd. In an interview with the media, he said.

“In some varieties, the overseas order volume has dropped by more than 70%.” Cao Xiaojian, deputy general manager of Jiangsu Haotian Group, said that compared with last year, orders for textiles in overseas markets, especially in Europe and the United States, fell sharply, and orders for individual orders sharpened. Shrinking.

The situation of "not making money" is prevalent in all aspects of the textile industry.

The survey data of national cotton monitoring systems with high cotton prices and high prices and no market prices showed that on November 5, the national cotton price index for the national cotton price representing the 328 cotton prices in the Mainland averaged 28,805 yuan/ton, up by 1,849 yuan/ton or 6.9 yuan from the previous week. %.

The cotton price changes every week. The pressure of price increases has been transmitted to downstream industries such as cotton yarn, cotton cloth, cotton products, clothing, and home textiles. As a result, prices of downstream end products have risen steadily, but price increases have gradually decreased, and the operational risk of the textile industry has increased.

For the new agricultural development, cotton cultivation and processing enterprises in the upper reaches of the industry, the significant increase in cotton prices is conducive to the company's gross profit margin improvement and performance growth. However, some people pointed out that the increase in cotton prices is accompanied by a decline in output. At the same time, as the purchase price of seed cotton is also substantially increased, the impact of cost pressure on profits cannot be underestimated.

For cotton spinning enterprises engaged in the processing of textile raw materials, by increasing the prices of cotton yarns and cotton cloths, part of the cost pressures are transferred, the prosperity rate improves, and the profits of enterprises increase; but the high cotton prices also make it impossible for enterprises to determine the production costs because of the fear of risk. While caught in a wait-and-see attitude, I dare not sign long-term orders.

Some large textile companies rely on stocks accumulated in the early period to cope with the pressure of price increase. Some small and medium-sized textile enterprises can only choose to cut production or stop production in the face of high cotton prices, resulting in the pricelessness of cotton.

For textile and apparel companies that are located further downstream, the high cost of continuous production has made it impossible for many companies to fully digest the product, and has had to increase the wholesale price of the product. The upward adjustment in retail prices will certainly reduce some terminal purchasing power.

According to relevant figures from the China Cotton Association, although the rising cotton price has factors such as supply and demand fundamentals, it is insufficient to support the soaring cotton price. Speculative speculation also occupies a large proportion, resulting in chaotic acquisition order and declining cotton quality, making it difficult for the industry to develop sustainably.

Reeling silk export orders have been reduced to the export-oriented silk industry. Under the influence of the global economic downturn, they have faced unpopular orders, and more than 30% of their sharp export reductions have become the norm in the industry. The high costs of the ancient silk weaving industry have made it difficult to transform the ancient silk weaving industry.

"This year's export situation is very optimistic. Our company's export volume has been reduced by at least 30%." Wu Jianhua, vice president of the Wujiang Silk Association and general manager of Dingsheng Silk Company, told the "China Enterprise News" reporter.

In an interview with a reporter from the China Enterprise News, officials from Anhui Jingjiu Silk and Hangzhou Green Winter Silk all said that foreign trade exports have dropped by more than 30% this year.

The town of Shengze in Wujiang City is known as one of China's four major silk capitals. It used to have 10,000 silks, and it is a barometer and vane of Chinese silk. However, according to the Wujiang Silk Association's survey data for the first half of 2011, as of the end of June this year, only 14 silk fabrics factories in Wujiang City remained.

Since the outbreak of the international financial crisis in 2008, the Wujiang silk weaving industry, which mainly focuses on export trade, has been hit hard, and production has plummeted. The city's silkworm silk fabrics and pure mulberry silk fabrics fell from 21.39 million meters and 17.65 million meters in 2008 to 7.16 million meters and 5.66 million meters in the first half of 2011, a decrease of nearly 70%.

In particular, since the second half of 2010, due to the high price of raw materials for reeling silk, rising cost of labor costs, and unsatisfactory sales, some real silk weaving companies with insufficient funds have had to stop production, shut down, and shut down. More companies are Survival and development, "transition" to join other businesses.

Enterprises to maximize the pursuit of profit as its main business objectives, when the low rate of return on investment has been unable to make profits, adjust the business ideas and product direction is an inevitable choice, shrinking the real silk industry is an indisputable fact.

Chemical fiber profitability returns to rationality In the late 1980s, mulberry silk production was affected by multiple factors and shrank. Some enterprises engaged in silk production and some cotton enterprises began to transform, so that the chemical fiber industry was “incredibly productive” and developed rapidly. In particular, the polyester polyester industry has entered a “golden period” with rapid growth in industry, production capacity, and output, as well as a significant increase in the level of equipment technology and product structure optimization.

Zheng Junlin, secretary-general of the China Chemical Fibre Industry Association, said on a public occasion recently that China’s chemical fiber production in 2010 was 30.9 million tons, an increase of 85.6% over 2005, with an average annual increase of 13.1%.

The polyester polyester production volume increased from 12.71 million tons to 25.13 million tons, an increase of 97.7%, an average annual increase of 14.6%, and the growth rate was 1.5 percentage points higher than that of the chemical fiber industry, accounting for 81.3% of the total chemical fiber output.

There is often blindness behind the rapid development of the industry. Since the beginning of this year, due to fluctuations in raw material prices, rising labor costs, tight energy supply, narrower channels, and increased financial costs, the profit margin of the chemical fiber industry has been rapidly squeezed, and the survival environment of enterprises has become increasingly difficult.

Some analysts believe that, in 2010, PTA, polyester fiber and other manufacturing companies, profits soared, mainly due to soaring domestic cotton prices, chemical fiber prices are relatively cheaper, clothing companies use less cotton, chemical fiber usage increased, resulting in a substitution effect; This year, the price of cotton has dropped from a high of 30,000 yuan per ton to a level of around 28,000 yuan per ton. With the rise in oil prices, the era of huge profits for chemical fiber companies is coming to an end.

In addition, this is an emerging industry. Historical heritage is insufficient. The existing national standards and industry standards are almost blank. Product classification standards, product quality standards, energy conservation and emission reduction standards, water quota standards and processing trade unit consumption standards cannot guide industry production. The lag in the construction of standard systems will hinder the further development of the industry.

Experts in the industry stated that due to the current unfavorable macroeconomic situation, the “era of the fools can earn money” in the polyester industry no longer exists, and the industry will usher in a new round of reshuffle, and the price will gradually return to rationality.

The decrease in the export price of related silk commodities is in contrast to the situation in China's silk garment export. The export of silk commodities in China is characterized by a declining price increase.

From January to September this year, China's real silk merchandise exports amounted to 2.672 billion U.S. dollars, a year-on-year increase of 14.17%. Among them, silk exports were 536 million U.S. dollars, an increase of 19.45% year-on-year; real silk satin exports were 780 million U.S. dollars, an increase of 11.27% year-on-year; and silk finished goods exports were 1.356 billion U.S. dollars, an increase of 13.88% year-on-year.

In addition to the 9.74% year-on-year decrease in exports to India, the exports to the United States, Italy, Japan, and Hong Kong all increased, with year-on-year increases of 7.15%, 19.99%, 17%, and 9.49%, respectively.

The top five markets for foreign exports are: the United States, India, Italy, Japan, and Hong Kong. These five markets account for 57.05% of China's total global exports. The United States remains the first importer of silk goods in China, accounting for 19.86% of the market.

The top five provinces and municipalities in China's real silk merchandise exports were: Zhejiang, Guangdong, Jiangsu, Shanghai and Sichuan. The total exports of these five provinces and cities accounted for 83.48% of China's total real silk merchandise exports, of which only one province in Zhejiang accounted for 38.75%, ranking first in all provinces and cities.

Excluding a slight decrease in Shanghai export volume, the export volume of the other four provinces also increased. Zhejiang's export volume increased by 7.63% year-on-year to US$1.036 billion; Guangdong increased by 38.41% to US$383 million; Jiangsu increased by 9.65% year-on-year. It was US$381 million; Sichuan increased by 16.59% year-on-year to US$195 million.

Although the major categories of goods in terms of export volume all showed a year-on-year upward trend, the export volume of silk and silk fabrics had decreased year-on-year.

From January to September this year, China's silk exports totaled 12,800 tons, a year-on-year decrease of 9.6%, with an average unit price of US$41.95/kg, or an increase of 32.06%; real silk satin exports amounted to 158 million meters, a year-on-year decrease of 20.74%; The unit price of 4.92 US dollars / meter, an increase of 40.38%.

The unit price rose sharply or became the main reason for the decline in export volume.