The Overall Efficiency Of The Textile Industry Declined Sharply, And Stagflation In The Second Half Of The Year.

The Ministry of industry and Commerce said in the analysis of the operation situation of China's textile industry in the first half of 2012, the current impact

There are four main problems in operation, namely, insufficient market demand, continuous expansion of domestic and foreign cotton spreads, intensified competition in the international market and high financing costs.

China Cotton Association data show that

The cumulative yarn production in 1~5 months decreased by 1%, the decline continued to narrow, the production of cloth decreased by 1.1%, of which pure cotton cloth decreased by 2.4%, cotton blended fabric increased by 9.9%, chemical fiber fabrics decreased significantly, and fabric products 1~5 decreased by 1% compared with the same period last year, but the chemical fiber cloth still increased considerably.

At the same time, sales of the industry showed no signs of recovery, business orders gradually reduced, sales sluggish.

The overall efficiency of the textile industry has declined sharply.

In the first half of the year, China's textile industry showed a downward trend.

According to relevant information, Dezhou, Shandong is one of the key cotton producing areas in the country, and its cotton spinning capacity is 1/7 of Shandong and 1/20 of the whole country.

As Ma Junkai, Deputy Secretary General of Dezhou Cotton Association, he shows the helplessness of the textile enterprises at present.

Ma Junkai said, "as far as the whole textile industry is concerned, it can be divided into three categories.

All use

The pure cotton textile enterprises, which are raw materials, are in a state of loss.

At the same time, the use of cotton and chemical fiber mixed textile enterprises, is in between micro deficit and small profits.

The new fiber enterprises, which do not use all cotton chemical fibers, have made profits, but their profitability has dropped significantly over the past few years.

Under the current macroeconomic situation in China, the situation of insufficient market demand will continue.

According to the Ministry of industry and information, the impact of the European sovereign debt crisis is still spreading, and the subsequent impact of the international financial crisis continues to emerge.

Song Jiening, a researcher of agriculture, forestry, animal husbandry and Fisheries of CIC, believes that the decline of international cotton prices is mainly due to the continued weakening of the international economy and the weak recovery in the international consumer market.

In addition to market demand and domestic and foreign differences, the financing cost of textile enterprises and the intensification of international market competition are not conducive to their development.

The Ministry of industry and Commerce said that thanks to the increase of China's comprehensive factor cost and the enhancement of textile competitiveness of neighboring countries, some of the purchase orders in the international market flowed to Southeast Asian countries, and the market share of textile and clothing products in China's major developed countries declined.

At the same time, a large amount of interest expense has become another bottleneck restricting the development of textile enterprises in the situation of slow growth of production and sales.

However, the situation will not improve significantly in the second half of the year. The Ministry of industry and Commerce said that the textile enterprises will still be in a difficult position in the second half of the year, and the export of textile and clothing will continue to grow at a low level. The overall growth of the industry will decline sharply compared with the previous year, and the deficit and loss of the deficit enterprises will be expanded. More small, medium and micro enterprises will face the risk of being eliminated.

Southeast Asian countries' price advantage is gradually emerging.

According to the monthly report of China cotton textile enterprise production analysis released by the China Cotton Association in May, the domestic textile raw material market continued to decline in May, and the decline was larger than that in April. The number of enterprise purchases decreased by 9.8% compared with that of April, and the quantity of raw material procurement decreased. However, the number of imported cotton increased from the price advantage, and the number of purchases increased significantly, with a growth rate of 42.5%. This is the conclusion of the China Cotton Association after investigating 90 key cotton textile enterprises in 17 provinces.

Generally speaking, cotton textile enterprises are faced with three major costs, labor cost, financing cost and raw material cost.

Among them, the problem of raw material cost is very serious. In normal years, 1/4 of the demand in China is imported every year. However, the market situation has changed. Since the second half of last year, the price of cotton in China has been different from the international market price, and has been expanding.

For textile enterprises, the fluctuation of raw material prices has an obvious impact on production. Obviously, the price drop of two domestic and international cotton prices is far from the spread of price difference, so the price of raw materials such as upstream cotton will increase, and the price of downstream textiles will also decline.

With the reduction of raw material procurement, the main economic indicators and profits of textile enterprises continue to decline, and the phenomenon of small and medium-sized enterprises ceasing production and limiting production is becoming more serious.

However, from the data point of view, it seems that the current textile industry is not as bad as it expected.

According to the statistics of the National Bureau of statistics, the yarn production in May was 2 million 669 thousand tons, an increase of 1.3%, an increase of 11.2% over the same period last year.

In May, the export situation of our country was better than before, and the export volume of textile and clothing recovered to US $20 billion again, but it is still lower than that of other goods trade.

Customs statistics show that in May, China's textile and apparel exports amounted to 21 billion 830 million US dollars, an increase of 16.1% over the same period, an increase of 7.4% over the same period last year.

But this still can not cover up the current difficult situation, Song Jiening said that the increase in domestic and foreign cotton prices will lead to a decline in the export advantages of China's textile enterprises.

In Southeast Asia and other countries, due to the gradual emergence of production and price advantages, the price advantage of China's textile industry will continue to decline, and China's textile industry will face a downturn in the international market share.