China'S Textile Industry Is Severely Constrained By Raw Material Costs.

< p > the first quarter of 2013, China's < a target= "_blank" href= "//www.sjfzxm.com/" > strong > textile > /strong > /a > industrial added value increased by 10.4% over the same period last year, down 4 percentage points from 14.4% in the same period in 2012.

Gao Yong, vice president of China Textile Industry Federation, said: "over the past 30 years, the average annual growth rate of the textile industry is basically over 15%. Therefore, in the face of 10.4% growth rate, we are very frustrated, and the market environment of the textile industry has been very bad."

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The most prominent manifestation of "P >" bad environment "is the restriction of raw materials.

Open the wardrobe and open the seam in the fabric label of < a target= "_blank" href= "//www.sjfzxm.com/" > strong > dress < /strong > /a > inside. We can see that most of the fabrics are made up of cotton, polyester (polyester fiber), spandex, nylon, modal and so on. Besides cotton is natural fiber, a series of nouns in the back are all kinds of chemical fibers.

Cotton and chemical fiber, textile industry two main raw materials are facing different difficulties.

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< p > < strong > domestic cotton price upside down, import quota again < /strong > < /p >

< p > 2010, domestic cotton prices have experienced "roller coaster" ups and downs, 8 months up 16000 yuan / ton, 20 days lost 5100 yuan / ton, cotton growers and cotton spinning enterprises miserable.

In order to protect cotton farmers, in March 2011, the state issued a policy of minimum purchase and storage.

In 2012, the reserve price was raised to 20400 yuan / ton.

The price of cotton purchase and storage in 2013 will also be maintained at 20400 yuan / ton.

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< p > countries will sell cotton to cotton spinning enterprises by auction.

In 2012, the starting price for throwing and storing was 19000 yuan / ton.

However, since the second half of 2011, affected by the European debt crisis, the international cotton price has continued to decline. If this year's throw and start price is maintained at 19000 yuan / ton in the previous year, China's cotton price will continue to be higher than the international cotton price.

However, the reason for the reduction of corporate profits is not only this, but also the quality of domestic cotton.

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< p > with the beginning of September 1st this year, two new national standards for cotton processing (cotton fine wool cotton sawtooth processing "GB1103.1" and "cotton fine wool cotton roller processing" GB1103.2) will be implemented. Cotton spinning enterprises believe that only imported cotton from the United States and Australia can meet the raw material requirements of the new national standard.

But import cotton needs quotas, which makes many enterprises dare not bid for imported cotton.

According to the regulations, 1 tons of imported cotton should be sold with 3 tons of domestic cotton which is expensive and unreliable in quality, which is risky for any spinning enterprise.

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< p > < strong > PX is urgent, chemical fiber < a target= "_blank" href= "//www.sjfzxm.com/" > raw material < /a > highlight shortage < /strong > /p >

< p > Zhao Xiangdong, vice president of China Chemical Fiber Industry Association, revealed that in 2012, the total output of China's chemical fiber reached 37 million 920 thousand tons, of which 30 million 570 thousand tons of polyester fiber (polyester fiber) accounted for more than 70% of the world's total polyester fiber.

From 1 to April this year, the profit margin of China's chemical fiber industry decreased by 11.62% compared with the same period last year.

The chemical fiber industry chain is longer. Take polyester as an example, before becoming a textile product, it has to go through the course of "PX (p-xylene) - PTA (terephthalic acid) polyester".

China's PTA self-sufficiency capability is constantly increasing.

However, the supply of < a target= "_blank" href= "//www.sjfzxm.com/" > strong > raw material < /strong > /a > PX is very intense in processing PTA.

Publicly available data show that the domestic textile industry needs 27 million tons of PX per year.

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< p > as a low toxic chemical product, PX project has been repeatedly boycotted by the public in recent years.

The downstream products of PX are widely used in all kinds of < a target= "_blank" href= "//www.sjfzxm.com/" > strong > clothing < /strong > /a > household textiles and industrial textiles.

An interesting phenomenon is that when people from all over the country boycotted the PX project, many slogans, vests and masks were also made of PX's "grandson" polyester.

Over time, the high price of PX will inevitably lead to a decrease in the profits of the PTA industry, which is difficult to develop healthfully, and the subsequent capacity supply is not enough.

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< p > < strong > cotton circulation system urgently needs to be reformed < /strong > < /p >

Under the pressure of high P price and high price difference at home and abroad, the production line of small and medium textile enterprises closed last year exceeded 10 million spindles, which is equivalent to the total capacity being shut down during the reform of state-owned enterprises from 1997 to 1999.

Roughly estimated, 100 thousand people left the cotton spinning industry last year.

But this is not the survival of the fittest under fair competition. "The lowest price storage and import quota", a planned economic form of cotton circulation system, has hurt the competitiveness of China's cotton textile industry.

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< p > "cotton purchasing and storage policy has a function to stabilize domestic cotton price, but domestic cotton price is still much higher than that of foreign countries. Our textile industry is not only domestic competition, but also to participate in international competition."

President Wang Tiankai said, "if all the leaders of the enterprises are going to manage the cotton, will he still have the energy to manage? Do they still have the energy to reform? Do they still have the energy to upgrade?" < /p >

< p > in order to get rid of the upstream constraints, some chemical fiber leading enterprises either cooperate with Sinopec and CNOOC to participate in PX project construction or invest overseas to avoid pressure.

000703.SZ, the industry leader, started from downstream weaving and is the first private enterprise to enter PTA in China. At the end of February this year, its PX project, which invested 4 billion 320 million dollars in Brunei and produced 1 million 500 thousand tons, has been approved.

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