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Cotton Price Pressure May Cause China's Textile Industry To Lose International Market.

2012/6/7 14:52:00 209

Cotton PricesClothing EnterprisesSun Huaibin

"Our orders have fallen sharply this year." A family in Dongguan, Guangdong Clothing enterprise General manager Zhong Daguang complained that the price of cotton in the international market has been falling, which has caused a great contrast with China's cotton prices, resulting in the loss of competitiveness in the international market.

Reporters interviewed learned that, because of domestic and foreign cotton prices upside down, most of the Pearl River Delta foreign trade enterprises are facing foreign orders, or do not dare to pick up orders.

"China's textile industry is losing its international market!" Sun Huaibin, spokesman of China Textile Industry Federation held in 2012 on the 31 day of the textile industry economic operation conference, said that in 1-4 months, China's textile and clothing exports grew 1.07% year on year, of which textile exports increased by only 0.15%. He analyzed that the downward pressure on China's textile exports was mainly due to the spread of cotton prices at home and abroad.

Since the international market demand is insufficient, since September 2011, Cotton price Then the volatility dropped, and the price gap with the domestic market continued to widen. As of May 25, 2012, the price of domestic grade 328 cotton was 18853 yuan per ton, and the price of cotton in the international market was 1% yuan after the tariff and value-added tax was 13393 yuan per ton, which was 5460 yuan lower than the domestic market price.

"This directly leads to a negative growth in exports of cotton products." Sun Huaibin said. Due to the widening of the domestic and foreign cotton spreads, China's share of the international market share of some textiles and garments has been transferred to other countries.

According to the latest data, in the 1-3 months of this year, China's textile and apparel market share in the United States and Japan was 35.58% and 72.03%, respectively, down 4.55 and 2.92 percentage points from 2011, respectively, of which the market share of cotton products decreased significantly.

This year, affected by the complex economic environment, the growth rate of China's textile industry has declined, the efficiency of enterprises has declined, and the downward pressure on exports has increased.

According to the China Textile Industry Federation data, in 1-4 months, the total output value of 36 thousand and 700 Textile Enterprises above Designated Size reached 1 trillion and 677 billion 58 million yuan, and the growth rate dropped by 17.43 percentage points over the same period last year. The growth rate of industrial sales output decreased by 17.62 percentage points compared with the same period last year.

Among them, the export situation is the most serious. According to statistics, in 1-4 months, China exported 71 billion 3 million US dollars of textiles and clothing, an increase of 1.07% over the same period last year. Among them, textile exports are close to zero growth. The number of textile and garment exports decreased by 2.23% over the same period last year.

China Textile Federation data show that in 1-3 months, the total import of textiles and clothing from the three major textile and apparel markets in Europe and the United States dropped 6.55% compared with the same period last year. China's exports to emerging economies such as Southeast Asian countries are also declining. In 1-4 months, China's exports of ASEAN textiles increased by 2.69% over the same period last year, down 59.66 percentage points from the same period last year.

   Sun Hua Bin In recent years, with the rising labor costs, the wages of textile workers have approached the average level of manufacturing industry. He stressed that labor costs are not the main reason for the downward trend of exports. The pressure comes mainly from the domestic and foreign cotton price differentials. "The spread of domestic and foreign cotton spreads has weakened the international competitiveness of the textile industry".

Hindered foreign trade and low domestic market will impact China's apparel industry's position in the international market and its domestic market structure. China's textile and garment industry is facing an unavoidable new situation. " Li Jincai, President of China Textile Construction Planning Institute, said.

Most of China's textile and garment enterprises mainly rely on exports, although exports have gradually shifted to domestic sales in recent years, but exports are still the main direction of textile and garment enterprises. China Textile Federation predicts that if the price difference between domestic and foreign cotton is not narrowed, the export situation of China's textile and clothing will continue to be severe.

In order to ensure the smooth operation of the textile industry, the China Textile Federation recommends that the state adjust and introduce relevant policies in a timely manner. When the national cotton store is placed and stored, it will adopt a financial subsidy way, impose price limits and store reserves, stabilize domestic cotton prices and narrow the price difference between domestic and foreign cotton. At the same time, we should speed up the reform of the cotton circulation system, improve the macro control mechanism of cotton, and achieve the market docking of domestic and foreign cotton prices. At the same time, the industry itself should speed up transformation and upgrading, and enhance the added value and competitiveness of industry products.

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