The stagnant consumption leads to be atrophied in the textile industry
Author: Dec 08, 2011 10:08
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The atrophy is not just the silk industry, but the entire textile industry. Following the silk (mulberry silk) weaving industry is downturn in the market, the cotton industry send out the signals there is no market as the current price, and then as the leading polyester fiber industry also declared profits times are on the decline.
“A customer just to finish our order and return to Europe, he proposed cutting hundreds of pieces of each product demand, which is difficult to imagine in the former market.” Guangdong Textiles Import & Export Co., Ltd. General Manager of six career departments, Chen Yuewu interviews said.
“In some species, overseas orders dropped by more than 70%.” Deputy General Manager of Jiangsu Sainty Group, Cao Xiaojian said, compared with last year, the textiles’ order in overseas markets fell sharply, especially in Europe and America market, and single orders limit shrink dramatically.
The situation of “don't make money” exists in the all textile industry.
High cotton prices have no market
The National Cotton Monitoring System survey data show that B index of national average price of cotton on behalf of the mainland level 328 is 28,805 Yuan / ton on November 5th, it rises 1,849 Yuan/ton compared with the previous week, and the rising range is 6.9%.
The cotton price has changed during a week. The pressure of rising price affects the downstream industry, including cotton yarn, cotton, cotton products, clothing and home textile, etc. resulting in the downstream end-product prices rose, but the rising extend of price is progressively decreasing, and the textile industry was confronted with more risks in the operation.
To the new agriculture development, cotton planting and processing enterprise speaking in the upstream, which the cotton prices increased significantly helps the companies improving gross profit margins and the growth of the performance. However, some people pointed that the rise in cotton prices is accompanied by a decline in output, at the same time; because of seed cotton purchase price also increased substantially, the cost pressure on profits do not underestimate.
For the processing of raw materials in the cotton textile enterprises, by raising price of the cotton yarn and cotton also can shift parts of the cost pressures, it improves in the market, and enterprise profit increases; while higher cotton prices also make the enterprise can't determine the production cost, due to fear of risks and be in wait and see, and they are afraid of signing long-term orders.
Some of the large textile enterprises, which mainly rely on accumulation of inventory to deal with price pressure, while some of the small and medium-sized enterprise can only choose cut or stop production in the face of high cotton prices, leading to the cotton prices have not market.
For more downstream in the textile and garment enterprises, which its constantly higher costs make many companies can not fully digest, and they have to improve the product wholesale price, the retail price hike will reduce parts of the terminal purchasing power.
China Cotton Association officials said that although cotton prices rising has factors of supply and demand and others, and while it is not enough to support such a surge in cotton prices, the speculation also accounted for a large proportion, leading to purchase order chaos, the quality of cotton descends, so that the industry is hard to be sustainable development.
The Overseas Orders of Cocoon down Sharply
By the silk industry of export-oriented foreign trade, this encounters order winner, under the impact of global economic recession, its exports dropped more than 30% of the amount, which has become the industry norm. The high cost has struggled for the ancient silk weaving industry in the heat of transformation and upgrading.
“This year, the export situation is not optimistic, our company's export volume decreased by about 30% at least.” The vice-president of Wujiang Silk Association, general manager of Dingsheng Silk Company Jianhua Wu told the "China Enterprise News" reporter.
Shengze town of Wujiang city is known as one of four Chinese silk capitals, where it produces ten thousands silk every day, is the barometer of Chinese silk and wind vane. However, according to Wujiang Silk Association survey shows in the first half of 2011, which the entire silk weaving factory has only 14 home by the end of June this year,
Since the outbreak of the international financial crisis in 2008, which the export trade of silk weaving industry in Wujiang has confronted with a great impact, and the production is plummeted. The mulberry silk weaving product and pure mulberry silk separately from 21.39 million and 17.65 million meter in 2008 descend to 7.16 million and 5.66 million meter in the first half in 2011, which it fell nearly 70%.
Especially since the second half of 2010, due to the raw material prices of cocoon is at a higher price, the labor cost rising, poor sales and other reasons, some financial strength shortage of silk weaving enterprise have to stop production and close, moreover, more companies have to "transformation" and join other business in order to survive and develop.
The enterprise aims at pursuing the maximization of profit, when the return on investment is low, and it has been unable to profit, then the adjustment of business ideas and product direction is the inevitable choice, silk industry atrophy is also the fact that does not dispute.
Chemical fiber excessive profits return to reason
The late 1980s, the mulberry silk production appears atrophy by multiple factors influence, some of the companies engaged in the production of silk cocoon and a few cotton companies began to transition, making the chemical fiber industry “taking advantage” and getting the rapid development, especially PET polyester industry which is entering a “golden period”, the industry, production capacity and output growth significantly increased, and the equipment technology level obviously improved, so that the product structure has been optimized.
The PET polyester production increased by 97.7% from 12.71 million tons to 25.13 million tons, and the average annual growth is 14.6%, which the growth is higher than 1.5% in the whole chemical fiber industry, accounting for 81.3% of the total output of chemical fiber.
The rapid development of industry behind often has blindness. Since this year, which is subject to fluctuations in raw material prices, rising labor costs, strain energy supplies, financing channels narrow, the financial expenses and other constraints of the problem, so that the profit space of chemical fiber industry was quickly squeezed, and the enterprise survival environment became more difficult.
Some analysts believe that PTA, PET and other production enterprise profit soared in 2010, the mainly reasons is that the cotton prices are soaring in the domestic, the chemical fiber prices are relatively cheap, the clothing enterprise cotton usage reduced, and the chemical fiber usage increased, resulting in a substitution effect. This year, the cotton prices are rebounded from 30,000 Yuan/ton high level to 28,000 Yuan/ton of level, meanwhile, the oil prices rising, and the chemical fiber enterprise that the excessive profits era is coming to an end.
Coupled with this is an emerging industry, historical heritage is insufficient, the existing national standards and industry standards nearly blank. Now the product classification standards, product quality standards, energy conservation and emission reduction standards, the water intake quota standards and per unit of processing trade consumption standards and so on, which all of these cannot direct industry production, and the standard system construction lag will hinder the further development of the industry.
The industry experts said that due to the current macroeconomic situation is not optimistic, the polyester industry “fool can make money era” has ceased to exist, the industry will usher in a new round of reshuffle, the excessive profits will gradually return to rational prices.
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Editor: sunny From: 168Tex.com
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