Price Increases &Nbsp; Textile Companies Favor Short And Medium Orders.

Despite many orders, and Price Rising, but due to exchange rate and Raw material price The worry of change Textile enterprises In general, the risk of avoiding risks is not long. This is the situation in the third phase of the 109th Canton Fair, which ended in May 5th. In the order signed at the fair, the short and medium term accounts for 9%, and the orders for more than 6 months accounted for only 10%.

It is understood that after the economic crisis in 2008, the short and medium orders in the textile industry began to dominate, but the reasons for this year have changed. The main reason for the short and medium term orders in the previous two years is that buyers are more cautious about the latter market, mainly based on phased replenishment, and unwilling to make longer orders. This year, the situation is quite different. Because of the frequent changes in exchange rate and raw material prices, export enterprises generally dare not sign long lists or even dare not accept them. According to the Ministry of commerce data, the average profit margin of China's export enterprises in 2010 was 1.47%, which dropped to 1.44% in 1~2 months this year.

The rising price of raw materials is the biggest problem facing textile enterprises. The annual price increase of domestic cotton prices from 2005 to 2010 is 5%, 3%, -5%, -5%, 40% and 86%, respectively. In addition, recruitment is difficult to cause underemployment and appreciation of RMB, and so on, resulting in an increase in the export cost of 10~20%. In order to shift the cost pressure, textile enterprises can not raise their quotations. In March this year, the price of orders for textile enterprises generally increased by 15%~20% compared to the same year.

China's textile and apparel exports in the first quarter of this year amounted to US $48 billion 627 million, up 23.96% over the same period last year. In February, the export volume of single month exceeded second US dollars for the past 20 billion times, a new record high, continuing the rapid growth trend in 2010, and increasing the export volume by 23% in 2010.

However, the reasons behind the increase in export volume have changed stealthily this year. Wang Jie, editor in chief of the first textile network, said that in the 2011, the "leading role" in promoting the overall export growth of China's textile and clothing has changed from quantity growth to export price rise, and also shows that export enterprises are facing increasing pressure of cost transmission.

Wang Qianjin believes that with the rising cost of domestic elements, the era of China's textile export products developing at a lower price has ended. Compared with the rapid increase in labor and raw material prices and limited export prices before the end of 2007, this year's situation is likely to show that our enterprises have already exhausted their ability to tap potential in the face of cost increase, and will enter a process of corresponding increase in export product prices and cost prices in the future.