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    Spinning And Clothing Industry: High Cost And Low Order Loss Become A Common Phenomenon.

    2012/5/7 15:55:00 20

    Textile And Apparel IndustryTextile CostsForeign Trade ClothingMarket Analysis

    The first quarter of this year, Fujian Shishi office area export.

    Textile and clothing

    The 4639 batch and US $230 million 170 thousand decreased by 12.4% and 8.1% respectively, showing a trend of insufficient export growth.


    70%~80% exported to Yantai from Shandong and exported to Japan. Japan has been the main export market for textile and clothing in Yantai.

    In the first quarter of this year, the Shandong Yantai inspection and Quarantine Bureau inspected the 3601 batch of textile and apparel products exported to Japan, with a value of $99 million 731 thousand, representing a decrease of 6.56% and 3.21% respectively.


    Zhang Handong, director of the international trade and economic research center of Zhejiang Provincial Department of Commerce, said that the situation faced by Zhejiang's foreign trade enterprises is more severe than in 2008.

    "Zhejiang is now on the one hand, the brand competitiveness has not been formed. On the other hand, the demographic dividend has been depleted, and the price competitiveness is not as good as that of Southeast Asian countries. In the short term, it will have to face the embarrassing situation of being too high or too low."


    According to Liu Yanwei, director of the Information Department of the textile chamber of the China International Chamber of Commerce, the export of textiles and clothing in China was negative in 1 and February this year. The volume of exports in February was the lowest in recent years, and rebounded in March.

    In the first quarter, textile and apparel exports totaled 50 billion US dollars, an increase of 2.9% over the same period last year. This growth rate has dropped sharply compared with the past.


    According to Chen Cangsong, Secretary General of the chamber of Commerce of Fujian textile and garment export base, due to the European debt crisis, European income expectations were reduced and purchasing power declined significantly, leading to a downturn in market demand at the beginning of the year. Orders for textile and garment enterprises specialized in exporting to the EU in Quanzhou were reduced by about 30% over the same period last year.


    With the reduction of orders, the cost of many enterprises in Quanzhou has been increasing.

    "Rising oil prices directly promote logistics costs and raw material prices, especially in the case of

    Shoemaking

    In the textile and garment industry, most of the raw materials are downstream products of petrochemical industry.

    For example, the original pair of cotton shoes is almost 8~10 yuan, now 18~20 yuan, the cost price has risen sharply, but the price is not up.

    In addition, workers generally asked for a minimum wage of 2000~2500 yuan, and labor costs grew rigidly.

    The US dollar has fallen below 6.29 yuan, and the appreciation of the renminbi has directly increased the cost of exports.


    When the Ministry of Commerce held a regular press conference in April 17th to announce the situation of China's business operation in the first quarter of 2012, Shen Danyang, spokesman of the Ministry of Commerce, said that the rapid increase in factor costs since 2011 reduced the export competitiveness of some of our products, especially the export of labor-intensive products, and exported products to China's traditional dominant markets, such as Europe and the United States, to Southeast Asia and other regions.


    Although the performance of the first quarter is not ideal, but from the monthly point of view, there is a trend of gradual improvement.

    In March, the national textile and clothing export finally reversed the situation of double export of textile and clothing in the first February.

    1~3 clothing exports 29 billion 570 million US dollars, an increase of 3.9%; textile exports 20 billion 440 million US dollars, an increase of 1.4%.

    Prior to the 1~2 months, China's clothing and textile exports fell by 2.5% and 2.6%, respectively.


    Xu Yingxin, assistant to the president of the China Textile Industry Federation, believes that the export of the entire garment industry is expected to improve in the second half of this year.

    Chen Cangsong, Secretary General of the Fujian textile and garment export base, also believes that every year April is the European and American market.

    Autumn winter clothing

    During the order period, the textile and garment industry is more optimistic about the export situation after April.

    It is still difficult in the first half of this year and will improve in the second half of the year.

    Take Fujian as an example, the annual export of textile and garment industry is expected to maintain a 15% growth rate.


    But Xu Yingxin also reminded that "a big problem to note is that even though the market is getting warmer now, the profit level of enterprises is very low due to the rising domestic production costs, and losses have become a common phenomenon in the industry."

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