Falling Cotton Prices Have Led Textile Companies To Lose Competitiveness In The International Market.

"Our orders have fallen sharply this year."

Zhong Daguang, general manager of a clothing enterprise in Dongguan Province, 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 learned that domestic and foreign cotton prices are upside down.

Most of the garment foreign trade enterprises are faced with the fact that they can not get foreign orders or have orders not to answer.

"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, the price of international cotton has declined since September 2011, and the price gap with the domestic market has been widening.

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

Negative growth has occurred in all aspects of exports.

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 pferred 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 1-3 months,

The total import of textiles and clothing from the three major textile and garment markets to the world dropped by 6.55% compared to 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 Huaibin said that in recent years, with the rising labor costs, the textile industry workers wages are approaching the average level of manufacturing.

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".

"Blocked foreign trade and low domestic market will all affect the 7.42,0.01,0.13% industry in China."

And the 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 state stores store the cotton, it will adopt a financial subsidy, and impose a price limit and store it.

To 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 pformation and upgrading, and enhance the added value and competitiveness of industry products.