China'S Textile Industry Exports Negative Growth In 1-7 2012

China

The Federation of industry announced in August 30th that the production and operation situation of textile and garment industry continued downward in 1-7 months, and the domestic sales of textile enterprises above Designated Size dropped by 20.3% compared with the same period last year, and the export pressure increased significantly.

Export real negative growth, business deficit further expanded

According to Sun Huaibin, a spokesman for China Textile Industry Federation, the textile industry has continued its economic slowdown since last year due to factors such as sluggish external demand, slowing domestic demand and increasing price spreads at home and abroad. The growth rate of main economic indicators such as production, exports and investment has continued to slow down and the efficiency has declined.

Among them, 1~7 total of 37 thousand Textile Enterprises above Designated Size reached 3 trillion and 146 billion 710 million yuan in total industrial output value, and the growth rate dropped by 18.8 percentage points over the same period last year.

Domestic sales continued to fall, and the domestic sales value of textile enterprises above Designated Size for 1~7 months was 2 trillion and 577 billion 30 million yuan, an increase of 12.5% over the same period last year, down 20.3 percentage points from the same period last year.

In terms of exports, China exported $141 billion 580 million of textiles and clothing in 1~7 months, an increase of only 0.3% over the same period last year, down 25 percentage points from the same period last year, down 3.1 percentage points compared with the first quarter of this year.

If the price rise factor is deducted, the actual export volume of the textile industry is negative growth. In 1~7 months, the export price of China's textile and clothing increased by 2.9% compared with the same period last year, and the volume of exports decreased by 2.5% compared with the same period last year, down 5 percentage points from the same period last year.

In such a severe industry situation, the deficit of enterprises has also expanded.

In 1~6 months, the total profit of textile enterprises above Designated Size reached 114 billion 790 million yuan, down 1.9% from the same period last year, the growth rate was 43.2 percentage points lower than that of the same period last year, and the sales profit margin was 4.5%, down 0.5 percentage points compared with the same period last year.

The loss of enterprises is 18.4%, and the deficit of loss making enterprises increased by 124.1% over the same period last year.

In the sub sectors, cotton spinning and chemical fiber are affected by the price fluctuation of raw materials. The profits of the industries are all showing a negative growth trend. The 1~6 chemical fiber industry has dropped by 52.3%, and the profits of 105 key cotton textile enterprises have dropped by 52.1%.

Cotton is the biggest problem in the second half of the year.

"The domestic demand market in the second half of this year may become better and the rate of decline will be smaller, with the factor of low statistical coefficient last year. However, the industry situation is still grim because of the low external demand, high cotton price and continued cost increase," Sun Huaibin said.

He insisted that expanding domestic demand is still an important starting point for macroeconomic regulation and control policies.

Recently, domestic monetary policy has been relaxed and prices have gradually stabilized. With the further effect, domestic consumption growth will play a positive role.

On the whole, although the growth rate of clothing consumption is still lower than that of the previous year, the growth rate will gradually increase, and the pulling effect on the textile industry will also gradually increase.

But he said that the export situation was not optimistic, and that exports would most likely have negative growth in the second half of the year.

With the overall downturn in international market demand and the continuing deterioration of the European debt crisis, the recovery of the international market is still facing higher risks, and the prospects for global economic recovery are not optimistic.

It is expected that in 2012, the international market will continue to be sluggish. Textile industry exports still lack market power to stabilize and improve.

It is worth noting that the main problem facing the industry is still the cotton problem.

It is understood that since 2012, domestic cotton prices have always been higher than the international market, and the price differential has been widening. As of mid August, the domestic cotton price has been more than 5000 yuan higher than the international market per ton, and the price difference has increased by 67% compared with the beginning of the year.

At present, there is news that the state will sell cotton reserves in the near future, or increase market supply, to a certain extent, ease the pressure of textile enterprises.

It is estimated that the reserve cotton will be sold for 20-30 tons in 2011/2012, and the bid price will be 18500 yuan / ton.

In this regard, Sun Huaibin believes that the price of dumping and storage may be quite different from the industry's expectations. The domestic price is 1000-2000 yuan / ton, and now it is 5000 yuan / ton. If the selling price is higher, the domestic cotton price differentials will be further expanded.

Enterprises are more difficult, and hope that the future direction is to sell to the market price.