Cotton Textile Enterprises Are Facing "Internal And External Troubles" As A Whole.

This year, our national cotton

Under the attack of "internal worries" (domestic consumption is not strong) and "foreign invasion" (the difference between cotton prices and the export demand is shrinking), the operation of the industry continues to deteriorate.

Profit decline of cotton spinning enterprises

According to the relevant personages of China Textile Industry Federation, due to the external adverse factors and the pressure of the development of enterprises, the overall efficiency of the textile industry has declined in the first half of this year compared with the same period last year.

The total profit of textile enterprises above designated size decreased by 1.9% compared with the same period last year, and the loss rate of enterprises reached 18.4%, and the deficit of loss making enterprises increased by 124.1% over the same period last year.

As an important branch of textile enterprises, the cotton textile industry is affected by the price fluctuation of raw materials.

A negative growth trend.

105 cotton textile key enterprises profit fell by 52.1%.

The reporter learned from the investigation of 100 cotton textile enterprises in China cotton textile industry association that at least 30% of the above scale enterprises have limited production, and more than half of the small and medium-sized enterprises stop production because of the high cost of cotton production. Most enterprises lose more than 2000 yuan per ton of pure cotton yarn.

The semi annual reports released by several listed companies all showed a decline in profits or losses: the half year report of Wei Qiao textile, the largest cotton textile enterprise in China, showed that the income of the company in the first half of this year was about 7 billion 710 million yuan, which was about 4% lower than that in the same period in 2011. The net profit of its parent company in the first half of this year was 90% lower than that in the same period last year, and it was only 54 million yuan RMB in August.

In the first half of 2012, Huafang textile industry was in a mire of losses. The company achieved a total revenue of 733 million yuan, an increase of 2.28% over the same period last year, but its total operating cost was as high as 788 million yuan, and the net profit attributable to shareholders of listed companies was -3376 million yuan.

Changshan shares lost a net profit of 40 million yuan in the first half of the year, down 318.18% from the same period last year.

For the outside world, which questioned the loss of the textile industry caused by the huge price difference between inside and outside, Xian Bin, director of the State Economic and Trade Commission of the national development and Reform Commission, said that the difference between the inside and outside cotton prices has a limited impact on the textile industry, and is not the most important factor contributing to its difficulties. The state is also taking measures to reduce the price gap.

In fact, exports of countries such as India and Pakistan, which have the advantage of raw material prices, are also showing a downward trend.

Zhang Xianbin pointed out that the main difference between inside and outside cotton prices is reflected in the spinning process.

Accounted for more than 70%, export type, medium and low grade yarn has the greatest impact.

In China's textile and clothing exports, the proportion of cotton yarn exports is only 0.9%. The export yarn is neither a purpose nor a strong point, and there are also imported cotton quota supplements, so the impact is limited.

Export slump demand continues to shrink

According to the latest data from the General Administration of customs, in August 2012, China exported about 24 billion 600 million US dollars of textile and clothing, a decrease of 3.35% points compared with the same period last year.

Exports of textile yarns, fabrics and products were 8 billion 42 million US dollars, down 8.64% from the same period last year.

According to Feng Mengxiao, director of China cotton net information, in 2011, the export of cotton products in China dropped very obviously.

Exports of cotton yarn decreased by 11%, cotton clothing decreased by 13.6%, and cotton knitwear exports dropped by 9.2%.

As the downstream industry continues to slump, demand for cotton is also declining.

Zhang Xianbin said that the main reason for the decline in textile and clothing exports is the shrinking external demand.

Liang Jie, a futures analyst at the Yangtze River, also pointed out that the demand for cotton in China is about 7 million tons this year, a decrease of nearly 1/3 compared with the demand for about 10000000 tons last year.

It is understood that due to poor consumption, the current global cotton supply exceeds demand, inventories are still increasing.

Dong Shuangwei, manager of the futures research and development center, pointed out that in September, the USDA cotton report showed that the global cotton inventory increased to 16 million 660 thousand tons, and China's inventory was adjusted to 7 million 730 thousand tons, and the ratio of inventory to consumption reached 71%, the highest since 1960.

In terms of consumption, China lowered 220 thousand tons to 8 million 270 thousand tons, and lowered the global output from 120 thousand tons to 23 million 420 thousand tons.

This shows that in the coming year, the global cotton prices will hardly increase.

Under the circumstances that the international market demand is hard to improve obviously, the domestic production cost continues to rise and the market competition is becoming increasingly fierce, it is expected that the export pressure of the industry is still outstanding, resulting in a further decline in the industry's production and marketing growth.

Because the price trend of cotton is not clear at present, the negative growth trend of textile industry is still difficult to reverse.

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Cotton textile enterprises face overall shuffle

Analysts pointed out that the textile enterprises in the second half of this year will remain in a difficult position. The overall efficiency of the industry will decline sharply compared with that of last year. The losses and losses will be widened. More small, medium and micro enterprises will face the risk of being eliminated.

At present, the pressure factors that affect the development of the textile industry still exist.

Sun Huaibin, spokesman of China Textile Industry Federation, said: "labor costs and capital costs are increasing year by year, energy prices continue to rise, and the pressure of small and medium enterprises in textile industry is also increasing."

According to the investigation, the per capita wage of textile industry increased by about 15% in the first half of the year. Statistics show that domestic fuel power prices increased by 3% over the same period last month, and the financing difficulties and financing problems of the enterprises have not yet been completely solved. The cost of financing has remained high. In the first half of this year, the interest expenses of Enterprises above designated size increased by 29.5% over the same period last year, which is higher than that of the main business revenue growth by 19.8 percentage points over the same period of 1~7.

Coupled with the continued downturn in external demand and the fluctuation of raw material prices, the overall operation of the industry still faces many risks.

Zhang Xianbin believes that the future direction of China's textile industry first needs to meet domestic demand, and the difference between inside and outside cotton prices conceals many contradictions in the industry. Textile production capacity is constantly expanding rapidly, once the market changes will be difficult to cope with.

"China's raw material costs and labor costs are increasing rigidly. If textile and clothing exports are still large commodities, it will be difficult to continue. Instead, we should take advantage of the deep processing links and enhance the competitiveness of the textile industry by improving the added value and brand."

Zhang Xianbin said.