US Dollar Raise Interest Rate: Textile And Garment Export Enterprises Meet Timely Rain

Textile industry is a key export item in China. The textile and garment industry is highly dependent on exports. On the one hand, the depreciation of the RMB will help the company to reduce costs and improve the competitiveness of its products. The company will get more orders, and on the other hand, it will help export enterprises gain foreign exchange earnings.

The depreciation of the RMB means that the purchasing power of foreign currencies is enhanced, which will further stimulate consumption and facilitate the export of textile products.

The United States is also the largest destination of textile exports in China. Most enterprises use the US dollar to settle accounts, and the textile enterprises that export to the US are the most direct beneficiaries.

"Although the Fed's interest rate increase has triggered a further appreciation of the US dollar, it is a good thing for our textile exports, but the interest rate hike is not good enough to offset the impact of the rising price of raw materials, and now we dare not take orders."

Yesterday, Qian Shiming, general manager of the silk textile import and Export Co., Ltd. said that if we did not take into account the factors affecting the price of raw materials,

After raising interest rates, the profit margin can be increased by about 1%, but since October, the domestic pet yarn has increased by 30%. Raising interest rates can not offset the cost increase caused by the increase in raw materials prices.

15, the Fed raised interest rates on the 16 day, and the central parity of the RMB against the US dollar was 219 basis points lower than the previous trading day, at 6.9508, the lowest since May 2008.

The Fed's interest rate increase will cause the US dollar to appreciate against other currencies.

This is very important for China's export companies that use US dollars to settle accounts. The price of raw materials is unchanged, and the settled dollar can be exchanged for more yuan than the original.

In addition, because of the rise in the settlement price of the US dollar, the enterprises have room for price reduction and attract more orders.

"The US dollar interest rate increase will trigger a significant change in the RMB exchange rate, which will have a direct impact on foreign trade."

Customs officials pointed out that, in particular, the export enterprises which were originally in weak recovery are expected to usher in a timely rain.

For example, the United States is the main export market of Zhejiang Hosiery Industry Limited. The total amount of socks exported to the United States reaches 80 million US dollars a year.

"The purchasing power of Americans is increasing. In the long run, it is bound to bring about an increase in orders."

Deputy General Manager

The company will seize the opportunity brought about by the depreciation of the RMB, further expand the export scale and continuously improve the quality of exports.

It is reported that at present, Wanfeng otter, Hai Liang shares, Jinggong group and so on.

They all invest in the United States.

From the conventional view, the Fed's interest rate increase should bring benefits to textile and garment export enterprises.

For enterprises whose products are mainly exported and raw materials are purchased in the mainland, especially for textile and garment industries with high export dependence, the Fed's interest rate increase and RMB devaluation can play a stabilizing role.

But since October, the price of raw materials based on polyester filament has been rising all the way, which has engulfed the profits of export textile products.

For example, in October, the order price of a 200G of their company was 3 yuan / meter. Now the price of raw materials will increase by at least 3.6 yuan per meter, and it can only be kept flat. At that time, there was no thought that raw materials would go up. Now that we had to do it, even if we had to lose money, we should not rush to take orders, especially large orders, or orders for delivery for one month and longer.

In the short term, the depreciation of the renminbi and the appreciation of the US dollar may increase the profits of the company.

But in essence, if the price of raw materials continues to rise, enterprises will not dare to take orders.

Since the beginning of this year, the pressure of production cost and the weakness of European and American markets have brought enormous pressure to foreign trade.

The increase in interest rates and depreciation of the renminbi are expected to be evident after the Spring Festival.

At present, when the exchange rate changes more frequently, merchants tend to wait and see, do not rush to place orders, but in the short term, orders are reduced.

For more information, please pay attention to the world clothing shoes and hats net report.