2008 textile enterprises now facing difficulties

In 2008 for China is a special year for the textile industry is also a special year, in appreciation of the renminbi, the prices of raw materials, rising labor costs, tight monetary policy and a series of factors, most of the textile Enterprises have a “nil”, and even have some enterprises in order to sell the plant or machinery, and so on the way to survive. The textile industry sector is facing huge difficulties and challenges. Today, the textile industry how to spend the “winter”, this year’s textile industry this year, many enterprises are facing the dilemma. Textile enterprises are facing difficulties now Since the second half of last year, the textile industry from the external environment facing intense pressure, whether domestic or international economic economy, including the policy. This is a piece from the international economy, particularly this year, the whole world to slow down economic growth, weak demand, particularly in some major economies, economic recession, a direct impact on the textile industry’s exports. As a result, exports of textile enterprises is relatively high, thus making it part of the export business, coupled with the factors renminbi exchange rate, causing a large number of them sold back to the domestic market, it makes the domestic market is more crowded. At the same time from the domestic point of view, on the one hand to see rapid growth in the national economy, but the nation’s consumer demand for textile products in the lower. The textile industry is now facing a series of policy factors, including some of their own means of production, coal, electricity, oil, transportation, labor costs, and elements of the policy factor in the textile industry to the enormous cost pressure. On the other hand, is the cost of policies, including elements of the cost of upgrades can be achieved by adjusting the anti-risk ability, the ability to bear these costs, seem to be unable to support. Part of the textile industry is facing cut-off semi-collapse, the collapse of the serious difficulties. 1, RMB appreciation for the largest negative factor RMB appreciation to accelerate, particularly in the textile industry suffered the greatest damage. Data showed that the revaluation of the RMB and the United States to accelerate the loan-to-time impact of the crisis, which have become important enterprises in the textile industry by Lee, also led to the export of a significant decline in profits. Every change in the exchange rate will affect the industry as a whole, the whole market nerves. 1-5 months of this year alone, the yuan to appreciate against the U.S. dollar on the 4.89 percent, with the July 2005 exchange rate of change when compared to a total appreciation of 18%, has been a big step into the “6” times. RMB appreciation, export tax rebate rate cut has eroded the textile industry manufacturers already meager profits, companies have to raise export prices, however, price increases to customers based on a number of other countries at the cost of procurement. No price can not survive, the price may lose the market, enterprises are faced with difficult choices. By Yan Lan Group, for example, this year’s 1-5 month, the cumulative export enterprises 36,562,800 U.S. dollars, only as a result of the appreciation of RMB and the export tax rebate rate reduction brought about by the loss of profits amounted to 1163 million yuan. 2, soaring energy prices, production of raw materials, products, transportation costs surge Chinese CPI rose continuously since last year, the textile industry and the price has come down. National Bureau of Statistics recently released data show that in May China factory prices of industrial products (PPI) rose 8.2 percent year-on-year, hitting a new high in recent years. Among them, food prices rose 11% in the general category of daily necessities rose 3.9 percent, while clothing was up only 2.4 percent. From a variety of statistical data, prices of chemical products in the category, prices of almost all products are up to varying degrees, and polyester filament yarn fell by 4.6 percent. In addition, in May China’s consumer price index, CPI rose 7.7 percent year-on-year, is still at a relatively high level. Food prices which rose 19.9 percent, while clothing prices fell 1.5 percent year-on-year, of which, clothing prices fell 1.6 percent. Data indicated that China’s consumer price index rose year-on-year, clothing prices fell. This pressure on the textile industry is huge. In the area of raw materials on the following grounds: (1) June 19 Xinhua oil prices will drive up the textile industry production and transportation costs, for a time when the troubled textile industry, making production, transportation costs, the price competitiveness of products again Weakened. (2) the last two years, the international market and a small number of low-grade cotton, and in high-grade cotton prices to narrow the gap.