The Cost Of Textile Raw Materials Rises, And The Export Competitiveness Of The Industry Begins To Decline

Recently, Hunan Cotton Association spin The Administration Office learned that since this year, due to the negative factors such as sluggish domestic and foreign demand, large price difference between domestic and foreign cotton, and rising comprehensive costs, the industry has grown but still lacks strength. From the perspective of the completion of benefit indicators, cotton textile enterprises above the designated size in the province achieved a cumulative main business income of 18.769 billion yuan from January to August this year, an increase of 8.1% over the same period last year, and completed a profit and tax of 849 million yuan, The year-on-year decrease was 2.1%, of which the profit was 223 million yuan, with a year-on-year increase of 2.8%. The comprehensive profit margin of the main revenue industry was only 1.2%. With the increase of domestic labor costs and the rise of textile raw material costs, the export competitiveness of the textile industry began to decline, and some orders from many countries began to shift to South Asia and Southeast Asia.

At the provincial cotton purchase and sales situation analysis meeting held by the provincial cotton association, many textile enterprises said that the textile situation had stabilized this year, with most of the operating rates reaching more than 90%, orders increased, and production was basically normal. Due to the rise of various comprehensive costs, the situation of the textile industry has improved but is not optimistic. Some textile enterprises appeal that the selling of national reserve cotton cannot be stopped. Because of the complex market environment and many uncertain factors, textile enterprises dare not collect more new cotton and think that the risk of large reserve cotton is too great.

In 2013, the purchase and storage policy has been implemented, and the cotton price problem will continue. In addition, there are serious quality problems of cotton in our province this year, which further hampers the development of our textile industry. Larger textile enterprises may benefit from the quota of imported cotton and the auction of national stored cotton, but the problem of raw materials will be more serious than that of other provinces for enterprises with relatively small scale and larger cotton consumption of staple varieties of slub yarn than other products. It is expected that the whole industry will go through a major reshuffle this year and next, and many small and medium-sized cotton textile enterprises will face the situation of production suspension and reduction, which is both a challenge and an opportunity for Hunan cotton textile enterprises.

Leaders of Hunan Provincial Textile Administration Office also said at the provincial cotton purchase and sales situation analysis meeting that governments at all levels attach great importance to the development of the textile industry and are drafting policies to support textile enterprises to overcome current difficulties. It is believed that with the strong support of governments at all levels and the insistence of textile entrepreneurs, Hunan textile industry will break through the cold and usher in the spring, creating new glory.