Cotton Problem "Drag The Leg" Domestic And Foreign Spreads Exceed 5000 Yuan

Affected by low external demand, high cotton prices and continuous increase in costs, etc.

The situation is still grim.

Gao Yong, vice president of China Textile Industry Federation, said recently that exports had entered a positive growth from 9 to October. However, due to the further spread of cotton prices at home and abroad, the cotton textile industry and the chemical fiber industry will be in a difficult situation for some time.

In the 9-10 month, the export was negative, but the industry was in a panic.

"The biggest impact is on exports now, and the second is

Industry and chemical fiber industry, the international market downturn has caused some impact on us, "Gao Yong said at the national textile industry quality conference."

He said that in 9 and October, exports will break away from zero growth and enter a positive growth state. After 6 months, 7 months and 8 months, the situation is slightly better. But after this seasonal growth, it is difficult to determine whether the future will decline.

According to customs statistics, 1-9 months, textile and apparel exports totaled $186 billion 100 million, a slight increase of 0.5% compared with the same period last year, of which 71 billion 50 million of textile exports and 116 billion 60 million of clothing exports increased by 0.2% and 0.7% respectively.

In September, exports of textiles and clothing increased by US $25 billion 130 million, an increase of 9%, of which 8 billion 540 million US dollars in textile exports, an increase of 7%, and clothing exports 16 billion 580 million US dollars, an increase of 10%.

From the perspective of the chain ratio, the export of textile and clothing increased by 2%, of which 0.6% of the textiles grew, and the garments were unchanged from last month.

Gao Yong said that although the textile industry has seen a significant decline in its efficiency, it has not yet lost its entire industry, and its profit margin is still over 4%, which is even higher than the average profit margin of the past ten years.

From the perspective of the entire textile industry chain, although the growth rate has slowed down significantly, the more rational growth rate is not too fast or overheated.

"In 2009, we had a negative growth rate of 9.6% in textiles, but at that time we were not panic. The rest of the world and other regions declined more than we did, so the market share in the US and the EU increased by 3%-4% compared to that year. However, this year, though it is only zero growth or a negative growth, I feel a little nervous, because the market share in the US and EU continues to decline," said Gao Yong.

Cotton problem "drag the leg" domestic and foreign spreads exceed 5000 yuan

In addition to low external demand and continuous increase in costs, etc.

The problem is still the obstacle to the development of the industry.

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.

"I just came back from Vietnam yesterday, and I see that many of our enterprises are now investing in Southeast Asia. They used to invest in knitting factories or clothing factories, but now they are becoming hot spots in investment spinning factories," said Gao Yong.

He believes that because of the cotton price reform related to the cotton policy and the competitiveness of the cotton industry, it is difficult to completely solve the problem in the short term, thus improving the enthusiasm of spinning mills to invest in cotton mills overseas.

He said that the import of cotton yarn has exceeded 1 million tons in 1-9 this year, and the number of cotton yarn imports has soared in the past two months. It is estimated that more than 1 million 300 thousand tons of cotton yarn will be imported this year.

"1 million 300 thousand tons of such a scale actually means that the domestic production of 8 million ingots has been cut off. In fact, we have slowed down production of more than 10 million spindles."

Therefore, for next year's industry situation, Gao Yong is not optimistic.

"If the international market downturn is slightly better, it is also good news for the industry, hoping to get rid of the lack of consumer confidence and export shrinkage, and textile enterprises can start a slight upward trend.

But because the problem of cotton price difference may continue for some time, so I guess the cotton textile industry and the chemical fiber industry will be more difficult for some time.