Prospect of Shengze Textile Industry Development in The Second Half Year

Prospect of Shengze Textile Industry Development in The Second Half Year

The situation of the industry in the first half of the year is contrary to all experts and business owners' expectations, and the hot market is totally out of expectations. A textile company executive described the production and sale situations of the first half year as this, the goods in stock sell well, some enterprises have sold out their stocks and many of them are zero inventory or negative inventory.

The relative experts of China Oriental Silk Market Association think that, the current situation is very well, we must be careful to look at the development situation in the second half year in order to avoid the major rises and falls of the textile industry, because at present the international and domestic economic situation are still complicated and many disadvantages also exist in the development environment. Some experts and enterprise principals of China Chemical Fiber Industry Association and China Textile Academy think that now the textile industry are facing the major problems as follows:

The costs of the raw material increase so fast that the product profits are severely compressed. The price of PTA has increased 35.46% per ton from June last year to now, and the growth rate of cotton yarn and polyester staple fiber each is 42.11% and 11.49%; at the same time, the price of the cotton, cotton yarn, steam filature yarn and other raw materials are also increasing continuously. The crude oil price of this year doesn't rise, the chemical fiber raw materials price increasing of this turn is because of the downstream driving, not the traditional upstream push. The increasing price of the raw materials price doesn't transmit to downstream and the textile price doesn't increase sharply, which lead to big market risk in textile companies.

The anticipation of RMB appreciation is growing gradually. Experts pointed out that, RMB appreciate one percentage point, the textile industry's net profit will fall one percentage point directly, but the average net profit of the textile and apparel industry is only about 5%. Now the pressure of RMB appreciation is increasing, which is increasingly obvious for the low-profit textile industry, and the increasing risk of Euro has further increased the uncertainty in textile exports.

The enterprises production costs are increasing, and the cost pressure is growing. From this year, the textile enterprises of Shengze are operating with full capacity, but it is also difficult to satisfy the demand of the customer orders. In addition, when increasing the production tasks, the recruitment is also difficult, the worker's wages has increased sharply, up about 20% compared with the same period last year.

The pressure of resources, energy, environment has increased significantly. At present the available construction land of Shengze become less and less, in the future development the textile industry will face the land resources and energy loss, the environmental capacity and other pressures, especially with this year's promising market, many companies have added a large number of textile equipment, which has brought greater pressure to the environment.

Relative expert thinks that, enterprises should have a sense of crisis and accelerate the pace of industrial transformation and upgrading, develop functional, differentiated and characteristics products independently, extend the industry to the terminal and form their own voice in the market segmentation.

Above provided by SelectChina.com, and find China Textile Manufacturers / China Textile Products.

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