Rmb Appreciation Positive Response To Operational Risks Textile
National Development and Reform Commission officials recently pointed out
, this year, China's textile industry will face a variety of adverse factors. Textile enterprises should pay close attention to macro-economic trend, strengthening countermeasures, adjust business strategy, operational risks.
National Development and Reform Bureau inspector Zhang Li pointed out recently, in 2007, the textile industry will face continued appreciation of the yuan, the export tax rebate rate down, increasing gap between the supply of cotton, crude oil price ups and downs, chemical products such as anti-dumping adverse effects of multiple factors .
The textile industry is an important pillar industries in recent years despite the rapid growth, but by resources, and environment constraints, and increasingly fierce competition in international markets, it faces serious challenges. There is an urgent need to restructure the textile industry, accelerate the transformation of the mode of growth, promote industrial upgrading.
Guoxin Securities and Credit Risk Management analysts believe the yuan revaluation, export restrictions and other negative factors will contribute to upgrade the textile industry. In addition, the escalating consumption structure will also promote the textile industry to some extent industrial upgrading.
China is a big country textile exports, export prices in possession of a certain advantage. According to insiders, China's textile export prices finalized, the basic is based on the "margins + production cost + extra factor" principle. Which profit is the pricing of the core space, and then manufacturing costs and additional factors, changes in adjusted unit price of goods, if the RMB Exchange Rate, manufacturing costs denominated in foreign currencies will be a passive increase in exports of textiles according to the pricing model, appreciation of the factors will shift to export most of price increases, profit margins are relatively stable. As China's textiles with strong international competitiveness, modest appreciation of the yuan does not mean the industry's profit margins will be drastically reduced.
In response, an analyst at Guotai Junan Xian Li said the quality of the yuan revaluation on the one hand can reduce the textile industry, the prices of some imported raw materials such as cotton, wool spinning raw materials, while lower import prices of these raw materials can also affect the domestic market. On the other hand, China's textiles in the international similar products, prices generally 15% -20% cheaper, so price increases to pass through the appreciation of the profit loss.
Galaxy securities industry analyst pointed out that different textile sub-sectors, different sizes of enterprises, the differentiation capacity of RMB appreciation is also evident. As the textile industry in the basic industries of cotton, chemical fiber industry, although the low added value, bargaining power, its exports to the weakest capacity of RMB appreciation, but a larger proportion of raw material imports, exports a small proportion, so the appreciation of RMB little effect. But as the textile, knitting, garments export dependence on the larger of these sub-sectors, the impact will be relatively bigger.
According to general manager of a large domestic textile industry said the yuan's continuous appreciation of the cost of the product's export surge, resulted in substantial loss of orders, the company created nearly 100 million yuan loss. But he also said, in the face of these adverse effects, the company has taken certain measures to avoid, in order to minimize losses.
Access to new development opportunities in the textile industry, while its sub-sectors auxiliary industry will also face an industry development opportunities.
Credit Risk Management Analysts believe that, with the fourth quarter of 2006, the gradual decline in international oil prices will help textile auxiliaries industry related companies to reduce production costs and improve profitability. The dye helps the integration will be the auxiliary industry trends. He also pointed out that the majority of domestic enterprises and dye auxiliaries business division, but also large foreign auxiliaries or dye manufacturing companies; from the perspective of industry chain, additives and dyes are natural and indivisible. In addition, textile auxiliaries sub-sector economic center of Asia, especially China, will transfer, China has undoubtedly become the biggest beneficiary.
by: gaga
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