Orders To Reduce Textile Industry, Winter May Still Be The Future

According to the Shanghai Securities Daily, recently, reporters in Zhejiang, Jiangsu and other textile enterprises showed that the orders were not increased after the sharp reduction in export orders in 9 and October, due to the sluggish international demand.

Orders have been reduced by five or six. In recent years, the appreciation of the renminbi, the global economic downturn, and the rising cost of raw materials and labor in coal-fired oil and electricity have brought unprecedented impact to the textile industry.

"From last year to the first half of this year, the loss of the textile industry was mainly caused by exchange rate losses, and enterprises were afraid to pick up. After 9 and October this year, foreign orders were significantly reduced."

Shi Weixin, director of the Party Committee Office of Huafang group, told reporters that in the past, enterprises could receive orders from 30 to 50 days in the month, and could arrange production in a leisurely manner. Now they can only receive 10 to 15 days' list, and the amount of orders can be reduced by about 60%.

China Textile City is the largest textile trading market in China. Most of its products are exported. In recent years, it is now a busy season, but recently, there are many business operators closing.

Although RMB devaluation and textile export tax rebate rate increased, market confidence has been boosted and textile prices have begun to stabilize.

But for the positive adjustment of national policies, textile enterprises only expressed caution and optimism.

"The increase in export tax rebate will increase the net profit margin of textile enterprises, help reduce the export pressure of the textile industry and ease the tension of capital turnover in some enterprises, but at present, the trend of foreign market demand has not changed, and the export growth rate has not been greatly improved. The effect of export tax rebate will be greatly reduced."

A responsible person of a large textile enterprise in Jiangsu said.

Although the "severe winter" may be in the future, although it has already suffered enormous difficulties and made various adjustments, textile enterprises believe that the "winter" of the whole industry is yet to come.

Under the current circumstances, it is good to survive.

In the first half of next year, the international market is likely to change more.

China's textile industry will face greater challenges. It is only in late autumn. Next year may be a severe winter. "

Many industry insiders have indicated that the decline in export demand in 2009 is already a foregone conclusion, and the industry situation is likely to deteriorate further.

However, after the sharp shrinkage of demand, the cost of raw materials will drop substantially, which will help enterprises to improve their efficiency.

Analysts believe that with the increase of tax rebate rate and expansion of domestic demand policy, the gross profit margin of full order enterprises is expected to remain stable.

Yang Jing: editor in charge