Hidden worries about textile exports: Low price advantage is no longer suitable for China’s textile industry
Judging from the numbers, while cotton prices are “roller coaster”, the export volume of the textile industry in the first quarter is not bleak. Customs data shows that in the first quarter, the cumulative export of textiles and clothing was US$49.866 billion, a year-on-year increase of 23.68%, and the growth rate was 8.24 percentage points faster than the same period last year.
“This is the reason for the increase in export product prices. On the contrary, the export situation is not very optimistic.” Gao Fang, secretary-general of the China Cotton Association, said.
In the first quarter of this year, China’s textile and apparel export prices to the world increased by 19.46% year-on-year, of which textile prices increased by 24.31% year-on-year, and clothing prices increased by 15.99% year-on-year. If the price factor is excluded, the export volume of textiles only increased by 3.53% compared with the same period last year, and the growth rate was 10.75 percentage points lower than the 14.28% in the same period last year.
High-priced exports will inevitably affect foreign trade orders. Coupled with the pressure of RMB appreciation, textile and apparel orders will be lost.
“Some orders have begun to move to Southeast Asia, such as Vietnam, Bangladesh, Indonesia and other countries.” Gao Fang said.
In the first two months of 2011, the number of clothing products imported by the United States from China increased by 8.47% year-on-year, while the growth rates of U.S. imports from Vietnam, Bangladesh and Indonesia were 19.25%, 31.26% and 17.43%.
In addition to the transfer of orders, the uncertainty of cotton prices has also become an export concern as companies are afraid to accept or place orders.
At the end of March this year, the National Development and Reform Commission and other eight departments jointly formulated and released the “2011 Cotton Temporary Reserve Plan”. The scheduled implementation time is from September 1, 2011 to March 31, 2012, and the temporary storage price is The price of standard grade lint cotton is 19,800 yuan per ton. “Many buyers regard this as a psychological price, and they use a little to purchase a little. Who is willing to spend more.” A cotton spinning mill in Jiangxi said.
If the temporary purchase and storage prices affect the psychology of buyers, then the rumors of “lowering the export tax rebate for textiles” have an even greater impact on exports. In the 12th Five-Year Plan, it was clarified that the textile industry, as an industry with overcapacity, high pollution and high emissions, is among the key monitoring areas.
“Since the beginning of the year, there have been rumors that the country will lower the tax rebate for textile exports. Some companies are also hesitant because of this.” Zhu Lanfen, honorary vice president of the China Cotton Textile Industry Association, said.
Affected by the previous financial crisis, the export tax rebate rate for textile and clothing commodities was adjusted from 11% to 16%. However, this time it is rumored that the tax rebate rate will be reduced by 5 percentage points to 11%. If calculated based on the export tax rebate amount in 2010, the textile and clothing export tax rebate will be reduced by US$65 billion, equivalent to one-third of the industry’s profits.
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