Poor transmission of upstream and downstream industries, textile market structure may be restructured
According to foreign media reports, on May 10, the President of the United States stated that some of the levies on Chinese imports goods may be lifted soonTariffsto help control rising consumer prices in the United States. It also said the White House is reviewing “punitive measures” implemented under the previous administration that raised prices on everything from diapers to clothing and furniture, and may choose to eliminate the tariffs entirely at a later stage. After many years, the Federal Reserve raised interest rates again and the market risks caused by the disruption of the global commodity supply chain have had a significant impact on the global commodities and even the textile industry.
In recent years, due to the spread of the epidemic around the world, the economies of various countries have declined, and end-use textile and clothing consumption has declined. People’s consumption expenditure on clothing has declined marginally, which has caused many well-known chain clothing stores to withdraw from the market. On the other hand, inflation has led to an increase in commodity prices, and the input costs of various production factors such as fertilizers, pesticides, mulch films, and land rent have increased, resulting in the increase in the input costs of many textile raw materials such as cotton and polyester Price increased. As a vertically extended textile industry chain, when upstream product prices rise rapidly, downstream consumption is weak and unable to transmit the impact of rising costs in a timely manner. Ultimately, the product profits of many processing companies are swallowed up, and production enthusiasm is reduced. Significant decline. For example: the upstream ginning enterprises of cotton suffered huge losses due to the sharp increase in the price of seed cotton, which caused the cost of lint to be inverted with the market price; the spinning enterprises also suffered huge losses due to the sharp increase in the price of cotton raw materials. It is difficult for yarn prices to rise, and operating profits cannot make ends meet. The upstream and downstream industries cannot realize self-regulation through marketization in a short period of time, causing the textile industry to experience an abnormal situation of “not prosperous in peak seasons”.
In addition to the poor profit transmission between the upstream and downstream industries, the contradiction between production and marketing between regions has also intensified. In the past year, the textile market in Vietnam, India and other places has been extremely prosperous, but some domestic foreign trade orders have been lost. The supply chain of the European and American consumer markets has become tilted, forcing some domestic textile companies to adjust their industrial layout and planning. Although export tariffs on textiles exported to the United States are expected to be eliminated, inflation and changes in global textile trade flows may indicate that the global textile market structure may face reconstruction, and market participants may need to make early adjustments. Make more long-term plans.
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