In 2011, China's cotton textile companies experienced a sudden change in market conditions. Orders fell sharply, inventory pressure was huge, labor costs rose, *** appreciation, raw material price fluctuations, and ** interest rate hike. Various unfavorable factors were stacked together. Many companies were in trouble and were forced to cut production or even stop production.
On the one hand, the severe situation has made cotton textile companies face a new round of tests of survival of the fittest. Some enterprises with less vitality may not be able to survive this "winter". On the Other hand, pressure has also given impetus, and the current predicament shows the urgency of transformation. It forces companies to improve their product quality, eliminate backward production capacity, and establish truly differentiated development models. From a series of data, we can feel that the market situation and pattern are changing, and the way out for cotton textile companies may be a change.
According to the statistics of the National Bureau of Statistics, in the first three quarters of 2011, China’s spinning enterprises above designated size cumulatively produced 20,955,000 tons of various types of yarns, an increase of 11.30% year-on-year, of which pure cotton yarns increased by 9.96% year-on-year, and cotton blended yarns 13.32% year-on-year increase, chemical fiber yarn 17.15%, yarns containing chemical fiber increased more than pure cotton yarn; textile enterprises above designated size cumulatively completed 44.874 billion meters of cloth production, an increase of 13.34% over the same period of last year, except that the output of yarn-dyed fabrics decreased by 3.59% year-on-year. The growth rate of pure cotton cloth, cotton blended fabric and chemical fiber cloth was over 10%.
In the first three quarters of the province’s accumulated yarn production, Shandong Province’s output remained at the top position, with a total of 5.41 million tons, but it was lower than the national average, only 7%, and the growth rate was slowing down; Henan yarn production was 3.158 million tons, a year-on-year increase over the national The average level reached 13.47%. In terms of cumulative cloth production, Zhejiang and Shandong are still in the front ranks, reaching 10.51 billion meters and 9.28 billion meters, respectively, and Anhui, Jilin, and Hubei provinces produced more than 40% of their total output.
In October this year, the China Cotton Textile Industry Association conducted a survey on the production and sales of 84 cotton textile enterprises in China from January to September. The surveyed enterprises (using cotton as the main product) had a total ring spinning capacity of approximately 22.3 million spindles, of which, The number of companies in Jiangsu and Shandong is nearly half. The survey results show that as the overall situation of cotton textile sales is still poor, the inventory of finished products continues to increase. With the stabilization of cotton prices, the proportion of cotton used by cotton textile companies increased slightly, and the sales price of products decreased.
Affected by the large fluctuations in cotton prices, the inventory of raw materials of textile enterprises continued to decline from January to September, but the decline narrowed. The inventory of raw cotton decreased by a large margin, and the inventory of chemical fiber decreased. At the same time, the accumulated inventory of finished products of cotton textile enterprises surveyed increased by 36.9% year-on-year, of which the overstock of cotton blends and chemical fiber products was more serious than that of pure cotton products. From the yarn point of view, the accumulated volume of pure cotton yarns increased by 32.2% year-on-year, which was 8.2% higher than the cumulative increase from January to August; the cumulative volume of cotton blended yarns stocks increased by 26% year-on-year, which was 2.3% lower than the cumulative increase from January to August; Although the absolute number of purified fiber yarn stocks is not large, it has increased more than 90% year-on-year. From the point of view of cloth, the accumulated amount of cotton fabric stocks increased by 16.2% year-on-year, which was a decrease of 7.2% from the cumulative increase in January-August; the accumulated volume of cotton-blend fabrics increased by 52.7% year-on-year, which was a decrease of 34.7 from the cumulative increase in January-August. Percentage points; inventory of purified fiber cloths increased by 54.2% year-on-year, an increase of 25.3 percentage points from the cumulative increase in January-August. The yarn production of the surveyed enterprises was nearly 2.2 million tons and the cloth production was 3.2 billion meters. The yarn products mainly consisted of pure cotton yarns, which accounted for 80.7% of the total. This was a slight increase from January to August. Cloth products are dominated by pure cotton cloth, accounting for 76.1% of the total.
The survey results showed that compared with the same period of the previous year, the yarn production of some enterprises in the first three quarters decreased by 5.7%, of which pure cotton yarns decreased by 8.4%, cotton blended yarns increased by 14.3%, and purified fiber yarns decreased by 5.4%.
Comments: Although according to the new statistical method, the national statistical office data classification enterprise above designated size is an annual sales income of more than 20 million yuan, its economic indicators are difficult to reflect the actual operation of small and medium-sized enterprises, but from a series of data and indicators Weakness still can see the current difficulties facing the industry.
The increase in the yarn containing chemical fibers is higher than that in pure cotton yarns, which also reflects the impact of higher cotton prices on the structural adjustment of yarn products. Although the proportion of cotton used by cotton textile companies has slightly increased in the recent period due to the drop in cotton prices, the overall application of new fibers will continue to expand.
Decline in Exports Obviously the trend of order shifting The data from the General Administration of Customs shows that in October, China’s textile and apparel exports were 19.65 billion U.S. dollars, an increase of 10.4% year-on-year, and the growth rate slowed down from the previous period, which was a 14.5% decrease from the previous month. In September and October, the decline in cotton textiles and clothing was even more pronounced.
From January to September, China's cotton textiles and garments exported a total of US$66.37 billion, an increase of 18.03% over the same period of last year. The growth rate dropped by 2%, and the export value decreased by a high of 12.83%. The accumulated export value of cotton textiles was US$19.828 billion, which was a year-on-year increase of 20.28%, but it was a month-on-month decrease of 1.44%; the cumulative value of cotton apparel exports was US$46.542 billion, a year-on-year increase of 17.10%, but a decrease of 16.95% from the previous quarter. In the same period, the amount of cotton textiles and apparel imported from China increased by 14.33% year-on-year, and rose by 2.06% from the previous quarter. In particular, the cumulative number of imported cotton garments increased by 50.68% year-on-year, and the imports of cotton textiles (cotton yarns, cotton fabrics) also increased by nearly 6%.
From January to September, in the export market of cotton textiles in China, the year-on-year growth rate of exports to Mexico, Turkey, ASEAN, and Japan exceeded 30%, while the value of cotton textile exports to the United States decreased by 7.14% year-on-year. In the import market, imports from countries such as Macao, the United States, Turkey, and the European Union increased by the same amount as the previous year.
From January to September, China's cotton yarn imports totaled 625,000 tons, down 23% year-on-year; cumulative cotton yarn exports totaled 315,000 tons, down 24% year-on-year, but net imports of cotton yarn continued to rise. From January to September of this year, China's total imports of cotton fabrics amounted to 560 million meters, a year-on-year decrease of 10% and a year-on-year increase of 2.34%; the total number of cotton fabrics exported was 5.56 billion meters, which was a year-on-year decrease of 3.35% and a month-on-month decrease of 0.55%.
In the 110th session of the Canton Fair, the prospects of weak demand for Chinese textile and apparel imports from Europe and the United States were fully reflected. Compared with the previous session of the Canton Fair, the number of visitors to the fair and the volume of trade in the Canton Fair are not inferior, but the export turnover in the European and American markets has dropped by over 20%. The main features are as follows: First, the market in Europe and the United States has dropped sharply. Buyers from Europe and the United States increased at the meeting, but there were more wait-and-see calls and actual transactions decreased by 19% and 24% respectively. Second, the percentage of medium-short-term orders remained high, and the proportion of long-term orders remained low. The percentage of short- and medium-term orders within six months reached 88%, reflecting the international market's cautious expectation that it won't dare to issue long-term orders; domestic companies are worried about raw material prices and exchange rate fluctuations and are afraid to accept long-term orders. Third, there was an increase in the turnover of necessities and a drop in non-rigid demand.
Comments: The world economy has not yet emerged from the shadow of the financial crisis, the sovereign debt crisis in Europe has continued to deteriorate, the operating costs of enterprises have continued to rise and other factors, export companies generally reflect the confidence of orders is not strong, the export situation in the future for some time worrying. What is more noteworthy is that the data shows that the competitiveness of China's cotton products in the international market is declining, and some orders have shifted. The increase in labor costs, the appreciation of ***, fluctuations in raw material prices, and the increase in interest rates have increased the operating costs of enterprises, and have affected the international competitiveness of cotton textile enterprises. The instability of cotton prices and the adjustment of monetary and industrial macro policies have made companies take orders more cautious, and they have even had to give up long orders and big orders. Some orders from export-oriented companies have appeared in exchange for Southeast Asian markets.
The European and American markets continue to slump, while Mexico, Turkey, and ASEAN have growth potential. The rapid increase in labor and production costs has made China's cotton products less competitive in the low-end market. Actively explore emerging markets and increase the added value of export products or the way out.
Enterprise losses have increased sharply. Industry investment enthusiasm and lack of confidence According to the data from the National Bureau of Statistics, China's cotton and chemical fiber textile processing industry enterprises (including 500 million yuan and above investment in urban and rural fixed assets) accumulatively completed a total investment of 121.9 billion yuan from January to September 2011. The number of newly-started projects totaled 2,535, a year-on-year increase of less than 1%, indicating that the industry's investment enthusiasm and lack of confidence. In the same period, the number of loss-making enterprises in the industry surged by 39.91% year-on-year, and the amount of losses increased; the profit rate also decreased from 5.15% in January to July to 4.99%, and the economic efficiency of the industry decreased, and the quality of operations was not high.
Due to the fierce situation in the textile market last year, the momentum continued in the first quarter of this year. However, starting from April, with the continued decline in the prices of textile raw materials such as cotton, the wait-and-see atmosphere in the market has become increasingly strong and confidence in the industry has been frustrated. As the price of cotton continued to fall, late-stage enterprises dared not rush to place orders, orders were significantly reduced, companies intended to increase inventory, and sluggish sales across the entire industry chain.
In the new cotton year, due to the country's closing price, the cotton price was steadily weak, and the company's purchases were cautious. The prices of chemical fiber staple fiber also dropped sharply. Demand in the domestic and foreign markets remained sluggish, and yarn and cloth prices continued to fall. After entering October, the traditional “golden nine silver ten†law of the gauze market was completely broken. Due to the slowdown in sales, the pressure of market inventory increases, textile companies generally compress production capacity, reduce prices and sales. 9 According to the survey, the arithmetic average selling price of 32 yarns for cotton in September was 29,280 yuan/ton, which was 5.1% lower than that in August, and the price of 16.7% of enterprises was the same as that in August, and more than half of the enterprises’ prices dropped by 0.36. Between 10% and 10%.
Compared with September and October, November yarn and cloth orders decreased and prices gradually weakened. At present, the price of 32 pure cotton yarns is 26,300 yuan/ton, and the price of pure cotton fabrics is 6.72 yuan/meter. In the same period, the decline in the prices of yarns and cloths in the international market was higher than that in the domestic market, which brought shocks to the export of Chinese enterprises.
Comments: From the perspective of downstream industry performance, domestic and international market demand continues to be sluggish, and the future market situation is still not optimistic. In the face of the same market situation, corporate performance has shown polarization. For enterprises, they should respond with eyes inwards and actively respond to them. According to the actual conditions of the company, they must speed up transformation and upgrading, and enhance their ability to withstand market risks.
On the one hand, the severe situation has made cotton textile companies face a new round of tests of survival of the fittest. Some enterprises with less vitality may not be able to survive this "winter". On the Other hand, pressure has also given impetus, and the current predicament shows the urgency of transformation. It forces companies to improve their product quality, eliminate backward production capacity, and establish truly differentiated development models. From a series of data, we can feel that the market situation and pattern are changing, and the way out for cotton textile companies may be a change.
According to the statistics of the National Bureau of Statistics, in the first three quarters of 2011, China’s spinning enterprises above designated size cumulatively produced 20,955,000 tons of various types of yarns, an increase of 11.30% year-on-year, of which pure cotton yarns increased by 9.96% year-on-year, and cotton blended yarns 13.32% year-on-year increase, chemical fiber yarn 17.15%, yarns containing chemical fiber increased more than pure cotton yarn; textile enterprises above designated size cumulatively completed 44.874 billion meters of cloth production, an increase of 13.34% over the same period of last year, except that the output of yarn-dyed fabrics decreased by 3.59% year-on-year. The growth rate of pure cotton cloth, cotton blended fabric and chemical fiber cloth was over 10%.
In the first three quarters of the province’s accumulated yarn production, Shandong Province’s output remained at the top position, with a total of 5.41 million tons, but it was lower than the national average, only 7%, and the growth rate was slowing down; Henan yarn production was 3.158 million tons, a year-on-year increase over the national The average level reached 13.47%. In terms of cumulative cloth production, Zhejiang and Shandong are still in the front ranks, reaching 10.51 billion meters and 9.28 billion meters, respectively, and Anhui, Jilin, and Hubei provinces produced more than 40% of their total output.
In October this year, the China Cotton Textile Industry Association conducted a survey on the production and sales of 84 cotton textile enterprises in China from January to September. The surveyed enterprises (using cotton as the main product) had a total ring spinning capacity of approximately 22.3 million spindles, of which, The number of companies in Jiangsu and Shandong is nearly half. The survey results show that as the overall situation of cotton textile sales is still poor, the inventory of finished products continues to increase. With the stabilization of cotton prices, the proportion of cotton used by cotton textile companies increased slightly, and the sales price of products decreased.
Affected by the large fluctuations in cotton prices, the inventory of raw materials of textile enterprises continued to decline from January to September, but the decline narrowed. The inventory of raw cotton decreased by a large margin, and the inventory of chemical fiber decreased. At the same time, the accumulated inventory of finished products of cotton textile enterprises surveyed increased by 36.9% year-on-year, of which the overstock of cotton blends and chemical fiber products was more serious than that of pure cotton products. From the yarn point of view, the accumulated volume of pure cotton yarns increased by 32.2% year-on-year, which was 8.2% higher than the cumulative increase from January to August; the cumulative volume of cotton blended yarns stocks increased by 26% year-on-year, which was 2.3% lower than the cumulative increase from January to August; Although the absolute number of purified fiber yarn stocks is not large, it has increased more than 90% year-on-year. From the point of view of cloth, the accumulated amount of cotton fabric stocks increased by 16.2% year-on-year, which was a decrease of 7.2% from the cumulative increase in January-August; the accumulated volume of cotton-blend fabrics increased by 52.7% year-on-year, which was a decrease of 34.7 from the cumulative increase in January-August. Percentage points; inventory of purified fiber cloths increased by 54.2% year-on-year, an increase of 25.3 percentage points from the cumulative increase in January-August. The yarn production of the surveyed enterprises was nearly 2.2 million tons and the cloth production was 3.2 billion meters. The yarn products mainly consisted of pure cotton yarns, which accounted for 80.7% of the total. This was a slight increase from January to August. Cloth products are dominated by pure cotton cloth, accounting for 76.1% of the total.
The survey results showed that compared with the same period of the previous year, the yarn production of some enterprises in the first three quarters decreased by 5.7%, of which pure cotton yarns decreased by 8.4%, cotton blended yarns increased by 14.3%, and purified fiber yarns decreased by 5.4%.
Comments: Although according to the new statistical method, the national statistical office data classification enterprise above designated size is an annual sales income of more than 20 million yuan, its economic indicators are difficult to reflect the actual operation of small and medium-sized enterprises, but from a series of data and indicators Weakness still can see the current difficulties facing the industry.
The increase in the yarn containing chemical fibers is higher than that in pure cotton yarns, which also reflects the impact of higher cotton prices on the structural adjustment of yarn products. Although the proportion of cotton used by cotton textile companies has slightly increased in the recent period due to the drop in cotton prices, the overall application of new fibers will continue to expand.
Decline in Exports Obviously the trend of order shifting The data from the General Administration of Customs shows that in October, China’s textile and apparel exports were 19.65 billion U.S. dollars, an increase of 10.4% year-on-year, and the growth rate slowed down from the previous period, which was a 14.5% decrease from the previous month. In September and October, the decline in cotton textiles and clothing was even more pronounced.
From January to September, China's cotton textiles and garments exported a total of US$66.37 billion, an increase of 18.03% over the same period of last year. The growth rate dropped by 2%, and the export value decreased by a high of 12.83%. The accumulated export value of cotton textiles was US$19.828 billion, which was a year-on-year increase of 20.28%, but it was a month-on-month decrease of 1.44%; the cumulative value of cotton apparel exports was US$46.542 billion, a year-on-year increase of 17.10%, but a decrease of 16.95% from the previous quarter. In the same period, the amount of cotton textiles and apparel imported from China increased by 14.33% year-on-year, and rose by 2.06% from the previous quarter. In particular, the cumulative number of imported cotton garments increased by 50.68% year-on-year, and the imports of cotton textiles (cotton yarns, cotton fabrics) also increased by nearly 6%.
From January to September, in the export market of cotton textiles in China, the year-on-year growth rate of exports to Mexico, Turkey, ASEAN, and Japan exceeded 30%, while the value of cotton textile exports to the United States decreased by 7.14% year-on-year. In the import market, imports from countries such as Macao, the United States, Turkey, and the European Union increased by the same amount as the previous year.
From January to September, China's cotton yarn imports totaled 625,000 tons, down 23% year-on-year; cumulative cotton yarn exports totaled 315,000 tons, down 24% year-on-year, but net imports of cotton yarn continued to rise. From January to September of this year, China's total imports of cotton fabrics amounted to 560 million meters, a year-on-year decrease of 10% and a year-on-year increase of 2.34%; the total number of cotton fabrics exported was 5.56 billion meters, which was a year-on-year decrease of 3.35% and a month-on-month decrease of 0.55%.
In the 110th session of the Canton Fair, the prospects of weak demand for Chinese textile and apparel imports from Europe and the United States were fully reflected. Compared with the previous session of the Canton Fair, the number of visitors to the fair and the volume of trade in the Canton Fair are not inferior, but the export turnover in the European and American markets has dropped by over 20%. The main features are as follows: First, the market in Europe and the United States has dropped sharply. Buyers from Europe and the United States increased at the meeting, but there were more wait-and-see calls and actual transactions decreased by 19% and 24% respectively. Second, the percentage of medium-short-term orders remained high, and the proportion of long-term orders remained low. The percentage of short- and medium-term orders within six months reached 88%, reflecting the international market's cautious expectation that it won't dare to issue long-term orders; domestic companies are worried about raw material prices and exchange rate fluctuations and are afraid to accept long-term orders. Third, there was an increase in the turnover of necessities and a drop in non-rigid demand.
Comments: The world economy has not yet emerged from the shadow of the financial crisis, the sovereign debt crisis in Europe has continued to deteriorate, the operating costs of enterprises have continued to rise and other factors, export companies generally reflect the confidence of orders is not strong, the export situation in the future for some time worrying. What is more noteworthy is that the data shows that the competitiveness of China's cotton products in the international market is declining, and some orders have shifted. The increase in labor costs, the appreciation of ***, fluctuations in raw material prices, and the increase in interest rates have increased the operating costs of enterprises, and have affected the international competitiveness of cotton textile enterprises. The instability of cotton prices and the adjustment of monetary and industrial macro policies have made companies take orders more cautious, and they have even had to give up long orders and big orders. Some orders from export-oriented companies have appeared in exchange for Southeast Asian markets.
The European and American markets continue to slump, while Mexico, Turkey, and ASEAN have growth potential. The rapid increase in labor and production costs has made China's cotton products less competitive in the low-end market. Actively explore emerging markets and increase the added value of export products or the way out.
Enterprise losses have increased sharply. Industry investment enthusiasm and lack of confidence According to the data from the National Bureau of Statistics, China's cotton and chemical fiber textile processing industry enterprises (including 500 million yuan and above investment in urban and rural fixed assets) accumulatively completed a total investment of 121.9 billion yuan from January to September 2011. The number of newly-started projects totaled 2,535, a year-on-year increase of less than 1%, indicating that the industry's investment enthusiasm and lack of confidence. In the same period, the number of loss-making enterprises in the industry surged by 39.91% year-on-year, and the amount of losses increased; the profit rate also decreased from 5.15% in January to July to 4.99%, and the economic efficiency of the industry decreased, and the quality of operations was not high.
Due to the fierce situation in the textile market last year, the momentum continued in the first quarter of this year. However, starting from April, with the continued decline in the prices of textile raw materials such as cotton, the wait-and-see atmosphere in the market has become increasingly strong and confidence in the industry has been frustrated. As the price of cotton continued to fall, late-stage enterprises dared not rush to place orders, orders were significantly reduced, companies intended to increase inventory, and sluggish sales across the entire industry chain.
In the new cotton year, due to the country's closing price, the cotton price was steadily weak, and the company's purchases were cautious. The prices of chemical fiber staple fiber also dropped sharply. Demand in the domestic and foreign markets remained sluggish, and yarn and cloth prices continued to fall. After entering October, the traditional “golden nine silver ten†law of the gauze market was completely broken. Due to the slowdown in sales, the pressure of market inventory increases, textile companies generally compress production capacity, reduce prices and sales. 9 According to the survey, the arithmetic average selling price of 32 yarns for cotton in September was 29,280 yuan/ton, which was 5.1% lower than that in August, and the price of 16.7% of enterprises was the same as that in August, and more than half of the enterprises’ prices dropped by 0.36. Between 10% and 10%.
Compared with September and October, November yarn and cloth orders decreased and prices gradually weakened. At present, the price of 32 pure cotton yarns is 26,300 yuan/ton, and the price of pure cotton fabrics is 6.72 yuan/meter. In the same period, the decline in the prices of yarns and cloths in the international market was higher than that in the domestic market, which brought shocks to the export of Chinese enterprises.
Comments: From the perspective of downstream industry performance, domestic and international market demand continues to be sluggish, and the future market situation is still not optimistic. In the face of the same market situation, corporate performance has shown polarization. For enterprises, they should respond with eyes inwards and actively respond to them. According to the actual conditions of the company, they must speed up transformation and upgrading, and enhance their ability to withstand market risks.
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