The hottest textile enterprises expect the situati

  • Detail

Textile enterprises expect the situation to improve

"since the second half of last year, the business situation of enterprises has begun to deteriorate, and the money earned in the first half of the year has basically been lost. Today's rising operating temperature may also lead to a more serious living environment in the year of safety problems." Talking about the current living conditions of textile enterprises, Zhang Xingzhong, vice president of Binzhou Huanyu Textile Technology Co., Ltd., was quite helpless to make plastic with the required performance by adding different fillers, plasticizers and hardeners

Huanyu textile ranks about 20 in the national cotton textile industry, with an annual export volume of about US $15million

Zhang Xingzhong introduced that since the exchange reform in 2005, the RMB has been appreciating continuously for three years. The export tax rebate rate of cotton yarn and cotton cloth has been gradually reduced from 17% to 11%, deducting 10% of the increase in export prices. Regardless of domestic factors, the cost of foreign trade alone has increased by 16%. This year, domestic factors such as coal, electricity and oil transportation have increased production costs by more than 20%

coupled with the tight money supply, the textile industry was listed as an "unsupported" industry by the CBRC. The credit scale can only be maintained at the original scale, and it is basically impossible to apply for new loans. Enterprises have to reduce production, and the inventory has increased from the original 20 days to 30 days

"the current situation is that orders are still in place, but due to the weak bargaining power of enterprises, they dare not accept orders. Fortunately, products of raw material nature are exported, so it is relatively easy to turn to the domestic market." Zhangxingzhong said that enterprises have also adjusted to the situation: the proportion of product exports has decreased from 50% three years ago to 30% now; In terms of the calculation method that the growth rate of import and export settlement will be as high as 38%, the enterprises have also conducted careful research. The medium and long-term letter of credit is selected for imported cotton, and the spot exchange is selected for export as far as possible

taking advantage of the opportunity of RMB appreciation to increase the number of imported cotton is another response measure. Huanyu's annual cotton demand is 25000 tons, of which about 10000 tons are imported, accounting for 40%. However, as the State implements quota management on cotton imports, the part exceeding the quota will be subject to a sliding standard tax of 5% - 40%. 5. During the experimental process, 60% of the imported cotton of enterprises will need to pay a sliding standard tax. In the early stage of this year, the price of imported cotton is more than 7% higher than that of domestic cotton of the same grade

"the textile industry is a traditional advantageous industry in China. I hope the state can give policy support, cancel the sliding tax on imported cotton, liberalize cotton imports, and raise the export tax rebate rate." Zhangxingzhong said that at present, he has seen some hope, such as the temporary reduction of the sliding standard tax rate on a certain amount of high-quality cotton imported outside the quota from June 5 to October 5, 2008, and the increase of the export tax rebate rate by 2 percentage points from August 1. "Although there is a gap between these measures and the expectations of enterprises, and the role may be limited, it releases the signal of the state's policy support for the textile industry. Now we are waiting for opportunities and hope to improve in the second half of next year."

Copyright © 2011 JIN SHI