Price Inflation Favors Short And Medium Order &Nbsp; Raw Materials Become Textile Enterprises.

Despite the large number of orders and rising prices, due to the exchange rate and Raw material price The worry of change is that textile enterprises generally avoid the risk by avoiding the long list. This is the situation in the third phase of the 109th Canton Fair, which ended in May 5th. In the order signed at the fair, the short and medium term accounted for 9%, and the orders for more than 6 months accounted for only 10%.

It is reported that after the economic crisis in 2008, the textile industry Short and medium order It began to dominate, but the reason for 2011 changed. The main reason for the short and medium term orders in the previous two years is that buyers are more cautious about the latter market, mainly based on phased replenishment, and unwilling to make longer orders. In 2011, the situation is completely different. Because of the frequent changes in exchange rate and raw material prices, export enterprises generally dare not sign long bills or even dare not accept them. Ministry of commerce data show that China's export enterprises in 2010 Average profit margin For 1.47%, 1~2 fell to 1.44% in 2011.

The rising price of raw materials is the biggest problem facing textile enterprises. The annual cotton price increase in China from 2005 to 2010 is 5%, 3%, -5%, -5%, 40% and 86% respectively. In addition, recruitment difficulties, such as underemployment and appreciation of RMB, caused the export cost of the industry to rise by 10~20%. In order to transfer the cost pressure, textile enterprises could not raise their quotations. In 2011, March, the order price of textile enterprises generally increased by 15%~20% compared with that of the China Fair.

In the first quarter of 2011, China exported 48 billion 627 million US dollars of textile and clothing, an increase of 23.96% over the same period last year. In February, the export volume of single month exceeded second US dollars for the past 20 billion times, a new record high, continuing the rapid growth trend in 2010.

However, the reasons behind the increase in export volume in 2011 have changed quietly. Editor in chief, Wang Qian said that as for 2011, the "leading role" that promoted the overall export growth of China's textile and clothing has changed from quantity growth to export price rise, and also shows that export enterprises are facing increasing pressure of cost transmission.

Wang Qianjin believes that with the rising cost of domestic elements, the era of China's textile export products developing at a lower price has ended. Compared with the rapid increase in labor and raw material prices and limited export prices before the end of 2007, the situation in 2011 is likely to show that Chinese enterprises have already exhausted their ability to tap potential in the face of cost increase, and will enter a process of corresponding increase in export product prices and cost prices in the future.