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The price of raw materials is the main factor affecting my country's textile competitiveness

The price of raw materials is the main factor affecting my country's textile competitiveness

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  • Release time:2016-12-26
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【Summary Description】On December 22, at the 4th China Cotton Industry Elite Forum hosted by the China Reserve Cotton Information Center, leaders of the participating departments and entrepreneurs discussed the problems and countermeasures of the cotton spinning industry chain. Among them, the director of Henan Tongzhou Cotton Industry Co., Ltd. Chief Wei Gangmin expounded his views on the current competitiveness of the cotton spinning industry.

General Wei believes that the main factor that affects the competitiveness of my country's textile industry is the price of raw materials. At present, the competition gap between domestic cotton spinning enterprises and foreign countries is expanding, and the continuous decline in consumption should be considered a general trend. According to our investigation, there was a period of prosperity in consumption in the first half of this year, and it will continue to fall in the future. Especially before the launch of new cotton in August-September 2015, the consumption of cotton was roughly 450,000 tons, which was reduced by nearly half compared with the historical peak consumption period. During the historical peak period, the national consumption reached more than 1,080. Million tons.

General Manager Wei said that the current cotton consumption in India has exceeded 5 million tons, which is close to the current consumption level in China. However, the performance of Indian textile companies is far better than that of domestic companies, and the output of cotton in India has surpassed that of China since this year. At present, the price level of cotton used by domestic textile enterprises in India should be around 8,800 yuan/ton, and the current price of cotton used by domestic textile enterprises should be 12,800 yuan/ton, which is 4000 yuan higher. From the comparison of imported yarn and domestic yarn, the competitiveness of Chinese textile enterprises in terms of management, technology, labor skills, etc. cannot consume the price difference of 4000 yuan; if you look at the export point of the textile industry chain terminal products, then the same is exported to Europe, the United States, and Japan, you have a difference of 4,000 yuan, and there is no doubt that you cannot compete.

In addition, the export subsidy for Indian textiles is now above 3%, and there are also interest subsidies for exports. Only the direct export subsidies add up to about 500 yuan. That is to say, the overall competitiveness of the domestic textile industry is compared with that of India. It is impossible to solve the problem by relying solely on the advantages of enterprises from technical management.

Mr. Wei said that as far as the development level of the textile industry is concerned, India, Pakistan, Bangladesh, etc. are not as good as China. The diligence and wisdom of the Chinese labor force are not weak. At the same time, from the perspective of the cost of processing, foreign wages will be lower. However, from our survey results, due to work efficiency and other reasons, their spinning costs are not much worse than that of China. Taking 32 yarns as an example, our labor costs are only 5500-6000 yuan/ton, while the processing costs in Vietnam are comprehensive. It is not much lower than China, so China's manufacturing capacity and management level should not be low in global competitiveness. At present, the domestic cotton spinning industry needs to make full use of these resources, policies and financial support to improve the competitiveness of China's textile industry.

The price of raw materials is the main factor affecting my country's textile competitiveness

【Summary Description】On December 22, at the 4th China Cotton Industry Elite Forum hosted by the China Reserve Cotton Information Center, leaders of the participating departments and entrepreneurs discussed the problems and countermeasures of the cotton spinning industry chain. Among them, the director of Henan Tongzhou Cotton Industry Co., Ltd. Chief Wei Gangmin expounded his views on the current competitiveness of the cotton spinning industry.

General Wei believes that the main factor that affects the competitiveness of my country's textile industry is the price of raw materials. At present, the competition gap between domestic cotton spinning enterprises and foreign countries is expanding, and the continuous decline in consumption should be considered a general trend. According to our investigation, there was a period of prosperity in consumption in the first half of this year, and it will continue to fall in the future. Especially before the launch of new cotton in August-September 2015, the consumption of cotton was roughly 450,000 tons, which was reduced by nearly half compared with the historical peak consumption period. During the historical peak period, the national consumption reached more than 1,080. Million tons.

General Manager Wei said that the current cotton consumption in India has exceeded 5 million tons, which is close to the current consumption level in China. However, the performance of Indian textile companies is far better than that of domestic companies, and the output of cotton in India has surpassed that of China since this year. At present, the price level of cotton used by domestic textile enterprises in India should be around 8,800 yuan/ton, and the current price of cotton used by domestic textile enterprises should be 12,800 yuan/ton, which is 4000 yuan higher. From the comparison of imported yarn and domestic yarn, the competitiveness of Chinese textile enterprises in terms of management, technology, labor skills, etc. cannot consume the price difference of 4000 yuan; if you look at the export point of the textile industry chain terminal products, then the same is exported to Europe, the United States, and Japan, you have a difference of 4,000 yuan, and there is no doubt that you cannot compete.

In addition, the export subsidy for Indian textiles is now above 3%, and there are also interest subsidies for exports. Only the direct export subsidies add up to about 500 yuan. That is to say, the overall competitiveness of the domestic textile industry is compared with that of India. It is impossible to solve the problem by relying solely on the advantages of enterprises from technical management.

Mr. Wei said that as far as the development level of the textile industry is concerned, India, Pakistan, Bangladesh, etc. are not as good as China. The diligence and wisdom of the Chinese labor force are not weak. At the same time, from the perspective of the cost of processing, foreign wages will be lower. However, from our survey results, due to work efficiency and other reasons, their spinning costs are not much worse than that of China. Taking 32 yarns as an example, our labor costs are only 5500-6000 yuan/ton, while the processing costs in Vietnam are comprehensive. It is not much lower than China, so China's manufacturing capacity and management level should not be low in global competitiveness. At present, the domestic cotton spinning industry needs to make full use of these resources, policies and financial support to improve the competitiveness of China's textile industry.

  • Classification:Industry News
  • 作者：
  • 来源：
  • Release time:2016-12-26
  • 访问量：0
详情

On December 22, at the 4th China Cotton Industry Elite Forum hosted by the China Reserve Cotton Information Center, leaders of the participating departments and entrepreneurs discussed the problems and countermeasures of the cotton spinning industry chain. Among them, the director of Henan Tongzhou Cotton Industry Co., Ltd. Chief Wei Gangmin expounded his views on the current competitiveness of the cotton spinning industry.

General Wei believes that the main factor that affects the competitiveness of my country's textile industry is the price of raw materials. At present, the competition gap between domestic cotton spinning enterprises and foreign countries is expanding, and the continuous decline in consumption should be considered a general trend. According to our investigation, there was a period of prosperity in consumption in the first half of this year, and it will continue to fall in the future. Especially before the launch of new cotton in August-September 2015, the consumption of cotton was roughly 450,000 tons, which was reduced by nearly half compared with the historical peak consumption period. During the historical peak period, the national consumption reached more than 1,080. Million tons.

General Manager Wei said that the current cotton consumption in India has exceeded 5 million tons, which is close to the current consumption level in China. However, the performance of Indian textile companies is far better than that of domestic companies, and the output of cotton in India has surpassed that of China since this year. At present, the price level of cotton used by domestic textile enterprises in India should be around 8,800 yuan/ton, and the current price of cotton used by domestic textile enterprises should be 12,800 yuan/ton, which is 4000 yuan higher. From the comparison of imported yarn and domestic yarn, the competitiveness of Chinese textile enterprises in terms of management, technology, labor skills, etc. cannot consume the price difference of 4000 yuan; if you look at the export point of the textile industry chain terminal products, then the same is exported to Europe, the United States, and Japan, you have a difference of 4,000 yuan, and there is no doubt that you cannot compete.

In addition, the export subsidy for Indian textiles is now above 3%, and there are also interest subsidies for exports. Only the direct export subsidies add up to about 500 yuan. That is to say, the overall competitiveness of the domestic textile industry is compared with that of India. It is impossible to solve the problem by relying solely on the advantages of enterprises from technical management.

Mr. Wei said that as far as the development level of the textile industry is concerned, India, Pakistan, Bangladesh, etc. are not as good as China. The diligence and wisdom of the Chinese labor force are not weak. At the same time, from the perspective of the cost of processing, foreign wages will be lower. However, from our survey results, due to work efficiency and other reasons, their spinning costs are not much worse than that of China. Taking 32 yarns as an example, our labor costs are only 5500-6000 yuan/ton, while the processing costs in Vietnam are comprehensive. It is not much lower than China, so China's manufacturing capacity and management level should not be low in global competitiveness. At present, the domestic cotton spinning industry needs to make full use of these resources, policies and financial support to improve the competitiveness of China's textile industry.

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