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Green development points the way for the future transformation of the textile industry

Published:

2019-01-12

After the overall downturn in 2015 in China's textile industry, although a smooth start was achieved in 2016, it still faces severe tests in the later period. Finding a transformation and upgrading model has become a top priority.

In the first six months of the year, the growth momentum of the domestic and foreign textile markets was insufficient, and the operating pressure of Chinese textile enterprises remained.

The current growth rate of China's textile industry is flattening, which is a direct result of unfavorable factors such as sluggish domestic and foreign market demand, intensified industry competition, increased resource and environmental constraints, and rising production factor costs. Supply-side, structural, and institutional issues formed and accumulated in China. At present, the Chinese textile industry is actively solving these development problems, accelerating the transformation and upgrading, and deepening management innovation.

Since March of this year, domestic cotton prices have risen sharply, futures prices have soared by nearly 70%, and the average market price has also increased by more than 3,000 yuan per ton. The high cost and inability to raise commodity prices have left many textile companies facing a situation of loss-making production. In the context of volatile cotton prices, some companies have chosen to suspend production in the form of holidays or closing factories.

At present, most of the market circulation resources are in the hands of traders. Traders provide textile companies with advance auctions, advance funds, pick-up and transportation. Textile companies maintain normal pickup, but the cost-effectiveness is insufficient, structural contradictions, and slow delivery are still problems. As a result, some textile enterprises are in a situation where rice is not used.

Despite the continuous shipment of cotton from the State Reserve, traders alone took away more than 45% of the volume. In the short term, this part of the reserve cotton is not very willing to go out of the warehouse. This has led to the fact that spinning companies that really use cotton can only passively follow up on high-priced cotton.

As one of the main products exported by China, textiles are also under great pressure.

It is understood that from January to June 2016, China's cumulative export of textiles and apparel was US $ 125.30 billion, a year-on-year decrease of 2.63%, of which textile exports were US $ 52.443 billion, a year-on-year decrease of 0.91%; export clothing was US $ 72.588 billion, a year-on-year decrease of 3.83%.

According to the latest data from the General Administration of Customs, China ’s exports of textiles and clothing in June were approximately US $ 24.014 billion, a year-on-year decrease of 5.27%, of which US $ 9.118 billion was exported from textile yarns, fabrics and products, a decrease of 3.70% year-on-year; US $ 14.986 billion of garments and clothing accessories were exported , A year-on-year decrease of 6.21%.

An important reason for the decline in exports is foreign trade restrictions. Due to the large volume of textile exports in China, it has also become a "heavy-hit industry" affected by foreign technical trade measures. Although the proportion affected by foreign technical trade measures during the ten years from 2005 to 2014 was generally lower than the average level, the direct losses caused by foreign technical trade measures have been increasing.

Industry industry analysts said that the current severe and complicated foreign trade situation makes textile exports still face greater downward pressure in the second half of the year.

The textile and apparel industry, which has a very concentrated labor force, has been hit hard. With the rapid development of the textile and apparel industry in other Southeast Asian countries, China's orders will gradually shift to these countries, and the shrinkage of textile and apparel exports will become the norm in the future.

At present, ASEAN countries such as Vietnam and Indonesia have low labor resources and favorable cotton import policies, which leads to obvious textile export cost advantages in the EU, Japan and other places, and has squeezed China's textile and apparel market share overseas; meanwhile, developed economies The country's economic situation is mixed, and the global textile trade volume is in a downward path, which has also hindered China's textile exports.

In addition to increasing costs and declining exports, the sluggish domestic market demand, too low value-added products, backward technology, heavy cost burdens, and difficult financing are also affecting the development of the textile industry to a certain extent. In this context, terminal demand is still not strong, raw material prices fluctuate greatly, and transactions become difficult. How to deal with a large amount of "overcapacity" has become an issue that must be considered in the transformation and upgrading of the textile industry.

The country regards green development as one of the key points of China's "Thirteenth Five-Year Plan" and even longer-term development. It not only indicates the direction for the future transformation and development of the textile industry, but also will be the focus of the development of the textile industry during the "Thirteenth Five-Year Plan". Therefore, the implementation of sustainable development and green manufacturing are of far-reaching significance for the textile industry to implement green manufacturing and achieve sustainable and healthy development.

As an environmentally sensitive and resource-dependent traditional manufacturing industry, the textile industry is closely related to the implementation of green manufacturing projects. The next five years will be a crucial period for implementing the strategy of manufacturing a strong country, and also a key stage for realizing the green development of the industry. It will also be an important five years for the transformation and upgrading of the textile industry.

In addition to green development, intelligent manufacturing is the inevitable road for the future transformation of the traditional textile industry, otherwise it will be eliminated by the market.