Recently, raw material prices have regained their upward momentum after the Spring Festival this year. Combined with the impact of the global epidemic, international shipping costs, RMB exchange rate and other factors, the profits of textile companies have been continuously compressed. Some companies said that “everyone is rushing to make orders that make a few cents.” “.
However, in response to rising commodity prices and pressure on corporate profits, officials have also responded. The industrial production capacity is relatively strong and the supply capacity of industrial products is relatively sufficient. Relevant departments have implemented policies to ensure supply and stability of domestic commodity prices, and the effects are currently beginning to show. Therefore, the overall impact of rising industrial product prices is controllable.
At the same time, new business formats and new models are becoming new driving forces to promote the transformation, upgrading and high-quality development of my country’s foreign trade.
Multiple factors have caused corporate profits to be squeezed
In the first week of July, Siyang County The Taihu Lake Shade Cloth Home Textile Chamber of Commerce issued a notice to hundreds of blackout cloth members, saying that recently, stimulated by the rebound in international crude oil prices, the price of chemical fiber raw materials has increased, the costs of downstream weaving companies have continued to rise, and profits have been squeezed repeatedly. To this end, it is recommended that all members increase the price of the original products by 0.5-1 yuan/meter according to different weights. The increase is not profit but cost.
This type of notice also appeared when raw materials increased significantly after the start of construction during the Spring Festival this year. However, Shen Jian, deputy general manager of Suzhou Shengze Silk Chemical Fiber Index Monitoring and Publishing Platform Silkdu.com, said that although raw materials have recently experienced a post-Spring Festival rise, there are still only a few fabric companies in the market that have raised prices.
“It is difficult for prices to rise because customers do not accept it.” Li Changchun, manager of Suzhou Wujiang Weihua Textile Co., Ltd., said that the current orders are basically the same as before the epidemic, but before There is still some profit, “We used to be too lazy to do orders that made only a dime, but now everyone is rushing to do orders that make a few cents.”
From late June to early July, in less than half a month, the price of textile raw materials has been raised no less than 6 times.
The relevant person in charge of the chemical fiber sales department of Hengli Group, a leading textile manufacturing enterprise in China, said that since July, DTY (draw textured yarn), POY (pre-oriented yarn) and FDY ( All three products (fully drawn yarn) have increased by 500 yuan to 800 yuan per ton. Among them, driven by the domestic demand market, DTY and POY have seen the strongest growth, with a cumulative increase of 3,000 yuan per ton in the first half of this year.
The person in charge said that the price increase was mainly due to the rising international oil prices and the impact of upstream costs. FDY products, which are mainly supplied to the foreign trade market, have been affected by repeated overseas epidemics, tight supply of containers, and sharp increases in freight charges. The overall growth rate is not as good as the first two.
In addition, Meng Zhuo, manager of Anhui Garment Import and Export Co., Ltd., said that in addition to negotiating price increases with customers, they may not be able to do so because of orders flowing back to China. Some of the products that Chinese companies could have produced in factories in Southeast Asia had to be brought back to China due to the epidemic. Domestic production costs are definitely higher than those of these factories in Myanmar. Coupled with international freight and other factors, the increased costs of these products will inevitably further erode the company’s profits and even costs.
Meng Zhuo also said that due to the long international shipping cycle, the orders for this autumn and winter must be completed before July, and they were accepted in October last year. For orders that need to be received now, not only must the exchange lock be taken into consideration, but the increase in shipping charges must also be taken into consideration, and how the increase should be shared is stipulated in the contract.
According to Meng Zhuo’s observation, this year is mainly due to the tight production of garment factories and “the list cannot be completed.” The fabric factory belongs to the off-season, and even in the peak season it is not as good as before.
The China Chamber of Commerce for Import and Export of Textiles disclosed on July 13 that China’s textile and apparel exports in the first half of the year increased by approximately 3% and 12% year-on-year respectively in RMB and US dollars, compared with 2019. It also maintained rapid growth over the same period. Among them, textiles declined year-on-year due to the impact of masks, while clothing grew rapidly driven by the rebound in external demand.
In RMB terms, from January to June 2021, the cumulative exports of textiles and clothing were 908.87 billion yuan, a year-on-year increase of 3.27%, of which textile exports were 444.85 billion yuan, a year-on-year decrease of 14.63%, and clothing Exports were 464.02 billion yuan, a year-on-year increase of 29.25%.
The rise in industrial product prices is generally controllable
The development of new foreign trade formats Speed up
Regarding the situation where commodity prices continue to rise and the profits of small and medium-sized enterprises are under pressure, Liu Aihua, spokesperson of the National Bureau of Statistics and director of the National Economic Comprehensive Statistics Department, made a speech in the country on July 15. The new office said at a press conference that imported upward pressure on international commodity prices still exists, but my country’s industrial production capacity is relatively strong and its industrial product supply capacity is relatively sufficient.
Data released by the National Bureau of Statistics show that in the first half of this year, the industrial producer price (PPI) rose by an average of 5.1%, an increase of 3 percentage points higher than that in the first quarter.
Liu Aihua analyzed that the ex-factory price of industrial producers is at�The expansion of the quarterly increase is mainly due to several factors. First, the economy continues to recover and demand continues to expand. The second is the imported impact of rising international commodity prices. In June this year, the international energy price index rose by 92.6% year-on-year, and the non-energy price index rose by 43.2%, both of which were relatively high. The third is the impact of the low base in the same period last year. Affected by the COVID-19 epidemic, PPI has continued to decline since February last year. Prices in each month of the second quarter fell by more than 3% year-on-year. Therefore, the year-on-year increase in PPI in the second quarter of this year has significantly expanded, providing many mid-stream and downstream companies, small and medium-sized enterprises with This has brought about greater cost pressure.
However, he also said that the relevant departments have recently implemented policies to ensure supply and stability of domestic commodity prices, and the effects are currently showing. In June, industrial producer prices rose 8.8% year-on-year, down 0.2 percentage points from May. Therefore, the overall impact of rising industrial product prices is controllable.
At the same time, my country’s foreign trade development in the first half of the year has delivered good results. Data released by the General Administration of Customs on July 13 showed that in the first half of the year, my country’s import and export scale of 18.07 trillion yuan hit the best level in the same period in history, and also increased by 22.8% compared with the same period in 2019. Monthly import and export has been 13 consecutive years. It has achieved positive year-on-year growth for the past three months, and the stable growth trend of foreign trade has been further consolidated.
However, foreign trade companies, including textiles, and small and medium-sized enterprises in the supply chain still face many challenges.
Ren Hongbin, Assistant Minister of Commerce, said at the State Council’s regular policy briefing held on July 12 that my country’s foreign trade development situation is still complex. From an international perspective, the global epidemic situation remains severe, economic recovery is uncertain, industrial and supply chain risks are increasing, and trade issues are increasingly politicized. Domestically, my country’s foreign trade companies still face many outstanding difficulties.
Ren Hongbin believes that from a domestic perspective, my country’s foreign trade companies face four outstanding difficulties. First, the efficiency of international shipping is low and the price is high; second, the RMB exchange rate has increased, and companies are afraid to accept orders, and exports are not profitable; third, the price of raw materials has risen, increasing company costs; fourth, recruitment of workers in some areas Difficult and expensive to use.
However, the “Opinions of the General Office of the State Council on Accelerating the Development of New Forms and Models of Foreign Trade” were officially issued recently. Opportunities and new momentum for foreign trade transformation and upgrading and high-quality development also come from these new business formats and new models.
Data show that the scale of my country’s cross-border e-commerce has increased nearly 10 times in 5 years, and the scale of market procurement trade has increased 5 times in 6 years. There are more than 1,500 comprehensive foreign trade service companies, more than 1,900 overseas warehouses, and about 130 bonded maintenance projects for processing trade have been completed.
Alibaba Group Vice President and International Station General Manager Zhang Kuo said that since last year, a large number of small and medium-sized enterprises have been unable to obtain certain cabinet shipments, resulting in large-scale online orders At this time, relatively intensive and digital solutions are especially needed. In response, they have extended their services to the fields of freight forwarding and international logistics since last year.
Backend data from Alibaba International Station shows that from April to May this year, sea and land business, that is, sea container transportation volume, increased nine times compared with last year. In addition, compared with the same period last year in the air express business from January to May this year, the order volume also increased by 88%, and the weight increased by 100%. </p
