Favorable Policies For Textile Industry After Spring Festival In 2016

In the near future, we are generally concerned about the market after the Spring Festival, and the overall atmosphere is more pessimistic.

However, the author believes that, while pessimistic, we should not ignore the positive factors, which will make the profit and loss situation of textile enterprises improve.

Raw materials

Judging from the current situation, it is expected that after the Spring Festival is pure.

The cost will be greatly reduced.

The reasons are: Recent

The spot market has fallen back.

According to the feedback from the the Yellow River Valley and the Yangtze River Basin, the price of real estate cotton has dropped by 50 yuan / ton in recent days, and some manufacturers have reduced the price by 100-200 yuan / ton under the pressure of liquidity.

Two, the focus of Zheng cotton futures prices will continue to move downward.

Recently, Zheng cotton's CF1605 and CF1609 contracts were weak and volatile, and they were closed at 11470 yuan / ton in February 2nd and 10870 yuan / ton respectively.

The market is generally low on Zheng cotton market after the Spring Festival, and believes that the main contract may fall below the mark of 10000 yuan / ton.

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Coming out is conducive to enhancing competitiveness.

A Shandong textile enterprise official said that if the national cotton store went out, the bad profits will be digested and beneficial to the market.

This year, the national economic work conference put forward the task of "going out of stock and going to capacity". The market thinks that this national cotton store will surely be more grounded and meet the needs of textile enterprises in many aspects. It will solve the difficult situation of spinning enterprises to use cotton and make good use of cotton to a certain extent.

Regarding the price of rotation, many spinning enterprises believe that the price of raw materials will gradually increase to 10000 yuan / ton, which will gradually solve the problem of high cost of raw materials for spinning enterprises and drive the cotton textile market to pick up.

Sales aspect

In recent years, the domestic yarn has been subject to the outer yarn, because of the cost advantage of the outer yarn.

In 2016, things changed.

According to foreign reports, since last week, India cotton yarn prices rose sharply, of which cotton yarn rose 11 cents / kg, FOB price of 2.63 U.S. dollars / kg.

The main reason for the increase in India yarn prices is the global year 2015.

The decline in production, especially the decline in cotton production in Pakistan, has raised the demand for cotton in India. The increase in cotton prices to some extent support the further promotion of India's cotton yarn in the international market.

In addition, Pakistan is China.

The second source countries of the yarn have been unstable in the domestic textile market since the beginning of this year. Workers strike frequently, protesting the growing cost of doing business.

Moreover, the electricity price in Pakistan is as high as 15 cents / degree, which is nearly 2 times the 7-8 cents / degree of neighboring countries (regions).

Its high operating costs resulted in the closure of 30% of the textile mills in 2015 alone.

With the further implementation of China's target price, China's textile industry is gradually regaining its lost territory.

"The depreciation of the RMB is a great benefit to the textile industry, and export data in 2016 will be better."

At a business meeting, a textile manufacturer in Shijiazhuang, Hebei, said that before the Spring Festival, they had already felt the spring breeze brought by the depreciation of the RMB. Not only did the order have signs of recovery, but also the profits were good.

It is reported that the RMB exchange rate fall in 2016 is still very large, and the expected depreciation rate is between 5-10%.

In view of this, the textile industry in 2016, the negative and many factors intertwined, in a low atmosphere nurtured hope.