Chinese silk industry business income rises in 2013

31 Mar '14

2 min read

In 2013, the main business income of the Chinese silk industry increased by 13.11 percent year-on-year to 127.596 billion yuan, and profit grew by 13.86 percent year-on-year to 7.19 billion yuan. Although industry profits continued to achieve steady growth, the growth rate was about 16 percent lower than the nearly 30 percent growth rate seen in 2012.

According to the data from the National Statistics Office, China’s cocoon production decreased by 1.02 percent year-on-year to 648,300 tons in 2013. However, the average price of 2001 yuan per dan of 50 kg was a record high.

Of the 7.19 billion yuan profits made by the Chinese silk industry in 2013, profit earned by silk reeling process was 4.302 billion yuan, an increase of 7.35 percent year-on-year, profit of silk processing was 2.729 billion yuan, up 17.51 percent year-on-year, and profit by silk dyeing and processing was 429 million yuan, up 81.22 percent year-on-year.

Although profits continued to show steady growth in 2013, statistics show that business inventories increased by 4.35 percent year-on-year to 14.594 billion yuan, whereas corporate operating expenses increased by 17.18 percent.

From January to December 2013, China’s silk merchandise exports were valued at US$ 3.538 billion, up 3.02 percent year-on-year, according to customs statistics. The export performance was relatively good in the first three quarters, but the trend was weaker in the fourth quarter.

Currently, rising labour costs, increased inventory, lack of liquidity, accelerating yuan appreciation, and other factors are severely squeezing the profitability of silk enterprises.

In September 2013, the Ministry of Commerce and eight other departments jointly issued views for further promotion and healthy development of silk industry, which reflects the attention and support of relevant departments to the country’s silk industry. The implementation of favourable Government policies will guide the development of the Chinese silk industry and the growth in second half of 2014 is expected to be better than the first half.

Fibre2fashion News Desk - India

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