Textile machinery producers swamped by orders

05 Aug '10

2 min read

The output sale value of textile machinery industry reached 32.225 billion Yuan in the first five months of this year, up 53.54 percent year on year. Profits realized 1.842 billion Yuan, up 286.13 percent year on year, exports achieved US $625 million, up 38.33 percent year on year and imports reached $1.492 billion, up 76.78 percent year on year.

Most textile machinery enterprises have received too many orders to complete in time after entering this year, which is a rare situation of short supply seen in recent years. In particular, orders of cotton spinning machinery rose suddenly and sharply, which was a big surprise for machinery manufacturers.

Currently, advance payment of textile machinery and equipment orders only forms a very small proportion, but the situation may change in the second half. Coupled with new cotton coming into the market in September, cotton textile enterprises will have to place orders for cotton, which will cause a funding shortage, so it is a big question mark whether they can take delivery of textile machinery and equipment in time.

Pressure of RMB appreciation is increasing, raw material prices continue to rise, costs of labor and employment expand month by month, salary increase requirement is frequently heard, uncertain factors are increasing, due to which, the unprecedented situation of a sharp increase in orders in the first half, will be difficult to repeat in the second half.

Fibre2fashion News Desk - China

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