Home / Knowledge / News / Textiles / Chinese textile sector to undergo significant change
Chinese textile sector to undergo significant change
28
Jan '11
Beijing Orient Agribusiness Consultant Ltd (BOABC) predicts that 2011 pattern of domestic textile industry will be significantly changed; some enterprises with insufficient financial viability will face possibility of closure.

Cotton production of this year is essentially flat with 2009, not showing a serious decline, but weak demand of textile enterprises in 2011 will likely lead to overstock of cotton, but downward trend of cotton prices will be limited under the pressure of global inflation and textile enterprises will continue to face cost pressures.

According to preliminary estimates, output value of China's textile enterprises (above designated size) will exceed 4 trillion Yuan in 2010, export value will be more than US $200 and profits are expected to exceed 2,00 billion Yuan, an increase of 40 percent year on year.

Textile enterprises achieved considerable high profits in 2010, but 2011 will be a year for Chinese textile enterprises to face a severe test.

First, raw material prices increased, global cotton area and production shrunk year by year, resulting in tight supply. Meanwhile, excessive liquidity in US pushed up futures value of cotton and other commodities, raw material costs of textiles had increased by about 30 percent over the previous year, of which, costs of raw materials such as cotton had been more than doubled, the increase hitting a new high in 15 years.

Second, labor costs increased, labor remuneration of textile industry has increased by 10 percent in general this year; wage increase of the Yangtze River Delta, Pearl River Delta and other places is up to 20 percent.

In 2009, average wage of China's manufacturing was 56,000 Yuan, while average wage of textile industry was 31,000 Yuan, resulting in one-way transfer of labor, the era of low-cost competitiveness as a core is close to an end.

Third, increased power consumption will make further demands on energy supply, since textiles is one of the biggest consumers of electricity, which is already in short supply currently.

Fibre2fashion News Desk - China


Must ReadView All

Apparel/Garments | On 26th Jun 2017

GSTN registration reopens

E-commerce operators and TDS (tax deducted at source) deductors can...

Textiles | On 26th Jun 2017

Expedite release of ROSL pending claims: TEA to Centre

The Tiruppur Exporters' Association (TEA) has again urged Union...

Textiles | On 26th Jun 2017

'Export promotion schemes to continue under GST regime'

The export promotion schemes will continue under GST regime, said...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search