Why Textile Industry Downturn In Recent Years?

< p > overcapacity: in the past 2012-2014 years, the PTA industry in China has entered a new peak period of capacity expansion, and its capacity has increased rapidly.

In 2012, 60% of the new capacity directly pushed the PTA industry into a loss situation.

The PTA enterprise went to the inventory process slowed down, the loss was serious, the inventory aspect increased month by month, at the end of the year, PTA social inventory reached the highest point in the year.

In 2013, PTA enterprises in China were in a state of deficit.

At the beginning of the year, corporate profits (estimated at PX price) were once below -600 yuan / ton.

Under the action of PTA Enterprises Limited production and insured price, and the low price of PX, the production profit of enterprises has improved.

By mid 6, profits rose to near the cost line.

After that, with the steady rise of PX prices, and PTA prices fell again due to sluggish demand, PTA production profits fell again and remained at -400 yuan / ton after that.

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< p > < strong > policy led: Cotton in 2013 is still "policy market", and the acquisition and sale of the 2013 national cotton store is again performed on the same stage.

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< p > by the State purchasing and storage policy 20400 yuan / ton unlimited storage and support, and since mid January, the state began to auction the reserve cotton at the base price of 19000 yuan / ton, making the overall price of < a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > the overall price under the influence of purchasing and storing support and low price dumping, showing a slightly stronger trend.

In the two quarter, with the increasing reserves, the national cotton auction was dominant, plus the 3: 1 import cotton quota distribution, the overall circulation increased.

Domestic cotton spot price fluctuates between 19200 yuan / ton and 19400 yuan / ton.

In September, the cotton purchase and storage policy of our new year was officially opened.

However, in the early days of storage and purchase, the paction was not ideal, and it lasted until September 17th.

In November, the impact of cotton prices being sold by cotton reserves began to recede.

< a href= "//www.sjfzxm.com/news/index_s.asp" > sliding tax > /a > has played a certain role in boosting the domestic cotton market which has been weak in December. At present, domestic cotton prices are relatively stable, and there is a slight upward trend.

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"P" demand is weak: textile industry is facing external demand since the financial crisis is not sustained, and the growth of domestic demand is also facing a significant slowdown.

The growth rate of textile production slowed down, and the growth rate of major categories of products generally declined.

Slower growth in market demand is the main reason for the slowdown in textile production.

The traditional textile consumption peak season has become a habit, and the low consumption boom is a common factor that restricts the rising market of raw materials.

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< p > < strong > overcapacity at the bottom of the chemical fiber; < /strong > < /p >

< p > the capacity of domestic PTA industry has turned to an absolute surplus. This year, most PTA factories have failed to change the situation of PTA's continuous social inventory even if they continuously reduce production and reduce the load and postpone the new production capacity.

Combined with the fourth quarter of this year to the first quarter of next year, Asia will have 4 million 400 thousand tons of PX new capacity and 8 million 100 thousand tons of PTA new capacity to go into operation, and the upstream cost of PTA will gradually shift its focus.

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< p > PTA enterprises are likely to have planned production and price protection in 2014, and then boost the price of PTA step by step.

In 2014, the demand side of PTA in the spring and autumn two quarter of the traditional peak season or performance, but also to a certain extent, to promote the trend of PTA prices.

It is expected that the chemical fiber industry will enter the bottom in 2014.

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< p > < strong > policy change: cotton market goes down < /strong > < /p >

< p > the increase of sliding tax is a boost to the weak domestic cotton market. At present, domestic cotton prices are relatively stable, and there is a slight upward trend.

However, due to the suspension of the temporary purchase and storage policy next year and the direct subsidy to cotton farmers, the domestic cotton prices which had been temporarily collected and stored as "policy underpinning" have lost much support in the past.

Therefore, the industry is generally not optimistic about cotton prices next year.

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< p > < strong > the weak recovery of the industry maintained stable development < /strong > < /p >

Under the circumstances of the steady growth of domestic consumption and the accelerated recovery of external demand, the demand environment for textile industry may be slightly changed. However, there are many unfavorable factors that weaken China's < a href= "//www.sjfzxm.com/business/" > textile industry < /a >. For example, the difference between domestic and foreign cotton prices is still relatively large, and labor costs are rising too fast, and the market share of exports in the EU, the United States and Japan has declined in P.

On the whole, the textile industry will maintain a steady growth trend next year.

At present, the fundamentals of promoting the domestic textile industry's substantial recovery are not yet formed, but the possibility of further deterioration is not large.

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