Textile’s vision in 2015: competition increased, recovery period’s coming


Textile industry has always been an important pillar in China and it moved on quickly after the reform and opening especially, we’ve made historic achievements because of the  increased export. In the fact, after the middle of the last century 90 's, China’s textile industry got in a tough period due to the national competition. Textile industry as the first to enter the competitive sector and it has began to be plagued by series problems. Textile industry has been our longest-sustained losses industry and it’s growing. Slow space of China’s textile industry upgrade due to the preventing of labor productivity. Incremental advantage of textile and garment exports weakened 

It was a year of crisis and opportunities of the textile industry. Direct subsidies policy for cotton is come out this year, cotton prices have fallen by 30% between early 2014 to today. After three consecutive annual purchases of cotton in 2011-2013, China national cotton reserves in more than 10 million tons at present ,and it’s the highest level. Considering to that our cotton demand about 6.5 million tons to 7.5 millions this year, it expected will be “supply than demand” state in 2015. As cotton prices approaching the historical locations at the bottom, companies will enlarge the procurement scale.At present, the drop in cotton prices has do  negative effect on short-term performance. Due to customer’s cautious, cotton textile enterprise's gross margin to enhance certain resistance. The pressure in order and margin on cotton has do the negative effect on the performance in 3&4 quarter in 2014. With the bottom’s advent  of the historic cotton prices, cotton textile enterprises is expected to begin the additional purchasing  of raw materials in 2015.