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RMB "Broken 7" Part Of The Textile Enterprises To See The Canton Fair

2008/4/12 11:26:00 24

RMB "Broken 7" Part Of The Textile Enterprises To See The Canton Fair.

In April 10th, driven by the weak dollar in the international market, the RMB broke through the key psychological resistance level of 1 US dollars to 7 yuan.

According to the China foreign exchange trading center, the US dollar to RMB 10 for the middle price of 1 yuan to 6.9920 yuan.

This makes the export situation of the already tense textile enterprises increasingly serious.

Order "phobia"

"The RMB appreciation has accelerated this year. Our average export garment profits have shrunk by 50 cents, almost half the profits, and some companies have even lost money.

At present, many textile companies are afraid to pick up orders after 8 and September.

Zhong Hao Sen, assistant general manager of Guangdong textile import and export Limited by Share Ltd and general manager of the Department of Garry business, yesterday accepted the first Financial Daily reporter's interview that it is estimated that the 103rd Canton Fair's textile and garment trade will not be ideal on the 15 th of this month, which will continue the downward trend of the previous paction.

Zhong Haosen said that the past Canton Fair could also take part in a year or half of the long-term orders, and according to the current appreciation rate of RMB, enterprises can only take short-term orders within two or three months. Due to RMB appreciation, raw material prices and inflation, labor costs rise and other reasons, the plan will raise the price of 3%~5% at the Canton Fair.

"Like half a year's long list, we dare not accept it unless the customer is willing to take up the cost of rising exchange rate changes, but at that time the customer will accept at least 10% of the price increase, which should exceed the magnitude that overseas buyers are willing to bear."

Zhong Haosen said.

Zhou Xiaonan, deputy general manager of Ningbo Dunhuang import and Export Co., Ltd., also said that he was not optimistic about the current Canton Fair.

Now it is running against the exchange rate, only orders within one or two months, and further orders are not at all acceptable.

The export cost of a large increase is hard to pass at once. The rise in unit price is hard to keep up with the increase in cost.

Profits are shrinking. In order to maintain normal production, some orders have lost 3%~5%.

In the first three months of the year, the export volume of the company decreased by 10% compared with the same period last year, especially for us orders.

Exports to the US have fallen sharply.

According to us customs statistics, by the end of yesterday, the average customs clearance rate of 21 textile and clothing exports to the United States was only 12.1%.

Cao Xinyu, vice president of the China Textiles Import and Export Chamber of Commerce, told an interview with our reporter that the utilization rate of textile quotas to the US dollar was significantly lower than that of the same period last year. This is mainly related to the acceleration of RMB appreciation and the decline in consumer market demand caused by the subprime mortgage crisis. The United States not only reduces demand for Chinese textiles, but also imports global textiles.

In the 1~2 months of this year, China's textile and clothing exports amounted to 16 billion 440 million US dollars, an increase of only 5.7%.

As the largest province of textile and clothing exports, Guangdong's textile and clothing exports decreased by 11.3% over the same period last year, especially the US exports. The export volume in the first two months of this year dropped by 27.9% and 41.9% respectively.

Zhou Shijian, executive director of the China International Trade Association, said that the economic downturn in the United States has slowed down the world economic growth. This will affect China's exports. The most important ones should be clothing, toys, furniture and other labor-intensive products. The cost of rapid rise has almost squeezed profits from these manufacturers, and it may be a loss if they are accidentally ordered.

In contrast, the export of mechanical and electrical products and high-tech products export enterprises will suffer less because of larger profit margins, and orders will maintain a certain growth.

The Canton Fair, which has been seen as a barometer of China's foreign trade, has begun to show this trend since last year.

At the 102nd Canton Fair in 2007, export turnover amounted to US $37 billion 450 million, an increase of 2.9% over last spring's fair. The turnover of mechanical and electrical products reached US $15 billion 620 million, an increase of 6.4%, while the turnover of some traditional export products declined, and the garments and accessories were traded at 3 billion 20 million US dollars, down 8.8%; footwear traded 1 billion dollars, down 9.2%; and the turnover of toys was 900 million dollars, decreasing by 10.7%.