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International And Domestic Market Two Bad Profits Forced Textile Enterprises To Adjust

2011/6/17 10:03:00 43

International And Domestic Markets

Country

Statistics Bureau

Released in June 14th, May residents

Consumer price

(CPI) an increase of 5.5% over the previous year, the highest level in 34 months.

Among them, food category rose 11.7%, residential category rose 6.1%, once again become the main force to drive CPI up.


Inflation on

Textile industry

The adverse effects are becoming increasingly apparent. Many enterprises reflect that the current situation is even worse than the 2008 when the financial crisis broke out.

The outbreak of the financial crisis in 2008 was mainly reflected in the sudden shrinkage of the international market, the lack of orders by domestic enterprises, and the lack of orders. The inflation has made the industry profits which have already been very low become negative. The production of orders has become the direct cause of the loss of enterprises, and this situation is difficult to change in the short term.


From the international market, the prices of bulk commodities are still running high.

From the domestic perspective, inflation expectations have increased again due to natural disasters.

Although the government regards price control as the top priority, the driving role of cost factors in inflation is becoming increasingly prominent.


The ratio of the RMB to the US dollar continued to maintain a "small step" trend, and there was a new high every 35 days.

The expectation of RMB appreciation will shorten the cycle of foreign trade of textile industry and increase the risk of enterprises doing single business.

At present, only a few enterprises that can import raw materials can benefit from the appreciation of the renminbi. For most small and medium-sized enterprises, inflation and RMB appreciation are two real bad points: inflation has reduced profits, and the appreciation of the local currency has reduced the competitiveness of products.


Insiders pointed out that the above two bad margins will not only improve in the year, but also increase in a short time.

Under these two negative effects, the pace of textile enterprises' adjustment will be accelerated.

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