The weak market reflects the dilemma of the textile industry

Relevant agencies recently released in January textile and apparel export data and PPI index both fell, the textile industry forward more difficult walking. Experts believe that at least the first half of this year the textile industry will still be in consolidation and recovery turmoil. Relevant agencies recently released January textile and apparel export data and the PPI index both down in the spring expected, the textile industry forward more difficult walking. Customs statistics show that in January 2012, the export of textile and apparel 21.52 billion US dollars, down 0.5%. Textile exports of which 7.68 billion US dollars, down 6.8%; clothing exports 138.4 billion US dollars, an increase of 3.5%. February 9, the National Bureau of Statistics released data show that the ex-factory price of industrial products (PPI) rose 0.7%, down 0.1%. Purchase prices of industrial producers rose 2.0% YoY and 0.3% MoM. Experts interviewed pointed out that the pressure on the textile industry since 2011 has been escalating, and the outlook has also been somberly pessimistic. Data weakness reflects the textile industry dilemma China Textile Information Center Director Xie Fangming said in an interview with this reporter, January export data decline, mainly due to the Spring Festival holiday factors, but the overall situation is still not optimistic. "And excluding the factors of price increases, the actual growth shrunk even worse." Data show that PPI rose only 0.7% year-on-year, or 26-month record low. Weak PPI data means that in the near future, domestic industrial producers will continue to be under pressure. Since mid-2011, there has been a sudden change in the manufacturing sector. The industry has suffered almost fatal blows, especially in the textile industry. Export-oriented textile industry, due to the international economic crisis, a serious decline in exports, coupled with the gradual increase in domestic labor costs. The textile industry, especially the relatively low-tech industries such as shoes, hats and toys, have been relocated to the emerging low-cost markets such as Southeast Asia and Eastern Europe (Bulgaria and Poland) and the Chinese labor force has been greatly affected. "However, China Textile is not losing all its advantages. Because of its complete industrial chain, high-quality workers and well-equipped workers, it is still attractive to foreign customers," said Xie Fangming. According to media reports, over 30% of textile and garment enterprises in Jiangsu and Zhejiang collapsed in 2011. Wenzhou, Wenzhou, Guangzhou and other domestic textile and apparel market closures are even more serious. Xie Fangming pointed out that the trend of "polarization" has become increasingly prominent. "Some big companies have already got orders in June of this year, and for some small enterprises, they are facing the test of life and death." Xie Fangming also pointed out that domestic aspects, 2012 Difficulties in the recruitment of enterprises continued, due to fewer orders, labor shortage, the current operating rate is also very low. However, the growth rate of retail sales of textile and apparel is weak, which may be dragged down by the larger base. Taking into account the "second five" to promote consumption, expanding domestic demand policy, the domestic market is still sunny. Internationally, "the export to Europe will continue to" defeat the city of Mecca "because of the relatively long production cycle of textile and apparel, which may continue into 2013." The situation in EU countries is very grim except for the slightly better conditions in the United Kingdom. . Xie Fangming said at the recent exhibition at the French TXETWORLD (French International Fabric Exhibition), PV (Paris first visual top fabric exhibition), the exhibitors significantly reduced, reflecting the global textile industry downturn. "But for a little comfort, the U.S. market is warming slightly," he added. Market pressure in the textile industry remains the same In 2011, textile and garment exports totaled 247.89 billion U.S. dollars, a record high, and the annual export volume still achieved 20% growth. This year, China's textile and garment exports can maintain this growth? Xie Fangming believes that a lot of variables in 2012, the export situation is still difficult. The Baltic Capesize Shipping Index (BCI), released by the trading community in January, shows that the domestic bulk market is still sluggish. In terms of the textile sector, the consumer market is weak, the economic market's helplessness, the industry's recent pressure remains. From the focus of textile raw materials products, regardless of lint market or PTA market, signs of strong rebound in the first half of this year weak. Lili Li Business Analyst Li Likeng that from the downstream industry performance, domestic and international market demand continued to slump, supply and demand are still in the loose supply pattern, we can expect this year's cotton market is still not optimistic. Xia Ting, a trading business PTA analyst, also predicted that PTA producers in Asia will face the pressure of overcapacity in 2012, while the demand in the terminal textile market is still not optimistic. The imbalance between supply and demand will dominate the PTA market. PTA is the main raw material for the production of polyester, while polyester is the most widely used synthetic fiber, accounting for more than 60% of the world's synthetic fiber production. China's polyester accounts for 60% of the world's output. According to business community price monitoring shows that the domestic spot price of PTA (East China market) began falling shocks from February, and now the price of 8,950 yuan / ton, compared with 9,150 yuan / ton in early February, down about 2.19%. PTA price is difficult to maintain the highest main reason is the lack of demand. Downstream polyester market volume was thin, inventory increased, most of the factories to increase incentives to stimulate sales. Xia Ting believes that the demand factor will still dominate the PTA trend in the short term. January textile raw materials market although a slight rise, but the downstream market fees are still sad, and the raw materials market, the transaction abnormal deserted. Even in the year off, the golden period of the industry have never appeared. Clothing prices have been a hot topic in 2011, but the apparel industry has also seen a small price increase. There is a serious decline in both consumption and exports, with serious inventory and a fatal blow to the entire industry. Xia Ting believes that from the above two important raw materials in the textile market, the textile industry will remain at a turbulent period of consolidation and recovery for at least the first half of this year.

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