High Cost, High Fever And Difficult To Retreat, Exchange Rate Continues To Appreciate, Small And Medium Sized Textile Enterprises Are Approaching "Life And Death Pass".

Haining Lida warp knitting

Tens of thousands of small and medium-sized China

Recently interviewed textile, chemical materials, etc.

Rising cost is difficult.

At present, small and medium-sized foreign trade enterprises have been close to the "life and death pass" under the joint action of commodity prices, price rises of raw materials and appreciation of RMB.

Zhang Weizhong calculated an account. According to the guide, the price of warp knitted raw materials driven by oil prices has increased by 30% since last year, and this part of the cost pressure can only make customers bear 20%, and the remaining 10% must digest itself.

In this way, the profit margins that had already been stretched were even worse. "Now we can only say that we barely maintain production."

He told reporters that the situation in Haining warp knitting industry is very common now, and even some individual enterprises can only close their doors because they can not get orders.

"Another problem that bothers us is power rationing.

Every time the power point is closed, enterprises can only use their own diesel generators to generate electricity, so that the cost per kilowatt hour is 3 times that of the original.

Limiting electricity to electricity alone has increased our cost by 10%. "

Zhang Weizhong sighed.

It is reported that this year's power supply and demand situation in our province is extremely severe, and the seasonal and long period of power supply shortage is a foregone conclusion.

A company involved in PU leather products is also plagued by high price of resources.

The company responsible person said, PU leather raw materials, a considerable part of the oil extract, has risen 5% to 40%.

The experience of the two enterprises reflects the dilemma of a considerable number of foreign trade enterprises.

According to the first textile net, according to the survey, over 80% of foreign trade enterprises have increased production costs.

Increase in non profitable enterprises

Wu Ying, director of the Department of foreign trade and economic cooperation of the Municipal Foreign Trade and Economic Cooperation Bureau, who recently concluded the Canton Fair, was impressed by the cost pressures faced by the enterprises.

She told reporters that in addition to oil and electricity, labor costs, financing costs and appreciation of the renminbi, a number of pressure superimposed on the export cost of enterprises increased by 10 to 20 percentage points.

It is reported that during the current Canton Fair, the RMB exchange rate against the US dollar broke through 6.5 for the first time. The market department of an electrical appliance company in our city indicated that the RMB exchange rate would be reduced by about 16 thousand yuan or about one hundred thousand yuan, and the profit of the company would be reduced by about 5% when the value of RMB rose by 1%.

In order to deal with exchange rate changes, enterprises have to raise prices frequently to compensate for the loss of profits, which may have an impact on orders.

According to the monitoring data of the Municipal Bureau of foreign trade and economic cooperation, the profits and profits of enterprises in the early part of this year accounted for 69.9%, although it was better than the average in the whole province, the situation is still grim.

The most direct impact of cost pressures on price increases is the decline in export competitiveness. Foreign customers are actively looking for alternative suppliers to pfer orders to other cheaper regions or countries.

"Judging from the turnover of the first phase of the Canton Fair, foreign purchasers are eager to take orders, but most of them are short and medium staple, and the profits of export enterprises are not high."

Wu Ying said that many enterprises dare not take long orders to avoid losses.

Tax refund can not survive?

In April 22nd, the Ministry of Commerce issued the report on China's foreign trade situation (spring).

The report points out that the development of foreign trade enterprises is facing many difficulties and problems. The main factor is the rising cost of key elements, and the pressure on business continues to increase.

The report also said: "at present, the factors leading to higher commodity prices have not yet been alleviated, and some factors are still strengthening, which may push international commodity prices continue to rise or oscillate at a high level, especially in the Middle East. The turmoil is continuing, not only seriously interfering with local economic development, but also will continue to push up international oil prices."

Wu Ying told reporters that the problems encountered by different enterprises are not the same. Some may be caused by exchange rate, some may be caused by higher cost of raw material costs, and the other may be the issue of labor and energy consumption.

But in general, the import and export situation is complex in the future. Multiple factors will occupy the profits of enterprises in different degrees, and the pressure of cost faced by SMEs will be greater.

There were market rumors that the export tax rebate rate of some industries will be readjust again.

In this regard, the head of a textile enterprise in Haining said that if the tax rebate rate was lowered, we could only raise the price. If the customer could not accept it, he would have to pay less or not.

It is said that some enterprises in our city chose to stop production because they could not bear the pressure. Some foreign trade professionals also chose to switch careers.

People in the banking sector say that because of the large fluctuation of exchange rate, the enthusiasm of enterprises to use RMB settlement is increasing.

According to the first textile net report, according to the statistics of the Jiaxing central sub branch of the people's Bank of China, from March to 1 this year, the city has accumulated 131 RMB settlement accounts for cross-border trade, with a total value of 1 billion 810 million yuan, exceeding the total amount of 2010.

At present, African and Latin American customers are more willing to accept settlement in Renminbi, while European and American customers still need a process, which also involves convenience and habits.