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Influence Of Oil And Electricity Price Increase On Textile Industry

2008/6/21 12:33:00 24

Influence Of Oil And Electricity Price Increase On Textile Industry

On the evening of 19, the national development and Reform Commission announced that the price of gasoline and diesel would be raised by 1000 yuan per ton since June 20th, and the price of aviation kerosene increased by 1500 yuan per ton. Since July 1st, the national sales price has increased by 2.5 cents per kilowatt hour.

For the textile industry, which is at a time of eventful events, production and pport costs will increase in the short term.


The rising prices of raw materials, rising labor prices, the continued appreciation of the RMB exchange rate, coupled with the reduction of the export tax rebate rate and the continuous rise in loan interest rates last year, make the small and medium-sized textile enterprises which do not have strong competitive advantages survive very hard. The rise in oil and electricity prices makes the production costs and pportation costs of enterprises increase, and the competitiveness of product prices is weakened again.


Oil and electricity price increase is the product of macroeconomic regulation and control, and the inevitable result of intensification of market supply and demand contradiction.

Textile enterprises have no choice but to respond positively, speed up reform and innovation, and strive to adapt to the new market environment, so as not to be eliminated by the market, so that they can become winners in this race.


Because of the sluggish textile industry this year, enterprises can not maintain, and there are many discontinued production, parking or closing.

"100 meters cloth is not as valuable as a handkerchief".

The reason is that most of the enterprises are OEM, pure manufacturing, and no own brand and product added value.

The profit of the processed products is very pparent, and the price of the buyers is pressing again and again, and the profit space of the factory has been compressed to the limit.

At this time, the cost pressure caused by the rise in oil price has led manufacturers to pay the bill.


Textile enterprises, especially small and medium-sized enterprises, urgently need to improve their core competitiveness and enhance their profits and development space.

Du Yuzhou, President of the China Textile Industry Association, has said that the factors determining competitiveness are not the size but the differences in asset quality and labor quality, technological differences, R & D differences, management differences and brand differences.

Therefore, the textile industry should ultimately rely on improving labour productivity, increasing technological contribution rate and brand contribution rate.

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