Experts: Oil And Electricity Prices Up, Textile Industry Worsening

This year, China's textile industry will face more complex and grim situation. The international market share is being "handed over to others". China's textile industry is in pain, and exports have shrunk dramatically.

The rise in oil and electricity prices is undoubtedly adding to the difficulties of Chinese textile enterprises in the low valley.

The industry believes that as China's textile and garment production has been in a state of oversupply, there is little room for shifting costs and raising prices. The rise in oil and electricity prices will create new impacts on the industry.

Experts said that the textile industry is a relatively large demand for electricity industry, especially the chemical fiber industry units higher electricity consumption.

According to the statistics of thousands of energy consuming enterprises in the country, the viscose filament and the vinylon industry ranked first, second in the chemical fiber industry. The energy consumption is two to three times higher than that of the electrolytic aluminum, copper processing and caustic soda industry, while viscose staple fiber and acrylic fiber are ranked eighth and twelfth respectively, and energy consumption ranks the front.

According to the statistics of China Chemical Fiber Association, the energy consumption of chemical fiber industry is 22 billion 200 million degrees in 2007, and the unit energy consumption is 972.5 kwh per ton.

The national sales price increased by 0.025 yuan per kilowatt hour on average. According to the calculation of energy consumption last year, the cost of chemical fiber will increase by 24.3 yuan per ton directly. The total chemical fiber industry will increase the electricity consumption burden by 555 million yuan in one year, and only this expenditure will account for nearly 4% of the total profit of the industry.

"It can be expected that if the chemical fiber enterprises can not reduce the energy consumption of electricity units in time, or use peak valley electricity price differences to calculate the economic accounts, and consciously avoid peak filling, the increase in electricity price will increase the production cost gradually."

The negative impact of tariff increases on textile enterprises is sustained and rigid.

At the same time, as oil prices rise, the cost of oil related energy and raw materials will rise sharply, especially in the chemical fiber industry. Oil is an important raw material for industrial production, and the increase in oil prices will directly increase its production costs.

Due to the serious overcapacity in the chemical fiber industry and the fierce competition in the market, the way of pferring the cost through raising prices has been greatly restricted.

In addition, after a substantial price adjustment, pportation costs will also affect the nerves of all textile enterprises. Transportation costs will increase significantly and sales costs will increase substantially.

Experts believe that the impact of the textile industry is long and brutal under the pressure of rising prices of raw materials, pportation costs and energy prices caused by the continuous rise in global oil prices.

In the future, the rising cost of oil, electricity and coal prices is irreversible. The textile economy has entered a high cost era.