China garment – garment brands, garment information, garment media Garment News The chemical fiber industry operates stably with worries, and we work together to develop stably.

The chemical fiber industry operates stably with worries, and we work together to develop stably.

On April 15, the China Chemical Fiber Industry Association held an analysis meeting on the economic operation of the chemical fiber industry in the first quarter of 2022. Since 202…

On April 15, the China Chemical Fiber Industry Association held an analysis meeting on the economic operation of the chemical fiber industry in the first quarter of 2022. Since 2022, the chemical fiber industry has encountered multiple challenges such as rising oil prices, frequent epidemics, weakening demand, and logistics obstructions. The operating pressure of the industry has increased significantly. In the first quarter, the industry generally showed the operating characteristics of “stable but worrying”. Data from the National Bureau of Statistics show that from January to February, chemical fiber output was 10.154 million tons, a year-on-year increase of 3.01%; operating income was 147.75 billion yuan, a year-on-year increase of 14.6%; total profit was 4.51 billion yuan, a year-on-year decrease of 32.7%. Entering March, under the circumstances of high costs, weak demand, and logistics obstruction caused by the epidemic, chemical fiber inventories have gradually accumulated to high levels, the industry’s operating rate has declined, and profit margins and processing intervals have been further compressed. So far, some companies are already in the red. state. Faced with the above problems, the China Chemical Fiber Association calls on industry enterprises to work together and strengthen their confidence to ensure stable and orderly production and life on the basis of strengthening normalized epidemic prevention and control, and jointly promote the stable and healthy development of the industry. At the same time, the following suggestions are made.

1. Carry out industry self-discipline and prevent operational risks

In the context of high inventory and low profits, while facing high uncertainty in oil prices and the risk of outflow of textile and clothing orders, it is recommended that Chemical fiber companies have strengthened industry exchanges and cooperation, and appropriately and synchronously reduced burdens and production. At this stage, they are mainly focusing on digesting inventory and stabilizing market prices to avoid price fluctuations and ineffective vicious competition. In addition, accounts receivable must be strictly controlled to ensure the safety of the cash flow capital chain.

2. Pay attention to environmental changes and policy trends, and formulate response strategies

Affected by the epidemic, major domestic production areas and markets have been affected to varying degrees, especially the flow of people and logistics. It is recommended that enterprises comply with local epidemic prevention requirements, explore nearby markets, compress the procurement and sales radius, and use “small circulation” within provinces and regions with relatively small logistics restrictions to relieve sales pressure and reduce logistics costs. At the same time, we will strengthen online exchanges and communication with overseas customers, and formulate special overseas customer maintenance and service plans to avoid customer loss after the epidemic.

3. In the face of uncertainty, do certain things

Special times are also the best time to practice “internal strength”. In the face of uncertainty, do what you are sure of and be the best “you”: First, focus on energy saving and consumption reduction to reduce costs and increase efficiency; second, use the shutdown period for equipment upgrades and transformation, especially to accelerate the advancement of informatization. Intelligent construction; the third is to actively seek breakthroughs and adjustments in product innovation to increase the added value of products; the fourth is to comprehensively improve the level of production management and create efficient and agile operating capabilities to help reduce costs and increase efficiency; the fifth is to think about the future and formulate corporate policies Long-term development strategy.

We will overcome the difficulties with firm confidence and hold on until the clouds clear and the moon shines.

China’s economic fundamentals of strong resilience and long-term growth will not change. China’s textile industry has the advantage of having the world’s most complete and advanced industrial chain supporting system. The current industry difficulties are temporary, and the logistics sector has shown signs of improvement. On April 7, the Ministry of Transport held a meeting on the logistics support and coordination working mechanism to require freight logistics to be smooth and smooth, and proposed three directional requirements: nationwide pass, unified regional policies, and interconnection and sharing of management and control information; on April 10, “The State Council The Notice of the Joint Prevention and Control Mechanism in Response to the Novel Coronavirus Infection Pneumonia Epidemic on Effectively Ensuring Freight and Logistics Guaranteeing Smoothness was released; in recent days, a series of more specific policy notices and requirements have been released. It is believed that with the implementation of the policy, the problem of transportation difficulties will be alleviated, the industrial chain will return to normal flow, and the terminal demand that was suppressed in the early stage will be released. Downstream factories will have urgent replenishment needs, and there is also the possibility of certain speculative demand. , the operation of the chemical fiber industry is expected to gradually get out of the predicament and show an upward turning point.


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Author: clsrich