There are many factors that affect the silk industry

A few days ago, the China Silk Association released the report “The Economic Operation of the Silk Industry in the First Half of 2013”. Talking about the main factors affecting the economic operation of the silk industry, the China Silk Association stated that high raw material prices restrict the production of downstream industries and the growth of foreign trade export orders is weak. In some regions, small and medium-sized enterprises are trapped by "money shortages," and the upward pressure on the economy of the industry is still relatively low. Big is the main reason. The "Report" pointed out that the purchase price in the spring of 2013 was firm, and the average price of the spring cymbals in the country almost rose to the highest price in history. The high cost of raw materials for cocoons this year is difficult to change. The support of transcripts is undoubtedly the reason for the high prices of raw silk. This year, raw silk prices continue to rise steadily, making the cost pressure on downstream industries such as weaving, garments, silk quilts, and home textiles significantly higher than in previous years. Some garment companies have no choice but to replace real silk with cotton and chemical fiber, especially silk quilt products. In the case of growth, the first negative growth occurred in the first half of this year, and the apparent restriction of raw material prices on downstream processing began to become prominent.

Since the beginning of this year, although the U.S. economy has seen some obvious signs of improvement, the European economy has continued to slump, and the recovery of the world economy has generally been relatively slow. Export orders to the EU are still insufficient. In addition, some countries have imposed excessively lenient monetary policies and forced them to appreciate. In particular, the real exchange rate of the *** against the U.S. dollar has risen by about 7% over the past 12 months, exceeding the 6% that the average exporter can bear. On the red line, the difficulty of exporting domestic companies continued to increase. According to relevant investigations, the appreciation of the *** and the lack of external demand are the two main factors constraining foreign trade exports this year, of which 26.8% have suffered export losses, and as many as 73.4% of the companies have suffered an appreciation. Therefore, China's silk and silk enterprises have also experienced a general phenomenon of weak growth in export orders.

In addition, since the implementation of the prudent monetary policy by the central bank this year, the bank’s liquidity has tightened, and many banks have intentionally slowed their pace in terms of credit, and “money shortage” has also emerged. In some regions, SMEs have been under tighter liquidity pressure and tighter financial conditions, which has further weakened corporate credit gambling and ability to pay back debts and payments. As a result, the possibility of obtaining credit lines from banks has been greatly reduced, and companies generally feel that liquidity is tight.

Currently, the silk domestic market has grown steadily, but the international market export trend is not yet clear, coupled with restrictions on land environmental energy, rising raw material prices, rising labor costs, slow turnover of funds, sluggish domestic and overseas orders, and economic decline. With regard to the influence of factors, the "Report" believes that the combined effect of various unfavorable factors on the squeeze of the economy has caused many difficulties in the recovery of the economic operation of the industry, and the upward pressure on the economic operation of the industry is still relatively large.