How Much Will Exchange Rate And Tariff Affect Textiles? The Decisive Factor Of Foreign Trade Order Is The Key.
The RMB exchange rate has broken 7.
Trump announced that additional tariffs of 10% on the remaining 300 billion Chinese goods exported to the United States will be implemented from September 1, 2019.
Old beauty can't bear to see that China's manufacturing quality is good, the price is cheap, and things are being done again. What's the impact on textile enterprises?
Is the decline in the RMB exchange rate good or bad for textile enterprises?
According to Xiaobian, since the trade war was fermented in 2018, the US tariffs have really put pressure on the profits of export oriented textile enterprises. But over the past year, most export enterprises are actively seeking market diversification to reduce the impact of US tariff increase on enterprises.
In terms of the RMB exchange rate, many textile foreign trade people all say: the depreciation of exchange rate is beneficial to export enterprises, but the sharp fluctuation in the short term has the greatest impact on enterprises. For example, when guests talk about the price according to the current exchange rate, even when the settlement time falls, even if it falls by 0.1, it will lead to the loss of the enterprise. "Now long single is not dare to receive, later trade orders will be more cautious. In contrast to devaluation, we prefer stability to exchange rate. " A foreign trader in Ping Wang said.
RMB depreciation may bring short-term benefits to textile enterprises, but in the long run, foreign trade enterprises can not get more benefits from it. The long-term impact of exchange rate fluctuations is more comprehensive strength competition. From a global perspective, under the background of the strong dollar, the currencies of emerging countries are likely to compete for depreciation, coupled with the general trend of industrial transfer, the weakening effect of RMB devaluation on export orders will weaken. Moreover, the depreciation of the RMB will also have a significant impact on imports, resulting in imported inflation. At present, crude oil and Px are mostly dependent on imports. If they continue to depreciate, they will lead to higher prices of textile raw materials.
What companies need to do now is to enhance the competitiveness of their products, instead of focusing too much on judging or speculating on the trend of exchange rate, otherwise it will be easy to lose.
300 billion products, home textiles and clothing are among them. Exports will be greatly affected.
The 300 billion list of subsequent tax increases includes home textiles and clothing that the market participants are most worried about. Among them, woven garments, knitted garments and household textile products can account for 75% of domestic textile and clothing exports.
According to China Customs statistics, in 2017, China exported 258 billion 400 million US dollars of textiles and clothing, of which US $42 billion 500 million was exported to the United States, accounting for about 16.5% of China's total exports of textile products. In 2018, China exported 276 billion 730 million of its textiles and clothing, of which US $45 billion 800 million was exported to the United States, accounting for about 16.6% of China's total exports of textile products.
The time has come to the early August. According to the rule of past years, the foreign trade market is in the second half of the development season. According to the market, the number of proofing is less than that of previous years. Even textile enterprises have no single travel on hand. Traders also said that although the samples were sent, there was no single order. "Our company mainly produces slub fabrics, which account for 30% of the total export volume. This year, the order volume has dropped by 30% compared with that of last year. Compared with the previous year, the price of cloth fell by 0.2 yuan / meter on average. If 300 billion tariffs fall to the ground, that will have a great impact on foreign trade orders. Gold and silver ten will not expect much. A person in charge of an industry and trade enterprise in Shengze said.
Exchange rate and tariff are not the decisive factors affecting the export of textiles. The key is to look at the products.
Although exchange rate and tariff have certain influence on textile export, but they are not decisive, the key lies in the quality of products. Since the beginning of this year, the Sino US trade war has been escalating. Whether we can move towards moderation in the future is still unknown. What enterprises can do at present is to do their own products well, take differentiated roads, ensure profits, and rationally develop customers. Make full preparations to meet the trade war!
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