In the first half of 2010, the printing and dyeing industry experienced a weak recovery in investment. From January to May, actual investment in the sector rose by just 0.21% year-on-year, with the growth rate declining by 1.85 percentage points compared to the previous year. This was significantly lower than the growth rate seen in the broader textile industry, which stood at 19.66 percentage points higher. The slow recovery in investment can be attributed to ongoing uncertainties in the international market, rising domestic production costs, and a lack of confidence among industry players regarding future prospects.
Production cost pressures have continued to mount. Since the start of the year, raw material and fuel prices have surged. According to data from the China Textile Industry Association Statistics Center, coal prices for printing and dyeing companies reached an average of 756.9 yuan per ton from January to April, up 28% from the same period last year. Steam prices averaged 153.24 yuan per ton, a 14.47% increase, while electricity prices climbed 4.9% to 0.68 yuan per kWh. Water prices also increased by 7.2%, reaching 2.17 yuan per ton. Additionally, the cost of dyes and raw materials rose by 6.7%, and labor costs increased between 10% and 20%. Despite these rising costs, processing fees for bleached, dyed, and printed cloth declined by 1.36%, 8.58%, and 8.57% respectively. As a result, companies are facing increasing pressure on their profit margins.
To adapt, many printing and dyeing companies have accelerated structural adjustments. Guided by the "Regulations on Textile Industry Adjustment and Revitalization," and supported by policies aimed at eliminating outdated production methods, the industry has made steady progress in restructuring. From January to May, large-scale printing and dyeing enterprises saw their cost-profit margin rise to 3.94%, up 0.76 percentage points from the previous year. The proportion of three fees dropped by 0.30 percentage points to 4.97%, while labor productivity increased by 26,600 yuan per person, reaching 207,700 yuan. Per capita profit also rose by 2,264 yuan, reaching 7,351 yuan. These improvements reflect enhanced management efficiency and operational performance. Inventory turnover rates improved by 2.10 times, and current assets turnover increased by 0.06 times. The total asset contribution rate rose to 4.05%, and the new product contribution rate increased by 0.26 percentage points, showing stronger innovation capabilities.
Looking ahead, global economic conditions remain challenging. High unemployment rates in the U.S., Europe, and Japan—reaching 9.7%, 5.2%, and 10.0% respectively in May—have kept consumer purchasing power subdued. Export growth has largely been driven by restocking rather than strong demand. European and American economies face significant downside risks, with slowing inventory and order growth. The EU debt crisis has forced member states to cut spending and consumption, while the euro's depreciation has led to a stronger RMB, posing challenges for Chinese exports. These factors have slowed the global economic recovery and created uncertainty for the textile industry.
Domestically, rising raw material and labor costs are expected to continue. The pressure on enterprise production costs is growing, and currency appreciation threatens export competitiveness, potentially leading to lost orders, reduced foreign exchange earnings, and lower profits. While domestic sales may see some growth, inflationary pressures persist. Macroeconomic stimulus measures are gradually being withdrawn, and with the economy showing signs of correction, the pace of policy withdrawal is likely to slow in the second half of the year. The government will adopt a "stabilizing fiscal resources and tightening monetary" approach, maintaining fiscal support while gradually tightening monetary policy.
In summary, the printing and dyeing industry is expected to experience slower growth in the second half of 2010, but it will still maintain a relatively high level. It is projected that output from large-scale printing and dyeing enterprises will grow by around 10%, with gross industrial output rising by 17% and profit growth reaching 35%. However, export growth will face greater challenges, with a slower recovery in the second half of the year. Exports are expected to grow by 10% to 12% for the full year. The industry must adapt to complex domestic and international challenges by accelerating structural adjustments, embracing technological innovation, and shifting toward high-efficiency, high-quality, low-carbon, and globally competitive operations.
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