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The whole market of Jinjiu is in a tepid, the market has a strong wait-and-see mood, and it is not active in the procurement of raw materials. The chemical fiber market can be described as fierce. It not only experienced the plunge after the surge of the upstream chemical fiber raw materials market, but also faced the suppression of the terminal textile and apparel export market by the Sino-US trade war.
At this time, after entering October, it has ushered in four heavy weights! Will these four great newsletters inject a dose of cardiotonic agent into the textile industry?
1. The central bank lowered the release of over one trillion yuan, and the real economy was supported again.
On the afternoon of the 7th National Day on October 7, the People's Bank of China announced that it will cut the deposit reserve ratio of some financial institutions by 1 percentage point from October 15 to replace the medium-term loan facility (MLF) due on the day.
From October 15, 2018, the renminbi deposit reserve ratio of large commercial banks, joint-stock commercial banks, city commercial banks, non-county rural commercial banks, and foreign banks will be lowered by 1 percentage point, and the medium-term loan facility (MLF) expired on the same day. Continue to do it again.
In addition to this part, the RRR reduction can also release incremental funds of about 750 billion yuan. It can increase the financial resources of financial institutions to support small and micro enterprises, private enterprises and innovative enterprises, promote the vitality and resilience of economic innovation, enhance the growth momentum of endogenous economy, and promote the healthy development of the real economy.
Good
With the central bank, government funds and government's concerns shifting to thousands of small and micro enterprises, especially to speed up the "debt-to-equity swap", the tight cash flow pressure of textile companies is expected to be effectively alleviated.
Secondly, the funds of textile traders and weaving enterprises are supplemented, which is conducive to the stability of the textile market and the long-term development of the market. The textile enterprises appropriately increase the risk of storage of polyester filaments and other materials to avoid the huge fluctuations such as PTA futures;
In addition, affected by the RRR decision, on the first trading day after the National Day holiday, the onshore price of the RMB against the US dollar fell by more than 400 points, setting a new high after the central bank’s “counter-cyclic factor” re-staged on August 25, 2018. , from August 15th, the new low of 6.9331 is less than 100 points.
A small drop in the RMB exchange rate caused by the central bank's RRR cut will contribute to the development of textile foreign trade.
2. Increase the export tax rebate rate twice during the year, and textile foreign trade enterprises will reduce the negative red envelope.
At the State Council executive meeting on October 8, the measures to improve the export tax rebate policy and speed up the tax rebate have been confirmed. This measure has reduced the burden for enterprises and is also conducive to China's steady growth in foreign trade.
The meeting decided that from November 1, 2018, the current export tax rebate rate for goods will be 15% and part of 13% to 16%; 9% to 10%, some to 13%; 5% Raised to 6% and partially raised to 10%. The export tax rebate rate for products with high energy consumption, high pollution, resource products and tasks facing de-capacity remains unchanged.
At the same time, the tax system will be further simplified, and the tax rebate rate will be reduced from the original seven to five, speeding up the tax refund. The average time for tax refunds will be reduced from the current 13 working days to 10 working days before the end of this year.
It is worth noting that this is the second time in November that the export tax rebate rate has been raised. Since September 15 this year, China has increased the export tax rebate rate for 397 products such as electromechanical and cultural products. The export tax rebate rate for multi-component integrated circuits, non-electromagnetic interference filters, books, newspapers and other products has increased to 16%.
Good
On the one hand, the increase in export tax rebates can increase the profits of enterprises and reduce the burden on enterprises;
On the other hand, the average time for export tax rebates has been shortened from the current 13 working days to 10 working days, which will also help enterprises to have sufficient cash flow and ease the pressure on corporate capital turnover.
3. The Ministry of Environmental Protection officially issued a document to slow down anti-pollution regulations, and the one-size-fits-off production limit will be reduced.
China has relaxed its winter pollution control measures because in a devastating trade war, China puts economic growth above environmental governance.
At present, the new tariffs imposed by the United States on 200 billion U.S. dollars of Chinese imports have reached 10%, and may rise to 25% on January 1, and the Chinese economy is beginning to feel the pressure.
As companies prepare to cope with the impact of US tariffs, China's manufacturing growth is weakening. China's latest official manufacturing purchasing managers index (PMI) fell to 50.8 in September from 51.3 in August, the lowest point in eight months. At the same time, the Caixin Manufacturing Purchasing Managers Index (PMI) fell to 50.0, dangerously close to the contraction index (below 50).
China's finished product manufacturers exporting to the United States have suffered a particularly severe blow, reducing the purchase of raw materials.
Good
For chemical companies, this could mean that older, smaller, and more polluting plants will be the target, and the new plant will remain unaffected.
Due to the relaxation of the new regulations, the closure of plastic processors may be reduced. In recent months, factory closures have been a price inhibitor.
Nonetheless, any benefits from the growth in polymer consumption are expected to be very limited, as the offsetting of earnings will have a negative impact on US import tariffs on Chinese plastic products.
Since November and November, China has lowered the MFN tariff rate for some commodities, and imported textile machinery is cheaper.
In order to implement the decision-making arrangements of the Party Central Committee and the State Council, China has implemented zero tariffs on most imported drugs since May 1 this year, and reduced import tariffs on automobiles, parts and components, and some daily consumer goods since July 1. The implementation of the information technology agreement to expand the product in the third step of tax reduction.
The tax reduction mainly involves textiles; stone, ceramics, glass products; some steel and tantalum products; mechanical and electrical equipment and parts, such as metal processing machinery, textile machinery, engineering machinery, power transmission and transformation equipment, electrical equipment, instrumentation, etc. Resource goods and primary processed products, such as non-metallic minerals, inorganic chemicals, wood and paper products, gemstones, etc. There are 1585 tax items for tax-deductible goods, accounting for about 19% of the total number of tax items in China. The average tax rate has dropped from 10.5% to 7.8%, with an average reduction of 26%. At the same time, with the overall tariff level, especially the reduction of import tariffs on pharmaceuticals and consumer goods, the tax rate for import duties of imported goods (commonly known as postal tax) is lowered accordingly.
Good
As we all know, with the deepening of environmental protection policies, the number of weaving machines has been strictly controlled in some traditional textile clusters. How to make more profits from one machine has become a matter of great concern to weaving bosses.
Affected by the looms and technology upgrades, more and more weaving companies are now buying imported looms. The reduction of the import tax rate of textile machinery will directly reduce the operating costs of enterprises.
Since its establishment, Guangdong Mengtai High-tech Fiber Co., Ltd. has developed steadily. At present, it has an annual output of more than 30,000 tons of polypropylene filaments of various specifications. It has become a professional manufacturer of polypropylene filaments with large scale and high output in China. Silk, microfiber, PP Profiled Yarn, Intermingled PP FDY, Twisted PP FDY, polypropylene filament fine-denier sell well in many countries and regions, products cover luggage, clothing, shoes and hats, furniture and other industries, into thousands of households .
