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Textile & clothing sector still feeling winter chills
Sep '09
China's textile and clothing exports declined by 11.12% when corresponded with the same period a year ago to $91.46 billion between January and July 2009, and exports of cotton textiles and apparels fell by 0.97 percent, when compared to last month.

During the first seven months of the year 2009, China's textile exports dipped by 5.72 percent and clothing shipments plunged by 5.39 percent.

Cotton based textiles led the slump, down 5.36 percent from the previous year's period; man-made fibre textiles was down 2.42 percent; wool textiles fell 0.84 percent; silk textiles decreased by 0.27 percent; and linen textiles down 0.05 percent.

Knitted garment and accessories led the slump with a fall of 3.16 percent from the previous year's period and woven garments and accessories were down by 1.93 percent.

Looking further into the export products with an export turnover of above US$100 million, fleece fabric, synthetic filament yarn, embroidery and worsted fabric led the slump, down above 40 percent from the previous year's period.

Many Chinese textile and garment enterprises have felt the chill and decided to turn their eyes away from European and American markets and focus back on the domestic market. But, sales in domestic markets are not as easy as it looks.

According to some exporters, to sell products in the home market, they had to take approvals from the local governments to change their identity from a 100% export oriented enterprise to be able to sell goods in the domestic markets.

In July 2009 the percentage change in China textile and garment export price index was a negative 1.14 percent compared to June 2009, of which, the change in textile export price index was a negative 0.9 percent and garment export price index was a negative 1.43 percent.

Experts attribute the fall in export price index to labour costs being stable and also as demand is not strong enough to offset the surplus supplies.

Between January-June 2009, overall imports of textiles and garments by the US witnessed a negative growth rate of 14.29 percent, of which import from China was down 3.36 percent, while shipments from Vietnam were up 1.5 percent.

A huge amount of small and medium textile enterprises in China are now feeling the chill of crisis due to lack of financial resources, which is a vital ingredient to keep the wheels running. It is important for SMEs to adopt new technology to enhance standards and quality production.

fibre2fashion News Desk - India

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