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Chinese textile exports may remain stable in H2
May '12
The overall performance of the Chinese textile sector so far during the current year shows a dip in sales of seasonal products. Yarn production has slightly increased and some textile mills are considering increasing their raw material inventory.

However, the average raw material inventory level of Chinese textile enterprises continues to remain at low level. While the price of cotton is stable, some varieties of yarns are still under de-inventory process.

At the recently held Condon Fair, overall textile and garment export orders were at same level as that of Autumn Fair last year. However, the total textile and apparel exports dipped by 12.3 percent from the same time last year.

Textile and clothing export orders to the EU and Japan witnessed a sharp decline at the fair, whereas exports to the US increased marginally.

Looking at the current situation, textile exports from China are likely to remain stable during the second-half of the current year. However, slowdown in economic growth and order transfer would continue to affect the consumption of cotton by Chinese textile sector.

Fibre2fashion News Desk - China

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