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Weak demand affects Chinese textile sector
Sep '12
Weak demand both in domestic and overseas markets is continuing to affect China’s textile industry according to a survey made by the Textile Industry Federation.
The study said 65.7 percent of the surveyed textile enterprises said the major problem affecting them at the moment was the economic situation in China and foreign countries, while 22 percent of the enterprises said lack of demand at home was the main problem affecting their operations.
According to the report, global demand of cotton textiles has declined – the US imports of cotton textiles fell by 6.31 percent, the EU imports dropped by 23.89 percent, and Japan’s imports dipped by 24.27 percent.
On the other hand, the demand fro chemical fibres grew globally with a 10.24 percent increase in its US imports, 0.4 percent rise in EU imports, and 1.97 percent jump in Japanese imports.
The price difference between domestic cotton and imported cotton also has a great impact on Chinese textile enterprises, according to the study.
Analysts expect international cotton price to decrease further, which would further increase the gap between prices of domestic and imported cotton in China, further exacerbating the problems faced by Chinese textile enterprises. 

Fibre2fashion News Desk - China

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