Home / Knowledge / News / Textiles / China's textile exports face difficult situation in 2013
China's textile exports face difficult situation in 2013
04
Feb '13
Exports of China’s textile industry are likely to continue to face very difficult situation in 2013, due to high domestic cotton price, continued rise of labour prices and demand downturn in international market, vice president of China Textile Industry Association Gao Yong said recently.
 
Mr. Yang said all the three factors together affect the competitiveness of the Chinese cotton spinning industry and subsequently, the entire textile value chain.
 
In 2012, textile and garment exports from China only increased by 3.3 percent year-on-year, the lowest level since the negative export growth in 2009. The textile and clothing exports also grew at a much slower pace than the overall Chinese export growth rate of 7.9 percent year-on-year.
 
The slackening of international demand for textiles and apparels can be understood from the fact that total textile and garment imports by the US and the EU dipped by 0.9 percent year-on-year and 5 percent year-on-year respectively during the first 11 months of last year.
 
Secondly, there has been a continued rise in cost of labour during the past few years. China’s labour prices rose 20 percent year-on-year in 2010 and 2011 and by another 10 to 15 percent in 2012. The continued rise in labour prices has led to a decline in competitiveness of China’s textile and garment industry in the international market.
 
Another factor is the wide gap between domestic and imported cotton prices. At present, the cost of imported cotton, including tariff, works out to around 13,000 yuan/ton, while the price of domestic cotton released from state reserves is 19,000 yuan/ton.
 
Thus, there is a price difference of 6,000 yuan/ton, or the domestic cotton price is about 45 percent higher than the international cotton price, which significantly impacts the competitiveness of China’s cotton spinning industry.
 
In the first 11 months of 2012, China’s cotton yarn exports declined 8.9 percent year-on-year, while imports increased drastically by 56.1 percent year-on-year. It means that the amount of cotton consumed by Chinese textile mills dipped by about 2 million tons in 2012.
 
All these led to a decline in market share of China's textile industry in international market. From January to November 2012, China’s share in the EU and Japanese textile and apparel import markets fell by 1.8 percent year-on-year and 1.1 percent year-on-year, respectively.
 

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 30th Aug 2016

Maharashtra, Telangana ratify GST Bill; tally 11

The state legislative assemblies of Maharashtra and Telangana today...

Courtesy: Da Milano

Fashion | On 30th Aug 2016

‘Luxury market place expanding at accelerating pace’

The rise of emerging economies and the growing global middle class...

Textiles | On 30th Aug 2016

CAI predicts 2016-17 cotton output at 336 lakh bales

Cotton Association of India (CAI) has predicted that cotton...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
August 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search