Home / Knowledge / News / Textiles / Chinese silk exports decline in Q1 2014
Chinese silk exports decline in Q1 2014
13
Jun '14
In the first quarter of 2014, a decline was observed in silk exports from China, and profit margins of silk textile enterprises also dropped due to rising business costs.
 
According to the figures from the National Bureau of Statistics, from January to March 2014, statistics of 989 large-scale silk textile finishing and industrial enterprises show that the industry’s main business income increased by 5.61 percent year-on-year to 27.356 billion yuan, while profit rose by 4.05 percent to 1.157 billion yuan. Although the whole industry realized modest growth in profits, the actual growth has slowed down compared to the same period in 2013.
 
Among other indicators, during the first quarter, inventories of silk textile and finishing industry increased by 7.85 percent to 13.064 billion yuan, corporate operating expenses increased by 4.73 percent, administrative expenses were up by 6.21 percent, while financial expenses, including interest payments, increased by 4.71 percent.
 
Statistics show that the total number of loss-making silk textile enterprises grew by nearly 60 percent during the three-month period. 
 
According to customs statistics, from January to March, the national silk merchandise exports earned US$ 713 million, down 12.6 percent year-on-year. Of this, silk garment exports decreased by 21.5 percent to $244 million. In terms of volume, China exported 23.077 million pieces during the quarter, showing a decrease of 68.7 percent. The unit price, however, increased by 150.59 percent.
 
Silk exports to only Italy and Germany, among the top ten Chinese silk export destinations, showed a slight increase in exports, while exports to India dropped by 27.85 percent year-on-year.
 
Looking at the performance of the Chinese silk industry in the first quarter of 2014, the situation is not optimistic. The first main factor that is likely to affect the performance is the frequent fluctuation in currency exchange rate, which puts Chinese domestic export enterprises at foreign exchange risk. The second factor is the gradual weakening of domestic labor price advantage, resulting in gradual transfer of orders to India, Vietnam, Cambodia and other Southeast Asian countries, that have low labor cost advantage.
 
In addition, there is also raw silk cocoon production pressure. The gradual transfer of rural labour to urban areas has severely constrained the traditional cocoon production in Jiangsu, Zhejiang and other coastal provinces.
 
However, due to the favourable government policy, as reflected in the September 2013 joint declaration by the Ministry of Commerce and eight other departments for further promotion and healthy development of silk industry, China’s silk industry will gradually adjust and upgrade.
 

Fibre2fashion News Desk - India


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search