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China's textile exports may show steady growth this year
Jun '14
The exports of textiles and apparel from China are likely to show a steady growth trend this year.
The global economic recovery has strengthened this year compared to last year, and the international market can be generally described as stable. So, the Chinese textile industry’s external export environment is basically sound. Judging from the trend, the industry’s export growth is expected to continue the current trend of steady recovery.
However, some domestic concerns may affect the overall performance. First, there is a decrease in prices of raw materials, which led to a drop in prices of textiles and garments. According to the Customs data, from January to April, China’s textile and apparel export prices fell 2.2 percent. This downward price trend leads to low growth rate of total exports.
Product-wise, the main effect of decrease in cotton and synthetic fibre prices can be seen on yarn industry, where pries have decreased significantly by 10.9 percent in the first four months of 2014. As a result, the value of yarn exports showed a decline of 2.2 percent year-on-year, although the volume of yarn exports increased by 8.9 percent.
However, prices of fabrics stayed relatively firm and increased by 2.2 percent year-on-year during January-April 2014. On the other hand, the export prices of clothing and accessories fell by 4.2 percent, with export prices of cotton garments fell by as much as 13.3 percent.
Looking at the market structure, China’s textile and garment exports to Asean nations fluctuated. But, the recovery in developed economies is gradually expected to trickle down to emerging markets, and there is still room for improvement in China’s exports to the Asean market in the future.
From January to May 2014, China’s overall textile and garment exports touched US$ 106.84 billion, showing an increase of 3.6 percent year-on-year.

Fibre2fashion News Desk - India

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