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Cotton textile sector in critical phase
Aug '09
According to the National Bureau of Statistics, in January to June 2009, China's output of cotton yarn and cotton cloth grew 10.04 percent and 1.66 percent, respectively, over the same period last year. Y-O-Y growth rate fell 3.83 and 6.68 percent, respectively.

According to the survey by national cotton market monitoring system, 74 percent of the surveyed enterprises received domestic orders less than the same period last year, 20 percent received domestic orders more than the same period the previous year.

While, 6 percent received same numbers of domestic orders corresponding period last year; 73 percent of the enterprises received less foreign orders less than same period last year, 22 percent of the enterprises received same number of foreign orders and only 5 percent received foreign orders more than, in the same period last year.

According to customs statistics, in January to June 2009, China's exports of textile and apparel trade dropped 11.31 percent year-on-year, among them, exports of cotton textiles and clothing fell 17.96 percent and 10.41 percent year-on-year.

According to the National Bureau of Statistics, in January-May 2009, the cotton textile industry realized total profits of 11.608 billion Yuan, down 2.55 percent from the same period last year.

The release plan of 1,523,000 tons of cotton reserves implemented by the state has achieved more than 80 percent of its target and sales price now, shows a slight downward trend.

This has effectively stabilized costs of textile enterprises, which is conducive for textile enterprises to maintain international competitive advantage.

From the judgment of integrated indicators, China's cotton textile industry is in a critical period of stabilization and recovery; export growth of textile production will slow down further.

Fibre2fashion News Desk - China

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