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Chinese textile sector should undertake timely adjustments

07
May '10
China's national scale enterprises completed fabric output of 4.98 billion meters in March of 2010, and 13.22 billion meters in the first quarter of 2010, an increase of 17.64 percent year on year.

Of which, production of cotton fabrics reached 2.97 billion meters in March 2010, a slight increase compared to 2.92 billion meters in February. In the first quarter, it touched 7.82 billion meters, up 34.03 percent year on year.

Textiles demand picked up from the second half of last year into the first quarter of this year, yarn and cloth production increased significantly, apparel production maintained a steady increase.

At the same time, imbalance between supply and demand appeared, especially cotton supply has been tight this year. Cotton price continued to move higher all the way. In the coming months, the textile industry will enter traditional off-season period from May to August, production of cotton fabrics may relatively reduce.

In addition, the US market has started to improve, but the European market is yet to fully recover, once the debt crisis in Europe spreads, it could aggravate the financial crisis, which could ensure that the short-lived recovery may disappear.

Therefore, in the face of uncertain market outlook, textile enterprises should seize opportunities and realize timely adjustments by making good use of current situation.

Fibre2fashion News Desk


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