Analysis of 2010 China Textile Industry Status Quo

Friday, 17 September 2010, 12:05 HKT/SGT

BEIJING, Sept 17, 2010 - (ACN Newswire) - Qualitydress.com, one of China's leading B2B search platforms, analyzes 2010 China textile industry status quo.

From the beginning of 2010, China's textile industry presented the fast growth momentum, however, as the continued renminbi appreciation, export rebate adjustment and so on uncertainty factors appeared, textile industry feel extreme pressure. Textile industry is rapidly recovery but should alert the second half year will face the uncertain factors.

First, industry value-added falls back.

In the first half year, textile industry value-added increased12.2%, year-on-year increased 4%.

Second, cotton price keep high level, textile enterprises worried about purchasing no resources channel.

Domestic cotton, cotton yarn prices continued to rise. In June, the domestic cotton price was 18,309 RMB/ton, which raised more than 838 RMB/ton, year-on-year increase 42.6%. Although 2010 cotton yarn prices speed is faster than cotton, and sales situation was very good, textile enterprise benefit was no much difference. But the cotton resources decreased, purchasing no resources channel became textile enterprises big concern.

Third, export situation turn well.

First half year, the export value year-on-year increased 16.3%, which compared with the same period of 2008, it rose 7.1%.

According to the customs statistics, the first half year, the national of the import and export trade in goods are achieved fast growing, among them the import growth rate exceeded export growth rate.

During the first half year, the total export of textile and apparel has 88.88 billion U.S dollars, year-on-year up 22%, textile exports 35.65 billion U.S dollars, increased 32.3%, clothing exports reached 53.23 billion U.S dollars, increased 16%.

Qualitydress.com analyze textile faced main problems

First, it affected by 2009's low base.

It is worth noting that low base of the 2009 in certain extent caused by 2010 the main index overestimated, while the industry in 2010 will face more complex operation environment and so on.

Second, exchange rate alteration expected pressure increasing.

It is expected that renminbin will has a small appreciation in this year. RMB appreciation for small and medium-sized textile enterprises have a great blow, and for some large enterprises have stable customer and negotiation ability, the effect is relatively small. At present domestic textile clothing exports 80% used in U.S. dollars, so RMB appreciation will give China textile and apparel export serious impact.

Third, raw material prices rising increased enterprise cost pressures.

Now the price of cotton has reached record levels, it is expected that in the second half year, textile enterprise will suffer more intensive cost pressures.

Fourth, policy adjustments may bring impact.

A series of policy adjustment export tax rebates may also involve textile industry. Textile foreign trade enterprises are very worried about the future export tax rebates will involve the textile industry.

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