Textiles and clothing trade characteristics

The textile and clothing trade in January-May 2023 was characterized by the following:
1. international demand contraction continues, exports return to decline in MayAs the backlog of orders at the beginning of the year was basically shipped in March and April, under the pressure of continued contraction in international demand, declining orders and a high base in the same period last year, exports in May failed to continue the upward trend of the previous two months year on year, returning to the downward trend since July last year, down 13.1 per cent from the same period last year, down 1.3 per cent from the previous month. The direction of exports in June is still unclear, and the possibility of continued decline is high.

Changes in the 2. market structure continue, and non-traditional markets such as countries along the Belt and Road and Africa have become important drivers of exports.
Weak demand in traditional developed markets and slow inventory digestion are still the main difficulties facing China's textile and garment exports. After the backlog of orders at the beginning of the year was eliminated in March and April, my exports to traditional markets such as Europe, America and Japan fell sharply again in May, dragging down my overall textile and clothing exports. In a single month in May, my exports to the United States, the EU 27 and Japan fell 22.2 per cent, 15.9 per cent and 25.5 per cent, respectively, more than the overall decline of 13.1 per cent. The share of Europe and the United States in China's export market also fell from 31 per cent last year to 27.4 per cent in the first five months of this year, down 3.6 percentage points. At the same time, the sluggish demand in Europe and the United States has also led to the lack of growth momentum of our intermediate exports to ASEAN. In May, China's exports to ASEAN fell 23.7 percent year-on-year. In sharp contrast to the four major markets mentioned above, China's exports to the five Central Asian countries, African countries, Russia and Mexico maintained growth in May, with increases of 91.5 per cent, 2.1 per cent, 61.4 per cent and 14 per cent respectively.
It is worth 1 mention that,From January to May, the cumulative export to African countries was 10.51 billion US dollars, up 13.3 per cent year-on-year. African countries' share of China's export market rose to 8.9 per cent. From January to May, China's exports to Ghana, Senegal, Algeria, Angola and other countries increased by more than 40 per cent.Among the more than 50 African countries with customs statistics, my exports to more than 40 African countries have maintained growth, and African countries have become an important growth point for my textile and clothing exports.ASEAN-The momentum of my export growth to ASEAN has weakened due to the transmission of declining demand in Europe and the United States. In May, China's exports to ASEAN fell sharply by 23.7 percent year-on-year and 13.5 percent month-on-month. Among them, the intermediate yarn fabric decreased by 25.9. From January to May, the total export to ASEAN decreased by 3.9, of which the total export of yarn and fabric decreased by 14.1, and the export of clothing increased by 18.9.
United States-Exports to the United States continued to fall. Exports to the United States continued their decline in May, and the decline widened, from 5 per cent last month to 22.2 per cent this month. Key commodities needle woven clothing export volume prices fell in the month, the amount of year-on-year decline from the previous month's 9 percent to 24 percent, of which exports fell 21 percent year-on-year, the average export price fell slightly by 3.7 percent. From January to May, my cumulative exports to the United States fell by 16.7 per cent, of which total exports of needle-woven garments fell by 16.2 per cent, mainly due to a 21.4 per cent drop in exports and a 6.6 per cent rise in average export prices.
European Union-Exports to the EU continued their decline, widening to 15.9 per cent year-on-year in May from 6.2 per cent the previous month. But among the four key markets, the EU saw the lowest decline this month. Among them, the export of needle woven garments of major commodities decreased by 18.5. Slightly different from the United States, the decline in needle-woven clothing exports to the European Union was more due to the decline in prices, with export prices falling by 11.1 per cent and export volume falling by 8.3 per cent. Cumulative exports to the EU from January to May were US $14.42 billion billion, down 19.3 per cent. The total decline of needle woven garments in major commodities was 20 per cent, while exports and average prices fell by 12 per cent and 9.1 per cent, respectively.
Japan-After the only monthly increase since November last year in April, my exports to Japan returned to the downward trend in May, with exports falling 25.5 percent year-on-year in the month, the largest decline among the four key markets. Among them, the export of needle woven clothing fell by 26.3, the export volume fell by 23.3, and the export unit price fell by 3.9. From January to May, China's cumulative exports to Japan totaled 6.97 billion US dollars, down 8.3 per cent from the same period last year, of which the export of needle woven clothing fell 7.4 per cent, the export volume fell 3.9 per cent, and the average export price fell 3.6 per cent.From the import data of key markets in April, the decline in demand in Europe and the United States is prominent, and imports from major sources have declined significantly. Imports from China fell less than their overall decline in global imports, and less than major producers such as Vietnam and Bangladesh.
In April, the market share of Chinese textile and garment products in the United States, the European Union and Japan was 22.9, 24.6 and 55.7, respectively, higher than the same period last year and March this year. Among them, U.S. imports from the world fell to $8.5 billion in April, down 28.5 percent from the same period last year, imports from China fell 26.4 percent, and imports from major sources such as Vietnam, India, Bangladesh, Indonesia, Pakistan and Cambodia all fell by more than 30 percent. Imports from Mexico fell the smallest, at 8.1 percent, and the trend of nearshore procurement was obvious. EU imports of textiles and clothing from the world in April 9 billion U.S. dollars, down 19.3 percent year-on-year, of which imports from China fell 18.9 percent, imports from Bangladesh fell 31.9 percent, imports from India, Pakistan and Vietnam also fell by close to or more than 20 percent, and imports from Turkey fell 16.6 percent. In April, Japan imported 2.6 billion US dollars of textiles and clothing from the world, an increase of 4.8 percent, of which imports from China increased by 12.5 percent, imports from Vietnam and Myanmar achieved a slight increase of 2-3%, and imports from Bangladesh fell by 16%.
The export prices of the four major categories of 3. commodities fell across the board, dragging down the overall export market.In May, textile and clothing exports fell 14.2 percent and 12.2 percent, respectively. Exports of yarn, fabrics, home textiles and knitted garments fell by 16 per cent, 14.4 per cent, 5.2 per cent and 12.4 per cent, respectively. In terms of export volume, exports of yarns and home textiles continued to grow by 4.4 per cent and 5.4 per cent, respectively, while exports of fabrics and knitted garments declined by 6.6 per cent and 6.9 per cent, respectively. From the perspective of export prices, the prices of all four major categories of commodities fell that month, with needle woven clothing and fabrics falling slightly, while yarns and home textiles fell the fastest, with a decline of more than 10%.
From January to May, the cumulative export value of textiles fell by 9.4, and the export value of clothing fell by 1.1. Among the four major categories of commodities, except for the export value of home textiles, which rose by 2.5, the export value of the other three categories of products decreased. The export value of yarn and fabric decreased by 10.7 and 10.6 respectively, and the export value of needle woven clothing decreased slightly by 1.1. Among them, the decline in yarn exports was mainly due to the decline in prices. From January to May, the unit price of yarn exports fell sharply by 21.3, and the number of exports increased by 13.2 year-on-year; the export volume and price of fabrics fell; the export volume of knitted garments fell. Price rise.Exports from key provinces and cities fell in May, and accumulated exports weakened further. In May, under the combined influence of weak external demand and high base in May last year, textile and clothing exports from major provinces and cities fell more than expected. The top six Zhejiang, Jiangsu, Guangdong, Shandong, Fujian and Shanghai fell by 7.9, 23.9, 18.9, 28.9, 29.5 and 6.5 respectively. In addition, Xinjiang, Guangxi and Hubei grew by 139.9, 127.7 and 44.4 percent year-on-year, reflecting the trend of shifting the industrial chain of traditional foreign trade provinces to the central and western regions in the post-epidemic period due to reduced orders and increased labor costs.
From January to May, 12 of the country's 31 provinces (cities and regions, excluding Hong Kong, Macao and Taiwan) maintained growth, with Xinjiang (96.3 per cent), Guangxi (155.1 per cent), Sichuan (52.9 per cent) and Guizhou (164.4 per cent) increasing significantly. The top six key regions, Zhejiang, Jiangsu, Guangdong, Shandong, Fujian and Shanghai, fell 4.1 per cent, 16.9 per cent, 11.9 per cent, 10.6 per cent, 15.2 per cent and 8.9 per cent respectively, further weakening from the previous month.
On the import side, domestic demand was relatively stable, with imports in major provinces and cities picking up in May, with Shanghai up 21.7 percent year-on-year and Guangdong, Jiangsu and Zhejiang down 7.6 percent, 25.7 percent and 28.6 percent, respectively.
From January to May, all imports of major provinces and cities fell, with a decline of close to or more than 20%.
4. clothing imports rose 25% in May, with imports falling cumulatively in the first five months.Textile imports fell by 16.5 per cent to US $1 billion in May, with imports of yarns, fabrics and manufactured goods falling by 19.2 per cent, 15.5 per cent and 12.1 per cent, respectively.
Clothing imported $0.769 billion in May, up 25.2 percent year-on-year. Among them, the import volume of needle woven clothing increased by 31.4, the import volume decreased by 10.8, and the unit price increased by 47.4. The price factor was the main reason for the growth.
From January to May, the cumulative import of textiles and clothing was US $4.33 billion and US $3.88 billion, down 21.8 per cent and 4.1 per cent year-on-year, and the decline in the cumulative import of clothing was 5 percentage points lower than that in January-April. The cumulative import volume of major commodity fabrics increased by 0.56, the cumulative import volume of yarn and needle woven clothing decreased by 13.8 and 26.9 respectively, the unit price of yarn import decreased by 16.5, and the unit price of needle woven clothing increased by 41.1.
5. cotton imports continued to pick up month-on-month, and the price difference between domestic and foreign cotton continued to widen.In May, China's cotton imports were 109000 tons, up 30.3 percent from the previous month and down 40.6 percent from the previous year. The average import price rebounded slightly to US $2300 per ton, down 13.2 per cent year-on-year and up 5.5 per cent month-on-month.
From January to May, my country imported 491000 tons of cotton, a year-on-year decrease of 49.7; the average import price was 2290 US dollars/ton, a decrease of 9.5. Among them, imports from the key import regions of the United States, Brazil and Egypt decreased, and from Australia, Sudan and Turkey achieved rapid growth, increasing from 60% to 208.
Chemical fiber imports and prices continued to fall, with imports falling 17 per cent year-on-year in May and average import prices falling 12.4 per cent year-on-year. Imports fell 18 per cent in the first five months and import prices fell 2.4 per cent.According to the information released by the China Cotton Association, in May, the overall domestic economic operation continued to recover, domestic demand recovered slowly, and the foreign trade market was under pressure. Domestic cotton prices were affected by the expected reduction of cotton production, and cotton prices rose rapidly. On the 24th, China's cotton price index (CCIndex3128B) rose to 16658 yuan/ton, a new annual high; international cotton price fluctuations fell, and the price difference between domestic and foreign cotton widened. On May 31, China's cotton price index (CCIndex3128B) was 16408 yuan/ton, up 3.7 percent from the previous month and down 23.8 percent from the same period last year. The monthly average price was 16365 yuan/ton, up 5 percent from the previous month and down 26 percent from the same period last year. During the same period, the Cotlook A index was 94.2 cents/pound, up 1 percent from the previous month, down 40.2 percent from the same period last year, and the 1% tariff price was 15905 yuan, lower than the domestic cotton price of 503 yuan, an increase of 411 yuan last month.
(Source: China Chamber of Commerce for Import and Export of Textiles)

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