News
News
Textile and garment exports experienced difficult times, how long will the industry recover?
Aug 14,2023
Downward pressure on global external demand continued, while exports in May reappeared "diving" due to insufficient external demand ",Russia and Central Asia as export highlights. From March to April, the export of textile and clothing experienced a brief improvement, with an average export growth of 14.3 in two months, but the foundation of the growth was not firm. After the centralized release of backlog orders at the beginning of the year and the lack of effective recovery of external demand, the export situation of textile and clothing reversed again in May, and the export of that month decreased by double digits, by 13.1.Textile and garment exports are currently facing a difficult climbing stage.
looking at the market,Exports to the four key markets of ASEAN, the United States, the European Union and Japan all declined in the month, and the decline in ASEAN and Japan, which performed well in the previous period, exceeded that of the United States and the European Union, indicating that the demand for clothing end consumer goods in most parts of the world has not recovered.While destocking in developed markets is still going on, demand for intermediate goods is falling at the same time. After 10 rounds of strong interest rate hikes totaling 500 basis points, the U.S. core CPI annualized rate index fell to 5.3 percent in May, still below the level at the end of 2021. After the real interest rate turned positive in June, the Fed suspended interest rate hikes, but there are still two 25 basis point rate hikes expected during the year. The European Central Bank raised interest rates again in June, and the interest rate level has reached the highest point in nearly 20 years. However, the core CPI of the euro zone in May was 5.3, which was still at a high level. The European Central Bank also said that it would continue to raise interest rates in the second half of the year to combat inflation. It will take time for the key markets in the United States and Europe to recover. At present, it is initially expected that there will be a recovery in the second half of the year, but it is still cautious and optimistic.
In contrast to the decline in traditional markets, Russia and Central Asia have become regions with rapid growth in textile and garment exports. In May, China's exports to Russia and the five Central Asian countries increased by 61.4 per cent and 91.5 per cent, respectively, and in the first five months they increased by 45.9 per cent and 61 per cent, respectively, which together gave China's overall exports a positive pull of 2.5 percentage points. The share of our export market rose to 7.4 per cent. However, the market in this region is relatively single and limited in size, and there is still a large gap between the market share of the United States, Europe and Japan, which can not make up for the losses caused by the decline of the traditional market.
The downward trend in the export prices of major commodities is obvious.Since the beginning of the year, the price of textile raw materials has continued to fall. In May, the purchase price index of textile raw materials fell to 95%, and the import prices of cotton and chemical fiber also fell to the levels at the end of 2021 and the beginning of 2022, respectively. Under the combined effect of falling raw material prices and sluggish external demand,In May, textile and garment exports and prices fell, with the export volume and price index of -5.3 per cent and -8.3 per cent, respectively,The export prices of all major commodities fell, and the decline exceeded the level at the beginning of the year.
Trade Data
From January to May 2023, the total import and export value of the country's trade in goods was US $2441.23 billion, down 2.8 per cent from the same period last year (the same below), of which exports were US $1400.35 billion, up 0.3 per cent, imports were US $1040.88 billion, down 6.7 per cent, and the cumulative trade surplus was US $359.47 billion. In May 2023, the total value of imports and exports of the country's trade in goods was US $501.19 billion, down 6.2 per cent from the same period last year (the same below), of which exports were US $283.5 billion, down 7.5 per cent, imports were US $217.69 billion, down 4.5 per cent, and the trade surplus was US $65.81 billion.
From January to May, the trade volume of textiles and clothing was 126.43 billion US dollars, down 5.9 per cent from the same period last year, of which exports were 118.21 billion US dollars, down 5.3 per cent, imports were 8.22 billion US dollars, down 14.4 per cent, and the cumulative trade surplus was 109.99 billion US dollars, down 4.5 per cent.
In May, textile and clothing trade volume 27.09 billion US dollars, down 12.5 per cent year-on-year, of which exports 25.32 billion US dollars, down 13.1 per cent, imports 1.77 billion US dollars, down 2.4 per cent, and the trade surplus for the month was 23.55 billion US dollars, down 13.9 per cent.
Although the first half of the textile and garment industry chain alternating hot and cold, textile and garment exports declined, chemical fiber exports became the only growth, mainly for polyester filament, staple fiber growth.
Yuan Yuan, a senior analyst at Huarui Information, told Caixin News."From January to May this year, polyester filament and staple fiber exports were relatively good, with filament exports up 31% year-on-year and staple fiber up 27%. The reason is that under the influence of BIS certification in India, manufacturers are rushing ahead of schedule, and the influence of this factor is likely to last until June. In addition, large factories are also actively expanding overseas markets this year, and their export performance is obviously better."
The news that India has implemented BIS compulsory certification for polyester filament has been widely circulated in the industry for a long time. At present, the industry believes that POY, FDY and industrial filament will be implemented in July this year. Due to the uncertainty of applying for certification, many manufacturers choose to ship in advance to deal with it.
Disclaimer: where not marked "original" and other words are derived from the network in good faith reproduced, copyright owned by the original author! After being collected and sorted out by the editor, I will share my study with you! If there is infringement, please contact delete.
For professional freight forwarding services are also welcome to contact oh ~
Previous Page:
Make global trade unimpeded
Contact Phone
Contact Us
Copyright ©Guangzhou Hongdex International Logistics Co.,Ltd
Hotline: 020-84608598
Whatsapp: 18027165010
QQ：2853396538
Email: 2853396545@qq.com
We will provide you with timely feedback
