In this article we have analysed the export performance of Chinese main home textile products, including bedding products, carpet, curtain and towel based on official export data during the first eight months of 2010.
Let's first look at the background. The growth in China's manufacturing sector rebounded in August after falling three months in a row on the back of increasing orders, according to the data released by the China Federation of Logistics and Purchasing (CFLP). China's purchasing managers index rose to 53.1 in August from 51.2 in July. PMI readings above 50.0 signal expansion in manufacturing sector activity, while readings below 50.0 signal contraction. The further the index above or below 50, the faster the expansion or contraction in the sector. The results showed that companies remained fairly positive about their overall operating conditions.
Exports of main home textiles surged
Bedding products: during the first eight months of the year 2010, China bedding products export amounted to 1.155 billion pieces ($2.403 billion), up 34.85 percent (32.28%) y/y. Looking further, from January to August, the export of cotton bedding products amounted to 365 million pieces ($1.382 billion), posted 19.8 per cent (23.35%) increase from the previous year's period. The price was up 2.99% y/y; The export of chemical fiber bedding products amounted to 767 million pieces ($960 million), up 42.78% (46.77%) y/y. The price was up 2.46%; The export volume of linen bedding products amounted to 1.45 million pieces ($12.90 million), up 68.61% (50.81%) y/y. The price was down 10.57%; The export volume of silk bedding products amounted to 810,000 pieces ($7.88 million), up 16.32% (35.87%) y/y. The price was up 16.79%.
Carpet: According to data surveyed by China Customs, from January to August, China carpet export amounted to 364,300 tons ($1.230 billion), up 42.13 per cent (32.7%) from the previous year's period. The price was down 3.16%.
Curtain: From January to August, China curtain export was valued at about $1.275 billion (365 million pieces), up 20.96 per cent (20.74%) from the previous year's period. The price edged up 0.29%.
Towel: From January to August, China towel export was valued at about $805 billion (373 million pieces), up 32.57 per cent (23.96%) from the previous year's period. The price was inching up 6.93 per cent which shows the added value is improved.
Table textiles: From January to August, China table textiles were valued at about $407 million (497 million pieces), up 23.55 per cent (40.1%) from the previous year's period. The price was down 11.93%.
Decorative textiles: Decorative textiles include bedspread and decorative products. From January to August, bedspread export was valued at about $221 million (59.47 million pieces), up 26.48 per cent (24.03%) from the previous year's period. The price edged up 1.92%; decorative products export was valued at about $827 million (130,000 million pieces), up 30.54 per cent (42.22%) from the previous year's period. The price was down 8.24%.
Concentrated export market
The export destination of China��s home textile products are considered to be highly concentrated. This is reflected by the statistical data of the past couple of years when, the top export destination of the following products - bedding products, curtain and towel- is United States. Unfortunately, owing to the global economic crisis, the quantities of export that we saw two years ago are not there. In this regard, China home textile industry should reduce its reliance on the single export market and diversify export markets. Otherwise, Chinese factories have to continue to adapt or close down while they wait to see if Americans will reopen their wallets.
Table 1. Top 5 export destinations of Chinese home textile
|
bedding products |
table textiles
|
carpet |
decorative textiles |
curtain |
Towels (cotton bath towels) |
|
the United States |
the United States |
the United States |
the United States |
the United States |
the United States |
|
Japan |
Germany |
Japan |
Japan |
Japan |
Japan |
|
Kazakhstan |
Kazakhstan |
India |
Germany |
UK |
Russia |
|
UK |
Italy |
Germany |
UK |
Germany |
Kirghizia |
|
Australia |
Japan |
Australia |
Russia |
France |
Chile |
Source: Statistics Centre
Main competitors-India and Pakistan
Indiaand Pakistan have been seen as main competitors of China. When China by reducing Clothing Textile Export tax rebate rate in order to stabilize the huge trade surplus figures, the Indian government has raised its export tax rebate related products. Perhaps the real threat to China's textile industry does not come from anti-dumping brought down profit margins, but are rivals. India and Pakistan textile alternative status is gradually revealed.
When we look at the 2nd table, we see from January to August, Indiaand Pakistan's home textiles market share in the United Statesis likely to touch China��s.
Table 2. India, Pakistan and China's home textiles market share in the United States in Jan. �C Aug. 2010 (%)
|
Product |
China |
Inida |
Pakistan | |||
|
quantity |
value |
quantity |
value |
quantity |
value | |
|
Cotton pillowslip |
32.69 |
28.94 |
25.12 |
36.95 |
28.58 |
20.11 |
|
Cotton bedsheet |
30.62 |
29.89 |
32.27 |
31.88 |
23.09 |
27.96 |
|
Cotton bedspread & quilt |
40.56 |
57.25 |
4.18 |
7.83 |
46.54 |
21.42 |
|
Cotton towel |
21.83 |
27.55 |
21.15 |
29.67 |
34.09 |
22.60 |
|
Cotton carpet |
18.44 |
14.77 |
51.59 |
41.66 |
2.59 |
8.95 |
Source: ChinaCustoms
The export of India��s home textiles had gone up considerably in the past years. India occupied the second position next only to China that supplied synthetic materials besides cotton. India occupied number one slot in exports until a few years ago. The US market is dependent on low-cost manufactures in India, China and Pakistan for their needs.
One more thing, although export orders bring good back to Chinese home textile mills this year, an unrelenting rise in the cost of raw materials and yuan appreciation pulled down the profit of Chinese home textile industry.
