China's Textile and Garment Exports May Trend up Further in 2010
Source: ctei Date: 2010-01-19
Textile and garment exports showed positive figures in December, 2009, foreshadowing a promising export market in 2010. China's exports have been on the mend since Q1 2009. According to statistics from the Customs released recently, December textile and garment exports increased 4.48% from the same period a year earlier, the first time the year it turned positive.
Despite China's efforts to expand domestic consumption, textile and garment industry still heavily relies on exports. Based on related data of the market in Jan-Nov, 2009, the exports are estimated to account for more than 25% of its gross production.
As textile and garment exports improve, together with well-performed domestic market, demands for chemical fibers and other raw materials also increased. In 2009, viscose production grew 15.28% year-on-year in 11 months to Nov 2009; spandex production increased 16.57% during the time. As demands ballooned, prices went up too. For example, viscose staple fiber jumped 61.64% from Jan 2009 to Jan 8 2010; polyester fibers rose by 35.58% during the period.
Meanwhile, listed companies had a good performance too in 2009. According to Wind, a China-based financial data provider, chemical fiber industry realized net profit 0.89 billion Yuan in Q3 2009, in contrast with a 1.8 billion Yuan loss in the same period a year earlier. The gross profit was 4.6% in Q1 2009, jumping to 11.3% in Q3 the year.
