The analysis of economic performance of Chinas cotton textile industry in first half 2010

China's cotton textile industry saw a a slight slump in growth rate of cotton yarn production and cotton cloth production in the first half of 2010 compared to the Jan.-Feb. period 2010, according to data collected from statistics-worthy Chinese textile enterprises surveyed by National Bureau of Statistics of China. Looking further, from January to June, yarn output of the industry reached 10.2131 million tons, up 17.41% from the previous year's period; fabric 23.888 billion metres, up 17.38% year-on-year.

Looking further, Shandong province ranked first in term of yarn output in Jan.-May, followed by Jiangsu and Henan.

 

Zhejiang province ranked first in term of fabric output in Jan.-May, followed by Shandong and Jiangsu.

 

Goods delivered for cotton textiles and cotton garments exports increased by 16.49 per cent to $27.617 billion in the past six months from the year-earlier period. Looking further, from January to June, cotton textiles exports increased by 21.93 per cent to $8.452 billion; cotton garments exports increaseed 14.24 per cent to $19.164 billion.

 

Cotton textile industry saw recovery in both cotton textiles and cotton garments export value in the first half of 2010 owing to the rise of export prices.  

 

Unit: $ 100 million , %
		Total		cotton textiles		cotton garments
		May 2010	y/y change	May 2010	y/y change	May 2010	y/y change
Total value		276.17	16.49	84.52	21.93	191.64	14.24
1	EU	54.73	15.80	6.22	21.29	48.51	15.13
2	USA	44.48	30.08	7.14	34.21	37.34	29.31
3	Japan	36.41	-5.99	4.20	-2.47	32.22	-6.43
4	HK	31.02	8.42	17.38	10.72	13.64	5.62
5	ASEAN	21.50	34.41	14.34	38.09	7.17	27.60

 

As you can see from the table, except for the 5.99 per cent decline in Japanese market, exports to the other destination all experienced a rise. Exports to the United States and ASEAN led the increase.

 

From January to May, accumulated cotton yarn exports increased by 18.63 per cent to 239,900 tons; accumulated cotton fabric exports increased by 24.49 per cent to 2.992 billion metres. Exports of Chinese cotton products showed significant rise in the January-May period owing to the recovery of United States and ASEAN markets.

 

Combed yarn exports accounted for 82 percent market share of cotton yarn exports in May 2010 while export growth of yarn dyed fabric and jean fabric dipped into negative territory.

Although cotton products exports are slowly recovering amid improving economic conditions, Europe's debt crisis and a new round of instability of the United States?? economy will have impact on Chinese textile exports.

 

By the end of May, the accumulated fixed-assets investment in cotton textile and chemical fibre textile manufacturing industry was up 11.14% to CNY 27.60 billion y/y. For new registered projects, the figure in Jan.-May 2010 was 753.

 

Looking further, Eastern region investors have represented 51.1% of all purchases in the past five months in China markets, down 9 percent lower than Q1; Central region investors have represented 38.5% of all purchases in the past five months in China markets, up 8.5 percent highr than Q1; and Western region investors have represented 10.4% of all purchases in the past five months in China markets, up 0.6 percent highr than Q1

 

Looking further into geographical distribution, Henan, Jiangsu and Shandong led the investment. The amount put in cotton textile sectors in Henan, Jiangsu and Shandong were CNY4.74 billion, CNY4.10 billion and CNY 3.71 billion respectively in Jan.-May 2010. Meanwhile, the industry is stepping up its pace to relocate from the eastern coastal areas to the central and western areas for their cheaper labor, better land and energy resources, as well as preferential policies from local governments.