Quarterly overview of my country’s textile and apparel trade

In March 2015, the total import and export value of national trade in goods was US$286.06 billion, a year-on-year decrease of 13.8%. Among them, exports were US$144.57 billion, down 15%; imports were US$141.49 billion, down 12.7%. The trade surplus for the month was US$3.08 billion. From January to March, the total import and export value of national trade in goods totaled US$904.17 billion, a decrease of 6.3%, of which exports were US$513.93 billion, an increase of 4.7%, and imports were US$390.23 billion, a decrease of 17.6%.
​Export
Exports fluctuated violently in each month of the first quarter
In March, the textile and apparel trade volume was US$15.01 billion, a decrease of 28.3%, of which exports were US$12.56 billion, a decrease of 32.6%, and imports were US$2.44 billion, an increase of 7.2%. The trade surplus for the month was US$10.12 billion, a decrease of 38.1%. From January to March, the cumulative trade volume of textiles and clothing was US$65.82 billion, an increase of 2.3%, of which exports were US$59.78 billion, an increase of 2.8%, and imports were US$6.04 billion, a decrease of 3.1%. The cumulative trade surplus was US$53.74 billion, an increase of 3.5%.
Textile and apparel exports fluctuated violently in each month of the first quarter, with sharp increases and decreases year-on-year. Monthly exports have seen a month-by-month decrease that has rarely been seen in recent years. In March, exports were only US$12.56 billion, the lowest in the same period in the past five years. The decline in that month was as high as 32.6%. At the same time, in March, the proportion of textile and clothing exports in the country’s total export value of goods trade fell below 10% for the first time, to 8.7%. In the first quarter, cumulative exports increased by only 2.8%, and imports fell by 3.1%, which was significantly different from expectations at the beginning of the year.
​Three major reasons for the decline
There are three main reasons for the sharp decline in exports in March: First, the economic recovery of the world’s major economies is still unstable, the downward pressure on the domestic economy has increased, the comprehensive cost of exports has been high, reducing competitiveness, and orders have decreased; secondly, , the influence of the Spring Festival still exists. This year’s lunar month falls on March 5, and the workers’ resumption of work after the holiday is delayed, which is bound to have a certain reduction in production and exports that month; finally, exports to the EU and Japan are partly affected by the euro, The impact of the depreciation of the yen. In March, the exchange rate of the euro against the renminbi experienced another sharp decline. In the middle of the month, the exchange rate of 1 euro against the renminbi once fell below 6.6, depreciating 3.3% during the month. The exchange rate of the yen against the RMB rose once at the beginning of the year, but has fallen again since mid-to-late February. In mid-March, the exchange rate of 100 yen against the RMB once fell below 5.1.
Based on the performance in the first quarter, both the General Administration of Customs and the Ministry of Commerce stated that they will further introduce measures to stabilize foreign trade and promote growth, which will help achieve sustainable growth in exports. However, whether market demand will pick up or not is uncontrollable, and coupled with the large base in the same period last year, exports in the second quarter are still full of uncertainty.
​Processing trade import and export both dropped
In March, general trade exports amounted to US$8.7 billion, a decrease of 36.3%, a decline greater than that of processing trade and small border trade.
In the first quarter, the cumulative exports of general trade were US$45.15 billion, accounting for 75.5% of total exports, a year-on-year increase of 3.6%; the cumulative exports of processing trade were US$7.79 billion, a decrease of 13.5%; the exports of small-scale border trade were US$3.21 billion, an increase of 3.8%.
In terms of imports, general trade increased by 6.8% and processing trade decreased by 15.6%.
Exports to Europe declined rapidly
Affected by currency depreciation and the slowdown in the economic recovery of major economies, the economic prospects of the European Union, the largest market for my country’s textiles and apparel, remain unclear. Major international institutions have lowered their economic growth forecasts for the EU and the Eurozone. my country’s exports to the EU have Uncertainty has once again intensified, and export fluctuations have increased. In March, my country’s exports to the EU were only US$1.71 billion, a decrease of 42.3%, the fastest decline among major markets. In the first quarter, cumulative exports to the EU were US$11.02 billion, down 0.6%, of which textiles fell by 3.7% and clothing increased by 0.5%. The total export volume of key commodities needle and woven garments was basically the same, and the average export unit price increased slightly by 0.3%.
Cumulative exports to the United States have grown rapidly
In March, my country’s exports to the United States were US$1.84 billion, down 26.5%, of which textiles and clothing dropped 18.8% and 29.8% respectively. In the first quarter, cumulative exports to the United States were US$9.25 billion, an increase of 10.7%, of which textiles increased by 15.4% and clothing increased by 8.9%. The total export volume of needle and woven clothing for major categories of commodities increased by 12.1%, and the average export unit price decreased by 3.2%.
The decline in ASEAN is relatively slow
In March, my country’s exports to ASEAN were US$2.33 billion, down 19.6%, the smallest decline among major markets. In the first quarter, cumulative exports to ASEAN were US$8.27 billion, an increase of 13.6%, of which textiles increased by 13.7% and clothing increased by 13.5%. Major categories of fabrics increased by 15.7%, finished products increased by 18.6%, yarns decreased by 9.5%, the total export volume of needle and woven garments increased by 7.8%, and the export unit price increased by 3.3%.
ASEAN’s ranking in my country’s export market has further improved, having already surpassed Japan and gradually approaching the United States, with its export share reaching 13.8%. It can be said that ASEAN is no longer an “emerging market” for my country’s textile and apparel exports but has transformed into a “key market”. Among them, Vietnam has surpassed Hong Kong, China, and ranked third in my country’s export market (sorted by individual countries/regions).
Cumulative exports to Japan fell by nearly 10%
Since last year, exports to Japan have continued to decline. In the first quarter of this year, exports to Japan have still not improved. In March, exports fell by 31.5%, second only to the EU. In the first quarter, cumulative exports to Japan were US$5.05 billion, down 10%. Among them, clothing, which accounted for the main share, fell by 9.7%. The total export volume of needle and woven clothing fell by 12%, but the average unit price of exports maintained a growth of 2.2%.
Knitted garments dropped significantly in March
In March, both textile and clothing exports fell rapidly, with declines of 31.6% and 34.7% respectively. Among key commodities, fabrics, finished products and knitted and woven garments have become the “hardest hit areas” in terms of decline, with declines of more than 30%. The decline in fabrics and finished products was due to a decrease in export volume, while both volume and price of needle-knitted and woven garments fell.
In the first quarter, the cumulative exports of textiles were US$23.99 billion, an increase of 4.1%, and the exports of clothing were US$35.79 billion, an increase of 2%. Exports of fabrics and finished products, key commodities in textiles, increased by 5.2% and 5.7% respectively. Yarn fell by 5.2% due to a decrease in the average export unit price. The total export volume of clothing needlework and woven clothing increased by 2.4%, and the average export price dropped slightly by 0.8%. . The exports of knitted garments and woven garments showed differences. The export volume and price of knitted garments all declined, while the export volume of woven garments still maintained rapid growth.
Exports declined in most regions, while Guangxi maintained growth
In March, the exports of most provinces (municipalities and districts) across the country fell. The key export provinces and cities in the Yangtze River Delta region, Zhejiang, Jiangsu and Shanghai, all experienced declines of more than 30%. Guangdong fell by 15%, and the decline was relatively slow. Guangxi stands out. Relying on the ASEAN market and through small-scale border trade, Guangxi achieved rapid and balanced growth in each month of the first quarter. The growth rates from January to March were 46.8%, 50.1% and 50% respectively.
In the first quarter, only one-third of the country’s provinces (cities, districts) achieved cumulative export growth, and the differences in export increases and decreases between the central and western regions were still large. Key export provinces and cities Zhejiang increased by 6%, Guangdong increased by 15.3%, Jiangsu decreased by 1.1%, Fujian increased by 6.4%, and Shandong decreased by 9.5%. Guangxi grew by 49%.
​Cumulative imports of textiles decline
In March, both textile and clothing imports achieved growth, and clothing imports grew faster, reaching 24.4%, exceeding the 2.6% of textiles.
In the first quarter, the cumulative imports of textiles and clothing were US$4.5 billion and US$1.54 billion respectively. Textiles, which accounted for 75% of the import volume, fell by 6.3%, dragging down the overall import of textiles and clothing by 3.1%; clothing increased by 7.9%. Imports of yarn, fabrics and finished products, the main commodities in textiles, all dropped by 0.8%, 14.4% and 5.8% respectively, and the unit prices of imports all fell. A total of 140 million pieces (sets) of knitted and woven clothing were imported, an increase of 20%, and the average unit price of imports fell by 9.1%.
​Import
Cotton imports are decreasing month by month
Cotton imports are decreasing month by month. In March, only 128,000 tons were imported, a year-on-year and month-on-month decrease of 42.4% and 19.5% respectively. The average unit price of imports dropped by 16%. From January to March, the cumulative import volume was 448,000 tons, a decrease of 41%, and the average unit price of imports decreased by 15.7%.
In March, with the rebound in cotton consumption in the market, domestic spot prices rose steadily. As the overall textile market is still sluggish, manufacturers are shipping slowly and purchasing raw materials more cautiously, and the market as a whole has not shown much improvement. During the same period, the international cotton market lacked positive support and mainly oscillated downward. In March, the average monthly transaction price of the China Cotton Price Index (CCIndex3128B) was 13,465 yuan/ton, a month-on-month increase of 20 yuan/ton, or 0.1%; a year-on-year decrease of 5,975 yuan/ton, or 31%.
The monthly average price of China’s imported cotton price index (FCIndexM) was 69.59 cents/pound, a month-on-month decrease of 1.22 cents. The 1% tariff is discounted to RMB 10,978/ton, which is RMB 2,487 lower than the Chinese cotton price index in the same period; the sliding tax is discounted to RMB 13,539/ton, which is RMB 74 higher than the Chinese cotton price index in the same period.