Clothing order prices at Canton Fair generally rise

The 115th Canton Fair will close today. Textile and apparel companies, which are the main participants in the third phase of this Canton Fair, generally reported that the merchants attending the fair were not very active, but slightly better than the previous one. The order prices continued to increase, but there was no change. The depreciation of the RMB and the decline in raw material prices led to lower prices. When labor and other costs continued to rise, the price war was unsustainable. Customers could only transfer some mid- to low-end orders to other Asian countries.
Si Shulei, head of the relevant business of the International Business Department of Lu Thai Textile Co., Ltd., said in an interview with reporters yesterday that the company will not lower its quotations due to the recent depreciation of the RMB. Instead, it will increase the quotations of some clothing by 10% at this Canton Fair. Due to the strengthening of design and new fabric research and development, the current order situation in Europe and the United States is okay.
In the past three months, the RMB has continued to depreciate, which has relatively buffered the operating pressure of textile and garment export enterprises. However, due to concerns about the rebound and appreciation of the RMB in the second half of the year, domestic textile and garment exhibitors have tightened their grip on prices and have not made concessions to international buyers in terms of exchange rates. . The business manager of a large state-owned foreign trade company in Shanghai said in an interview with reporters that the company’s quotation at the Canton Fair this time was too high. The current exchange rate is still calculated at 6.1 to reserve a certain profit margin for the future. If the current exchange rate is 6.2 To calculate, exports will be passive in the second half of the year.
“Shanghai has just raised its minimum wage, and labor costs are rising. There is no hope for customers to find bargains here.” said the above-mentioned person in charge.
Hu Lizhang, head of the foreign trade business of Shanghai Litai Import and Export Co., Ltd. of Oriental International Group, also said that due to the high cost of manufacturing textiles and clothing in Shanghai, the company has transferred orders to some foundries in Zhejiang with relatively low quotations for processing, and currently focuses on South China. Customers in emerging markets such as the Americas and Brazil are more active in placing orders. He hopes that the exchange rate can be maintained stably. As long as the RMB does not suddenly rebound and appreciate, exports should develop well in the second half of the year.
Textile industry experts said that China’s textile and apparel export growth in the first quarter was worse than expected, which is partly related to last year’s export data being watery and with a large base. At present, the European and American economies have improved, and the price difference between domestic and foreign cotton has narrowed. Exports in the second quarter should gradually return to the normal track. It is expected that China’s textile and clothing exports will increase by 5% to 10% this year.
“China’s textile and apparel export base is large, accounting for about 35% to 40% of the global market share. This year’s textile and apparel exports are expected to exceed US$300 billion, while Vietnam and India are at the level of US$20 billion and US$30 billion respectively. Even if some The transfer of mid- to low-end orders will not be able to shake the current global textile and apparel landscape in a short period of time.”