Export growth slowdown from January to April (China)

January to April this year, the economic operation of China’s textile industry overall in slowdown trend, the growth rate of output of major products fell significantly, exports and profits were greatly affected, the textile industry is facing great operating pressure.

The export side, Japan, EU, U.S. textile and garment export growth has slowed down, the market share in the three markets has declined. Among them, export situation to the EU is most serious, growth in exports to the EU was negative in January-March 2012, down 8.14 % year-on-year. According to analysis, the decline in cotton export is the main reason for decline of the textile and apparel export.

With regard to profit, from January to March 2012, profit rate of the whole industry was 4.51%, dropped by 0.66 percentage points over the same period last year, in which the profit of the chemical fiber industry, especially from January to March 2012, the profit rate was 3.01%, fell by 3.03 percentage points over the same period last year.

According to reports, the international market demand is still in the doldrums, sign of pick up is still weak for domestic market, implicated by cotton purchasing and storage policy, the price is still in strong uncertainties. There is big difference between domestic and foreign cotton price. Problems which affect the competitiveness of China’s cotton textile industry chain still exist. It is expected that the industry enterprises will move forward under pressure in the first half of the year.