Second Half Of The Textile And Garment Industry, Many Factors Continue To Grow High

In the first half of this year, in the context of the global economic recovery, the export of textile and garment industry has produced a good report card.

Data show that textile and garment exports in June totaled $18 billion 665 million, up 33.83% over the same period last year.

According to the classification, textile exports increased by 44.43% compared to the same period last year, and clothing exports increased by 28.07% over the same period last year.

In the first half of this year, China's textile and apparel exports totaled 88 billion 878 million US dollars, up 22.04% over the same period last year.

Among them, the total exports of textiles amounted to 35 billion 652 million US dollars, and clothing exports totaled 53 billion 226 million US dollars, up 32.31% and 16.02% respectively. The export volume increased considerably and exceeded the same level in 2008.

Kong Jun, an analyst with CIC securities, believes that the driving force of textile and clothing export growth in the first half of this year comes from two factors: first, the global economy is recovering, and demand is picking up gradually; two, the price of export products is rising.

"There are many uncertainties in China's textile and garment export in the second half of this year."

First, textile industry analyst Dai Ling analyzed that the global economy, especially the European economy, has not yet stabilized, and the cost of raw materials has been rising steadily.

From the perspective of export orders, customers in the European market with a higher bid price have been significantly reduced, while the US market is still placing orders, but the bid is lower and the order is not stable.

Wu Xiaoyu, an analyst at Xiangcai securities, also said that although the export growth of textile and garment industry exceeded the expectation of most people in June, such rapid growth does not have sustainability. The continuous rise of raw material prices and labor costs will continue to squeeze the profitability of export enterprises.

In the face of rising costs, the low cost advantage of the Chinese market is not obvious enough, and textile orders are gradually showing signs of shifting to Southeast Asian countries.

In addition, analysts also believe that after the central bank's resumption of RMB exchange rate reform, the renminbi appreciation expectation is further enhanced, which will further weaken the competitiveness of the entire textile and garment export industry and accelerate the pfer of foreign orders to India, Bangladesh, Vietnam and other low-cost countries.

Dai Lin predicts that the overall trend of China's textile and clothing exports this year will show a trend of high and low. The growth rate of textile and garment exports in the second half of this year will probably fluctuate around 10%.