In June, my country’s foreign trade volume of textiles and apparel was US$33.55 billion, a year-on-year increase of 12.3%. Among them, exports were US$31.55 billion, an increase of 14.1%; imports were US$2.01 billion, a decrease of 9.5%; the trade surplus was US$29.54 billion, an increase of 16.1%. From January to June, my country’s foreign trade volume of textiles and apparel was US$168.23 billion, a year-on-year increase of 9.6%. Among them, exports were US$156.61 billion, an increase of 11.8%; imports were US$11.61 billion, a decrease of 13%; the cumulative trade surplus was US$145 billion, an increase of 14.3%.
In June, driven by the repair of the domestic supply chain and stable external demand, my country’s textile and apparel exports maintained rapid growth. Since most of the backlog of orders has been released in May, export growth in June fell by 6.3 percentage points compared with May. In the second quarter, textile and apparel exports amounted to US$84.37 billion, a year-on-year increase of 12.3%, which exceeded the first quarter (11.2%). Since the fourth quarter of last year, textile and apparel exports have grown for three consecutive quarters, with double-digit growth rates in each case.
ASEAN becomes the largest market
In the first half of the year, my country’s textile and apparel exports to ASEAN, the United States and the European Union all achieved double-digit growth. Among them, the ASEAN market has grown significantly and has become the largest market. The Regional Comprehensive Economic Partnership (RCEP) has achieved remarkable results, and my country’s exports to most member states have increased significantly. The Bangladesh market has risen from 7th to 4th in the single market rankings last year. In the past two years, my country’s textile and clothing exports to Bangladesh have nearly doubled.
In the first half of the year, ASEAN became my country’s largest export market for textiles and apparel. my country’s cumulative textile and apparel exports to ASEAN amounted to US$27.71 billion, accounting for 17.7% of total exports. ASEAN is also the key market with the fastest growth in textile and apparel exports. In the first half of the year, my country’s exports to it grew by 23.4%, a growth rate far exceeding that of the United States, the European Union and Japan. As the COVID-19 epidemic eases, ASEAN’s apparel exports to Europe and the United States continue to expand, and demand for textile intermediates has rebounded. In the first half of the year, my country’s export volume of fabrics, a major category of commodities exported to ASEAN, increased by 24.6% due to rising volume and price. In June, my country’s textile and apparel exports to ASEAN increased by 25% year-on-year, of which fabrics increased by 18%.
Although U.S. consumer demand showed signs of slowing at the end of the second quarter, my country’s textile and apparel exports to the United States achieved rapid growth in the first half of the year. Driven by the increase in export volume and export prices, my country’s total textile and apparel exports to the United States in the first half of the year were US$27.28 billion, a year-on-year increase of 10.9%, of which needle-woven garments increased by 36.7%, and volume and price increased by 21% and 12.9% respectively.
In the month of June, affected by the rising inflation level and high inventory, the consumer demand for clothing in the United States was gradually suppressed, and the growth rate of my country’s knitted and woven clothing exports to the United States fell back to 11%. That month, U.S. clothing store retail sales reached US$25.76 billion, down 0.4% from the previous month and falling for two consecutive months.
Increase in market share of RCEP member countries
In the first two quarters of this year, my country’s textile and apparel exports to the EU grew rapidly. In the first half of the year, stable consumer demand and sharp rise in commodity prices drove my country’s exports to the EU to achieve rapid growth. In the first half of the year, my country’s total textile and apparel exports to the EU were US$23.23 billion, a year-on-year increase of 13.2%, and the growth rate was higher than the global average. Among them, the export volume and price of large categories of knitted and woven clothing increased by 0.8% and 27% respectively, driving export volume to increase by 27.9%.
Since the second quarter, with the EU’s inflation rate rising and the prices of export products rising, my country’s export growth to the EU has exceeded the global growth average every month. Even in April, when the domestic supply chain was greatly affected, my country’s textile and apparel exports to the EU still maintained growth. The growth rates in May and June climbed to 34% and 18.5% respectively. In the second quarter, cumulative exports to the EU increased by 20% year-on-year. .
The Japanese market’s share of my country’s exports continues to decline. In the first half of the year, my country’s cumulative exports to Japan were US$9.03 billion, accounting for 5.8%. Japan’s market share ranking fell behind Vietnam for the first time. Due to the continued sluggish domestic economy and sluggish consumer demand, Japan has become the only key market for negative growth in my country’s exports. In the first half of the year, cumulative exports to Japan fell by 4.5%, among which the export value of large categories of knitted and woven garments fell by 1%, mainly due to the decline in export volume. Caused by 7.7%. However, Japan’s imports have recently recovered. In May and June, my country’s exports to Japan continued to grow, and the growth rate was relatively fast, with an increase of 10.2% in June, of which needle-woven garments increased by 12.3%.
The RCEP Agreement has officially entered into force for more than half a year and has achieved positive results in my country’s international trade in textiles and clothing. In the first half of the year, the trade volume between my country and other member countries increased by 11% year-on-year.
Specifically, from January to June, my country’s cumulative exports to RCEP agreement member states were US$45.57 billion, a year-on-year increase of 13.7%, which exceeded the average growth rate of global exports. Among them, my country’s exports to ASEAN, South Korea and Australia increased by 23.4%, 2.5% and 17.4% respectively. The share of RCEP member countries in my country’s textile and apparel exports increased to 29.1% from 27.6% last year.
Exports of four major categories of commodities maintain growth
In the first half of the year, my country’s textile and clothing exports increased by 11.4% and 12.1% respectively. The export value of major commodities such as yarn, fabrics, woven garments and home textile products increased by 21.4%, 20.2%, 20.5% and 1.4% respectively, driving the overall export growth by 1, 4.4, 8.5 and 0.1 percentage points respectively. , the contribution of clothing is even more prominent.
In June, my country’s textile and clothing exports failed to continue the higher growth momentum in May, and the growth rate slowed down. They increased by 8% and 19.1% year-on-year respectively in that month, and the growth rate was 7.8 and 5.8 percentage points smaller than that in May. . The downward trend in textiles was even more obvious, with exports falling by 3.7% from the previous month.
Judging from the trend of export volume and price, the export volume of the four major categories of commodities, yarn, fabrics, needle-woven clothing and home textiles, all achieved growth in June. Among them, home textile exports showed a rebound momentum, and the export growth rate in that month continued to expand compared with the previous month. The export prices of fabrics and woven garments still maintain an upward trend, while the export prices of yarn and home textiles continue to fall.
Exports in most provinces maintain growth
In the first half of the year, two-thirds of the country’s provinces, autonomous regions and municipalities (excluding Hong Kong, Macao and Taiwan) achieved year-on-year growth in textile and apparel exports. Among the top five key provinces, only Guangdong fell by 1.5%, while Zhejiang, Jiangsu and Shandong each experienced year-on-year growth. 21.9%, 13.7% and 16.1%, the growth rates all reached double digits and were higher than the average. Fujian grew by 9.7% year-on-year. Affected by the COVID-19 epidemic, Shanghai’s textile and apparel exports fell slightly by 0.03% year-on-year. The total exports of textiles and clothing from the three provinces and one city in the Yangtze River Delta increased by 16%.
In June, Shanghai’s textile and apparel exports continued to recover, and the year-on-year growth rate further expanded. The growth rates of other major provinces and cities all shrank compared with the previous month.
In terms of imports, imports from major provinces and cities all declined in the first half of the year, and the decline was significant. Shanghai fell by 6.1%, and the declines in Guangdong, Jiangsu, Zhejiang, and Fujian all exceeded the average.
Clothing imports rebound strongly
In the first half of the year, my country’s textile and clothing imports totaled US$6.65 billion and US$4.96 billion respectively, down 13.1% and 12.7% respectively year-on-year. The cumulative import volume of major categories of commodities such as yarn, fabrics, and needle-woven clothing decreased by 32%, 11%, and 27.7% respectively, and the average import price increased by 20.7%, 6.1%, and 25.8% respectively.
In June, as domestic economic activities resumed, my country’s textile and clothing imports gradually rebounded, and the import decline narrowed to 9.5% that month. The import value of textiles and clothing decreased by 15.1% and 1.5% respectively year-on-year, and the recovery of clothing imports was stronger. Among the major categories of commodities, the import volume of yarn, fabrics and needle-woven garments all declined, with yarn declining the most, down 32% year-on-year. In terms of import prices, except for fabrics, all prices increased. The import price of needle and woven clothing increased the most, reaching 20%.
The price difference between domestic and foreign cotton continues to expand
From January to June, my country’s cumulative cotton import volume was 1.142 million tons, a year-on-year decrease of 26.1%, and the average import price was US$2,560/ton, a year-on-year increase of 40.7%.
Cotton imports slowed down in June, with imports in that month reaching 164,000 tons, falling to the lowest point of the year, down 4.5% year-on-year and 11.4% month-on-month. However, import prices still maintained an upward trend, in clear contrast to the import volume. The average import price that month was US$2,770/ton, a new high for the year, a year-on-year increase of 35.8%. Judging from the trend of cotton futures, it is expected that the price of imported cotton will fall back next month. The proportion of U.S. cotton imports rose rapidly. U.S. cotton imports accounted for 80% of total imports that month, a year-on-year increase of 23.6%. Egypt, Brazil and Benin followed, accounting for 10% of total imports.
In June, my country’s chemical fiber imports continued to rebound, importing 38,000 tons that month, and the year-on-year decline further narrowed to 8.7%, falling below 10% for the first time this year. With international oil prices falling, chemical fiber import prices have fallen slightly from last month, but are still at a high of US$2,690/ton.
According to information released by the China Cotton Association, in June, the Fed’s interest rate hike triggered concerns about economic recession, commodity market prices fell sharply, and domestic and foreign cotton futures and spot prices also fell rapidly. Affected by various factors, domestic textile companies have insufficient new orders, downstream consumption is weak, and lint procurement is cautious. Cotton companies are under increasing pressure to repay loans and are constantly lowering sales quotations. Domestic cotton prices have been under pressure and have declined weakly, hitting a new low this year at the end of the month. During the same period, international cotton prices fell back from highs, but the decline was smaller than domestic prices, and the price gap between domestic and foreign cotton continued to expand.
China’s cotton price index (CC Index 3128B) is 18,369 yuan/ton, a month-on-month decrease of 3,150 yuan; the monthly average price is 20,402 yuan/ton, a month-on-month decrease of 1,720 yuan. China’s imported cotton price index FC IndexM has a monthly average of 154.95 cents/pound, discounted by 1% tariff of RMB 23,619/ton, which is higher than the domestic spot price of RMB 5,250 during the same period.
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