Eurozone Turmoil Affects China'S Textile Foreign Trade: Share Declined By 7%

The impact of European sovereign debt crisis on China's foreign trade will be more serious.

It is expected that in the 5, June, and even the third quarter, the performance will be more obvious, and my export growth to Europe may be down by 6%~7%. "

Huo Jianguo, director of the Research Institute of the Ministry of Commerce, told reporters 18.

Yesterday, in an interview, it was found that the textile enterprises, which had not yet recovered from the financial crisis, would again be hit by the European debt crisis.

However, judging from the current situation, the market believes that this blow will not reduce the entire industry's exports to the level of early 2009.

According to the latest data released by the Ministry of Commerce, in 2009, the total value of imports of textiles and raw materials from the 27 countries of the European Union decreased by 6.2% compared with the same period last year, but still reached 42 billion 832 million US dollars. China has become the largest source country of imported textiles and raw materials from the 27 countries of the European Union, and the amount of textiles and raw materials imported from China accounts for 41.1% of the total value of the EU's imports.

30% order settlement in euros.

The European and American markets have always been the largest export destination of China's textile and clothing industry.

Data from the first textile network show that in recent years, the share of China's textile and clothing exports to Europe has been maintained at around 20% of the total volume.

"In the entire industry's exports, orders settled in US dollars accounted for 70%, and euro settlement accounted for only 30%.

In the textile and clothing exported to the EU, the average settlement in US dollars is 30%. "

Kong Jun, an analyst at CIC, said that from this perspective, the impact of the European debt crisis on the export textile industry will not be as great as the US financial crisis happened.

"Our products are exported to the European market, mainly based on US dollar settlement, and the amount of settlement in the euro is not large."

Jia Xiaobin, deputy general manager of copper cattle group, told reporters.

"Recently, I am super depressed. My clients are all those countries under the debt crisis: Spain and Portugal.

Since March, we have no new orders.

A foreign trader complained about it at the forum.

The euro fell to a four year low against the dollar recently.

The Bank of Paris even said that the euro / dollar is expected to fall to parity in the first quarter of 2011.

For textile enterprises, the export growth of China's textile and clothing reached a low level in the two or three quarter of last year.

In the first 4 months, the export of clothing maintained a growth of 9.5%, reaching $32 billion 200 million, and the export of textile yarns, fabrics and products increased by 26% to $21 billion 600 million.

1 million 100 thousand tons of cotton import quotas issued in the near future

Nevertheless, Kong Jun believes that the fall of the euro caused by the European debt crisis will still have some impact on China's export textile enterprises. It will begin to appear in about 2 months, because the current cycle of contract ordering is generally 2~3 months, and once the price is fixed, it can not be modified.

Many enterprises with competitive products began to prepare for possible shocks in the future.

Jia Xiaobin told reporters that at present, the company is discussing with European customers the issue of product price increase.

Wang Qian, chief analyst of the first textile network, thinks that the depreciation of the euro is on the one hand. Textile companies should pay more attention to the macroeconomic aspects of the European market, such as consumption rate, unemployment rate and so on.

This year, the European market is weaker than the US.

In the first quarter, the average increase in exports to Europe was 16.8%, 5 percentage points lower than that in the US market.

The overseas market strategy report from Galaxy Securities believes that Europe's recovery is still quite fragile compared with the US economy.

The euro zone and EU 27 countries grew by 0.2% in the first quarter of this year.

Greece's economy contracted 0.8% in the first quarter of this year.

Spain's economy grew by 0.1%, ending six consecutive quarters of economic contraction. Portugal's economy grew by 1%, the largest increase in the European Union.

The two euro zone core countries, Germany and France, grew by 0.2% and 0.1% respectively in the first quarter of this year.

The uncertainty of the world economic situation, exchange rate fluctuations, rising domestic manufacturing costs and rising export prices are the biggest concerns of export enterprises this year.

Enterprises reflect that when importing contracts, European importers will also try their best to keep prices down, which will further reduce the profits of our enterprises.

At present, China's textile and clothing exports to Europe are mainly to Germany, France, Italy and other countries, and export enterprises worry that the European debt crisis will further spread to these countries in the future.

Wang Qianjin believes that enterprises need most of the order, followed by reducing cost pressures.

Recently, there is news in the market that the national development and Reform Commission will issue about 1 million 100 thousand tons of cotton import quotas in the near future to ease the pressure of high domestic cotton prices.