Knitting Industry: Production And Sales Continued To Grow By &Nbsp; Exports May Drop.

　　 2010 1~8 months, China Knitting industry The gross industrial output is still growing rapidly, with a sales rate of 96.69%. Fixed asset investment has increased rapidly and exports have continued to rise. At the same time, the external pressure of enterprises is also increasing. Raw material Price increases are difficult to conduct downstream, labor costs rise and RMB Appreciation and many other unfavorable factors make the road for the coming year very rough. It is expected that the export growth of the knitting industry will gradually slow down, and it may still fall down next year.

Production and marketing accelerated

In 2010 1~8, China's knitting industry achieved a gross industrial product (current price) of 286 billion 239 million yuan, an increase of 28.22% over the same period last year, a 15.21 percentage point increase from last year, and a total sales value of 276 billion 779 million yuan, up 22.31% over the same period last year, an increase of 15.57 percentage points over the same period last year, and a new growth rate since 2008. Production and marketing rate is 96.69%, production and marketing link smoothly. (see chart 1)

In 1~8 months, China's clothing production showed a trend of faster growth and faster growth, and the growth rate of knitted garments exceeded that of woven garments in the second quarter. As at August, the growth rate of knitted apparel was 1.36 percentage points higher than that of the weaving industry. (see chart two)

In 1~8 months, the cumulative output of knitted garments in China was 10 billion 53 million, an increase of 18.84 percentage points over the same period last year, and the growth rate was higher than that of garments and woven garments.

The proportion of knitted garments produced in the top ten provinces accounted for 93.95% of the total volume of the country. Besides Jiangxi and Shanghai, other provinces and cities all showed two digit growth rate, of which Guangdong accounted for more than 1/4 of production.

The eastern region, as the main producer of knitted garments in China, has a cumulative output of 8 billion 918 million yuan in 1~8 months, accounting for 88.72% of the total output of the country, representing a 22.72 percentage point increase over the same period last year. The output of knitted garments in the western region is 93 million, which is faster than that in the eastern and central regions, which has increased by 129.75 percentage points over the same period last year. Guangxi's output grew faster, increased by 93.49% compared to the same period last year. The growth rate in the central region slowed down and the output was 1 billion 41 million, up 1.27% over the same period. The growth rate in Heilongjiang was obviously increased by 132.20 percentage points over the same period last year. (see chart three)

With the support of domestic consumption demand growth, the domestic sales value of the knitting industry has also realized the momentum of sustained and rapid growth. 1~8 months, knitting enterprises of above scale achieved 180 billion 164 million yuan of domestic sales value, an increase of 23.20% over the same period, accounting for 65.09% of the total sales value. (see chart four)

In 1~8 months, the fixed assets investment in the knitting industry actually completed 15 billion 204 million yuan, an increase of 28.84% over the same period last year, an increase of 17.4 percentage points compared to the same period last year, and 811 new construction projects, an increase of 15.36% over the same period last year, a 8.6 percentage point increase over the same period last year.

Exports continue to grow

The total amount of export of knitted garments and accessories in China reached US $40 billion 985 million in 1~8 months, an increase of 24.67% over the same period last year, and the growth rate increased by 36.25 percentage points over the same period last year. From 2006 to now, the total export volume and growth rate of the knitting industry has been higher than that of the weaving industry. In 1~8 months, the total export volume was 5.65% and 13.14% higher than that of the garment industry and the weaving industry respectively.

The target market of knitted apparel exports in the first 5 months of 1~8 months accounted for 46.09% of the total export volume; the US and Japan remained the most important exporters; Kazakhstan's import increments remained relatively fast.

From the average export price, Kazakhstan is the highest and the US average price has dropped by 2.65% compared with the same period last year.

Exports of knitted apparel and accessories in the first ten provinces and cities in China in 1~8 months showed a two digit growth rate, especially in Sichuan Province, where exports grew strongly this year and maintained a three digit growth rate.

In 1~8 months, China exported 13 billion 469 million knitted garments to the world, an increase of 17.75% over the previous year, totaling 35 billion 415 million US dollars, up 25.48% over the same period last year.

Cotton knitted apparel, which accounts for more than half of the export of knitted garments, exports 7 billion 178 million pieces, which is 1.74 percentage points higher than that of knitted garments, and a smaller decline in the export of wool knitted garments. The average export price of the three kinds of knitted garments has increased slightly, while the wool knitted apparel has the largest increase (24.73%).

The export of knitted garments to all continents in 1~8 months was good, with the volume and the amount increased. Latin America grew the fastest year by year, while Asia and Oceania fell by 3.47% and 0.12% respectively compared with the same period last year.

China's total exports of knitted fabrics to the world amounted to US $5 billion 756 million in 1~8 months, an increase of 39.66% over the same period last year. Besides the average export price of warp knitted fabrics by 13.54%, the average export price of other fabrics remained unchanged or increased slightly.

Improvement of profitability

1~8 month, the knitting industry realized the output value of new products (current price) 18 billion 189 million yuan, an increase of 58.26% over the same period last year, and labor productivity (current price output value was 316 thousand and 300 yuan / person, up 21.48% over the same period last year).

The three fee ratio is 6.49%, which is 0.27 percentage points lower than that of the same period last year, indicating that the overall management level of the industry has improved, but slightly higher than that of the textile industry.

1~8 realized a total profit of 11 billion 262 million yuan, an increase of 29.18% over the same period last year, with a profit margin of 4.15%, which is slightly below the level of the textile industry.

The operating capacity of the industry has improved, and the turnover rate of finished products in 1~8 has reached 18.24%, up 19.91 percentage points compared with the same period last year, and the asset turnover rate was 1.38%, a slight increase over the same period last year.

The economic indicators of silk knitwear are generally better than those of other knitwear and the whole knitting industry.

The growth rate of all employees in the knitting industry decreased from 2005 to the lowest level at the end of 2008 (-2.7%). After that, the growth rate of the knitting industry started to rise, and the positive growth was achieved in February 2010.

Increased external pressure

Since the beginning of this year, domestic seed cotton purchasing prices have steadily risen, pushing up sales prices of raw materials such as cotton and cotton yarns, increasing pressure from cotton enterprises, and downward conduction of costs, making their bearing capacity exceed the upper limit.

In recent years, China has adopted a tight macroeconomic regulation and control policy. For instance, the central bank raised the benchmark interest rate for RMB deposits and loans of financial institutions for 0.25 times after 3 years in October 20th. In addition, the RMB is facing the greatest pressure of appreciation, and the world economy is also facing many unfavorable factors.

Combined with the above factors, the export growth of the knitting industry will gradually slow down, and next year it will probably fall back.

In terms of raw material prices, cotton prices have continued to rise since 2010, the highest in 10 years. As of October 12th, the cotton (328) price index was 23485 yuan / ton, up 76.60% over the same period last year.

The price of cotton yarn has been on the rise since 2010. After the National Day holiday, the price of 16S, 32S and 40S increased by 5000 yuan, 10000 yuan and 10000 yuan respectively compared with the beginning of the year, which brought great pressure to downstream enterprises.

Affected by the rising price of raw materials, the export of knitted garments began to slow down in July, and the export volume decreased by 0.64 percentage points in August.

In 2010, the labor cost of China's manufacturing industry was generally on the rise. At the same time, the labor cost of knitting enterprises increased by 20% as a result of labor shortage. As a labor-intensive industry, the average profit margin of knitted garment enterprises was only around 3%, and some even lower than 3%. The cost of investment in land, water, coal, electricity, oil and other resources and energy is also increasing.

In terms of exchange rate, the latest data from China Foreign Exchange Trading Center show that in the past 4 months from June 19th to October 14th, the yuan rose 1693 basis points against the US dollar and appreciated 2.48%. In the future, the probability of RMB appreciation is still very high, which will bring greater adverse effects to the export oriented industry.