Textile And Garment Industry's Prospects For Export Rebound

　 　 cotton Narrowing of internal and external spreads

Because most of the domestic cotton resources are imported into the country, there is not much market circulation resources, resulting in domestic cotton prices still rising slightly. According to the data released by the China Cotton Association, as of March 9th, the total amount of storage and storage of China's cotton reserves was 6 million 315 thousand and 700 tons this year, and the total amount of dumping and storage was 680 thousand and 800 tons, and the average price of 328 grade cotton spot conversion was 19171 yuan / ton, slightly lower than the market price.

While domestic cotton prices have slowed down, the international cotton prices have continued to rise in recent years, mainly due to the increase in global cotton consumption in 2013 and the reduction of cotton stocks. The rise in international cotton prices has led to the continued narrowing of the domestic and foreign cotton prices. On the one hand, the domestic cotton prices have been reduced. On the other hand, the cost of domestic cotton imports has also been further reduced.

　 　 Textile and clothing Export recovery

According to the data released by the General Administration of customs, China's textile and apparel exports totaled 41 billion 167 million US dollars in 1-2 months, up 31.87% from the same period last year, but negative growth in the same period last year. Among them, the export of textiles was US $15 billion 68 million, an increase of 26.26% over the same period last year, and exports of clothing and accessories reached US $26 billion 99 million, an increase of 35.34% over the same period last year.

Analysts say that the latest PMI in Europe has reached the highest level in a year, and PMI in the US has continued to rise, hitting a new high since June 2011. The consumer confidence index is better than expected, and China's main export markets perform well, which is the main reason for the sharp increase in textile and clothing exports.

At the same time, a brokerage industry analyst said that the good performance of China's foreign trade in 1 and February was not a flash in the pan. It is expected that the recovery trend of the export market will continue. According to the findings of the General Administration of customs, the proportion of pessimistic enterprises exporting to the next 2-3 months has dropped to 39.6%, down 1.3% from last month, the first time since the survey began in 2012, it was lower than 40%.

Performance improvement is worth looking forward to.

The improvement of exports has also been reflected in the level of listed companies. Baron East (601339, stock bar) is the domestic high-end. Colored spun yarn One of the duopoly enterprises in the field, one of its staff members, said that the new capacity could basically be digested if the export was further determined. In recent years, domestic and foreign cotton price difference has narrowed trend, which is conducive to improving the competitiveness of the company's products. The company's orders are expected to improve significantly in the first quarter of this year.

Further statistics show that in the industry classification of Shen Wan, 14 textile and apparel listed companies expect annual growth of over 50% in 2012. Zhejiang's rich (600070, stock bar) and Huafang textile (600273, stock bar) are expected to increase net profit by 100%. "From the standpoint of performance, considering that the difference between domestic and foreign cotton prices is shrinking, production enterprises should be the first to improve." Galaxy apparel textile and apparel analyst Mari said that the performance of brand clothing needs to be confirmed by the revival of terminal demand.