A Survey Of China'S Foreign Trade In Textiles And Clothing In July

China's textile and clothing exports slowed down in July, but still within the expected range. In July, repeated outbreaks and rare large-scale rainstorms and floods in China were detrimental to domestic consumption and service industry, and a number of economic indicators showed a slowdown. In the case of no significant improvement in overseas epidemic prevention and control, superimposed on the high base effect, the growth rate of China's goods trade exports dropped in the month, while imports fell month on month. In March, the export of textile and clothing showed a negative growth year-on-year, but the deceleration rate did not exceed the expectation. The export of traditional commodities still maintained the double growth year-on-year and with the same period in 2019, and the tone of overall foreign trade repair did not waver.

Textile drives monthly export decline

From January to July, China's textile and clothing trade volume was 188.4 billion US dollars, with a year-on-year increase of 9.7%, and an increase of 13.5% compared with the same period in 2019. Among them, the export was 172.31 billion US dollars, an increase of 8.5%, 13.7% compared with the same period in 2019; Imports were US $16.09 billion, an increase of 24.4%, an increase of 11.6% compared with the same period in 2019. The cumulative trade surplus was 156.22 billion US dollars, an increase of 7%, and an increase of 13.9% over the same period of 2019. In July, China's textile and clothing trade volume was US $31.31 billion, a year-on-year decrease of 7.3%, an increase of 5.1% over the same period in 2019, and a month on month increase of 2.5%. Among them, exports amounted to US $28.91 billion, down 8.9%, up 5.2% over the same period in 2019 and 2.2% on a month on month basis; Imports were $2.39 billion, up 18%, 2.6% and 4.8% respectively over the same period in 2019. The trade surplus of the month was 26.52 billion US dollars, down 10.7%, increased by 5.5% compared with the same period in 2019, and increased by 2% month on month.

In the first month of the third quarter, the export volume continued to rise, reaching US $28.91 billion, an increase of 2.2% compared with the previous month. However, it decreased continuously in March on a year-on-year basis, which was mainly caused by the reduction of textile export. The textile export decreased by 26.2% and 6.6% respectively on the same and month on month basis, and the clothing export still maintained the growth of 8.8% and 9.3%.

Exports to key markets fluctuated downward

According to the statistics of the General Administration of customs, in July, China's exports to the four major markets of the United States, the European Union, Japan and ASEAN all experienced a slowdown or a larger decline, but the fluctuation was not more than expected. Among them, the cumulative export to the United States and ASEAN still maintained growth, while the export performance to the European Union and Japan was slightly worse.

The overall fluctuation of the U.S. market was not significant. In July, exports fell by 17.5%, only 2% more than that in June. The cumulative export to the United States still maintained an increase. From January to July, the export to the United States was US $30.78 billion, up 5.9% year-on-year and 16.5% higher than that of the same period in 2019. Among them, knitted and woven garments increased by 43.4%, down 3.7% compared with the same period in 2019.

ASEAN remains the fastest growing market. Affected by the base number, the growth rate of exports to ASEAN in July decreased compared with the previous period, and only increased by 2.7% in the same month. From January to July, China's textile and clothing exports to ASEAN increased by 30% year on year, the fastest growth among the four major markets. It is 22.7% higher than the same period in 2019. Among them, yarn and fabric of key commodities increased by 34.4% year-on-year, 6.6% higher than that in 2019. According to the import data of the three major markets, the cumulative imports from China all showed negative growth, mainly due to the decline of epidemic prevention materials. Recently, due to the impact of the new wave of epidemic, Vietnam, Cambodia, Myanmar and other ASEAN countries have been under started, and a large number of orders have returned to China. It is expected that the import data of key markets in July and August will reverse, and China's share will rise slightly.

Exports to EU's key commodities in a single month are showing negative growth. In July, China's export of knitted and woven garments to the EU's key commodities fell by 1.8%, the first decline since February. From January to July, China's textile and clothing exports to EU reached 26.16 billion US dollars, a year-on-year decrease of 20.4%, and an increase of 11.4% over the same period in 2019. Among them, the export of knitted and woven garments increased by 17.4%, 0.7% compared with that in 2019.

The Japanese market lacks growth momentum, and the downward trend of exports to Japan continues. From January to July, China's textile and clothing exports to Japan decreased by 8.9% year-on-year, and increased by 3.4% compared with the same period in 2019. Among them, the key commodities of knitted and woven clothing increased by 7.5% year-on-year, 7.3% lower than that in 2019.

EU, US and Japan import to China

According to the statistics of Eurostat, from January to may, 27 EU countries imported US $52.93 billion in textiles and clothing, a year-on-year decrease of 1%. Among them, imports from China decreased by 27.6%, accounting for 32.2% of the total, down from the same period in 2020, but still higher than that in the same period in 2019. Among them, textiles accounted for 42.3% and clothing accounted for 27.9%, both lower than in 2020, but higher than the same period in 2019. ASEAN's market position has been further improved. EU's textile and clothing imports from ASEAN increased by 37.8%, accounting for 13.3%, both higher than those in the previous two years.

According to the statistics of the US Department of Commerce, from January to June, US imports from the world reached US $65.11 billion, an increase of 21.8%, while imports from China decreased by 1.2%. China accounted for 30.3%, higher than the same period in 2020 and lower than that in the same period in 2019. Among them, textiles accounted for 36.6%, lower than the same period in 2019 and 2020, and clothing accounted for 27.9%, higher than that in the same period in 2020 and lower than that in the same period in 2019. The import of textiles and clothing from ASEAN increased by 36.7%, accounting for 25.7%, both higher than the previous two years.

According to the statistics of Japan's Ministry of finance, from January to June, Japan's import from the world dropped by 5.9%, while the import from China decreased by 13.3%. China accounted for 54.9%, which was lower than that in the same period of 2020, but higher than that in the same period of 2019. The proportion of textiles accounted for 57.5%, lower than that in the same period in 2020 and higher than that in the same period in 2019; Clothing accounted for 53.9%, both lower than the same period in 2020 and 2019. The import of textiles and clothing from ASEAN increased by 4.1%, accounting for 29.6%, both higher than the previous two years.

Export growth of major commodities slowed down

In July, due to the enlargement of the year-on-year base, the export growth slowed down compared with the previous period. For the first time since February, the monthly export growth of clothing fell below 10% (8.8%), and the decline of textiles expanded to 26%. The repeated global epidemic situation temporarily suspended the monthly reduction of the export of pre epidemic prevention materials. The total export of masks and protective clothing rose by 3.8% month on month.

From January to July, the cumulative export of textiles was US $81.12 billion, down 10.4% year-on-year, 17% higher than that of the same period in 2019, and the export of clothing was $911.9 billion, up 33.5% year-on-year and 10.9% higher than that of the same period in 2019. Among them, the export of masks and protective clothing totaled US $10.21 billion, down 78.5% year on year. After removing masks, textiles increased by 43.2% year-on-year, 10.4% over the same period in 2019; After removing protective clothing, the clothing increased by 47.4% year on year, 9.5% higher than that in 2019. Masks and protective clothing accounted for 5.9% of the total exports. The cumulative growth rate of major commodity yarn and fabric woven clothing was 48.8%, 43.2% and 30.1% respectively.

Export growth of key provinces and cities slowed down

In July, the export situation of China's major export provinces and cities was slightly tense compared with the previous period. Zhejiang, which ranked first, has experienced negative growth for the first time since January. The growth rates of Shandong and Fujian have shrunk to 0.3% and 11.8% respectively, while that of Guangdong has expanded to 33.6%. Only Jiangsu's situation has improved compared with the previous period, but it has not stopped falling.

From January to July, except Guangdong, the top five provinces and cities in export growth, Zhejiang, Jiangsu, Shandong and Fujian increased by 14.7%, 9.5%, 22.7% and 31.1% respectively. Next, Hebei and Xinjiang grew the fastest, with an increase of 62.1% and 80.3% respectively.

The growth rate of clothing and other imports slowed down

In July, imports continued to grow, but the growth rate slowed down slightly compared with the previous period, with an increase of 18% and 4.8% on the same month and month on month respectively. Among them, the import of textiles was US $1.42 billion, an increase of 23.5% year-on-year, and the import of clothing was $970 million, an increase of 10.8%. The decline of clothing was more obvious. The import of main products of knitwear clothing increased by 12.5%, and the growth rate decreased by 26.4% compared with the previous month.

From January to July, the imports of yarn, fabrics and knitted and woven garments of key import commodities increased by 43.1%, 15.8% and 41.8% respectively, still in the high-speed growth range.

Negative growth of cotton imports per month

From January to July, the cumulative import of cotton increased rapidly, with 1.691 million tons imported from the world, up 61.5% year on year. At present, 90% of cotton imports come from the United States, Brazil and India, from which imports maintain a rapid growth. Australia's share has fallen rapidly to 1% from 30% in 2018 and is still shrinking. The average price of imports from the world was 1840 US dollars / ton, up 7%.

In July, cotton imports continued to fall, with 144000 tons of cotton imports, down 3%, the first negative growth since August last year. The price of imported cotton continued to rise, rising by 36.2% to 2070 US dollars / ton in the same month.

According to the information released by China Cotton Association, in July, China implemented strong epidemic prevention and control measures, production and operation activities further recovered, textile production and sales continued to be stable and good, enterprises had sufficient orders, operating rate maintained a high level, finished product sales were smooth, yarn profit was high, which was rare in recent 10 years, cotton demand continued to be strong, and there was no sign of slowing down. Cotton prices at home and abroad have risen sharply, domestic futures and spot prices have reached their highest points since 2015, and international cotton prices have reached a new high since 2013. The average price in July was 16945 yuan / ton, up 960 yuan / month on month and 4987 yuan / ton year on year. The rise of international cotton price is less than that of domestic cotton price, and the difference between domestic and foreign cotton prices has expanded compared with last month. China's import cotton price index FC index m was 99.71 cents / pound, up 3.37 cents month on month, up 30.08 cents year-on-year. On July 30, the price was 101.92 cents / pound, up 3.55 cents month on month. The 1% tariff was reduced to 16051 yuan / ton, which was lower than 1680 yuan of domestic spot in the same period. The price difference between domestic and foreign cotton was 1124 yuan larger than that at the end of last month.