International demand picks up in textile and apparel industry

According to the "Statistical Communique of the People's Republic of China on National Economy and Social Development 2010," released by the National Bureau of Statistics recently, in 2010, the total export volume of China's textile yarns, fabrics and products was US$77.1 billion, an increase of 28.4% over the previous year; The total value of clothing accessories exports was US$129.5 billion, an increase of 20.9% over the previous year.

Xiong Xiaokun, a light industry researcher at China Investment Advisors, pointed out that with the gradual recovery of the global economy, the demand for textile and apparel products in the international demand market has gradually increased. Moreover, due to the reduction in cotton planting area in recent years, the market supply and demand of cotton is very tight. Since the second half of 2010, domestic cotton prices have continued to rise. Downstream textile and clothing companies have increased the selling prices of end products in order to shift cost pressures. Therefore, due to the increase in product prices and the increase in export demand, the export situation of China's textile and apparel industry in 2010 was positive.

According to the "Statistical Communique on National Economic and Social Development in 2010" recently released by the National Bureau of Statistics, in 2010, China's cotton planting area was 4.85 million hectares, a decrease of 100,000 hectares compared to 2009; cotton production was 640 percent from 2009. Ten thousand tons fell to 5.97 million tons, down 6.3% year-on-year.

Due to the relatively strong downstream demand, cotton production decreased, and its spot and futures prices continued to rise. According to relevant data, in 2010, the Zheng Cotton Index once climbed to 33692 from 15600-17700 at the beginning of the year. After experiencing a correction in November, the current domestic cotton price has risen to about 34,000 yuan/ton.

Zhang Yulin, research director of China Investment Consulting Co., Ltd. pointed out that due to the tight relationship between supply and demand in the cotton market in the short term, the cost pressures for downstream textile and garment companies will continue to increase, and the selling prices of their end products will increase. At present, the overall situation of the global economy is gradually improving, and orders from related companies in Europe and America continue to pick up. It is expected that the total export volume of the textile and apparel industry will continue to grow this year.