In January-June, textile and garment trade volume was 153.57 billion US dollars, up 1.7% year on year. Among them, exports were 143.24 billion US dollars, up 1.6%, and imports were 10.33 billion US dollars, up 3.8%. The cumulative trade surplus was 132.91 billion US dollars, an increase of 1.4%.
The Zhitong Finance App learned that on August 1, the China Chamber of Commerce for Import and Export of Textiles issued an article stating that looking ahead to the third quarter and some time ahead, China's textile and garment exports are still facing uncertainties such as unstable growth in external demand and heightened geopolitical risks. The complex and serious external situation still brings great uncertainty and risk challenges to China's textile industry's foreign trade. However, with the implementation of a series of national macro-control policies, foreign trade in China's textile industry is still expected to continue to recover steadily in the second half of the year. It is initially expected that exports will continue to grow on a low basis in the third quarter.
In the second quarter, the domestic economy picked up, the overall effectiveness of China's policy to stabilize foreign trade continued, the inventory replenishment cycle in key markets continued, the vitality of China's textile and garment exports continued to be released, and textile and garment exports increased month by month in April-June, maintaining an overall steady and progressive trend. Exports in June exceeded 27 billion US dollars in a single month, and continued to increase from the fourth month.
In the first half of the year, China's textile and garment industry overcame the effects of fluctuations in the global foreign exchange market and poor international shipping. Export performance was better than expected, the supply chain was transformed and upgraded at an accelerated pace, and its ability to adapt to changes in overseas markets continued to increase. China's textile and garment exports totaled 143.24 billion US dollars, an increase of 1.6% over the previous year. Among them, exports to the US increased by 5.1%, and exports to ASEAN increased by 9.5%.
From January to June 2024, the total import and export value of the country's goods trade was 2980.98 billion US dollars, an increase of 3% over the same period (same period). Among them, exports were 1708.62 billion US dollars, an increase of 3.7%, imports were 1272.36 billion US dollars, an increase of 2%, and the cumulative trade surplus was 436.24 billion US dollars. In June, the country's total import and export value of goods trade was 516.66 billion US dollars, up 3.9% year on year. Among them, exports were 307.85 billion US dollars, an increase of 8.6%, imports were 208.81 billion US dollars, a decrease of 2.3%, and the trade surplus was 99.04 billion US dollars.
In January-June, textile and garment trade volume was 153.57 billion US dollars, up 1.7% year on year. Among them, exports were 143.24 billion US dollars, up 1.6%, and imports were 10.33 billion US dollars, up 3.8%. The cumulative trade surplus was 132.91 billion US dollars, an increase of 1.4%. In June, textile and garment trade volume was 29.05 billion US dollars, up 2.0% year on year. Among them, exports were 27.4 billion US dollars, up 2.5%, imports were 1.65 billion US dollars, down 6.5%, and the trade surplus was 25.75 billion US dollars, up 3.2%.
From January to June 2024, the textile and garment trade showed the following characteristics:
1. Textile and garment exports increased 1.7% year-on-year in the first half of the year, and exports increased month by month in the second quarter.
From January to June, China's textile and garment exports totaled 143.24 billion US dollars, up 1.6% year on year. Among them, textile exports increased 3.3% year on year, and garment exports remained flat. Overall textile and garment exports in the second quarter showed a steady and progressive trend, growing month by month. Among them, the monthly export volume in May exceeded 26 billion US dollars, a year-on-year increase of 4.5%. The export volume in June was 27.4 billion US dollars, which continued to grow for four consecutive months, and achieved a 2.5% year-on-year increase.
2. Exports to the US and ASEAN increased in the first half of the year, and the decline in exports to the European Union and Japan narrowed.
From January to June, our cumulative textile and garment exports to the US increased 5.1% year on year, exports to ASEAN increased 9.5% year on year, exports to the EU fell 0.8% year on year, and exports to Japan fell 7.6% year on year. The four major markets, the United States, ASEAN, the European Union, and Japan, account for 16%, 18.9%, 12.9%, and 5.2% of our exports, respectively; the four together account for 53%. The export value to 152 “Belt and Road” co-construction countries was 79.21 billion US dollars, up 1.9% year on year, accounting for 55.3% of total exports.
(1) From January to June, exports to the US increased by 5.1%, and exports of knitted garments increased by 16.5%.
According to data from the Bureau of Economic Analysis (BEA) of the US Department of Commerce, the US real GDP discount rate for the second quarter of 2024 was 2.8% month-on-month, higher than market expectations of 2%, and a significant increase from the previous value of 1.4%. On a year-on-year basis, the real GDP of the US increased by 3.0% to 3.12% year on year in the second quarter. The growth was supported by strong support from the consumption and investment sectors, and corporate treasury replenishment had an obvious supporting effect on GDP growth.
From January to June, I exported a total of 22.87 billion US dollars of textiles and clothing to the US, an increase of 5.1% over the previous year. Among them, the export value of the main product, knitted clothing, was 13.85 billion US dollars, an increase of 3.5% year on year, and the export volume increased 16.5%. In June, exports to the US were 4.92 billion US dollars, up 8.8% year on year. The export value of knitted clothing, the main export product to the US, was 3.12 billion US dollars, up 5.3% year on year, of which the export volume increased by 20.6%. Looking at US import data, in May, the US imported 9.46 billion US dollars of textiles and clothing from the world, down 2.5% year on year. Among them, imports from China fell 4.1%, imports from Vietnam fell 6.4%, imports from India increased 10.4%, and imports from Bangladesh fell 0.2%. China, Vietnam, India, and Bangladesh accounted for 24.3%, 12.2%, 10.1%, and 6.7%, respectively.
(2) From January to June, exports to ASEAN increased by 9.5%, while exports of intermediate goods increased by 11.6%.
The ASEAN economic situation showed a steady recovery trend in the second quarter, with Vietnam, Thailand and other leading economies in the region performing well. In January-June, we exported 27.12 billion US dollars of textiles and clothing to ASEAN, an increase of 9.5% year on year; exports of textiles and clothing to Vietnam were 9.23 billion US dollars, up 11.4% year on year. By product, in January-June, I exported 13.86 billion US dollars of yarn and fabric to ASEAN, an increase of 11.6% year on year; export of clothing was 7.91 billion US dollars, up 5.4% year on year.
In June, I exported 4.66 billion US dollars of textiles and clothing to ASEAN, an increase of 10.4% over the previous year. By country, my exports to Vietnam, Malaysia, Cambodia, Indonesia, Singapore, the Philippines, Thailand and Laos increased by 7%, 2.2%, 32.8%, 4.2%, 17.4%, 15.4%, 18.9%, and 2.3%, respectively. I exported yarn fabrics to ASEAN at $2.29 billion, an increase of 13.2%; exports of clothing amounted to $1.48 billion, an increase of 5.4%.
(3) Exports to the EU fell 0.8% in January-June, and exports resumed year-on-year growth in June.
In the second quarter, economic growth in the Eurozone showed a gradual weakening trend. According to the Eurozone's latest Composite Purchasing Managers' Index (PMI), the June PMI data fell from 52.2 in May to 50.9, lower than the expected 52.5. In January-June, we exported 18.54 billion US dollars of textiles and clothing to the EU, a year-on-year decrease of 0.8%; of these, the export value of the main product, knitted clothing, was 10.7 billion US dollars, a decrease of 4%, and the export volume increased by 5.2%. In June, I exported 4.55 billion US dollars of textiles and clothing to the EU, up 1.1% year on year, while exports to Germany fell 0.8%. The export value of knitted garments was 3.01 billion US dollars, a decrease of 2.8%, and the export volume increased by 9%.
Judging from EU import data, the EU imported 9.96 billion US dollars of textiles and clothing in May, an increase of 0.2% over the previous year. The top three import sources were China, Bangladesh, and Turkey, with import values of US$24.4, 17.6, and 1.28 billion, respectively. The three accounted for 24.4%, 17.7%, and 12.9%, respectively. On a year-on-year basis, imports from China and Turkey fell by 9% and 4.9%, respectively, while Bangladesh increased by 18.7%.
(4) Exports to Japan fell 7.6% year on year in January-June, and the decline in exports narrowed in June.
Preliminary statistics released by Japan's Ministry of Finance on the 18th show that after two consecutive months of trade deficits, Japan achieved a trade surplus of about 224 billion yen in June, and Japan's macroeconomic economy picked up in the second quarter. In January-June, we exported 7.43 billion US dollars of textiles and clothing to Japan, down 7.6% year on year; of these, exports of knitted garments were 4.74 billion US dollars, down 7.9% year on year. In June, we exported 1.14 billion US dollars of textiles and clothing to Japan, down 0.2% year on year. The decline was 3 percentage points narrower than the previous month, and stabilized and improved. The export value of the main product, knitted garments, was 0.7 billion US dollars, up 0.1% year on year. Looking at Japan's import data, Japan imported 2.29 billion US dollars of textiles and clothing in May, the same as the previous year. China, Vietnam, and Italy are the top three import sources. Textile and garment imports were US$12.2, 3.4, and 100 million US dollars, respectively. Imports from China increased 0.4% year on year, imports from Vietnam fell 3.8%, and imports from Italy increased 3.6%. The three accounted for 53%, 15%, and 4% respectively.
(5) From January to June, our exports to the “Belt and Road” countries increased 1.9% year-on-year.
In January-June, our exports to 152 “Belt and Road” co-built countries were 79.21 billion US dollars, up 1.9% year on year, accounting for 55.3% of total exports. Among them, exports to five Central Asian countries, including Kyrgyzstan, Kazakhstan, Tajikistan, Uzbekistan, and Turkmenistan, were 8.25 billion US dollars, up 12.6% year on year. Among them, Kazakhstan's exports increased 53.4% year on year to 4.32 billion US dollars, making it my sixth largest single exporter. Exports to Australia were 3.3 billion US dollars, down 10.3% year on year; exports to Russia were 2.96 billion US dollars, down 13.2%; exports to India were 2.6 billion US dollars, down 13.3% year on year; exports to the UAE were 2.26 billion US dollars, down 1.9% year on year. In June, my exports to the four major traditional markets of the US, ASEAN, EU, and Japan amounted to 15.27 billion US dollars, accounting for 55.7%. Non-traditional markets account for 44.3% of exports. The export value to 152 “Belt and Road” countries was 13.96 billion US dollars, down 0.4% year on year, accounting for 50.9%.
3. The volume of exports of the four major categories of commodities has increased, and export prices have declined.
From January to June, the cumulative export value of textiles was 69.38 billion US dollars, an increase of 3.3% over the previous year; the export value of clothing was 73.86 billion US dollars, which was the same as the previous year. Among the four major categories of commodities, yarn exports decreased by 1.7%, fabric exports increased by 3.8%; exports of household textiles and knitted garments increased by 3.7% and 0.3%, respectively. In terms of export volume, yarn, fabric, home textiles and knitted garments increased by 2.3%, 10.3%, 19.6%, and 12.5%, respectively.
In terms of export prices, all four categories of commodities declined. Among them, household textiles fell the most, at 13.3%, while yarn, fabric, and knitted garments fell by 3.9%, 5.8%, and 10.9%, respectively. In June, textile and garment exports continued to grow year on year. Exports of yarn, fabrics and household textiles increased 4.6%, 5.6% and 10.7% year on year, while exports of knitted garments fell 1.2% year on year. Exports of yarn, fabric, home textiles and knitted garments increased by 7%, 10.7%, 27.4%, and 14.4%, respectively. As the economic recovery of major countries fell short of expectations, the export unit prices of the four major commodities continued to decline, falling 2.2%, 4.6%, 13.2% and 13.7%, respectively.
4. Exports from major provinces and cities continued to grow in the first half of the year.
From January to June, cumulative exports from major provinces and cities continued to grow. Among them, Zhejiang, Jiangsu, Shandong and Xinjiang increased by 3.7%, 5.4%, 1% and 28.5% respectively, while Guangdong, Fujian and Shanghai increased slightly by 0.1%, 0.4%, and 0.1% year-on-year. Of the country's 31 provinces (cities and regions, excluding Hong Kong, Macao and Taiwan), 16 achieved export growth. Among them, Guangxi (28%), Shaanxi (40%), Heilongjiang (31%), Tibet (106%), and Guizhou (47%) increased significantly. In June, among the top 7 key regions, Zhejiang, Jiangsu, Guangdong, Fujian and Shanghai grew by 5.8%, 5%, 19.4%, 0.5%, and 5.4%, respectively. Exports from Shandong and Xinjiang fell 14.3% and 4% year on year.
5. Textile and garment imports increased by 3.8% in the first half of the year, and the import volume and price of yarn and fabric fell sharply in June.
In January-June, textile and garment imports totaled 10.33 billion US dollars, an increase of 3.8% year-on-year. Among them, textile imports were 5.48 billion US dollars, an increase of 2.6%, and clothing imports were 4.85 billion US dollars, an increase of 5.2 percent. Among the major categories of commodities, the cumulative import value of yarn increased by 7.9%, the import volume increased by 13.7%, the increase in import value and import volume declined, and the unit price decreased by 5.1% year on year. The import value of fabric decreased by 1.7% year on year, the import volume decreased by 0.5%, and the unit price decreased by 1.2%. The import value of knitted garments increased by 6.2%, the import volume decreased by 2%, and the unit price increased by 8.4%.
In June, China imported 1.66 billion US dollars of textiles and clothing, a year-on-year decrease of 6.5%. Textile imports fell 11.7% to $0.89 billion. The import value of yarn decreased by 17.9%, the import volume decreased by 16%, and the unit price decreased by 2.3%. The import value of fabrics decreased by 8.5%, the import volume decreased by 7.1%, and the unit price decreased by 1.5%. Clothing imports were $0.77 billion, up 0.2%. The import value of knitted garments fell by 2%, the import volume decreased by 8.6%, and the unit price increased by 7.3%.
6. Cotton in Xinjiang is growing well, and new textile orders are insufficient.
From January to June 2024, China imported a total of about 1.794 million tons of cotton, an increase of 2.1 times over the previous year. A total of 2.887 million tons were imported in the first ten months of 2023/24, an increase of 1.5 times over the previous year. In June, according to information released by the China Cotton Association, the textile market continued to be off-season, demand was weak, sales volume did not improve, enterprises lacked confidence in the market, procurement of raw materials was mainly based on inventory replenishment, and the operating rate was slightly lowered. China's cotton imports fell month-on-month, and U.S. cotton still ranked first. According to customs data, China imported 0.155 million tons of cotton, a year-on-month decrease of 40.3% and a year-on-year increase of 86.9%. Among them, US cotton accounted for 50%, ranking first; Brazil ranked second, accounting for 40%.
In June, domestic cotton spot prices fluctuated and fell. Demand was insufficient and cotton prices lacked support. On the 24th, the spot price fell to 15,772 yuan/ton, a new annual low. Cotton prices in the international market rose after falling. At the beginning of the month, the Federal Reserve announced that interest rates would remain unchanged, compounded by a rise in the US dollar index in peripheral markets, an increase in global production, and a fluctuating drop in international cotton prices; in the middle and late half of the month, due to lower US dollar index and better US cotton contract shipment data, international cotton prices rebounded slightly; the USDA report at the end of the month showed that the actual broadcast area of US cotton increased more than expected, and international cotton prices fell slightly. The average monthly price of China's cotton price index (ccindex3128b) was 1,6029 yuan/ton, down 413 yuan month-on-month and 1251 yuan year-on-year. The average monthly price of the Cotlook A index was 83.2 cents/pound, down 3.3 cents from the previous month, down 10.1% year on year. The 1% tariff price was 14,544 yuan/ton, lower than the domestic cotton price of 1,485 yuan, and the price difference was 158 yuan lower than the previous period.