Weekly Report: Textile Export Increase Continued at Slower Pace

On 8th May, the Customs published export and import statistics in the first four months of 2014, showing slight decline in total export & import value, and narrowed decline rate in April. Although textile and apparel export continued to increase, total export value of the first four months was 81.884 billion USD, 2.14% up Y/Y, the increase rate was 14.36% less than the corresponding time last year. In April, export value of textile and apparel totaled 23.754 billion USD, 6.61% up Y/Y, the increase rate was 4.86 point less than last month, and 11.91 point less than last April; the increase rate over the month was 27.45%, 43.93 point less than last month’s increase, and 5.81% less than last year. The 115th Canton Fair closed on 5th May had attracted less buyers and participants, indicating still sluggish demand in traditional markets and emerging markets, orders for short and middle time period dominated. Currently export companies confronted much difficulties for long time orders due to RMB exchange rate fluctuation, raw material price increase, labor cost increase and international trade frictions.
After the traditional solar term “Beginning of Summer” (5th May), most cotton fields in Xinjiang, Yellow river and Yangtze regions were in seed emergence periods, cotton in South Xinjiang and Yangtze region grew faster with the third true leaf.
Last week (4th -9th May), domestic CC Index 3128 B settled at 17,472 Yuan per ton by weekend, 46 Yuan down over the week. Reserve release totaled 154,300 ton last week with daily transaction of 25,000 ton, 3% less than last week. By 9th May, 1,535,000 ton of reserve cotton was sold and the transaction percentage was 31.6%, including 1,438,000 ton of domestic cotton and 97,000 ton of import cotton.
By weekend, import cotton price FC Index settled at 96.75 cent/lb., 1.64 cent down over the week.