China's Textile Firms Shy Away From Export Orders on Threadbare Margins, Uncertain Outlook
Miao Qi
DATE:  Sep 08 2021
/ SOURCE:  Yicai
China's Textile Firms Shy Away From Export Orders on Threadbare Margins, Uncertain Outlook China's Textile Firms Shy Away From Export Orders on Threadbare Margins, Uncertain Outlook

(Yicai Global) Sept. 8 -- Chinese garment companies remain wary of accepting more overseas orders as profits dwindle and they fear that the current glut in demand is only temporary until the pandemic wanes and the international market diverts its orders back to neighboring countries.

China's clothing exports jumped 17.9 percent between January and August from the same period last year to CNY684.1 billion (USD105.8 billion), according to the latest customs data.

Yet while the orders are flooding in, apparel firms that rely on exports are finding it hard to make any money due to hefty international freight costs, higher production costs and a surge in the price of raw materials.

The growth of clothing exports is slowing down month by month, a member of the China Chamber of Commerce for Import and Export of Textiles told Yicai Global. Garment factories are not increasing capacity but are accelerating their production schedule to meet orders, he added.

Clothing firms are indeed very busy this year, Meng Zhuo, manager of Anhui Garment Import Export, told Yicai Global. It is even difficult to find any factories with enough idle capacity to accept more export orders.

The Shanghai Containerized Freight Index was up 2.67 percent last week to reach a record 4,502.65 points and has been on the rise for the last three months, according to data released by the Shanghai Shipping Exchange on Sept. 3.

Editors: Xu Wei, Kim Taylor

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Keywords:   Trade,Clothes & Accessories