The foreign trade prosperity index “China • Keqiao Textile Index” of December closed at 968.74 points, increased by 6.25% MOM, 33.65% up from the beginning of this year, increased by 19.86%YOY; Foreign trade index closed at 159.40 points, decreased by 2.09% MOM, 0.55% up from the beginning of this year, decreased by 0.33%YOY. Foreign trade confidence index closed at 1018.37 points, decreased by 1.80% MOM.
In December, textile and clothing exports in Keqiao, Shaoxing continued to increase, textile exports showed an uptrend in reverse which pulled up the foreign trade prosperity index and foreign trade index. With the Chinese enterprises' innovation and overseas distribution, China's textile and garment industry will remain competitive in the international market for a long time to come. The transformation and upgrading of export textile enterprises have been further accelerated. The construction bonus of Belt and Road has helped the development of Keqiao District's foreign textile trade, and textile and apparel exports have been pushed down, which pulled down the foreign trade prosperity index and foreign trade index.
The oversea market continued to increase, which pulled up the foreign trade prosperity index.
In December, the foreign trade prosperity index decreased. The foreign trade prosperity index of chemical filament fabric increased 18.12%, which pulled up the foreign trade prosperity index.
1. The Keqiao Textiles Expo matched more cooperation. The high-speed growth of the past, driven by a demographic dividend and low prices, is no longer effective. Through independent brand building and intelligent transformation, part of the scale model of export spinning trying to find new competitiveness. Once mentioned the foreign trade order, everybody's impression is the quantity is big, the price is stable. At present the foreign trade orders not only the quantity does not go up, the price also is not stable. As a labor-intensive industry, textile and garment industry is mainly restricted by labor cost. With the increase of domestic production and operating costs, domestic enterprises have lost their advantages as processing centers. At present, the global textile and garment manufacturing is accelerating from China to Southeast Asia and other places where labor costs are lower, while exchange rate fluctuations and trade risks also increase the concern of enterprises to take orders, the Textile and garment industry, which has been mainly exported by foreign trade, has been impacted and has to return to the domestic market.
2. Many activities complement each other. At present, we are faced with a severe foreign trade situation and many constraints. First, the international market demand is insufficient. The global economic recovery is slow and the prospects for a recovery in demand in major export markets are low, and the weak situation is unlikely to improve in the short term. Second, the industrial competition is more intense. ASEAN and some low-cost countries such as Africa and Latin America are entering and becoming the manufacturing base of textile industry in the future. Third, domestic costs continue to rise. China's textile raw materials and labor costs gradually increased labor costs are close to the level of eastern European countries. Fourth, the lack of effective growth point. Fifth, China's textile enterprises in addition to facing external competition, but also to face more countries of trade protectionism.
The prices of export trades increased, the foreign trade price index edged up.
In December, the foreign trade price index showed a downward trend. Among them, the price index of chemical filament fabrics increased by 0.56%; the price index of chemical staple fabrics increased by 0.78%; home textiles foreign trade price index increased by 1.56%; which pulled the foreign trade price index up.
1. The profit of textile export decreased MOM.
2. Lack of international market demands and the prices decreased.
3. Prices of general products decreased.
Forecast of foreign trade index in the next period.
For the export situation in Jan., 2021, the export of textiles will be expected to decrease. The Spring Festival is Feb. 12 in 2021; the factories will produce until Jan.10-20. As the comprehensive cost of textile and garment industry is rising, the advantage of mass products is still weakening. Also the secondary spread of the epidemic, the increase of common products is not so optimistic.
Issuing Unit: the Ministry of Commerce of the People's Republic of China
Construction Unit: China Textile City Construction Management Committee
"China • Keqiao Textile Index" Construction Office
Chinese Website: http://www.kqindex.gov.cn/
Tel: 0575-84125158 Contact People: Wei Yinan