The Chinese textile industry recorded a mixed bag of results in July, with overall exports showing a slight month-on-month decline but maintaining a year-on-year growth trend. Latest customs data reveals the cumulative export volume for fibers, textiles, and apparel from January to July increased 9 per cent compared to the same period last year.

Finished fabric products lead growth

The finished fabric products segment saw strongest growth at 13 per cent. Apparel exports also fared well, with an 11 per cent increase. However, the fiber segment lagged behind, showing a year-on-year growth rate of only 3 per cent.

The report also highlights this year's export growth has been primarily due to overseas restocking efforts, achieved through lower prices rather than increased volumes. Factors such as pricing and exchange rates have impacted the overall export value.

Month-on-month decline in most categories

There has been a month-on-month performance drop for most categories, except apparel. The largest decreases were observed in Chapters 54 and 55, particularly in synthetic filament yarns, staple fibers and woven fabrics.

Year-on-Year growth, led by downstream categories

On year-on-year basis, most categories showed growth, with downstream categories like apparel and knitted fabrics leading the way. The upstream fiber segment exhibited relatively limited growth.

An analysis of categories with cumulative changes exceeding 10,000 tons from January to July reveals the following:

• Significant increases: Used clothing, woven fabrics made from synthetic filament yarns, and other knitted fabrics saw a combined year-on-year increase of 575,000 tons.

• Significant decrease: Synthetic filament yarns, particularly polyester filament POY and FDY, experienced a decline, with their cumulative export volumes falling by 146,000 tons and 106,000 tons, respectively.

Overall the Chinese textile industry's export performance in July presents a mixed picture. While total exports maintained a year-on-year growth trend, a month-on-month decline and structural shifts within the industry highlight the challenges and opportunities faced by Chinese textile exporters in the current global market.