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Hengshui City garment industry exports fell by more than 60% year-on-year

According to the Hebei Provincial Inspection and Quarantine Bureau, in October, Hengshui City's garment industry experienced a sharp decline of over 60% in value compared to the same period last year, largely due to rising cotton prices. Export trends for apparel fabrics have shifted from pure cotton to polyester-cotton blends, with both quality and quantity showing a downward trend. The surge in yarn prices has directly contributed to the sudden drop in exports and the change in fabric composition. Cotton yarn prices have risen from 24,000 yuan per ton at the start of the year to 40,000 yuan per ton. This increase can be attributed to poor cotton planting conditions this year, including low temperatures and continuous adverse weather, which negatively impacted both the quality and yield of cotton. As the global economy recovers, textile and garment exports have improved, but demand for cotton yarn has surged. However, factors such as cotton speculators holding back supply and farmers reluctant to sell have led to shortages in cotton and its downstream products. Additionally, India’s restrictions on cotton exports and Pakistan’s significant drop in cotton production have further exacerbated the situation, making it harder for businesses to access cotton. Hengshui primarily exports middle- to low-end garments through OEM manufacturing. Cotton accounts for 60%-70% of the cost of cotton-based products. As cotton and yarn prices continue to climb, production costs are increasing, prompting companies to adopt more cautious strategies when accepting orders, which has led to a sharp decline in recent exports. In the context of reduced cotton production and inflation, experts predict that cotton prices will remain high in the coming months. To stabilize export performance, Hengshui City advises garment exporters to accelerate the transformation of their business models, develop independent brands, and enhance product value to avoid "homogeneous competition." Reducing intermediary links by directly partnering with retailers can help secure higher-priced orders and lower overall costs. Moreover, maintaining integrity and strict quality control is essential. Some foreign customers request products with a mix of polyester and cotton, but they deliberately inflate the cotton content on washing labels. In such cases, companies must strictly adhere to domestic and international regulations to avoid export risks and ensure long-term credibility.

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