Enterprises Worry About Increasing Costs, Dare Not Take Orders &Nbsp; Guangdong Textile And Garment Exports Slowdown

According to statistics released by Guangzhou customs in December 1st, exports of textiles and garments in Guangdong province reached 30 billion 260 million US dollars in October, while exports surged in July.

Customs analysts said that the reason for the shrinking export scale was that on the one hand, the rise in cotton prices affected the export of the terminal market, and led to the rise in prices of other clothing fabrics such as chemical fiber, textile and clothing.

In fact, many textile and garment enterprises also responded.

Huang Jianxin, general manager of Dongguan Bai Wei Si dress limited company, told reporters: "now the fabric price has gone up very badly, so many of us dare not answer it."

In the first half of this year, the order volume of textile and garment enterprises in Guangdong increased and the scale of exports continued to grow.

Earlier, an owner of a clothing company in Dongguan said in an interview that the increase in orders in the first half of the year was due to the revival of traditional European and American market economies and the increase in orders due to foreign replenishment.

As the price of raw materials continues to rise this year, coupled with the appreciation of the renminbi and other factors, production costs of textile and garment enterprises have risen all the way.

Huang Jianxin said: "compared with last year, fabric prices rose 3 - 4 yuan per kilogram this year, coupled with the appreciation of the renminbi, the wholesale profits of garment exports have dropped a lot."

The instability of raw material market has further increased the enterprise's concerns about the industry prospect.

To this, he sighed, "I hope the price of raw materials should not rise."

According to Everbright Securities's investment analysis report for textile and garment industry next year, the growth rate of orders for textile and garment enterprises will continue to decline in 2011, with the price of raw materials and RMB appreciation, and export growth will also drop.

This also proves that the recovery trend of textile and garment industry with strong momentum in the first half of this year is still uncertain, and the uncertainty of the whole market is also increasing.