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China’s T-shirt Exports in First Quarter 2007

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China’s cotton T-shirt exports rebounded on quota markets in the first quarter this year with prices clearly declining. Unit values however remained far above their level in 2005, as reflected by our series of statistical tables. Sales soared to countries that did not reimpose limits. Overall sales slowed down over the first quarter, mainly due to lower demand from Japan.

China’s exports of cotton T-shirts began slowing down in the first quarter this year although shipments to the European Union and the United States rebounded.

Exports rose 11% in value terms at US$1.25 billion after increasing 25% in the same period last year.

Shipments were up 6% in volume terms after rising 21% in the first quarter of 2006.

Poor sales to Asia
The weak result was mainly due to poorer sales to Japan, by far the most important destination of Chinese T-shirts.

Exports to Japan declined nearly 10% to US$300 million, from a 7% increase in the first quarter of 2006.

Sales to Korea and Australia were also depressed at the start of 2007.

By contrast, shipments to so-called quota countries are rebounding this year.

Exports to the US market surged 211% to US$92 million after falling 65% in the first quarter 2006.

Since Chinese T-shirts arriving at US ports were still under embargo in January 2006, year-on-year comparisons may be confusing.

There was a strong rise in shipments, nevertheless.

Strong sales to Europe
The same jump may be observed with shipments to the European Union.

Exports to Germany more than doubled in the first quarter to US$36 million, even rising 180% in volume terms.

Shipments to the UK and Italy rose 37% and 22% respectively, from a sharp decline in the same period of 2006.

Not surprisingly, the jump in direct sales to Europe and the United States depressed shipments through Hong Kong that no more rose over the period.

Although rebounding, exports to quota countries remained below their level two years ago, when quantitative restrictions had just been eliminated on imports from China.

By contrast, China’s exports to countries which did not reapply quotas -or never imposed limits- reached much higher levels.

Sales to Switzerland jumped by five times in only two years while shipments to Canada were up nearly 300%.

Morocco is also becoming a significant market for Chinese T-Shirts with sales surging more than four times in two years.

Lower price levels?
Unit prices were overall stable in the first quarter.

T-shirt prices fell to quota countries, however remaining far above their level two years ago.

Unit prices of T-shirts shipped to the US market were still up 59% from the first quarter of 2005.

Prices were still up 44% on the German market from the same period although dropping by 25% from last year.

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