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China Textile Industry Hailed Profit Upsurge at Year Beginning (05/10/2010)

Updated: 2010/5/10 10:45:00

Industry statistics of January and February released by China´s National Bureau of Statistics suggested that overall profit of textile industry witnessed notable upsurge at the beginning of the year. All 52,800 above-scale companies realized a total profit of 22.817 billion yuan for the first two months of 2010, upturned by 74.59% as compared with the same period of last year and the growth velocity rose 85.6 percentage points. The profit upsurge of China textile industry is majorly contributed by the continuously expanded domestic demand and the gradual recovery of international demand.

As of January and February, accumulated output and sales revenue of above-scale companies have respectively increased by 27.05% and 27.08% year-on-year. Production and marketing ratio has reached up to 97.9% which is the record high level since 2008.
Holistically, the performance of China textile industry continuously improves and the development orientation remains optimistic.

Faster Recovery than National Industry Average
The profit of above-scale companies nationwide for the first two months of 2010 has increased by 119.7% year-on-year which is 45.11 percentage points higher than average textile industry profit growth. But when calculated from the first two months of 2008 as a base, average profit growth of national above-scale companies rose by 17.4% while textile industry increased by as much as 62.71%. This reflected a basic truth that textile industry has seen the most notable solid growth. Analyzed specifically from the ten subsectors of textile industry, profit of above-scale companies from different sectors all realized a comparatively faster growth. The profit of cotton textile, silk industry respectively rose by 105.78% and 144.41% as year-on-year while chemical fiber and textile machinery industry respectively rose by 8645.30% and 674.65% .

------Data Source: National Statistics Bureau, Statistics Center of China National Textile and Apparel Council

Cotton Textile, Chemical Fiber and Apparel industry Contributed the most
Accumulated profit revenue of textile industry for the first two months has increased 9.748 billion RMB year-on-year, in which cotton textile, chemical fiber and apparel are the top three industries contributing most to the overall industry profit growth, respectively 34.25%, 23.84% and 13.17%. Specifically, the profit of cotton textile industry rose by 105.78% as compared with 2009, which is particularly not easy considering the consistent upturning cotton price. 32 count cotton yarn price in January and February were 21,128 yuan/ton and 21,246 yuan/ton which respectively rose by 25.26% and 24.15%. Export situation has improved notably.

Statistics from China´s Customs suggested that export growth of cotton yarns and textiles reached 33.07% and 33.29%, in which cotton fabrics export increased by 43.43% year-on-year. Average profit margin of cotton textile industry for the first two months was 4.34%, rose by 1.61 percentage points as compared with last year. The improvement of cotton textile industry operating performance became the major force driving the whole industry profit growth.

Chemical fiber industry also witnessed substantial profit upsurge with reasons alike to cotton textile industry. The price of domestic fiber products kept rising and the industrial situation remained optimistic since the first quarter of 2009. Average price of polyester staple fiber in February was 10,479 yuan/ton, rose by 30.92% year-on-year. Average price of Nylon DTY, Nylon FDY and Nylon POY were 26,660 yuan/ton, 25,707 yuan/ton and 24,300 yuan/ton, respectively rose by 44.11%, 62.08% and 59.03%. Average price of viscose staple fiber rose up to 19,120 yuan/ton in February, increased by 57.71% year-on-year.

Export growth of chemical fiber products (including synthetic fiber and regenerated fiber) for the first two months rose by 83.48% and the average export price also rose by 8.63% year-on-year.

Apparel industry profit growth of the first two months reached 20.96% as compared with last year which is lower than other subsectors. But the overall profit of apparel industry in 2009 also maintained a stable growth (15.63%) against the blunt of economic crisis when most industries were afflicted. In the mean time, the export growth of apparel industry rose by 23.71% which is 62.47 percentage points upsurge from the same period of last year. Profit margin of apparel industry was 5.04% which rose by 0.06 percentage points year-on-year and kept running ahead of all textile industry subsectors.

Source:China Textile Leader

Authority in Charge: China National Textile and Apparel Council (CNTAC)

Sponsor :China Textile Information Center (CTIC)

ISSN 1003-3025 CN11-1714/TS

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