**Business News Agency, September 15 –** In the first eight months of the year, the textile and apparel sector experienced a strong rebound in exports, driven by increased demand and rising prices. Total exports rose by 23.75% year-on-year, maintaining a robust growth trajectory that aligns with our earlier projections. While we anticipate a slowdown in export growth during the fourth quarter, the overall industry recovery remains intact. This moderation is expected as the recovery process unfolds gradually.
Looking ahead, the textile and apparel export growth is likely to decelerate due to factors such as reduced consumer demand in key markets like Europe and the U.S. However, this does not signal a reversal of the broader recovery trend. The momentum from the second quarter’s order surge and continued price increases have been the main drivers of export growth so far.
From January to August, China's textile and apparel exports reached $129.804 billion, up 23.75% year-on-year. Textile exports totaled $49.515 billion, growing by 32.29%, while apparel exports reached $80.289 billion, increasing by 19.02%. These figures reflect a sustained upward trend in exports, consistent with our expectations for the third quarter.
In August alone, textile exports hit $6.678 billion, marking a 29.38% year-on-year increase—though this was down 12.86 percentage points from July. This decline highlights the challenges posed by shrinking demand in Western markets. As a result, global textile production has seen a slight downturn, and future export growth may be affected.
Despite the expected slowdown in the fourth quarter, we still forecast annual export growth of around 16%, largely due to the strong performance in the first half of the year. Although EU orders have decreased, most export-oriented companies have secured orders for the third quarter, ensuring continued growth in that period. The impact on fourth-quarter exports will likely come later.
During this phase of industry recovery, certain sub-sectors stand out. The **printing and dyeing** industry, long considered a "bottleneck" due to environmental restrictions, remains tightly controlled. Since 2008, it has been classified as a restricted sector, with limited new approvals and no capacity expansion. As the textile industry recovers, existing printing and dyeing firms are well-positioned to benefit. Notable listed companies in this space include Airline Shares and Zhonghe Shares.
Another key area to watch is the upstream segment, particularly **yarn and grey cloth producers**. In 2010, these companies saw improved profitability due to rising raw material prices. Although current prices have stabilized, cotton prices are expected to rise further, keeping yarn and grey cloth prices high. This bodes well for the earnings of listed companies in this sector, such as Huamao Co., Ltd. and Huafu Color Spinning Co., Ltd.
**Risk Factors:** A significant appreciation of the RMB could erode profit margins, while global economic conditions—especially in the EU—could directly impact order volumes. Investors should remain cautious about these potential headwinds.
**Word count: 546**
General High Tenacity Polyester Yarn
Industrial Yarn,Industrial Polyester Yarn,High Tenacity Industrial Polyester Yarn,High Strength Polyester Yarn
Ningbo Grantex Textile Co., Ltd , https://www.grantexindustries.com