Japan’s denim exports to China and Vietnam are sharply rebounding this year, reflecting much stronger production of denim apparel in both countries. This is also a sign that US and EU retailers are increasingly requiring higher-quality fabrics for denim apparel made in low-cost countries in Asia. Japan’s sales to other destinations retreated by contrast, especially to Italy.
Japan’s exports of cotton denim fabrics rebounded in the first five months of the year, mainly thanks to growing markets in China and Vietnam.
Probably reflecting the surge in denim apparel production in both countries, Japanese shipments respectively rose 62% and 222% in volume terms.
Exports to Hong Kong which are mainly shipped to mainland China were up 35% at the same time.
Rebound in China’s exportsThis is in sharp contrast with 2006 data that indicated a 2.14% decline in shipments to China while exports to Vietnam were "only" up 58%.
After US and EU embargoes of 2005 depressed China’s denim apparel exports in 2006, they sharply rebounded in 2007.
Japan takes advantage of its proximity with the Chinese market while also able producing sophisticated denim fabrics required by US and EU brands and retailers.
Japan’s denim fabric exports to other markets significantly declined, also reflecting a slowdown in denim apparel production outside China and Vietnam.
Shipments to Italy decreased for the second consecutive year.
Strong sales to US marketItaly remained a major market for Japanese denim in the past years, thanks to sales of higher-priced fabrics at about US$5 per squere meter.
By contrast, average price of denim sold to China is only US$3.54 per square meter.
The US market is another destination where Japanese weavers are exporting high-priced products at US$4.77 per square meter.
Long-term data which are below published are indicating that sales to the US market rocketed in 2004 and remained relatively strong, given the weakness in US denim apparel production.
By contrast, sales to Vietnam boomed in the past years and continue sharply increasing while sales to China and Hong Kong mostly stagnated until 2007.
