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China's T-Shirt Sales Hit by Embargoes

China's T-Shirt Sales Hit by Embargoes

Write: Io [2011-05-20]

Chinese global T-shirt exports commenced to slow down in the latter part of 2005 with embargoes in Europe and the US taking effect.

The yearly total of exports in the ten months to October was 28.3 per cent higher than during the same period the previous year.

In contrast, the volume of shipments during July for instance, was 50 per cent higher than during the same month in 2004 under the old world quota system.

T-shirt sales to the US were worth an extra 293 per cent compared to the same ten month period in 2004.

However, this is less than the 1,395 per cent value increase of shipments for the first half of 2005 compared to the previous year.

Limits imposed by Washington in reaction to such increases put an end to the surge and was duly embargoed on 5 July (US categories 338/339).

Total imports in 2006 for category 338/339 which also includes shirts have been capped at 250 million pieces - only 2.5 million above imports received before embargo in six months.

Sales to the US will therefore be much lower over the year compared to 2005.

European sales too have been the target of disruptive limitations with shipments to key EU markets such as Italy and Germany being hit by embargoes in August.

2006 imports in EU category 4 (including T-shirts) have been limited to 540.2 million pieces compared to the 565 million received prior to embargo.

With limits lower, China will be prepared for falling T-shirt sales this year.

However, booming sales elsewhere has seen China's reliance on the Japanese market easing up as its share of shipments fell to 23 per cent compared to 27 per cent in 2004.

Japan bought 11.5 per cent more T-shirt volume during January to October than in 2004 and remained top destination for Chinese-made T-shirts.

Sales to Hong Kong have dropped by nearly 30 per cent but still accounted for 12 per cent of all orders.

The key to rising or falling shipments have again been linked to prices.

Japanese importers paid 7 per cent more per piece on average during January to October than the same period in 2004.

Prices were slashed for European importers where buyers in several important markets were paying half price during 2005.

US buyers also enjoyed a 62 per cent unit value reduction paying less than the US$1.57 average.