US importers have been paying considerably more for many categories of Chinese apparel in January than they were in 2005. Unit values, especially in restricted categories, have clearly increased whilst there has also been rises for clothing in non-restricted categories.
US retailers paid a lot more for imported Chinese apparel in January than in 2005, US Department of Commerce data confirm.
At the same time, there has been a big slow down in the rate of goods under quota entering US ports.
The difference in prices is noted in our tables below comparing January 2006 with the same month last year and also with 2005 as a whole.
Importers in the US have been charged an extra 6 per cent for all Chinese apparel products in the first month compared with the whole of last year.
This is in contrast with last year where China had reduced prices by 14 per cent from 2004 unit values.
The big difference in January is that categories limited by quotas were considerably more expensive than they were throughout 2005.
For example, prices have more than doubled in category 339 (women's cotton knit shirts).
In 2005, US importers paid an average $31.63 for a dozen cotton knit skirts and in January this year they paid $66.49.
This has been due to Chinese enterprises incorporating the cost of export licences into unit values and have been passed on to US clients.
Goods in these categories entering the US have subsequently this year been at low levels.
US retailers have been placing less orders following last year's embargoes and saw orders being placed anyway to avoid any further supply problems.
With prices now having increased, retailers may not be in a hurry to return to their former suppliers.
The tables also reveal two differing price images for non-quota categories.
Comparing January this year with the same month last year, unit values are considerably cheaper in several unrestricted categories.
However, prices in January 2005 had yet to be significantly reduced following the end of world quotas at the end of 2004.
The great reduction came after January where Chinese exporters seriously slashed their unit values.
We therefore see that many of these same non-restricted categories are also more expensive in January than for the whole of 2005.
Category 335 (women's cotton coats) for example, were 21 per cent cheaper in January compared with the same month last year.
However, they were 18 per cent more expensive in January compared with 2005 prices.
