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Cotton Fabric Trade Trends Diverge

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Both in May and through the first five months of the year, exports and imports of Chinese cotton fabric moved in different directions, reflecting the evolving state of the industry. Exported fabric climbed 7.8% in May from a year earlier to 530 million meters, pegging year-to-date shipments 11.8% higher from this period last year. At the present pace, 2008 cotton fabric exports are on track to climb to a record 6.9 billion meters.

Import trends show a different picture. After declining for each of the last three years, 2008 volume is off another -18.2% from the first five months of last year, with May volume down -15.7% year over year, marking the sixteenth consecutive month of declines. At the present pace, Chinese cotton fabric imports are likely to fall to the lowest level in the last six years.