Korea : Import Of Denim Fabric Declining

Korea's imports of denim fabrics declined in the first quarter also shipments of Japanese sophisticated fabrics have gone down.

Korea's imports of denim fabrics were down 25% in March in volume terms, confirming the decline already observed in January and February.

This sudden fall follows a four-year continued surge in imports of denim fabrics.After progressively decreasing in the ninetees to a very low level of 880,000 kilos in 1998, imports began rebounding from 1999 to finally reach 16.29 million kilos in 2002.

China's overwhelming market share

Although shipments to Korea fell 26% in volume terms in March, China remains by far its largest supplier with a record level of 14 million kilos reached in 2002 or 87% of total imports of denim cotton fabrics in volume terms.

In value terms, however, China "only" has 77% of total Korean imports, since its products are sold at lower prices than other ones.

Average unit value of imports from China was US$3.30 per kilo in 2002, compared with a level of US$7.75 for shipments from Japan and even US$14 for Italian fabrics.

The Korean women being increasingly attracted by fashionable denim apparel, imports from Japan dramatically rose in the past years.

US denim exports to Korea surged in 2002

Shipments were up 76% in volume terms in 2002 before still increasing by 35% and 88% in January and February, respectively.

They fell nearly 20% in March, however. Imports from Taiwan substantially declined in the past year while shipments from the United States sharply rose, although from a very low level.

US denim makers were Korea's fourth largest suppliers in 2002 as a clear sign they now try benefiting from globalisation of textile trade.