European debt crisis seriously affects China's textile and garment exports

The imported cotton products of the United States worldwide fell 11.18 percent year on year from January to September.

European debt crisis has changed consumer behavior in Europe and America markets, including reduction of apparel spending, which has seriously affected China's textile and garment exports.

Textile and apparel orders taken by China have not been optimistic since April this year, especially the third quarter, October exports continued to decline as expected.

Orders from Europe and America are rapidly reducing, indicating that Chinese textile and garment exports will remain weak in the first half of next year.

The slump of textile and garment exports this year has caused plummet of cotton price in Chinese market.

China officially launched its temporary cotton storage plan in September 8, in order to ensure stability of cotton production and price, the standard price of the temporary storage is 19,800 Yuan per ton / standard grade lint.

China National Cotton Reserves Corporation says, recently sales of yarn and fabrics are still sluggish, upstream and downstream textile enterprises have ceased production, production limitation is increasing, factories face high inventory of finished products, cotton yarn price will continue to fall.

From an international perspective, supply of global cotton production is adequate. The U.S. Department of Agriculture reported in October that 2011 cotton stock is estimated to increase 22.02 percent compared with 2010. World economic growth slows down, as being influenced by the debt crisis in Europe and other countries, cotton consumption will lack stamina.