Status quo (H1,2015) of China’s knitting industry

By+ZHENG+Ran

In January-June this year， the knitting industry remained a stable and rapid growth. Its investment picked up， and the production of the enterprises above designated size added up to 6.618 billion（Picture 1）.This article briefed the performance and features of the industry in the first half year.

Economic results

The business income and the profit of knitting fabrics and knitwear kept growing stable， while the growth gradually eased.

In terms of knitting fabrics， the business income reached 113.49 billion yuan， up 3.95 percentage points year on year， 10 percentage points lower than that of the last year， and 2.4 percentage points slower than the first quarter； the profit reached 5.69 billion yuan， up 4.3 percentage points， 10 percentage points lower than that of the last year， and 3.2 percentage points slower than the first quarter.

In terms of knitwear， the business income reached 142.79 billion yuan， up 6.4 percentage points year on year， 4 percentage points lower than that of the last year， and 2.9 percentage points slower than the first quarter； the profit reached 6.64 billion yuan， up 5.58 percentage points， 9.9 percentage points lower than that of the last year， and 1.1 percentage points slower than the first quarter.

Investment

The actual completed investment projects in knitwear sector picked up， while the newly-commenced ones sustained their growth.

In terms of knitting fabrics， the actual completed investment projects reached 22.97 billion yuan by an increase of 8 percentage points year on year， 2.5 percentage points lower than the same period of last year； the newly-commenced projects did 526， going up 13.6 percentage points year on year.

In terms of knitwear， the actual completed investment projects reached 28.38 billion yuan by an increase of 41.3 percentage points year on year， 24.8 percentage points higher than the same period of last year； the newly-commenced projects did 544， going up 24.8 percentage points year on year.

Import & export

For knitting fabrics

Export：

Viewed from the latest five years， the market demand for knitting fabrics developed rapidly. The growth of the quantity kept stable， while the growth of the price fell compared with the year of 2011. （Table 1）

In the main markets， the quantities in ASEAN and America increased largely， up 19.62 and 14.96 percentage points respectively year on year； the ones in the EU and Japan decreased sharply， down 10.55 and 17.37 percentage points respectively year on year.

Import：

The quantities of importing knitting fabrics decreased 8.75 percentage points year on year， 8 percentage points lower than that of the first quarter； the unit price fell 3.19 percentage points year on year.

For knitwear

Export：

Viewed from the last five years， the export quantities have appeared negative growth since the first quarter of 2014， while the unit price showed its bright side - positive growth in the second quarter of 2015. （Table 2）

In the main markets， the EU， as the largest knitwear market in the world， was stable with few changes； the second largest one - America market picked up， and its quantities increased 7.56 percentage points year on year； compared with the one in the ASEAN， the market in Japan was in an undesirable situation， down 15 percentage points year on year.

Import：

Its quantities increased 8.15 percentage points year on year， 1.6 percentage points lower than that of the previous quarter； the price was up 4.42 percentage points， 1.3 percentage points lower than that of the first quarter.

Forecast

Owing to the huge opportunities created by the policy of “One Belt and One Road”， domestic enterprises investment to abroad has entered into the stage of rapid growth， and their ability of global allocation of resources will be further strengthened.

In addition， affected by the influence of Americas positive market performance， knitted fabrics and knitwear tend to warm back in the following months of 2015.