Divergence in Textile and Apparel Exports: Fabric Volume and Price Rise, Garment Demand Under Pressure

The first-half export data for textiles and apparel sends a clear signal of divergence to the industry: fabric and yarn exports grew steadily, while garment exports posted a slight decline.

Export Data: Fabric Up, Garment Down

According to China Customs, from January to June 2026, China's exports of textile yarn, fabrics, and related products reached USD 73.0 billion, up 3.5% year-on-year. While this growth is modest, it is commendable amid a tightening global trade environment. In the same period, exports of garments and clothing accessories totaled USD 72.96 billion, down 0.7% year-on-year. The contrast between the two segments indicates a clear shift in order structures.

For June alone, textile yarn and fabric exports were USD 13.52 billion, while garment exports stood at USD 15.75 billion. Although the latter still has a larger volume, the inflection point is worth noting. For small and medium factories relying on garment exports, this signals a change in order composition.

Import Surge of 21.4%: The Logic Behind High-End Fabric Demand

In contrast to the export divergence, imports showed a strong rebound. In H1 2026, China imported USD 5.77 billion worth of textile yarn, fabrics, and related products, up 21.4% from USD 4.75 billion in the same period of 2025. This growth far exceeds export growth, reflecting a rapid rise in domestic demand for high-quality, differentiated raw materials.

The underlying logic is twofold: on one hand, domestic consumption upgrades push brands to source higher-count, more eco-friendly fabrics; on the other, some high-value-added fabrics still rely on imports due to insufficient domestic capacity. For procurement professionals, this means they must carefully assess the feasibility of domestic substitution to avoid supply chain delays and price volatility.

Industrial Cluster Response: Keqiao and Shengze as Order Barometers

As the world's largest textile distribution hubs, Keqiao in Shaoxing and Shengze in Suzhou often reflect export trends three months in advance. Data from H1 shows that orders for grey fabrics and finished fabrics in these areas generally outperformed last year, especially for differentiated chemical fiber fabrics and functional textiles. In contrast, garment clusters like Nantong home textiles and Humen apparel felt the pressure of more cautious overseas buyers, shorter lead times, and smaller order quantities.

This regional order divergence is a direct reflection of weak global consumer demand. European and American markets are still destocking slowly, with retailers favoring small, frequent replenishment orders over large, long-term contracts. This places higher demands on garment factories' flexible production capabilities and compresses profit margins.

Practical Recommendations

For Procurement Professionals - Prioritize domestic alternatives for fabric sourcing, especially for mid-to-high-end chemical fiber and blended products, to shorten supply chain cycles and reduce currency risk. - Monitor price fluctuations in imported fabrics and consider short-term floating price agreements with suppliers to avoid margin erosion. - When sourcing garments, require shorter delivery windows and phased delivery plans to cope with retail uncertainty.

For Foreign Trade Enterprises - For fabric exports, increase promotion of functional and differentiated products, which offer better pricing power and are harder to replace by Southeast Asian competitors. - For garment exports, proactively adjust target market mix by expanding into emerging markets such as the Middle East and Latin America to offset order declines from Europe and the U.S. - For companies with high imported fabric ratios, consider forward hedging or RMB settlement to control procurement costs.