The first half of the year saw China's printed and dyed fabric exports deliver a mixed performance: total value reached $35.175 billion, up only 1.99% year-on-year, with growth slowing by 0.92 percentage points from Q1. More tellingly, woven fabric export volume rose 1.98% while average unit price fell 1.08%—a divergence that signals a strategy of trading volume for price, squeezing profit margins.
Background
Customs data shows that in January-June, woven fabric exports were $19.156 billion, up 0.62%, while knitted fabric exports reached $16.019 billion, up 3.69%. Knitted fabrics also saw a 0.25% increase in average price, whereas woven fabric prices declined. This divergence reflects stronger demand for knitted fabrics in sportswear and casual wear, while woven fabrics are more exposed to weakness in traditional apparel orders.
Geographically, exports to the top ten markets totaled $19.141 billion, up 4.86%, accounting for 54.42% of total exports. Vietnam, Bangladesh, and Cambodia together accounted for 32.79%, up 1.81 percentage points from Q1. Cambodia led with a 13.92% surge, while Vietnam grew only 0.52%, indicating order shifts within Southeast Asia as Cambodia's lower costs attract capacity from Vietnam.
Industry Impact
The Q2 slowdown was directly caused by Middle East geopolitical disruptions to shipping and weak global consumption. But deeper issues include new printing and dyeing capacity in other countries diverting orders. Southeast Asian nations are not only importing Chinese fabrics but also developing local dyeing capabilities, which could erode China's bargaining power as an intermediate supplier.
Free trade agreements remain a key support. Exports to ASEAN reached $12.577 billion, up 3.06%, accounting for 35.76% of the total; exports to RCEP members were $13.044 billion, up 2.74%. Regional supply chain coordination offset weakness in Western markets, but divergence within ASEAN is notable—knitted fabrics grew much faster than woven, suggesting that companies relying on traditional woven products may lose ground.
Price war risks are accumulating. Woven fabric average prices fell 1.08% while volumes rose, a pattern vulnerable to raw material cost fluctuations. For buyers, short-term lower quotes may come at the expense of long-term supply stability.