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Surging pullovers from China accounted for
one-third of the EU market in the first nine
months of 2005. The new limit imposed on China
could however quickly fill in the next year,
leaving European buyers seeking alternative
suppliers. Leading producers such as Bangladesh
and Turkey have struggled against China this
year and will be hoping for improvement in 2006.
Despite being embargoed in July, latest European
Union data confirm imports of Chinese pullovers
dominated the market in the first three-quarters
of 2005.
China Surge
Total imports from all countries, including
China, in these first nine months of the year
were 17 per cent higher than during the
corresponding period in 2004. The Chinese impact
can be measured by looking at imports from all
other countries combined that reveal a 17 per
cent fall during the same period. Although
imports from China have now ground to a halt for
the current year, the country still sits top of
the pile of EU pullover suppliers with a 33.2
per cent slice of the market, up from just 6 per
cent last year.
Bangladesh Struggles
Competing countries trail behind with former
market leader, Bangladesh, struggling this year
in second place. It has seen shipments reduce by
8 per cent volume from last year and its market
share has dropped from 23 to 18 per cent. Turkey
has to a degree resisted the Chinese onslaught
by retaining shipments at around the 2004 level,
although its market share has dipped slightly to
10 per cent. All other countries behind the top
three have less than five per cent of the EU
market and, for the most part, have decreased
from last year.
Hong Kong Busier
There was a positive note, however, for two
exporters: Vietnam and Hong Kong. Imports into
the EU from Vietnam were 38 per cent higher by
the end of September although the quantity is
much lower than from other countries. Shipments
from Hong Kong are 15 per cent higher this year
suggesting it has again become the focus of
Chinese exporters looking for another way to
access Europe. This would indicate continuing
business with Hong Kong over the next two years
following the agreement in June between Brussels
and Beijing to cap Chinese imports until the end
of 2007.
Year 2006
China has been limited to 189.7 million pieces
in 2006, much less than the 307 million items
exported in the year to September. However, this
is still more than Bangladesh's 165 million and
Turkey's 93 million, both of which have
struggled this year. 2006 forecasts would
indicate China filling its limits quickly which
could create problems for European importers who
would have to look elsewhere.
Determined by Cost
The leading two countries after China will
be hoping to improve on 2005 especially in
prices. The average pullover cost European
buyers 5.35€ with China below this at 4.91€.
Bangladeshi exporters demanded on average a low
3.76€ which was only beaten by Vietnam offering
3.37€ and equaled by Pakistan at 3.78€. Price
wise, Bangladesh would appear best placed to do
extra business next year. The cost of a pullover
from Turkey, meanwhile, was a high 6.69€ but
could benefit from geographical proximity to the
25 EU member states.
¨
Author
Axel Mangenot
Editor
Emerging Textiles
An internet based textile magazine in Europe
www.emergingtextiles.com
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