Page 18 - TEXtalks International October/November 2022

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China made up exports

decline, bedwear rise

China's home textile exports are constantly on the decline after reaching $78.624 billion in 2020. The exports
dropped to $45.555 billion in 2021. In the first eight months of 2022 China has exported $27.703 billion of
home textiles only.

Made-up exports that jumped they jumped due to COVID impact in 2020 but are on the decline since then.
The home textile segments saw a rise worldwide in 2020 as most of the population was forced to remain at
home. In January-June 2020 the exports of made-ups from China clocked $33.340 billion. The made exports
declined to 7.7 billion in January-June 2021 and then to $6.17 billion during that same period in 2022.
While textile exports declined after 2020, the exports of bed articles depicted an upward trend. In
January-June 2020 the bedwear exports were$2.67 billion only. The export surged sharply in the first half of
2021 to $4.31 billion. During January-June 2022 the bead wear exports further increased to $4.36 billion.

Chinese home textile markets have been snatched by the low-cost economies of Bangladesh, Vietnam and
Pakistan. Since home textiles are relatively lower value-added textile products, the higher wages in China
made these products uncompetitive compared with low-wage countries.

The gas crisis smashes

the textile sector

The gas shortages usually hit Punjab’s textile Punjab industries, but domestic gas would not be
industry only, but this year, the textile sector of Sindh available to the industries in Sindh for three months
has also been affected badly. Earlier, Sindh starting from November 15. Punjab is unhappy with
exporters used to get gas at half the rates of Punjab; the increased tariff and complains of low gas
however, this year, their supplies have been pressure, which fails to fire its gas generators.
suspended for three months. Moreover, the textile industry complains that they are
supplied 70 MMBtu gas against their requirement of
The Punjab-based industries are supplied with 200 MMBtu.
imported gas named RLNG. After an increase in
global gas rates, the subsidized gas tariff for the In Sindh, the officials say that the gas supply has
textile mills has been enhanced to $9 per MMBtu. been suspended to those textile units used for
The Sindh-based industries are not prepared to buy power generation, and these units have been
imported gas, stating that it is their right under the advised to take power from K electric. Similarly, the
18th amendment to prioritize the use of gas textile millers in Punjab have been asked to avail of
produced in Sindh. grid power. The exporters from both provinces claim
that grid power is inconsistent and subject to
This time, the gas or RLNG would be available to frequent outrages that impact productivity.

October/November 2022