Hong Kong Denim Fabric Re-Exports Continued Soaring in the First Half

Hong Kong's trading in cotton denim fabrics continued soaring in the first half, boosted by higher sales to China and to other low-cost countries such as Bangladesh. Hong Kong's denim exporters are taking advantage of the rebound in Asian clothing production in the post-quota period. Unit values fell in the first part of the year in addition, partly due to lower cotton prices.

Hong Kong's re-exports of cotton denim fabrics (HS 520942) were up more than 32% in volume terms in the first part of the year to 53,700 tons. Re-exports had already increased by 23.80% in 2004 to 85,600 tons.

Shipments only rose 28.40% in US$ terms in the first six months of 2005 after average unit price was down more than 4% to US$4.79 per kilo.

China's share slightly rising

Not surprisingly, China continues attracting the most part of Hong Kong trading activities in denim fabrics.

Re-exports to the mainland of China were up 43% in the first half after increasing by 35% in 2004.

China's share of total re-exports slightly rose from 60.70% up to 61.80% as a result.

The main part of denim fabrics that are re-exported by Hong Kong's traders actually originate in the mainland.

China supplied 88.60% of total re-exports from Hong Kong in the first half, up from 85.60% in 2004.

Hong Kong's trading houses began diversifying sales to other destinations in the past years, however.

Re-exports of cotton denim fabrics to Bangladesh more than doubled in the first half as a consequence.

Shipments reached 3.8 million kilos, with Bangladesh becoming the second destination. Its share of total re-exports rose from 4.70% to 7.10%.

Less Japanese denim

Sales to Cambodia and Vietnam declined 14.40% and 6.10% at the same time, by contrast.

Shipments to Indonesia surged 65% while re-exports to the United States skyrocketed, but from extremely low levels.

Shipments to the US market only accounted for 1.70% of total shipments in the first half.

In terms of origins, Japan lost ground with a limited 8% growth in Hong Kong's re-exports of Japanese denim fabrics.

Pakistan gained shares of the Hong Kong market with a 166% increase in trading of Pakistani denim that only accounted for 0.70% of total re-exports, however.