By: Arif Habib Limited
Textile fell to USD 961mn during Nov-15, or 8.5% MoM: Export data obtained from the PBS website for Nov-15 shows a further 8.5% MoM decline in Textile exports during the month, shrinking to USD 961mn, compared to USD 1,051mn in Oct-15. On a YoY basis, the decline was more pronounced, with exports in Nov-15 plunging 14.6%, compared to USD 1,126mn in Nov-14. For the consolidated 5MFY16 period, textile exports clocked in at USD 5,233mn, down 8.4% from 5MFY15 when textile exports stood at USD 5,713mn.
The sequential decline was due mainly to (i) a massive 30.2% plunge in Cotton Yarn value, down to USD 85mn, compared to USD 122mn in Oct-15, and (ii) 18.5% fall in Cotton Cloth to USD 163m, compared to USD 200mn in Oct-15. Ready-made garments (down 4.0%), Towels (up 4.6%), Bed-wear (down 1.4%) and Knitwear (down 3.1%) remained relatively stable with marginal changes on a MoM basis. On a 5M basis, a massive 28.1% YoY decline in Cotton Yarn, followed by Other Textile Materials (down 19.5% YoY) and Cotton Cloth (down 9.9% YoY) led to 5MFY16 exports receding by 8.4% YoY.
Slowing demand affected textile exports: Dissecting the numbers revealed that there were dips in both price and quantity during 5MFY16. Quantity of Cotton Yarn exported dipped by 25.9%, while quantities of Bedwear, Readymade Garments and Cotton Cloth exported fell by 6.1%, 4.5% and 3.4% YoY, respectively. On the other hand, Knitwear quantity exported rose by 2.7% YoY. In terms of price, Cotton Cloth, Knitwear and Cotton Yarn fell 6.7%, 4.8% and 3.0%, respectively, while there was an 8.5% increase in the price of Readymade Garments exported.