The Ministry of Commerce issued a notice on the second annual agreement on textiles exported to the United States in 7 and the notice of the second performance distribution of textiles exported to the United States in 2008. The industry believes that the second bidding announcement will have a huge impact on the current 2008 year quota market.

On the eve of the 103 Canton Fair, the price of textile quotas continued to decline, which made many exporters happy. The low price of textile quotas gradually offset the negative impact of RMB appreciation, and became the consensus of many export companies to the US.

Fewer quotas can be allocated.

The tendering announcement of the two agreement in 2008 showed that the quota quotations of several popular categories, such as swimsuits, decreased slightly, while other categories were lower than the same period last year.

From the second tendering agreement, the quota of enterprises can be allocated less, and some categories have dropped to a reasonable price. The industry expects that the trend of the sharp decline in the textile quota market in the near future will be eased.

Ma Xinzheng, deputy editor in chief of the first textile network, believes that the price of textile quotas is slightly stable now. "But the number of products in the end of May and the beginning of June may continue to be lower than the current price. From this perspective, it should be helpful for enterprises to take orders from the United States."

Ma Xinzheng said that overall, due to a series of factors caused by the economic downturn in the United States, the situation that the US textile quotas will not be used up in 2008 will be clear.

The demand and volume of the quota market are quite different from that of the same period last year.

Raise prices difficult spinning enterprises pressure

Ma Xinzheng believes that if the quota prices remain low, orders will continue to return, and further sustained growth.

So low quotas are good for China.

He said: "it can be expected that the clothing trade of this Canton Fair will be better than before."

For the industry trying to rely on the price increase to digest the cost pressure, Ma Xinzheng believes that it is difficult to get the approval of downstream customers, especially if the same products are not increased in other circumstances, so as to pfer the losses caused by cost pressures and the reduction of export tax rebates, and the direct consequence is likely to be the loss of original customers and loss of orders.

Judging from the practical difficulties facing the industry, the textile and garment paction will face a "heavy test".