European textile exports slide due to energy crisis amid Ukraine war

European apparel and textiles confederations like EURATEX, CIRFS, ETSA, EDANA and EUROCOTON have demanded EU to safeguard the future of the industry as gas prices reach sky-high levels. The industry has suggested a mechanism for electricity pricing and called for a cap on gas prices. It said that measures need to be adopted to avoid bankruptcy and relocation of textile production outside of Europe. The associations added that specific segments of the textile industry are particularly vulnerable as man-made fibres (MMF), synthetic and cellulose-based fibres are energy intensive segments and dyeing and finishing production units make very intense use of gas. 

Latest data on exports of these products from the EU has highlighted the downward trend. According to Fibre2Fashion’s market insight tool TexPro, exports of textile products and articles for technical usage (HS code 5911) declined to $727.345 million in the second quarter of this year. The exports had amounted to $759.015 million in the first quarter of 2022 and $725.802 million in fourth quarter 2021. 

The exports of man-made filaments (HS code 54) slipped to $2,101.952 million in the second quarter of 2022 from $2,910.941 million in the first quarter of 2022. Exports of artificial filament tow or cellulose acetate (HS code 550210) declined from $67.136 million in the first quarter of 2022 to $43.960 million in April-June quarter of this year. The shipment of tyrecord high tenacity yarn of polyester (HS code 590220) decreased to $72.538 million in the second quarter of 2022 from $97.496 million in the previous quarter. 

Fibre2Fashion News Desk (KUL)