Hong Kong’s re-exports of cotton denim trousers surged in the first quarter this year after already increasing in 2006. Very strong demand from the United States is obviously boosting sales from Hong Kong in order to avoid Chinese quotas. Shipments to Germany and the UK are also booming for a similar reason. Unit prices sharply increased since 2004 with a new jump this year, as reflected by our series of statistical tables.

Hong Kong’s re-exports of cotton denim trousers surged in the first quarter this year, in volume and in value terms.

Shipments of trousers for men and boys rose 50% in volume terms from the same period last year, even increasing 79% after unit prices made new gains.

Re-exports of women’s and girls’ denim trousers also surged at the same time, rising 51% and 75% in volume and value terms, respectively.

Five times the 2004 level
Strong demand from the United States is the main reason behind this rebound in sales of Hong Kong trading firms on denim jeans’ market.

Shipments of men’s/boys’ trousers to the USA climbed 195% in volume terms in the first quarter this year and 236% in value terms.

Re-exports to the US market had already increased 67% and 95% in 2006, in volume and value terms respectively.

As a result, sales to the United States surged more than five times since quotas were removed on Hong Kong’s exports.

Similar data are reported for W/G denim trousers.

This is very far from the decline that could have been expected. With quotas still imposed on shipments from China, passage through Hong Kong is favored by US buyers.

US limits also forced Chinese exporters in shifting to higher-valued products in order to maximise margins.

Higher unit prices
Hong Kong took advantage of the rise in unit prices that were up 58% since quotas were removed on men’s and boys’ segment while rising 24% on women’s and girls’ segment.

Shipments to Germany and to other other European markets similarly profited from the removal in European quotas while EU limits were still maintained on Chinese trousers.

Sales to Germany surge 15 times from their level in 2004 in volume terms and 24 times in value terms.

Shipments to the UK were up 5 and 5.4 times in the meantime, in volume and value terms respectively.

Re-exports to Japan of W/G trousers also improved, more surprisingly, although Japan did not impose limits on Chinese trousers in the past.

Shipments were up 21% in value terms from 2004.

Other markets look more negligible, by contrast with the US market now accounting for 20-30% of total shipments.