Although imports are clearly slowing down, US quotas are being rapidly filled in a series of sensitive categories. China, Vietnam -and the Philippines and Indonesia to a lesser extent- are facing a general saturation in US limits.

Quota fill rates sharply increased in China and Vietnam, compared with last month.

In China, a larger series of categories is now above the average rate of 59% for this period of the year.

From July 7th, for instance, utilization rate in category 433 (wool hosiery) rose from 48.20% up to 61.90%. Quota fill rate for wool trousers (category 447) jumped from 53.80% up to 72%.

China''s exports of cotton trousers in the most sensitive categories 347/348 are also threatened by a fill rate of 81.60%.

Although shipments to the United States are now slowing down, full saturation is again looming, as a result of the low level in quotas granted to China.

For Vietnamese exporters, the surge in shipments to the United States will probably lead to US embargoes being placed before the end of the year for a large series of categories.

In category 342/642 (skirts), the US quota is already 96% filled. The utilisation rate reached 84% in category 301 (combed cotton yarns).

In the past month, quota fill rates surged from 30% to 40% to about 55% to 70% for a majority of categories.

In Indonesia, exporters are also under pressure, although the rise in the rupiah depressed sales to the United States.

Quota fill rates already exceed 70% in categories 443 (M&B wool suits) and 447 (M&B wool trousers). In category 347/348, the saturation rate rose 10% in the past month, from 55% to 65%.

The same categories 347/348 is also facing a possible saturation in the Philippines, such as in several other countries, as usual.

India benefited from a general adjustment in its quotas, granted by the US administration and effective from July 23rd. As a result, quota fill rates actually declined compared with a month ago.

India''s exports to the US surged in the first quarter before declining at the end of the first half. Categories 338/339 are still threatened by a possible saturation, however, with a fill rate of 73.80% and five months to remain before the end of the year.

Hong Kong also benefited from an adjustment in its most sensitive categories, including cotton and MMF knit shirts (338/339 and 638/639) and cotton trousers (347/348).