Continuing erratic behavior of cotton costs has made it difficult for China suppliers of finished goods to be optimistic for 2011 exports, despite rising orders.

Although China's cotton supply has stabilized of late, spot and futures prices in both domestic and international markets continue to shoot up.

While cultivating sales in the domestic market is an enticing possibility, most China manufacturers are still bent on expanding their export reach through the next five years.

Encouraged by the success of a few suppliers, an increasing number of China makers are looking at branching out to the domestic market. Many companies feel taking this step can help raise their bottom lines, what with the numerous challenges that make it difficult to achieve higher gains in the export sector. Among these are the weakening purchasing power in the US and the EU, trade sanctions and the yuan's appreciation.

Despite numerous challenges, China's export manufacturers are anticipating healthy year-end growth. This comes as Q3 sales for some lines now exceed full 2009 exports.

The growth in China's exports from Q1 2010 has carried on through the third quarter. Seasonal orders for Halloween and Christmas have been shipped earlier than in previous years, causing an uptick in Q2 and Q3 overseas sales. With such orders already sent out, export growth in Q4 is likely to slow down.

Spot and futures prices of different types of steel may have fallen in recent weeks, but analysts believe the metal will climb back up in 2011.

High iron ore costs and thinning profit margins are making it difficult for China's steel manufacturers to keep prices low. Based on the Q3 financial report of the country's 13 publicly listed steel companies, gains for the period are lower than those in Q1 and Q2.