Textile Raw Material Price 2015-08-17
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
44811.47 |
USD/Ton |
0% |
|
VSF |
84629.67 |
USD/Ton |
0% |
|
ASF |
98425.20 |
USD/Ton |
0% |
|
Polyester POY |
43851.23 |
USD/Ton |
0% |
|
Nylon FDY |
108187.70 |
USD/Ton |
-0.59% |
|
40D Spandex |
233659.82 |
USD/Ton |
-1.35% |
|
Nylon DTY |
236540.55 |
USD/Ton |
0% |
|
Viscose Long Filament |
54413.93 |
USD/Ton |
1.19% |
|
Polyester DTY |
99225.40 |
USD/Ton |
-1.27% |
|
Nylon POY |
106107.16 |
USD/Ton |
0% |
|
Acrylic Top 3D |
50572.95 |
USD/Ton |
0% |
|
Polyester FDY |
117149.99 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
109468.02 |
USD/Ton |
0.59% |
|
32S Polyester Yarn |
71058.19 |
USD/Ton |
0% |
|
45S T/C Yarn |
114589.33 |
USD/Ton |
0% |
|
45S Polyester Yarn |
116509.83 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
104346.71 |
USD/Ton |
0% |
|
40S Rayon Yarn |
78740.16 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
96024.58 |
USD/Ton |
-0.66% |
|
10S Denim Fabric |
44.81 |
USD/Meter |
0% |
|
32S Twill Fabric |
37.77 |
USD/Meter |
0% |
|
40S Combed Poplin |
41.61 |
USD/Meter |
0% |
|
30S Rayon Fabric |
30.22 |
USD/Meter |
0% |
|
45S T/C Fabric |
30.73 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15621 USD dtd.17/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Bogged down by high input costs and subdued demand, cotton spinning mills are going slow on production. To take stock of the situation, representatives of the Confederation of Indian Textile Industry, South India Millers' Association, North Indian Millers Association, and Texprocil met in New Delhi. In the meeting, it was decided to appoint an agency to study the gravity of the situation, prepare a memorandum, and send to the government.
Most of the mills have either already cut production by 15-20 per cent or are mulling to do so soon. Salem-based Sambandam Spinning Mills is one such. Its director S Dinakaran says the mill is keeping operations suspended for one day every week, starting this month. He says this is the first time in 40 years that the mill has faced such a crisis that production has had to be scaled down. While bigger players are resorting to a one-day production cut, smaller ones have opted to shut production for two days a week. The plight of cotton mills in north India, too, is similar. What has added to the woes of the sector is the dramatic increase in capacity over the past few years on the back of incentives offered by various state governments. This, as well as a drastic fall in export demand, has put the sector in a shambles.
Says D K Nair, secretary-general, Confederation of Indian Textile Industry: "The sharp decline in exports from a peak of 140 million kg a month last year to an average of 100 million a month in this quarter has put the spinning sector in doldrums. A 40 per cent decline in export demand in such a short span was unexpected and the sector was not prepared for this. The devaluation of yuan might further hamper exports as Indian yarn has become more expensive in the international market in the aftermath of Chinese currency's fall."
According to experts, the delay in disbursement of Technology Upgradation Fund, or TUF, has affected the sector. Dinakarn, who is also the chairman of Texprocil's yarn committee, said: "Chinese buyers have been delaying the LCs (Letters of Credit) and not opening the LCs. The mills are bleeding and there is no option other than suspending production. Of the 500 small mills in Tamil Nadu, most are keeping operations shut once or twice a week." These mills are into blended yarn and fibre. Since there is no excise duty on cotton, the 100 per cent cotton yarn makers are disrupting production only once a week.
According to C Varadarajan, president of South Indian Spinners' Association, there is a need to revive the interest subvention, for release of pending TUF, and introduction of measures to expedite exports. As the textile sector is one of the largest employers, production cuts for a longer time could result in layoffs, resulting in labour unrest. The situation is precarious and the government should provide immediate relief to save the livelihood of millions engaged in textile sector, he added.
SOURCE: The Business Standard
At the inauguration of the fourth edition of the buyer-seller meet-cum-powerloom product mela ‘TEXPO – 2015,’ jointly organized by the Powerloom Development and Export Promotion Council (PDEXCIL) and the Regional Office of the Textile Commissioner under the Ministry of Textiles, Government of India. PDEXCIL’s Chairman, M. Duraisamy, called upon the powerloom weavers to avail themselves of government assistance. The Ministry of Textiles has allocated Rs. 11952.80 crore, which works out to be 26 percent of the total plan outlay, for subsidy outflow for the spinning sector. This includes committed liabilities of spinning sector of erstwhile/modified Technology Upgradation Fund Scheme (TUF) and Revised Restructured Technology Upgradation Fund Scheme (RTUFS) during the 12th plan period.
Another scheme for those working in powerloom sector aged between 18 and 59 years was being implemented by the Centre, the Group Insurance Scheme (GIS). Powerloom workers engaged in weaving, twisting, winding, warping and sizing and weavers, who own four looms or less are eligible to get coverage under the GIS. For availing the scheme, the beneficiary has to pay only Rs. 80, while the rest of the premium of Rs. 390 will be borne by the government and the LIC. If a beneficiary died in harness or sustained permanent disability, Rs. 1.5 lakh would be paid to their kin and Rs. 75,000 will be given for partial disability in accident. During the third edition of the expo, the exhibitors had earned a revenue of Rs. 30 to Rs. 35 lakh. While, the current expo which is expected to attract more buyers-sellers and fetch more revenue.
SOURCE: Yarns&Fibers
Why are Indian producers of bed linen and towels - major parts of home textiles segment - excited about the slow but steady improvement in outlook for the United States (US) housing sector after the collapse wrought by the brutal financial crisis of 2008-09? This year's June proved to be exceptional when, according to the US commerce department, new home starts rose sharply by 26.6 per cent. These, besides existing home sales in the US, are now at their highest since 2007 as the boom returns to the rental market. "All this spells good times for us in the home textiles division. You see when families or individuals in the US or other developed economies move to new abodes, they compulsorily buy fresh sets of bed linen and towels. If excitement among us exporters is palpable, it is because the US happens to be the world's biggest importer of home linen followed by the European Union (EU). The house building industry in the UK too, continues to remain buoyant with required annual supply of homes seen at 240,000. That's again good news for home linen manufacturers," says Anil Jain, chairman, Indo Count Industries.
Bed linen alone, famed towels - used at the Wimbledon in separate colours for men and women contestants - are made in a Gujarat factory by Welspun since its acquisition of the iconic British towel manufacturer Christy in 2006. For India's home textiles sector, retailing in the US is making a strong comeback since late 2014. "Whether it's a towel or bed linen, the growing numbers of customers in developed markets like the US are becoming more and more demanding about the quality and are ready to pay a few extra quid for that. A better part of one's life is spent sleeping. Why sleep on junk when premium quality sheets will give comfort and last much longer than the ordinary? We, at Indo Count, saw the opportunity to scale up from a large cotton yarn manufacturing unit to producing bed linen by installing air jet looms for 'wide width' fabrics," said Jain. An industry official said whether an Indian manufacturer will stand to benefit from lucrative markets of the US and the EU for home textiles will depend on how efficiently the chain - from procurement of raw material (in this case mostly cotton which comes in a range of quality) and various stages of manufacturing to finally reaching the product to buyers in good time - is managed.
WARP & WEFT OF HOME LINEN SECTOR
The saying goes: Fine linens begin with fine cotton. The length of individual fibres or staples decides the quality of cotton. With its mill in Kolhapur, a major cotton growing centre in Maharashtra, Indo Count enjoys the cost advantage in raw material procurement. But for success in increasingly competitive markets of the West, says a Texprocil official, companies must not compromise on employment of state-of-the art machinery. Export success for textile groups like Alok Industries, Welspun and Indo Count are all underpinned by their capacity to steadily move up the value chain, owning design centres capable of staying in sync with market-specific trends and building sustainable relationship with big, fashionable retail chains. Whether it is for mid-market Walmart or the high-end Bloomingdale's in the US or Debenhams to John Lewis range in the UK, to become their strategic supply partners will require of Indian companies to be convincing about their "production base with outstanding execution capability." Victoria Classics in the US is a leading importer of high quality home textiles from various parts of the world and it wants suppliers to work with them "on price formula base and mutual profit agreement."
Jain says the global home textile industry (of which bed linen constitutes about 21 per cent) will be growing at a compound annual growth rate (CAGR) of five per cent in the next few years. According to the consulting firm Technopak, the global home textile market will expand to an estimated $96 billion in 2017 from $86 billion in the current year. Opportunities are beckoning the likes of Alok, Welspun and Indo Count. The latter's focus on mid-to high-segment global bed linen market has, therefore, raised capacity in phases from 36 million metres (mm) in 2007 to 68 mm in 2015. To make full use of the expanded capacity, the company has recently opened showrooms, design studios and warehouses in the UK and Australia. But China's attempt to improve its textile products acceptability on price point through devaluation of renminbi remains a major concern here.
SOURCE: The Business Standard
Last week, China's central bank, People's Bank of China, devalued the yuan by about two per cent last Tuesday last - the biggest one-off devaluation in 20 years. This will likely impact Indian micro, small, and medium enterprises (MSMEs) engaged in foreign trade (i.e. exports and imports). CRISIL has analysed the performance of about 6,900 Indian MSMEs rated on the basis of their 2013-14 (financial year April 1 to March 31) financials, of which about 425 are engaged in foreign trade. Nearly 55 per cent of CRISIL-rated MSME exporters operate in industries such as engineering, textiles, fast-moving consumer goods (FMCG) and chemicals & drugs, and the yuan devaluation means these will face increased competition from Chinese players. Also, industrial machinery, construction material, gems & jewellery, electronics, and chemicals & drugs accounted for 73 per cent of CRISIL-rated MSME importers. Imports are expected to become expensive because of rupee depreciation vis-à-vis the US dollar. Most of India's imports from China are settled in the US dollar; thus, Indian MSME importers will not be able to gain much from the yuan devaluation.
SOURCE: The Business Standard
The rupee plummeted by 31 paise to end at over two-year low of 65.32 against the US dollar on Monday on the back of consistent demand for the greenback from importers and state-run banks. Sluggish trade data amid highly volatile global currency market sentiment in the aftermath of China's yuan devaluation predominantly weighed on trade, forex dealers said. Besides, fresh bouts of selling in local equities added pressure on the local currency. The dollar edged higher against other major currencies amid uncertainty over the impact of the yuan's devaluation last week as well as global inflation expectations against the backdrop of Fed rate hike. The rupee resumed lower at 65.12 as against last weekend’s level of 65.01 at the Interbank Foreign Exchange (Forex) market on good dollar demand amid higher greenback overseas as well as weak domestic equity markets. It kept falling during the trade to hit a fresh low of 65.36 before finishing at 65.32, showing a fall of 31 paise, or 0.48 per cent. The domestic currency had recovered 10 paise after sliding for seven straight sessions to close at 65.01 against the dollar in Friday’s trade. The country's exports contracted for the eighth straight month in July to $23.13 billion, pushing the trade deficit to $12.81 billion. The US dollar index, which measures greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14 per cent at 96.74.
SOURCE: The Business Standard
To bolster economic ties, the UAE on Monday agreed to increase its investment in India to $75 billion (about Rs 5 lakh crore). The two nations also agreed to increase trade between them 60 per cent through the next five years and sign a strategic partnership in the energy sector. Prime Minister Narendra Modi and Crown Prince Mohammed Bin Zayed Al Nahyan of Abu Dhabi also agreed to facilitate participation of Indian companies in infrastructure development in the UAE. A joint statement issued after a meeting between the two leaders said they resolved to “further promote trade between the two countries and use their respective locations and infrastructure for expanding trade in the region and beyond”. To step up UAE’s investment in India, a UAE-India Infrastructure Investment Fund would be set up. This would “support investment in India’s plans for rapid expansion of next-generation infrastructure, especially in railways, ports, roads, airports and industrial corridors and parks”, the joint statement said. It added Modi and the crown prince of Abu Dhabi had agreed to “promote strategic partnership in the energy sector, including through UAE’s participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors, and collaboration in third countries”. Cooperation in the areas of education and higher research would also be stepped up, the statement said.
Earlier in the day, Modi addressed business leaders from the UAE and said India offered investment potential of $1 trillion. Besides, the UAE could tap “India’s expertise in small and medium enterprises to create a vibrant industrial base in the UAE, which could also be of benefit to Indian enterprises.” Investment opportunities in India, especially in infrastructure, energy and real estate, were immense, Modi said. “On the one hand, India is growing fast and on the other, the world is looking at Asia. But is Asia complete without the UAE?” he asked. “I can clearly see the UAE should be at the centre of things in Asia. UAE’s power and India’s potential can make it Asia’s century.”
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 48.17 per barrel (bbl) on 17.08.2015. This was lower than the price of US$ 48.85 per bbl on previous publishing day of 14.08.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3141.65 per bbl on 17.08.2015 as compared to Rs 3181.11 per bbl on 14.08.2015. Rupee closed weaker at Rs 65.22 per US$ on 17.08.2015 as against Rs 65.12 per US$ on 14.08.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on August 17, 2015 (Previous trading day i.e. 14.08.2015) |
Pricing Fortnight for 16.08.2015 (July 30 to Aug 12, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
48.17 (48.85) |
50.68 |
|
(Rs/bbl |
3141.65 (3181.11) |
3243.52 |
|
|
Exchange Rate |
(Rs/$) |
65.22 (65.12) |
64.00 |
SOURCE: PIB
The United States imported textiles and apparel worth $52.350 billion in the first six months of 2015, registering an increase of 4.74 per cent over imports of $49.982 billion made in the corresponding period of last year, according to the Major Shippers Report, released by the US Department of Commerce. The US imported $18.826 billion worth of textiles and garments from China, which accounted for 38.73 per cent share of all textile and garment imports made by the US in January-June 2015, the data showed. Vietnam, India, Bangladesh and Indonesia were among the top five suppliers of textiles and garments to the US, with goods valued at $5.326 billion, $3.794 billion, $2.808 billion and $2.625 billion, respectively, during the six-month period. Segment-wise, the US apparel imports during the first half of 2015 were valued at $39.076 billion, whereas non-apparel imports accounted for $13.274 billion.
Among the top ten apparel suppliers to the US, exports from Sri Lanka, Vietnam and India increased at a fast pace of 16.46 per cent year-on-year, 15.43 per cent and 10.02 per cent respectively to $999.834 million, $4.946 billion and $2.005 billion, during the period under review. On the other hand, Cambodia and Mexico saw their exports decline marginally by 145 per cent and 0.23 per cent, respectively, over the corresponding period of 2014.
In the non-apparel category, among the top ten suppliers, the import from India and Taiwan shot up by 13.30 per cent year-on-year and 10.79 per cent respectively to $1.788 billion and $247.894 million. While imports from Pakistan, Italy and Canada dropped by 3.15 per cent, 1.48 per cent and 0.81 per cent to $797.872 million, $297.334 million and $386.514 million respectively. Of the total US textile and apparel imports of $52.350 billion during the first half, cotton products were worth $24.308 billion, while manmade fibre products accounted for $25.195 billion, followed by $1.701 billion of wool products and $1.145 billion of products from silk and vegetable fibres. In 2014, the US textile and apparel imports increased by 2.61 per cent year-on-year to $107.460 billion, with apparel alone accounting for $81.780 billion.
SOURCE: Fibre2fashion
Egypt has had a long history of textile manufacturing and they have one of the best cottons in the world but since the 2011 revolution, Egyptian cotton’s star has faded as cash subsidies from the government and output of premium cotton have shrunk, according to Mohamed Kassem, Chairman of the Ready Made Garment Export Council, a public-private partnership between the Ministry of Trade and Industry and some of Egypt’s most prominent clothing exporters. Yet as production of Egyptian long-fiber cotton has fallen – from a high of nearly 2.5 billion bales in 1970 to just 340,000 today, according to the U.S. Department of Agriculture – the textiles market has been blossoming. Exports of textiles and ready-made garments (RMG) have reached $2.5 billion, and the sector generates around one in three jobs in more than 4,400 companies around Egypt. Mr. Kassem said that the sector has its sights set on even more growth, driven by exports to Egypt’s two biggest markets for textiles and RMG; the United States and the European Union. Their goal is to increase from the $2.5 billion in exports that they are currently producing to $10 billion by 2025.
With the international market projected to double in the next 10 years from $350 billion to $700 billion, it will not be difficult to reach the goal if they do their job right. Part of doing the job right involves changing with the times and producing garments and textiles with other materials besides Egyptian cotton, explains Mr. Kassem, who spent years in the Foreign Service – including a stint at the Egyptian embassy in Washington, D.C., as the commercial attaché in charge of promoting Egyptian exports.
Egyptian cotton is called the ‘extra-long staple.’ The demand for this type of cotton does not exceed 3-4% of the total demand of all fibers. To be a major player, other fibers including short staple cotton must be used. Egypt will not completely abandon the luxury cotton that bears the nation’s name, but the industry has realized that “you cannot use an expensive Egyptian cotton to produce cheap yarn, said the Ready Made Garment Export Council chairman. And that’s the way the market is going, according to Mr. Kassem. To be a player in this market, you need to play the game that everyone is playing.
Last year, around one third of Egyptian textile exports and more than half of Egyptian ready-made garments went to the United States. Textile exports to the United States represent a quarter of non-oil exports and 20% of total manufacturing in Egypt. Playing a large part in Egypt’s success in the U.S. market are the 15 Qualifying Industrial Zones (QIZ) in the country. Companies in QIZ can export goods to the United States duty-free, provided at least 35% of the product they sell is manufactured in a qualifying zone and 10.5% of the product or its component parts are made in Israel. Waleed El Zorba, the Chairman of the Nile Clothing Company, said that QIZ was “a life-saver for his company. According to the Egyptian Trade Ministry’s QIZ website, exports from Egypt have risen sharply since QIZ began, with the bulk of these exports going to US markets. Mr. El Zorba said that there’s an attraction to doing business with American companies that is hard to find elsewhere.
Europe is very segmented. England is buying for England; France is buying for France, so the order quantities shrink accordingly, he explains. Mr. Kassem agrees that Egypt’s QIZ has had a huge, positive impact on business. But, he adds, it has also enhanced Egypt’s relations with one of its neighbors. Through QIZ, they are now duty-free exporters, but there is also a political initiative, which brings Israelis and Egyptians together in business. In his opinion, this is one of if not the only political initiative that has paid back. Mr. Kassem adds, however, that it has been a struggle to maintain double-digit growth that the textile and RMG sector was enjoying before the 2011 revolution. Not only have government subsidies for luxury, long-fiber cotton dried up, but so did some customers’ confidence. Kassem said that they are holding their ground at a very high cost with a lot of hard work to keep their customers from leaving. In the first days of the revolution, they were sending out situation updates so that they didn’t rely on Fox News to hear what was happening. Mr. El Zorba admits that he was actually spending almost every other month traveling to New York to let people know that their ports are open, business is running, there would be no stop in flow, and don’t pay attention to everything they are seeing on the news. His company never missed a delivery to clients, even at the height of the revolution. But that took about a year for them to realize.
Today, Egyptian textile and RMG companies are beginning to turn the corner, and Mr. Kassem is urging Americans to continue buying made-in-Egypt clothing and textiles. Garments out of Egypt are seeking customers in the U.S. Every garment you buy from Egypt is a vote for democracy. The label “Egyptian cotton” on a set of bed sheets evokes sweet dreams of luxurious softness. Indeed, Egyptian cotton was once the bar against which all other linens and clothing were measured.
SOURCE: Yarns&Fibers
Exports of readymade garments from Bangladesh registered double-digit decline in the first month of financial year 2015-16, according to the latest government data. In July 2015, Bangladesh earned $2.215 billion in garment exports, showing a decrease of 12.02 per cent compared to exports of $2.518 billion made in the corresponding month of the previous fiscal, Export Promotion Bureau data showed. The decline in the value of garment exports was in tune with the 11.96 per cent drop in overall exports by Bangladesh during the month. One reason for the decline in exports is the holiday season owing to Eid-ul-Fitr celebrated during the month.
Category-wise, knitwear exports dropped by 13.80 per cent to $1.127 billion in the first month of fiscal 2015-16, as against exports of $1.307 billion during the same month of the previous fiscal, as per the data. Likewise, exports of woven apparel dipped by 10.11 per cent to $1.087 billion during the fiscal, compared to exports of $1.210 billion during July 2014. Woven and knitted apparel and clothing accessories' exports together accounted for 84.38 per cent of $2.625 billion worth of total exports made by Bangladesh during the month. In the previous fiscal that ended on July 30, 2015, garment exports earned $25.491 billion for Bangladesh, showing an increase of 4.08 per cent over $24.491 billion exports made in 2013-14.
SOURCE: Fibre2fashion
The Pakistan Economy Watch (PEW) has said that the country's exports have not dwindled overnight and expanded the trade gap. Favouritism, appointments in violation of merit and misuse of export incentives are to blame for the situation. It said the situation will not change unless appointments are made strictly on merit, outdated elements are removed and those behind declining export should be held responsible, Dr Murtaza Mughal, PEW president said in a statement. He said that increased cost of doing business, energy crisis and non-payment of refunds by the FBR has also played a role in hurting exports. Policymakers are too much focused on textile sector for exports while other sectors and textile value addition have been put on the backburner which is limiting Pakistan's capability to benefit from GSP plus status. Dr Mughal said Pakistan's textile sector is focused on European market only; they should also try to explore other markets and alter their strategy according to changing scenario. He asked the government to focus on exports to increase income and avoid indirect taxation, unprecedented taxes on imported fuel, privatization, and loans and grants to change the dismal situation.
SOURCE: Fibre2fashion
Burdened by weaker consumer spending and exports, Japan's economy contracted in the second quarter, government data showed on Monday, the first such setback since a short but painful recession last year. The Cabinet Office said gross domestic product fell at an annualized rate of 1.6 per cent in the three months through June. Japanese growth rates have fluctuated wildly in recent quarters, and the latest downturn only partially erased gains from a strong expansion in the first quarter, which the government now estimates at 4.5 per cent. Last year was even more volatile: Consumer spending surged before a sales tax increase in April 2014, lifting the economy to its fastest pace in years, then evaporated afterward, setting off a recession. The size of the contraction in the quarter through June was roughly in line with the expectations of private-sector economists. In surveys by news agencies, analysts had forecast an annualised contraction of 1.8 per cent to 1.9 per cent, on average.
The slowdown is nonetheless a setback for the government of Prime Minister Shinzo Abe, which has been trying to pull the economy out of nearly two decades of deflation through a stimulus program known as Abenomics. The program, under which the central bank injects vast amounts of cash into the economy, has kept borrowing costs low and weakened the yen. It has been a boon for global manufacturing companies like Toyota that earn much of their revenues abroad in currencies like dollars and euros. But while Abenomics has increased profits at big corporations and lifted the stock market, many ordinary Japanese say they feel few benefits. Jobs are plentiful - the unemployment rate is just 3.4 per cent, close to an 18-year low - but the paychecks that go with them buy less than they used to. Adjusted for inflation and taxes, average wages have been stuck in a persistent decline.
Exports, which have been hurt by a weaker Chinese economy, tumbled at an annualized rate of 16.5 per cent last quarter, according to the economic report. That was only partially offset by a 9.8 per cent decline in the value of imports. China's rapid development in recent years has had spillover benefits for Japan, where experienced manufacturers of industrial machinery have supplied much of the equipment used in China's proliferating factories. China supplanted the United States as Japan's largest trading partner several years ago. Thus the slowing pace of growth in China - and, in particular, a decline in demand for capital goods - has hurt important parts of Japan's export economy. The quarterly contraction in Japan could revive speculation on whether the central bank will step up its stimulus efforts. The Bank of Japan has been pouring money into the economy by buying government bonds from the market at a rate of 80 trillion yen a year, or close to $700 billion. Yet the sustained increase in consumer prices that it hopes to generate as a result has been elusive.
SOURCE: The Business Standard
With the growing demand for polyester specifically in China, the market for purified terephthalic is likely to see expansion in the coming years. Furthermore, the country is emerging as a global textile manufacturing hub with low-cost labor further driving the growth of the purified terephthalic acid market. Polyethylene terephthalate which acts as a successor to PTA is also expected to make an impact on the PTA market in accordance to its end-user industries.
Asia Pacific was the largest consumer for purified terephthalic acid, followed by North America and Europe. Future market growth is expected to be from Asia Pacific as well owing to the improving living standards as well as cross-country usage of PTA products. Several growth factors such as growing per capita consumption in emerging regions such as China and significant growth of the textile industry is expected to boost the demand for the PTA market. However, fluctuating prices in energy sources such as crude oil required to produce PTA is expected to affect profitability of PTA manufacturers thereby impacting the growth of the market. Beer and other alcoholic beverage industries as well as household product containers are still dominated by the glass industry, which could be an unexplored market for PTA consumption thereby, providing new opportunities for the growth of the market.
Alfa, S.A.B. de C.V., CPC Corporation, Far Eastern Group, Honam Petrochemical Corporation, Indian Oil Corporation Limited, Mitsubishi Chemical Corporation, Mitsubishi Gas Chemical Co. Inc., Reliance Industries Ltd., Samyang Chemical Co., Ltd. and Saudi Basic Industries Corporation are some of major producers of purified terephthalic acid dominating the market.
Purified terephthalic acid (PTA) is a chemical which is synthesized from crude oil. It is majorly used to manufacture polyester fiber. Its end-user industries include textile and home furnishing where PTA is required to manufacture garments such as bed sheets, curtains and clothes.
SOURCE: Fibre2fashion
Thailand-based Indorama Ventures Limited (IVL), a leading global manufacturer of Polyethylene Terephthalate (PET) has said that PET producers in Canada, USA and Mexico are expected to benefit after the US Department of Commerce announced its preliminary affirmative determinations in the countervailing duty (CVD) investigations of imports of certain PET resin from the China and India. IVL which also has production facilities in the US claims it had produced 1.2 million tones of PET in North America in 2014 or one-third of the continent's market share.
The Department of Commerce announced a CVD in range of 4.27 per cent to 18.88 per cent on PET imports from China into USA and 5.5 per cent to 115.04 per cent on imports of PET from India into USA. Investigation was carried out on Oman also; however no CVD was imposed on Oman. This is applicable with immediate effect and runs for five years. In addition to CVD, Anti Dumping Duties (ADD) investigations are also on against China, India, Oman and Canada. The probe result is expected to be announced in the fourth quarter of 2015.
SOURCE: Fibre2fashion
The failure of the 12 negotiating countries of the Trans-Pacific Partnership (TPP) to meaningfully conclude an agreement in the last week of July at Maui, Hawaii, has led analysts across the world to declare the deal dead. For sure, the possibility of the deal going through and getting ratified by 2016 seems remote. A close look at what happened at the TPP meeting in Hawaii brings out the close similarity it has to what has been happening with the Doha Development Agenda of the World Trade Organization (WTO) for many years now. And like the WTO's Doha Round, TPP is also not dead, but provides several pointers to negotiators of other mega trade agreements such as the Regional Comprehensive Economic Partnership, which involves 16 countries.
What went wrong with the TPP is that while all negotiating countries agreed that there is a need for an ambitious agreement, when it came to specifics many backed out. This is because, other than the original four members of TPP - Brunei, Chile, New Zealand and Singapore - the remaining members who joined later have strong domestic constituencies that seek protection. From dairy in Canada to rice and cars in Japan, the list is long.
Second, it is believed that smaller and less developed countries like Vietnam have a problem in taking on onerous responsibilities in areas such as labour rights that is expected to be part of the agreement. The US, on the other hand, wants to protect its big pharma interests, which may not find support among all countries at the table. The similarity between the TPP and the WTO negotiations may begin to grow when member countries of the TPP begin to hint, as some analysts predict, that smaller groups within the larger grouping should start working towards agreements that suit the minority with the hope of getting the majority to join later. Some analysts have predicted that the four founding partners along with Australia may reach an agreement and hope the others follow suit. The same is happening at the WTO in Geneva. From the Information Technology Agreement signed in July to the current discussions around the Trade Facilitation agreement, smaller groups are looking to cajole the larger and wary countries into an agreement. The pointers from the TPP are important for negotiators of other major trade agreements. While political will can get countries together to begin negotiations for a trade agreement, for the agreement to conclude countries have to balance their protective interests with aggressive market-access-seeking intent. Second, the era of a heavyweight country pushing the negotiations towards a conclusion may not be relevant in the current economic environment around the globe. The TPP is seen as a very US-centric agreement, which seems to be making some other players slightly wary. This perception needs to change if other countries that are not part of the group look to join at a later stage.
Third, harmonisation across standards, customs procedures and tariffs cannot be achieved easily. The easiest form of trade liberalisation is in the form of tariff reduction; eliminating or substantially reducing different standards or harmonising customs procedures across countries is difficult even when the intent of all parties to reach an agreement remains strong. The TPP is expected to have a strong level of harmonisation across countries in the areas of standards and customs procedures.
Fourth, investment and intellectual property remain difficult chapters to negotiate if something substantial has to be achieved as specific sector interests will differ among the negotiating parties. Finally, countries have to agree that while trade agreements may make economic sense they do not always find favour in countries that are going to the polls. Therefore, the time period of negotiations have to be decided with care.
The mood in many countries is not in favour of a strong TPP but a lot has already been achieved for it to go waste. The same can be said about the forthcoming ministerial meeting of the WTO. The road to a successful meeting in Kenya in December is difficult, but after making some good progress on issues such as trade facilitation, it may not be a good idea for countries to let it fail.
SOURCE: The Business Standard
The Green Trade Project Office under Taiwan's Ministry of Economic Affairs has launched the third event for its 2015 'Green Light Outreach' campaign with the opening of 'Taiwan Innovative Textiles and Accessories Gallery' at the biannual 'Sourcing at Magic' exhibition that opened on August 16 in Las Vegas. Featuring the theme 'Eco Meets Fashion,' the 'Taiwan Innovative Textiles and Accessories Gallery' is being staged by the Green Trade Project Office in collaboration with Taiwan Textile Federation, the Green Trade Project said in a press release. At the Gallery in the Las Vegas Convention Center members of the Taiwan delegation presented a wide variety of products with eco-friendly characteristics and innovative design. "Given the growing concerns for the environment, products manufactured using recycled materials or adopting a process with lower environmental impact have started to enter the global supply chain," said Li-Yen Ma, Division Chief of the Integrated Marketing Division at the Green Trade Project Office. "With continued dedication, Taiwanese textiles manufacturers have achieved remarkable results in the development of functional and environmentally friendly fabrics and related products over the years. We believe visitors to the Taiwan Pavilion will easily find the most suitable solutions and designs among the various product lines."
The 'Taiwan Innovative Textiles and Accessories Gallery' comprises a wide range of products offered by 15 Taiwanese companies. Products on display include functional fabrics manufactured by the 2012 Taiwan Green Classics award winner Everest Textile Co., Ltd., Sanfrantex Corporation, Yalta Industrial Co., Ltd., and Inprotex Co., Ltd. The Green Defence line from Lily Textile Co., Ltd. is made mainly with natural materials extracted from cinnamon and almond. The 3XGreen line promoted by Hung's Fortune International Co., Ltd., a bluesign system partner, and the recycle polyester knitting fabric offered by Grandtek Asia Corp. are made from recycled plastic bottles. Shun Yuan Sportswear Co., Ltd. also presented a recycle spun polyester jersey fabric made of recycle PET bottle staple fiber certified by SCS Global Services. Danken Enterprise Co., Ltd. showcased a pair of arm warmers made from the eco-friendly S.Café fabrics.
SOURCE: Fibre2fashion
