The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 7 SEPTEMBER, 2015

 

NATIONAL

INTERNATIONAL

 

Textile Raw Material Price 2015-09-06

Item

Price

Unit

Fluctuation

PSF

1131.05

USD/Ton

0%

VSF

2076.73

USD/Ton

0%

ASF

2415.26

USD/Ton

0%

Polyester POY

1107.48

USD/Ton

0%

Nylon FDY

2529.15

USD/Ton

0%

40D Spandex

5655.24

USD/Ton

0%

Nylon DTY

2780.49

USD/Ton

0%

Viscose Long Filament

5812.33

USD/Ton

0%

Polyester DTY

1374.54

USD/Ton

0%

Nylon POY

2340.64

USD/Ton

-1.32%

Acrylic Top 3D

2603.77

USD/Ton

0%

Polyester FDY

1209.59

USD/Ton

0%

30S Spun Rayon Yarn

2749.08

USD/Ton

0.57%

32S Polyester Yarn

1775.12

USD/Ton

0.89%

45S T/C Yarn

2780.49

USD/Ton

0%

45S Polyester Yarn

1916.50

USD/Ton

0%

T/C Yarn 65/35 32S

2340.64

USD/Ton

0%

40S Rayon Yarn

2890.46

USD/Ton

0%

T/R Yarn 65/35 32S

2560.57

USD/Ton

0%

10S Denim Fabric

1.10

USD/Meter

0%

32S Twill Fabric

0.93

USD/Meter

0%

40S Combed Poplin

1.02

USD/Meter

0%

30S Rayon Fabric

0.74

USD/Meter

0%

45S T/C Fabric

0.75

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15709 USD dtd.6/09/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

State to take final call on proposed textile policy only after Sept 11

The Maharashtra state government has approved the policy in-principle designed by Suresh Halwankar, BJP MLA from Ichalkaranji and it is now being discussed at the secretary level as it is a major cotton producer and processor in the country. However, the final call on the proposed textile policy would be taken only after September 11. The policy is expected to attract investments worth Rs 80,000 crore. The investment will come in the form of new machines, setting up of clusters and infrastructure provision.

State cooperation and textile minister Chandrakant Patil also said that the state government is planning to hold a meeting once the state secretary, who is on leave, returns. They will hold the meeting to discuss the locations, available infrastructure, power requirement and its smooth supply among other issues. Halwankar said that there are some textile industries and parks across the country, but nowhere will you find all types of industrial units needed to convert cotton into usable clothes. Vidarbha region produces cotton but ginning mills are in Marathwada, while primary processing is done in Ichalkaranji. Thereafter, it either goes to Bhiwandi (Mumbai) or to Rajasthan or Kanpur as per the requirement. Sometimes, it goes to Tamil Nadu as well. Finally, it is shipped to Bangladesh for stitching purpose after which they get the final product that can be sold to retail customers. The policy proposed to bring change in the existing model, which is costlier and time consuming. The change is aimed at delivering final product at the shortest possible time and place the country in the global market as one-stop solution for apparel requirement.

The policy document stated that the textile industry is second only to agriculture in terms of importance having capacity to create maximum jobs/employment after agriculture. The object of the policy is to lay special emphasis on raising processing units at various levels for assured long-term development on priority basis in the cotton producing sector, expansion of the textile industry and growth of employment in the state.  As per the state government's official statement on textile policy, textile industries have a share of 14% of the total industrial production in the country. The state produces 56 lakh bales of cotton of which only 25 lakh are processed in Maharashtra as present. The remaining bales are transported outside the state. The policy proposes to increase the existing swindles in the textile units from 12 lakh to 50 lakh. According to Satish Koshti, president of Ichalkaranji Powerloom Weavers' Association, the Ichalkaranji cluster is already known for supplying clothes to more than 50 international brands as per the requirement. If the policy is drafted carefully and solves all the possible practical hurdles, it will not only attract huge investments but also help in job creation. It is still a labour intensive sector and has capacity to generate jobs for thousands of skilled and semi-skilled workforce in the rural as well as urban areas.

Source : Yarn and fibre

Back to top

GSFC inaugurates its fully drawn yarn units at its fibre plant in Surat

Gujarat State Fertilizers and Chemicals Ltd (GSFC) inaugurated its fully drawn yarn (FDY) unit at its fibre plant in Kosamba in Surat, having a capacity of 2625 metric tonne per annum (MTPA). GSFC expects the new plant to increase the turnover by approximately Rs 70 crores to the company's top line. Under the present competitive market of Nylon filament yarn, GSFC will achieve new milestones with the production of newly installed FDY plant.  Dr S K Nanda, CMD, Gujarat State Fertilizers and Chemicals, said that the company was committed to make fibre unit more profit making division. For this, the company has decided to set up a new partially oriented yarn (POY) line with advance technology for the production of Gujnyl, GSFC's Nylon filament yarn brand, so that production capacity and turnover of the same can be increased.

Moreover GSFC has also decided to install high speed spinning chips plant of 30,000 MTPA capacity at Kosamba. Besides, with the sales of Gujcon CRF and PRF, the company through these developments is aiming to generate Rs 1000 crores in turnover of fibre unit.  GSFC has two caprolactam plants having rated capacities of 20000 TPA and 50000 TPA. The main raw materials are Benzene, Oleum, Ammonia, Carbon dioxide, Synthesis Gas, Sulphur dioxide, Caustic soda and Sulphuric acid. Caprolactam is a base material for manufacture of Nylon-6. Its applications are in the manufacture of Nylon-6 fibres for textile and tyre cord.

Source : Yarn and fibre

Back to top

Rupee, yields are expected to fall

The rupee is expected to slide further against the dollar this week, as dollar buying by companies is seen as continuing. There are also concerns in the market ahead of the two-day meeting of the Fed-eral Open Market Committee of the US central bank, on September 16-17. US data issued on Friday showed addition of 173,000 jobs in August, less than expected. However, job gains in prior months were revised higher and the unemployment rate was pegged at a seven-year low at 5.1 per cent. "The rupee is biased towards weakening and the range might be 66.25-67 a dollar this week," said Sandeep Gonsalves, foreign exchange consultant and dealer, Mecklai & Mecklai. On Friday, the rupee had ended at 66.47, from Thursday's 66.24.  During the week, it weakened by 31p. The Reserve Bank of India's (RBI) foreign exchange reserves fell by $3.43 billion for the week ending August 28, to $351.92 billion. A key reason was its intervention in the market to arrest volatility in the rupee. Meanwhile, government bond yields are seen falling, with expectation building up for a rate cut in September by RBI, on the back of easing retail inflation. Consumer Price Index inflation fell to 3.78 per cent in July from 5.4 per cent in June. "There is an expectation in the market that RBI could cut the rate this month. If that holds, the yield on the 10-year benchmark bond could trade between 7.72 and 7.68 per cent this week. There has been buying in bonds from the banking sector," said N S Venkatesh, executive director and head of treasury at IDBI Bank. On Friday last week, the yield on the 10-year benchmark ended stable at 7.75 per cent. During the week, it fell by three basis points.

Source: The Business Standard

Back to top

Only 25% of manufacturers plan to add capacity in next 6 months: FICCI survey

The manufacturing sector is expected to witness subdued investments at least for a few more months, a new survey has found. According to FICCI Quarterly Manufacturing Survey, only 25 per cent respondents have plans for new investments in the next six months. Investment remains subdued in the manufacturing sector. For the first quarter of 2015-16, about 75 per cent respondents against 73 per cent in the fourth quarter of 2014-15 and 74 per cent in the third quarter said they don’t have any plans for capacity additions for the next six months. “Delay in regulatory clearances, poor demand conditions and high cost of borrowing are affecting the expansion plans,” the survey noted. The study covered 386 manufacturing units across 13 sectors — textiles, capital goods, metals, chemicals, cement & ceramics, electronics, auto, leather & footwear, machine tools, food, tyre, paper and textiles machinery. Indicating little optimism, the proportion of respondents with higher production vis-à-vis last year has fallen to 45 per cent in the first quarter of 2015-16 from 52 per cent in the fourth quarter of 2014-15.

The outlook on exports seems to be weakening and manufacturing growth is likely to be pulled down, the survey added. In terms of order books, 44 per cent respondents have reported higher order books for April-June 2015-16 against 42 per cent in the previous quarter (January-March 2014-15). Inventory levels indicate some improvement with 29 per cent respondents reported carrying more than their average inventory levels compared with 33 per cent respondents in the fourth quarter. Hiring outlook seems pessimistic with 79 per cent respondents not likely to hire additional workforce in the next three months, it said.

Source: The Hindu Business Line
Back to top

Gender parity in workforce can boost India's GDP by 27%: Christine Lagarde

India’s GDP can expand by a whopping 27 per cent if the number of female workers increases to the same level as that of men, International Monetary Fund’s chief Christine Lagarde said on Sunday. This is much higher than the positive impact a 50-50 gender parity in workforce can have on the economies of the US and Japan at five per cent and nine per cent, respectively. Speaking at the launch of W-20, a grouping of women leaders from the world’s 20 largest economies including India, Lagarde said that “it is an absolute economic no-brainer” that empowering women boosts economic growth. “For example, we have estimates that, if the number of female workers were to increase to the same level as the number of men, GDP in the United States would expand by five per cent, by nine per cent in Japan, and by 27 per cent in India,” Lagarde said in a written keynote speech she had prepared for the event.

“These estimates, while of course tentative, are significant and large enough to be taken seriously. This applies particularly to countries where potential growth is declining as the population is ageing,” she added. While she could not read out the entire speech due to paucity of time, a copy of it was released later by IMF. Lagarde also said only big words should not matter for women and they must verify the delivery of the promises made for the women empowerment. She also said that men have a key role to play in the empowerment of women and quoted Indian-origin Nobel laureate Amartya Sen as saying, “Women are increasingly seen, by men as well as women, as active agents of change — the dynamic promoters of social transformations that can alter the lives of both women and men.” Referring to the G-20 pledge of November 2014 to reduce the gap in women’s labour force participation by 25 per cent by 2025, Lagarde said this would have benefit of creating an estimated 100 million new jobs for the global economy. "That was The Promise of 2025. Today, I want to focus on how to deliver on that promise... By the latest estimate, there are more than three and half billion reasons why gender equity matters," she said while adding that women's empowerment is not just a fundamentally moral cause, it is also an absolute economic no-brainer.

Lagarde also said that getting more women into secure and well-paid jobs raises overall per capita income. "For Turkey, it has been estimated that gender parity in employment could increase per capita income by 22 per cent. The same kind of gains are also possible for many other countries," she added.

Source: The Business Standard
Back to top

RCEP pact: Commerce Ministry to hold consultations with industry on goods

With negotiations on the mega by trade deal RCEP at an advance stage, the Commerce Ministry will hold stakeholders' consultation with industry on goods.  After the consultation, the Ministry would prepare an initial offer on goods for Regional Comprehensive Economic Partnership (RCEP), an official said. Under the offer, a member country discloses the number of products whose duties would be reduced or eliminated and goods which would not have any duty cut under the pact. 

The initial offers are expected to exchange in the tenth round of talks which are expected to be held in October in Busan,, South Korea. Talks are moving at a fast pace. In the last two months, two ministerial level talks have happened.  In the recently concluded ninth round of negotiations in Kuala Lumpur last month, the members deliberated upon all the crucial issues of goods, services and investments. India is also likely to give different offers for the RCEP members with which it had entered into free by trade agreement. Those nations include ASEAN members, Japan and South Korea, China, Australia and New Zealand. These 16 countries account for over a quarter of the world economy, estimated to be more than USD 75 trillion. RCEP negotiations were launched in Phnom Penh in November 2012.  It is important for India to become part of RCEP with a view to step up its share of global trade and investment. India is aiming to increase its share in the global trade to 3.5 per cent by 2020 from the current 2 per cent. Increasing trade will help in boosting exports, manufacturing and overall economic growth of the country. India is not part of the other two mega trade deals which are under negotiations - Trans Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (TTIP). 

Source: The Economic Times. 
Back to top

Low commodity prices spur domestic demand in India: IMF

In India, domestic demand is accelerating, underpinned by the large positive terms of trade shock (mostly due to collapsing commodity-import prices), according to an IMF executive summary based on a note on Global Prospects and Policy Challenges. In India, one of the world’s largest commodity importers, growth will benefit from recent policy reforms, a consequent pickup in investment, and lower commodity prices. While near-term growth prospects remain favourable and external vulnerabilities have decreased for India, some macroeconomic imbalances remain, the summary said. While the faster-than-expected fall in inflation has created space for considering modest cuts in the nominal policy rate, medium term inflationary pressures and upside risks to inflation remain. With balance sheet strains in the corporate and banking sectors, financial sector regulation should be enhanced, provisioning increased, and debt recovery strengthened. The summary said structural reforms needed to raise sustainable growth differ across many countries. For India, those reforms include removing infrastructure bottlenecks in the power sector and implementing reforms to education, labor, and product markets to raise competitiveness and productivity. The summary noted that in India, the post-election recovery of confidence and lower oil prices offer an opportunity to pursue much-needed structural reforms. (SH)

Source : Fibre2fashion

Back to top

Textiles and textile articles imports from 5 specific regions exempted from Azo Dyes test

Textiles and textile articles originating from specific countries like China, EU, Serbia, Poland and Denmark are exempted from testing of samples for presence of Azo Dyes, according to notification from Director General of Foreign Trade, India. Azo Dye is mainly used for colouring fabric. Use of this dye in textiles and textile articles are banned in these countries.  As for imports from other countries, at least 25 percent of samples are drawn for testing instead of 100 percent. According to the notification, Customs will ensure while drawing the samples that majority samples are drawn from consignments originating from countries where there is no legal prohibition on the use of harmful hazardous dyes. The test report will be valid for a period of six months in cases where the textile/textile articles of the same specification/quality are imported and the importer, supplier and the country of origin are the same.  The move could help importers in reducing transactions cost.

Source : Yarn and fibre
Back to top

 

Banglades-RMG export shines in volume, pales in value

Bangladesh’s RMG export in terms of volume has registered over 58% rise in last fiscal year, but the value was affected by retailers’ low price offer and devaluation of euro. According to Export Promotion Bureau data, the country exported 1.57bn units of apparel products to global market in FY2014-15 with 58.17% up from 993m units a year ago. Of the total RMG exports, woven products were 757m units compared 485m in the previous year and knitwear products amounted to 815m units compared to 508.67m units a year ago. The value to total RMG exports last fiscal was $25.49bn posting 4% surge from the previous year’s $24.49bn.  The knitwear exports were valued at $12.43bn, up by 3.13% from the previous fiscal’s $12.05bn and the woven products $13.06bn making 5% growth over the previous year’s $12.44bn. “RMG export earnings did not increase as per the increase of volume due to low price offers from buyers and devaluation of euro,” BGMEA Vice-President Reaz Bin Mahmood told the Dhaka Tribune.  He said they were losing competitiveness due to increase of production cost, which was another reason behind the fall of price. According to the study conducted by Mark Anner, associate professor at Penn State University, prices of men and boys cotton trousers exported to the US market declined by 40.89% over the last 14 years. He blamed “monopsony” of the buyers for cutting prices. Shahidullah Azim, another BGMEA vice-president, believes improvement of productivity is a must to tackle the pricing issues. “We have to concentrate on introduction of production engineering along with latest technology to minimise cost,” he said. Azim also stressed the need of uninterrupted gas and electricity supplies to the factories. Abdus Salam Murshedy, president of Exporters Association of Bangladesh, said after the collapse of Rana Plaza building, the sector had to spend “a lot of money to meet the prescription of global buyers regarding compliace.”  “We have installed fire doors, sprinklers and continued to implement corrective action plans outlined by the Accord and Alliance, but the buyers are still unwilling to increase prices.” He said before launching the inspection programme to improve safety standards in the RMG sector, the global buyers had promised to raise prices of apparel products “But they (buyers) have not kept their words, rather taken the opportunity to buy products at reduced prices. This is very an unfortunate situation for the sector.” Professor Mustafizur Rahman, executive director of the Centre for Policy Dialogue, said “Bangladesh cannot remain competitive in the global markets if the manufacturers fail to reduce per unit cost through increasing the productivity.” He said the RMG makers started focusing on upmarket products with fashions and designs as they saw “price correction in low-end products.” Mustafizur Rahman also suggested exploring new markets and the government considering general incentives for the sector as the eurozone crisis and devaluation of euro was causing a gap between value and volume of exports.
Bangladesh earns 60.28% of its total RMG export figure from the EU market. The euro was devalued by 22% against US dollar while Bangladesh receives export payments in the greenback.

Source: Dhaka Tribune.
Back to top

Value added textile industry association oppose banning import of textile raw material

Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and the All Pakistan Textile Mills Association (APTMA), value added textile industry association of Pakistan after holding a series of meetings has decided to opposed a proposal of banning the import of textile raw materials, saying the local textile industry is unable to produce these raw materials. APTMA has submitted a seven-point proposal including zero-rate regime for textile industry, extension of a long-term finance scheme for ginning and spinning industry, exports refinance facility to the entire textile value chain on deemed export basis including spinning and weaving sub-sectors, announcement of five percent export incentive to capture non-traditional markets, special electricity tariff for textile industry, zero Customs duty on import of yarn in China from Pakistan under revision of the Free Trade Agreement and strengthening of domestic commerce by introducing tariff measures for countering informal trade and dumped imports.  PRGMEA chairman said that they have supported the relief package sought by APTMA barring the import of textile raw materials. Readymade garments manufacturers have opposed the idea of banning the import of raw materials, because any such support will be tantamount to signing their death warrant.  The value-added textile exports have reached to US four billion dollars and they have planned to take it to US 10 billion dollars in the next five years. As the value-added sector is heavily dependent on imported raw materials for value addition therefore the readymade garments manufacturers have made clear that they will not support it.  He said that the textile industry is producing only denim which was insufficient to meet the readymade garments requirement of the world.

Source : Yarn and fibre

Back to top

High cotton & low polyester price impacts Chinese units

High domestic cotton prices and low polyester prices in China have made its cotton spinning sector less competitive and which is also the world's largest consumer of cotton.  “The Cotlook A Index and the price of polyester in China were nearly equal during most of the 2000s, with cotton sometimes cheaper of the two,” the International Cotton Advisory Committee (ICAC) said in a press release. According to ICAC, the prices started diverging in 2009/10, and cotton prices have remained substantially above those of polyester since then.During the build-up of Chinese reserves, domestic cotton prices as per the China Cotton Index were around 144 cents/lb, but quickly fell when the government announced it would no longer buy cotton.Domestic prices continued to fall in August 2015, averaging 95 cents/lb and narrowing the gap with international cotton prices. However, polyester prices have also fallen during the same period, maintaining the spread between cotton and polyester.“The lack of competitive pricing for cotton, coupled with turmoil in its stock markets, has curtailed growth in China's cotton spinning sector,” ICAC averred.“Consumption is projected to reach around 7.7 million tons, far below the peak of ten million tons in the mid- 2000s,” it informed. In recent years, mill use has shifted to lower cost countries, primarily in Asia, as cotton spinning has become less competitive in China. ICAC believes that in 2015/16, world consumption growth will likely be limited, because international cotton prices remain higher than competing manmade fibres.World cotton consumption is forecast to grow by 2 per cent and reach 25 million tons, which remains below the volume consumed just before the global economic recession. In addition to China, India and Pakistan are the largest consumers of cotton and these three countries alone account for 64 per cent of world cotton consumption.  ICAC further informed that consumption in India and Pakistan is anticipated to increase by 3 per cent to 5.6 million tons and 2.6 million tons, respectively. However, world cotton area is projected to be down 7 per cent in 2015/16 to just under 31 million hectares due to significantly lower prices in 2014/15. ICAC also expects the world average yield to decrease by 3 per cent to 764 kg per hectare with world production down 10 per cent to 23.7 million tons. “Limited growth in demand will not make a large impact on world ending stocks, which are expected to be reduced by 6 per cent or just over 1 million tons, to 20.4 million tons,” it noted. World cotton imports are projected to remain stable in 2015/16 at 7.6 million tons, while China's imports are forecast to decline 12 per cent to 1.6 million tons from a peak of 5.3 million tons in 2011/12.

Imports outside of China would offset China's decline, rising by 3 per cent to 6 million tons with gains in the next three largest importers. While exports from the United States are projected to dip 9 per cent, due largely to reduced production, ICAC expects that it will remain the world's largest cotton exporter. The US based cotton body also noted that after falling 51 per cent in 2014/15, India's exports may recover by 21 per cent to 1.2 million tons in 2015/16.

Source: Fibre2fashion.

Back to top

Yuan weakens despite firmer midpoint, less intervention seen

China's yuan weakened against the dollar on Monday in spite of a firmer midpoint, as investors sold the Chinese currency and the central bank was seen to be less heavily intervening in the market via state-owned banks. "Dollar sales by state-owned banks on behalf of the central bank eased today," said a dealer at a European bank in Shanghai.

"As the market still lacks confidence in the yuan's value in the future, banks and their clients priced the currency weaker, taking advantage of the central bank's eased intervention." The People's Bank of China (PBOC) set the midpoint rate at 6.3584 per dollar prior to market open, slightly firmer than the previous fix of 6.3619. The spot market opened at 6.3560 per dollar and was changing hands at 6.3673 at midday, 0.19% weaker than the previous close last Wednesday. The market was closed on Thursday and Friday for a holiday to mark 70 years after the end of World War Two. The central bank surprised markets on Aug 11 by devaluing the yuan by nearly 2%, which sparked sharp selling that forced it to come back into the market to dump dollars to stabilise the currency.

Traders said the yuan could easily depreciate to 6.4 versus the dollar if the PBOC stayed on the sidelines. As a sign of weak sentiment towards the Chinese currency, the offshore yuan was trading 1.42% weaker than onshore spot at 6.4593 per dollar by midday on Monday. Offshore one-year non-deliverable forwards contracts, considered the best available proxy for forward-looking market expectations of the yuan's value,traded at 6.6325, or 4.13% weaker than Monday's midpoint.

Source: The Business Standard
Back to top

Crude oil eases as dealers await Fed decision

Oil prices eased in Asian trade today as dealers await the US Federal Reserve’s decision on whether to raise interest rates following a mixed August jobs report, analysts said. US benchmark West Texas Intermediate crude for October delivery fell 35 cents to $45.70, while Brent crude for October delivery eased 38 cents to $49.23 in mid-morning trade. The US Labour Department had said on Friday that the economy added 173,000 jobs in August, fewer than estimated.However, the previous two months’ job gains were revised upward, pushing the unemployment rate down more than expected to 5.1 per cent, its lowest level since April 2008.The report was the last before the Fed’s policy board meets on September 16-17 to discuss its plans for borrowing costs. US financial markets are closed today for the Labor Day public holiday.“The realisation that the Fed will still raise interest rates this year... dampened market sentiment,” said Bernard Aw, market strategist at IG markets In Singapore.

Rate hike

A rate hike would likely strengthen the greenback, making dollar-priced oil more expensive to holders of weaker currencies , hurting demand and prices. Analysts said dealers are awaiting a slew of global economic data this week for clues about demand, with ample supplies boosted by relentless US and OPEC production.

China’s economic data

The Chinese Government is scheduled to release monthly trade and inflation figures, as well as industrial output, fixed-asset investment and retail sales in the coming days.Oil prices have fluctuated wildly in recent weeks on uncertainty about Fed monetary policy as well as worries about the growth in world number-one energy consumer China.The euro zone’s second-quarter gross domestic product figures are due Today.

Source: The Hindu Business Line
Back to top

China revises down 2014 GDP growth to 7.3% from 7.4%

China has revised its annual economic growth rate in 2014 to 7.3% from the previously released figure of 7.4%, the National Bureau of Statistics said on Monday. Gross domestic product stood at 63.6 trillion yuan ($10.00 trillion) last year, down by 32.4 billion yuan from the initial estimate, the bureau said in a statement on its website. The bureau has revised down 2014 growth of the services sector by 0.3 percentage points to 7.8%, which helped drag down estimated GDP growth rate, it said. The primary sector - the agriculture sector - grew 4.1% last year, while growth of the secondary sector, which includes manufacturing and construction, rose 7.3%. After the revision, the services sector accounted for 48.1% of GDP last year, down from the previously announced 48.2%, the bureau said. The manufacturing and construction sector accounted for 42.7% of GDP while the farm sector accounted for 9.2%. The world's second-largest economy grew 7% in the first half from a year earlier - in line with the government's target for 2015, but recent downbeat data has raised the risk the government could miss the full-year growth target.

Source: The Business Standard

Back to top

Dollar reclaims lost ground vs yen on US jobs data

The dollar clawed back some of the ground it had lost against the yen on Monday, after skidding on mixed US employment data that failed to bring much clarity to the timing of the US Federal Reserve’s long-awaited interest rate hike. The dollar added about 0.3 per cent against the yen to 119.38, moving away from a session low of 118.66 and taking back some of Friday’s 1 per cent tumble, though many investors said the greenback’s downside remains vulnerable. “It comes down to positioning,’’ said Bart Wakabayashi, head of foreign exchange for State Street Global Markets in Tokyo.

Investors betting on yen

Data from the Commodity Futures trading Commission released on Friday and Reuters calculations showed that speculators further cut back bullish bets on the US dollar in the week ended September 1 for the second straight week, to their lowest level since July last year.“It’s been a very yen-weakening, dollar-bull-run story for three years now, so you would have to think that there were significant yen-short positions built up over that time and there’s a lot of room for a correction in that particular position,’’ Wakabayashi said.The options market also shows that more investors are betting on or hedging against further near-term yen strength. In early August, one-month risk reversal spreads in dollar/yen options had favoured yen puts — the right to sell the yen. But they turned in favour of yen calls — the right to buy the yen — and on Friday gapped to their widest in two years, as the dollar sank after the US employment data.

Non-farm payrolls data

Nonfarm payrolls rose a less-than-expected 173,000 last month, a slowdown from July’s upwardly revised gain of 245,000 and the smallest rise in five months. But the unemployment rate dropped to a near 7-1/2-year low and wages accelerated. “The problem is that these numbers are probably consistent with 2 to 2.5 per cent GDP growth at best, good enough to begin the normalisation of US rates but not good enough to serve as a locomotive for the rest of the world,’’ Steven Englander, global head of foreign exchange strategy at CITI said in a note to clients.

China’s economy
The figures came against a backdrop of anxiety about falling global equities and China’s slowing economy, which have led investors to pare back bets that the Fed would raise interest rates as early as its meeting this month. The dollar skidded to a seven-month low of 116.15 yen on August 24, while the euro rose as high as $1.1715, as China-driven panic gripped markets around the world. On Monday, the euro gained about 0.1 percent to $1.1146. The European common currency has benefited as investors unwound euro-funded carry trades, in which they borrowed Euros to invest in high-yielding currencies.

Euro zone
The European Central Bank had warned last week that growth would suffer from fading momentum in emerging markets, particularly China, and falling oil prices could drag the 19-member euro zone back into deflation in coming months. After the ECB left rates unchanged as widely expected, ECB President Mario Draghi explicitly said for the first time that the bank’s bond-buying programme may run beyond its end-date of September 2016, and that its size and composition might be adjusted.

Dollar index
The dollar index, which measures the greenback against a basket of rival currencies, edged up about 0.1 per cent from Friday’s late US levels to 96.284, well above a seven-month low of 92.621 plumbed in August. Trading activity was likely to be thinner than usual Today (Monday), with US markets closed for the Labor Day holiday.

Source: The Hindu Business Line

Back to top

Global growth still moderate, says IMF

Global growth remains moderate, reflecting a further slowdown in emerging economies and a weak recovery in advanced economies, according to an IMF note on Global Prospects and Policy Challenges. According to the executive summary prepared of the note prepared ahead of the on-going G-20 Finance Ministers and Central Bank Governors Meeting in Ankara, Turkey, in an environment of rising financial market volatility, declining commodity prices, weaker capital inflows, and depreciating emerging market currencies, downside risks to the outlook have risen, particularly for emerging markets and developing economies. Global growth in the first half of 2015 was lower than in the second half of 2014, reflecting a further slowdown in emerging economies and a weaker recovery in advanced economies. In advanced economies, weaker exports, partly reflecting temporary factors, and a slowdown in domestic demand were key factors. Productivity growth has been persistently weak. In emerging economies, the slowdown reflects a continuation of the adjustment after the investment and credit boom post-crisis, together with the fallout from declining commodity prices, geopolitical tensions, and conflict in a number of countries. In advanced economies, economic activity is projected to pick up modestly in the second half of the year and into 2016. In emerging economies growth this year is projected to slow again relative to 2014; some rebound is projected next year, as conditions in distressed economies, while remaining difficult, are projected to improve. Financial conditions for emerging economies have tightened. In an environment of rising financial market volatility, dollar bond spreads and long-term local currency bond yields have increased relative to the spring, stock prices have weakened, and capital inflows have declined. Emerging market currencies have generally depreciated, reflecting weakening commodity prices, concerns about the growth transition in China, an increase in risk aversion, and expectations of a lift-off in policy rates in the US.

In contrast, financial conditions in advanced economies continue to be easy. On the back of weak demand, safe real interest rates remain low, despite some widening of spreads, even as the policy rate lift-off approaches in the US. Risks are tilted to the downside, and a simultaneous realization of some of these risks would imply a much weaker outlook. Near-term downside risks for emerging economies have increased, given the combination of China's growth transition, lower commodity prices, potential adverse corporate balance sheet and funding challenges related to a dollar appreciation, and capital flow reversals and disruptive asset price shifts. According to the summary, strong mutual policy action is needed to raise growth and mitigate risks. (SH)

Source : Fibre2fashion
Back to top

Groz-Beckert to present latest products & services at ITMA

In hall H7, booth D-12 at ITMA 2015, Groz-Beckert will present innovative products and services as well as its new booth concept with machines made of acrylic glass and for the first time, showcase its carding division.According to a press release from the German company, by means of transparent knitting and warp knitting machines, visitors will be able to visualise the precision of its products and their perfect interaction. “The individual elements can be removed and eyed in detail and visitors will experience how this interaction can contribute to an increase in productivity and profitability,” it said.

In the segments of cleaning, drawing-in, knotting and weaving, Groz-Beckert will show a wide range of machines for weaving preparation, among others the fully automatic drawing-in concept 'Warpmaster'. Alongside, it will also display different knotting machines from the Knotmaster series for various and different application areas. The machines will be demonstrated on common tying frames with clamping rod or clamping rail tension system, while weaving accessories will be presented on a transparent model of a weaving machine. Depending on the application, the displayed fabrics vary from tire cord to jacquard fabric, each shown along with the corresponding Groz-Beckert products. “The Twintec weaving heald is available in different ceramic and steel variations, depending on the tape width and application, moreover, high-performance heald frames with high bending strength, will be exhibited,” it added. In the felting segment, the company will highlight special needle solutions for filtration felts and will also feature a needling machine made of acrylic glass. “Thanks to the variety of barb sizes, barb shapes, working part gauges and working part cross sections of the individual needle types, Groz-Beckert can offer the ideal felting needle for all needled filter media,” the company stated. If a high surface quality is desired, Groz-Beckert recommends a combination of Gebecon and Ecostar felting needles. It further informed that the stability of the Gebecon needle provides a high surface quality in the preneedling process, while in intermediate and finish needling, the Ecoctar needle gives a high surface quality to the finished product.  “And, where high efficiency is the priority, the Twisted needle with its twisted working part is the right choice,” it observed.

Technologies in the tufted segment will also be shown through a transparent machine model, which is an advanced gauge part system, consisting of tufting needle, looper, reed finger and tufting knife. “For all applications and machine types, from monofilament to soft fibre yarns, from artificial turf to high-class carpet, we offer solutions to satisfy the high quality expectations of customers,” the company noted.

Source : Fibre2fashion

Back to top

Global crude oil price of Indian Basket was US$ 48.16 per bbl on 04.09.2015

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$ 48.16 per barrel (bbl) on 04.09.2015. This was lower than the price of US$ 48.70 per bbl on previous publishing day of 03.09.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3197.82 per bbl on 04.09.2015 as compared to Rs 3225.40 per bbl on 03.09.2015. Rupee closed weaker at Rs 66.40 per US$ on 04.09.2015 as against Rs 66.23 per US$ on 03.09.2015. The table below gives details in this regard:

Particulars

Unit

Price on September 04, 2015 (Previous trading day i.e. 03.09.2015)

Pricing Fortnight for 01.09.2015

(Aug 13 to Aug 27, 2015)

Crude Oil (Indian Basket)

($/bbl)

48.16              (48.70)

46.03

(Rs/bbl

3197.82          (3225.40)

3024.17

Exchange Rate

(Rs/$)

66.40              (66.23)

65.70

Source : Ministry of Textiles

Back to top