|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
941.41 |
USD/Ton |
0.00% |
1/11/2016 |
|
VSF |
1860.04 |
USD/Ton |
-1.05% |
1/11/2016 |
|
ASF |
1894.2 |
USD/Ton |
0.00% |
1/11/2016 |
|
Polyester POY |
930.78 |
USD/Ton |
-0.24% |
1/11/2016 |
|
Nylon FDY |
2247.23 |
USD/Ton |
0.00% |
1/11/2016 |
|
40D Spandex |
4782.96 |
USD/Ton |
-1.56% |
1/11/2016 |
|
Nylon DTY |
5657.56 |
USD/Ton |
0.00% |
1/11/2016 |
|
Viscose Long Filament |
1127.41 |
USD/Ton |
0.00% |
1/11/2016 |
|
Polyester DTY |
2087.8 |
USD/Ton |
0.00% |
1/11/2016 |
|
Nylon POY |
2076.41 |
USD/Ton |
0.00% |
1/11/2016 |
|
Acrylic Top 3D |
1006.7 |
USD/Ton |
0.00% |
1/11/2016 |
|
Polyester FDY |
2474.99 |
USD/Ton |
-0.61% |
1/11/2016 |
|
30S Spun Rayon Yarn |
2642.02 |
USD/Ton |
-0.57% |
1/11/2016 |
|
32S Polyester Yarn |
1518.4 |
USD/Ton |
0.00% |
1/11/2016 |
|
45S T/C Yarn |
2459.81 |
USD/Ton |
-0.61% |
1/11/2016 |
|
45S Polyester Yarn |
2809.04 |
USD/Ton |
-0.54% |
1/11/2016 |
|
T/C Yarn 65/35 32S |
2429.44 |
USD/Ton |
0.00% |
1/11/2016 |
|
40S Rayon Yarn |
1685.42 |
USD/Ton |
0.00% |
1/11/2016 |
|
T/R Yarn 65/35 32S |
2110.58 |
USD/Ton |
0.00% |
1/11/2016 |
|
10S Denim Fabric |
1.06 |
USD/Meter |
0.00% |
1/11/2016 |
|
32S Twill Fabric |
0.89 |
USD/Meter |
0.00% |
1/11/2016 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
0.00% |
1/11/2016 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
-0.21% |
1/11/2016 |
|
45S T/C Fabric |
0.73 |
USD/Meter |
0.00% |
1/11/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15184 USD dtd.11/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Maharashtra government for the first time has taken decided to provide subsidy to textile owners which would not be linked to bank loans. In a policy decision taken last week, the state government has decided to provide capital subsidy which would be delinked from bank loans. Spinning mills, cotton ginning, processing and printing units would be given 35% capital subsidy; technical textiles and composite units 30%; and power loom and other textile-related units 25%. Power loom owners from the cotton belts of north Maharasthra, Marathwada and Vidarbha would be eligible for a further 10% capital subsidy. Subsidy for the textile industry was earlier credit-linked and only those who availed a bank loan were eligible for getting the government largesse. According to Khalique Momin, a textile unit owner from Bhiwandi, a large number of powerloom owners in the state are Muslims and as per Islamic law, it does not allow a Muslim to take or pay interest. This had forced a large number of weavers to refrain from modernizing their units. Aleem Faizee, Founder-Secretary of Malegaon Industries & Manufacturers Association (MIMA), welcoming the decision taken by the government said that this will majorly boost the industry. This had been a long-standing demand of loom owners. Earlier, this proposal had gone till the Centre but no action was taken.
India’s textile industry has around 24 lakh power looms across the country and is the second largest employment sector directly employing over 35 million people. Of the 24 lakhs powerlooms, nearly half are in Maharashtra with Bhiwandi (8 lakh), Malegaon (2 lakh) and Dhule (10,000), accounting for over 80% of Maharashtra’s power looms and over 40% of India’s power looms. Almost 90% of their owners and workers are Muslims. Maharashtra has a dominating presence in the weaving sector. Over the past 14 years, the Centre has spent a whopping Rs 75,000 crore under various phases of the Textile Upgradation Fund Scheme (TUFS) to bring India’s textile industry on par with global standards. The scheme was meant to provide subsidy for modernisation and technology upgradation of all sectors in this industry, including spinning, weaving and garments. The state also provides a certain component as subsidy, but almost all government aid is linked to the clause that a power loom owner needs to take a bank loan. Interestingly, the textile ministry itself has acknowledged that its policy could not ensure the desired effect on the power loom sector. The off-take of the powerloom sector under TUFS has been negligible, less than two percent. The existing looms are obsolete and high on energy consumption and most units are small with four to eight looms, a policy document of the ministry states.
SOURCE: Yarns&Fibers
Birla Cellulose, which is currently spearheading a unique initiative called Liva Accredited Partners Forum (LAPF) to scale up the textile value chain, will now kick off a joint marketing drive to increase reach of its partners at the international markets, it said in a press release. “We will help the LAPF partners to promote their products at the international level by enabling them to take part at different marketing fora, apart from helping them with design developments and technology,” said Manohar Samuel, President, Marketing and Business Development at Birla Cellulose. He was talking at the LAPF conclave in Noida, organised as part of the ongoing efforts to help the partners reach out directly to the leading women's wear exporters and international brands. After launching the LAPF to aggregate the top talent in the fabric industry, Birla Cellulose has roped in leading players like Shreeji, Mafatlal, Mercury, Karuna Tex, Svarn Tex, MI Industries, VSM among its 250 plus partners.
Apart from enabling the LAPF partners to join the international marketing fora, Birla Cellulose will provide them chance to promote their products through special drives like Market Week and Mill Week abroad, Samuel said. On January 8, the company brought together LAPF partners and international brands at Delhi NCR. The initiative was held in collaboration with the Society of Noida Apparel Export Cluster. Around 40 LAPF partners showcased their innovations in Liva fabrics to 160 garment exporters, including international brands such as Marks & Spencer, Macys, and GAP, apart from Shahi Export, Orient Craft, Pearl Global and Richa &Co. Top buying house such as Triburg, Impulse, LI Fung, and Asmara, domestic brands like Biba and ITC were present. “India is the second biggest textile hub in the world with a huge potential for Man Made Cellulosic Fibre (MMCF) Clothing. The conclave in Noida provided an open platform to integrate leaders in the value chain from Spinner to Fabricator to Garmented and Brands to achieve excellence,” said Samuel. The conclave also saw the unveiling of Liva Spring Summer 2017 Collection with innovations like Modal Knitted slubs, Modal Denim, Lurex embellishments in Liva blends and Modal Yoga Wear. The Liva SS 17 would be showcasing the collection in two unique themes namely Tropical Trails and Leisure Luxe. Birla Cellulose launched its fabric brand Liva in March 2015 in line with the vision of establishing connect with the end consumer in the viscose staple fibre business.
SOURCE: Fibre2fashion
India has reposed its faith in the multilateral trading system of the World Trade Organization, dismissing any threats from the regional trading arrangements such as the Trans-Pacific Partnership (TPP). Commerce minister Nirmala Sitharaman on Monday said that India is fully committed to the WTO. Shishir Priyadarshi, director at the WTO, on his part said that the debate over multilateralism versus regionalism is no more relevant as in the current scenario both are going to stay. Conclusion of the TPP, which has brought common and higher standards for nearly 40 per cent of the world economy, has made India cautious of losing market share in the US to countries such as Vietnam. There are also apprehensions over issues related to labour, environment and investment protection gradually creeping into the WTO. India's concerns have increased because seven countries in TPP are also negotiating with it under the Regional Comprehensive Economic Partnership agreement. "We strongly believe in multilateralism and that is why we are fully committed to WTO. It is also sometimes a bit of a challenge that issues don't move fast enough, that countries don't feel confident that any agenda can get within a time period, to its logical conclusion. This is one of the arguments held against Doha developmental agenda which was brought in nearly 15 years ago," Sitharaman said at the CII Partnership Summit.
The minister's comments came almost a month after the 162-member WTO failed to reaffirm the Doha Development Agenda, India's main demand. This has led to a "lot of frustration" among emerging countries and LDCs (least developed countries) which are "saying why are issues of importance for developing countries not moving fast enough," she said. Priyadarshi said at the same event that the challenge is to make the scenario of multilateralism and regionalism a win-win situation for the large group of countries including small economies and LDCs. The minister questioned the basic premise of the 12-member TPP and asked which region does it do justice to as it has countries from across the world. "Is it really regional trade agreement or are group of countries picking and choosing a basket of countries saying we are having an agreement with them?" said Sitharaman.
To counter this, she said India will form special purpose vehicles to help domestic companies set up facilities in Cambodia, Laos, Myanmar and Vietnam (CLMV) to cushion India from the impacts of regional trade agreements. Allaying industry's fears that India might get isolated in the TPP, she said that no country has ratified it as yet and many have been given 20 long years to adjust to the core principles of the agreement. "India is not being kept out and the nature of what is happening in some of the agreements like TPP is much less about trade and much more about other things. There is nothing for us to worry," she said.
Free Trade Agreements
At a time when the government is in talks to have free trade agreements (FTA) with the European Union, Australia and Canada, Sitharaman said there is a need to review the pacts signed during the term of the previous government. "We have signed trade agreements with some of the South Asian countries before this regime. Industry has been voicing their concerns about FTAs which have been signed much before this regime came in. We need to review them. We need to renegotiate them," the minister said. Sitharaman said this is the case as many Indian manufacturers think FTAs have an adverse impact on them. The government is trying to bring back "core business that has left India," she said referring to concerns raised on trade pacts with Japan and Korea.
SOURCE: The Economic Times
Regionalism is here to stay, said Shishir Priyadarshi, Director, World Trade Organization, but regional trade agreements (RTAs) should be made more open right from the beginning to more entrants. He was making this point at a plenary session on “multilateralism versus regionalism: the future of global trade” at the ongoing CII Partnership Summit here. More than 600 RTAs have been notified with the WTO, pointing to increasing regional trade between member countries of the WTO. “We should not be looking at this versus that (multilateralism versus regionalism). Instead, we should try to forge a win-win situation between multilateralism and regionalism,” he said. The RTAs played an important role in increasing global trade. Significantly, countries were gradually moving away from making whole products to making parts that would ultimately go into a product, linked through RTAs. This is where states like Andhra Pradesh, which were planning major initiatives to boost manufacturing, could gain, by linking the various parts of the production cycle. The States would also require market awareness and market information.
Transparency needed
Priyadarshi said as RTAs increased, there was a need for greater transparency in the way decisions in were taken on such agreements. Explaining India’s stand vis-à-vis the WTO and regional trade agreements, Commerce and Industry Minister Nirmala Sitharaman said India believed in multilateralism and was committed to the WTO. At the same time, she said, India was not being isolated by regional pacts and was taking steps to ensure its manufacturers had market access. She asserted that India was very much aware of the various regional pacts were being signed and was conscious of what needed to be done. For example, there was a perception that India was being kept out of the TPP (Trans-Pacific Partnership), which had diverse members from different parts of the world, including Peru, Mexico, Vietnam, the US, Japan and Brunei. What is regional about this, she asked. Sitharaman said the TPP had not passed through any of the parliaments of the signatories and some of them had been given 20-25 years to adapt to the TPP. “Let us not worry,” she said. India was going ahead with the signing of RCEPs (Regional Comprehensive Economic Partnerships) and some of the members of these partnerships were part of the TPP. She assured that India would not lose out on markets. The Cabinet recently decided to focus on South East Asia — Cambodia, Laos, Myanmar and Vietnam. It decided to create a fund that would help Indian companies invest in these countries. By doing this, once the TPP came into full force, Indian companies having a presence in Vietnam, for instance, could tap into the TPP market, as the rules or origin provision would be taken care of.
SOURCE: The Hindu Business Line
The government is open to reviewing and renegotiating existing free trade agreements (FTAs) India has signed with different countries, Union minister of state for Commerce and Industry Nirmala Sitharaman said on Monday. Addressing stakeholders at the Confederation of Indian Industry's 22nd Partnership Summit at Vishakhapatnam, Sitharaman said there were both "pluses and minuses" in such pacts and the government would take into account the complaints of domestic industry regarding these. She also allayed industry fears over adverse impacts on trade and investment as a result of the formation of mega trade agreements like the TPP (Trans-Pacific Partnership Agreement). Industry has been voicing concerns about FTAs, which the minister said involved a lot of issues worth reviewing. While she accepted there was a need to renegotiate such FTAs, she stressed that these were signed before the current government came to power. India has FTAs with a dozen countries such as Japan, South Korea and the Asean bloc. On the TPP trade agreement, which includes twelve Pacific Rim countries, Sitharaman said "necessary steps to boost India's trade and investment have been taken in the wake of emerging new trade architecture". CII President-Designate Naushad Forbes called for adopting a more inclusive approach in regional trading arrangements, particularly for mega-FTAs.
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$ 28.73 per barrel (bbl) on 11.01.2016. This was lower than the price of US$ 30.02 per bbl on previous publishing day of 08.01.2016.
In rupee terms, the price of Indian Basket decreased to Rs 1918.89 per bbl on 11.01.2016 as compared to Rs 2001.28 per bbl on 08.01.2016. Rupee closed weaker at Rs 66.79 per US$ on 11.01.2016 as against Rs 66.67 per US$ on 08.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 11, 2016 (Previous trading day i.e. 08.01.2016) |
Pricing Fortnight for 01.01.2016 (Dec 12 to Dec 29, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
28.73 (30.02) |
33.58 |
|
(Rs/bbl |
1918.89 (2001.28) |
2234.08 |
|
|
Exchange Rate |
(Rs/$) |
66.79 (66.67) |
66.53 |
SOURCE: PIB
The government has decided to launch a probe into the affairs of the textile millers as despite enjoying cheaper electricity and gas, the exports of the industry have gone down. The investigation will focus on actual consumption of cotton yarn by the textile mills. Venting out: Textile exporters foresee fresh fall in exports. Finance Secretary Waqar Masood Khan, in a meeting of the Economic Coordination Committee (ECC) on December 31, 2015, commented that decline in the export of cotton cloth was not justifiable and called for investigating the matter in order to determine the actual consumption of cotton yarn. Finance Minister and ECC Chairman Ishaq Dar also suggested further analysis of the data to find out the actual reasons and factors responsible for the drop in exports. He asked government officials to take up the matter with the textile industry and pressed the industrialists to step up exports, particularly in view of the recently announced package that offered cheaper electricity and gas. The ECC was told that Pakistan’s overall exports during 2014-15 stood at $23.9 billion. Giving regional comparison, Commerce Secretary Muhammad Shehzad Arbab said the growth in exports of Pakistan, China and India remained negative except for Bangladesh. Of the total shipments, exports of cotton and cereals from Pakistan and India had also fallen.
Meeting participants highlighted the 2014 export data for Pakistan and the rest of the world in respect of textile, leather, engineering, metals, minerals and other manufacturing products. A major chunk of Pakistan’s exports during the year comprised textile and garments constituting 54% of the total shipments, but their share in world exports was only 4%. There were a number of exogenous and endogenous factors behind the below-par performance, the ECC was told. Weakening global commodity prices, shift in demand patterns in leading markets, exchange rate issues and slowdown in Chinese economic growth were cited as factors that primarily contributed to the decline in exports. Supply-side issues such as energy shortage and its cost, outdated technology, lack of standardisation and compliance and market-related matters like market concentration, constraints in regional markets and non-tariff barriers in India and Iran were other major factors for the drop in exports from Pakistan. Lack of trade facilitation like the burden of regulations, manual customs procedures and inadequate port infrastructure also played their role in weakening exports of Pakistan. Besides textile products, exports of basmati rice, plastic materials, cement, machinery and jewellery also went down. Meeting participants told the ECC that the export of petroleum product naphtha had shown a significant decrease because a number of refining plants had been established in Gulf countries to produce the oil product.
SOURCE: The Tribune
As Manik Mehta reports from Nairobi, while sea trade holds out promise, there is an urgent need to upgrade infrastructure and simplify customs procedures in Africa. Africa’s textile and garment sector is optimistic that its shipments to the United States, Africa’s biggest market for such products, will surge following the ten-year renewal of the African Growth and Opportunity Act (AGOA) – this is often described as the United States’ General System of Preferences allowing duty-free imports of a wide range of African products – which was signed by President Barack Obama on June 11, 2015. Conversations with logistics companies in the Kenyan capital of Nairobi vindicate the growing optimism among African shippers. U.S. importers of African textiles and apparel were also optimistic, as was evident at the last TexWorld USA show held in New York where many buyers welcomed AGOA’s renewal, which would create a “win-win situation” for both U.S. importers and sub-Saharan African shippers. Nairobi-based J.C. Mazingue, trade advisor for Africa and a contractor for USAid, told the American Journal of Transportation that the AGOA would provide African shippers duty-free access to 8,000 products in the U.S. market, including almost all the textile and apparel products.
SOURCE: The Ajot
The World Bank has said Vietnam's evolving economy needs new strategies to maintain strong growth has called upon the government to work with private sector importers, exporters and transport companies to improve freight logistics. According to a report titled Engaging the Private Sector in Transport and Logistics Planning and Policy Making: Options for Vietnam, systematic engagement with freight stakeholders by government agencies responsible for planning and policy making can boost trade competitiveness. International experience has shown that private sector stakeholders — the end-users of transport infrastructure and key intended beneficiaries of public policies aimed at facilitating trade and reducing logistics costs — are well-positioned to inform public sector decision making on matching supply and demand in transport and logistics, according to the report. The report pointed out that In Vietnam, private sector stakeholders remain relatively untapped as a source of insight into transport and logistics policy making and planning. “By more explicitly, transparently, and predictably engaging with private sector stakeholders all across the import-export and domestic supply chain, national agencies like the Ministry of Transport and subnational ones like Provincial Departments of Transport can better equip Vietnam with the logistics system it needs as it enters its next phase of logistics competitiveness as a middle-income country,” said Luis C. Blancas, a World Bank Senior Transport Specialist and author of the report. Malaysia, Thailand, the US and the UK - among the world's top-performing countries in transport and logistics according to the World Bank's Logistics Performance Index benchmark - have considerable experience in engaging private sector stakeholders in planning and policy making to help public sector agencies support strong logistics outcomes. Such experience elsewhere provides lessons learned and pitfalls to avoid for Vietnam. In the past, private sector freight stakeholders in Vietnam have worked with government agencies on efforts to facilitate trade, rather than longer-term aspects like infrastructure planning and crafting policies to promote desirable sector-wide outcomes such as better service delivery, healthier market competition and cutting greenhouse gas emissions that cause climate change.
According to the World Bank report, increased public-private engagement can greatly enhance logistics competitiveness in those areas going forward. It suggests establishing legally backed platforms for public-private and public-public collaboration, and furnishing such partnerships with sufficient resources to carry out their mandate. Other important steps include managing private sector expectations, ensuring comprehensive representation of stakeholders across the supply chain, and observing common-sense “business meeting” norms regarding timeliness and the prompt issuance of minutes with clearly assigned responsibilities and well-defined next steps. In addition, the report calls for pursuing private sector engagement opportunities throughout the planning and policy making cycle — as opposed to only within selected portions of it — as a contributing factor to ensuring sustained engagement. A survey of Vietnam-based private sector freight stakeholders conducted for the report confirmed that the need for greater engagement between the government and private sector on planning and policy making in logistics has not been met. Respondents strongly supported platforms for dialogue and collaboration consistent with the approaches suggested by the international experience.
SOURCE: Fibre2fashion
Fabric suppliers of China are ready to face new challenges arising due to recent developments in China and in global market; this mood was reflected during the one day workshop for fabrics suppliers jointly organised by Fibre2Fashion.com and PDS Multinational Group at Shanghai, China. The workshop held at Wu Zhong Road at Shanghai was attended by more than 50 leading suppliers of fabrics with brands, retailers and buyers represented by PDS Multinational Group in China. The event started with a presentation by Fibre2Fashion.com and PDS Multinational Group's partnership alliance and its plan to facilitate the business opportunities for fabrics and garment suppliers from China. Fabrics manufacturers and suppliers showcased their samples and products in the presence of representatives from buyer companies like H&M, Zara, Sainsbury's, Next, Primark and several others. Despite current challenges posed due to downward trends in economic growth, rising cost, and competition from South East Asian manufacturers, Chinese manufacturers and suppliers have shown resilience to face the challenging times ahead. The one day event has generated good response and instilled a confidence among companies. There were suggestions that Fibre2Fashion.com and PDS Multinational group should continue to organise such events to facilitate fabrics and garment suppliers of China.
SOURCE: Fibre2fashion
As the deadline for granting China 'market economy status' approaches, Commissioners from the 28- member European Union are set to begin talks on January 13 on reorganising trade ties with the bloc's second-largest trading partner to avoid a backlash from Beijing while protecting its industries from a flood of cheap Chinese imports. Beijing has demanded the coveted status from December as a matter of right 15 years after it joined the World Trade Organisation. That would make it much harder for Europe to impose anti-dumping duties on Chinese goods sold at knock-down prices, changing the criteria for determining a fair price, according to an agency report. While a study by a group of 25 European manufacturing federations estimates the European Union could lose up to 3.5 million jobs if China is granted the status, the overall opinion is divided on whether to treat Beijing as a market economy all given the state controls in the Asian country. "My opinion is that China is not a market economy. But it is a major trade player and we have to take that into account," said one senior EU official.
Swedish lawmaker Christofer Fjellner, a member of the European Parliament's influential trade committee, said there was concern among members about yielding to Beijing's demand, but also fear of retaliation if Europe did not. "The Commission is between a rock and a hard place... I expect the Commission to be creative," he said, adding he expected a proposal for parliament in February or March. The Commission will have to take the initiative. For the present, all signs point to it accepting China as a market economy while seeking to keep trade defence measures for a transition period, which could appeal to sectors such as steel, chemicals and textiles, the report said. This could take the form of maintaining existing duties until their natural expiry - typically five years - and potentially raising duties imposed for illegal subsidies. The bloc's final decision, taken together with EU governments and the European Parliament, is likely to set it on a collision course either with Beijing or with its own manufacturers and with its largest trading partner the US, which does not treat China's 'heavily state-shaped' economy as a market economy. Chinese officials have said they could show flexibility in allowing a transition period for particular European industries. A 2013 deal to end an EU investigation into Chinese dumping of solar panels showed Beijing and Brussels can find agreement.
Meanwhile, The Commission's legal experts have advised it to grant China market economy status. A report prepared by two economists has suggested that this can be done without harming the EU economy albeit by taking certain extra measures. While The Commission has indicated that no final decision should be expected before the summer, an exchange of views with EU governments could come as early as February 2 when EU trade ministers meet in Amsterdam. They seem divided, with free-traders like Britain, Nordic countries and the Netherlands likely to be in favour but with nations such as Italy, which compete with Chinese goods, and France being against granting market economy status. Germany's position could sway the decision, which diplomats say, is likely to need the support of all governments and not just a qualified majority. It is the EU's biggest exporter to China, but there is a strong undercurrent as China seeks to produce sophisticated products that compete directly with Germany. Votaries of free trade say Europeans will gain from cheaper Chinese imports and that companies such as Alstom or Siemens will gain easier access to China's vast market in return. The EU is China's largest trading partner, while China ranks second after the US for the EU and was the source of some 302 billion euros ($330 billion) of imports in 2014, more than triple their level at the start of the century.
SOURCE: Fibre2fashion
The nylon value chain has lost more than half its values in Asian markets by end 2015 end ever since they were at their yearly peak in May-June. The plunge was triggered by the rapidly falling crude oil prices where in benzene, a refinery product – is closely linked. Caprolactum, a nylon fibre intermediate, is derived from benzene via cyclohexane. Nylon chip, nylon fibre and nylon filament yarn are derived from caprolactum. Thus, the final product costing depends on the movement in crude oil and thereby, benzene markets. Crude oil prices continued their freefall in December, closing towards the 11-year lows, after the IEA warned that global oversupply might worsen in 2016. Crude oil prices also declined after news that the OPEC was planning to maintain its production near record highs despite depressed prices, as it continued to guard its share in an oversupplied market. Baker Hughes Inc report showed the total rig count at 536 by the end of the month. US crude and Brent price fell 13% and 14% respectively as compared to previous month’s average. From a year ago levels, crude oil prices have lost about 38%.
Benzene prices in Asian markets declined sharply in December following the plunges in crude oil cost amid rapidly weakening demand. Asian marker, FOB Korea was down 5.3% during the month and 16% on the year. Caprolactum values in China eased on languishing demand and expectation of increased supply. The markets were apparently approaching on a bearish note on softening demand, with producers operating at higher rates. Asian caprolactum spot prices fell 3.2% from last month and 34% on the year. Nylon chip prices fell in December on back of weak caprolactum and falling crude oil prices. Producers carried out low operating rate amid cautious buying sentiment. Demand was lax from nylon fibre makers while nylon yarn makers reduced run rate with cautious mentality. In case of non-textile sectors, meager margins at cord fabric, monofilament and fishing-net yarn markers weakened offtake for chips. Offers for Taiwan-origin chips was down 5.2% from November and 32% from December last year. Nylon filament yarn markets continued to sustain weaknesses while operating pressure was range-bound as caprolactum and nylon chip prices moderated a bit. Demand was cautious to follow up, resulting in slow liquidity at nylon yarn makers. Meanwhile, demand for staple fiber was slow and that for fishing-net yarn, monofilament and cord fabric was bleak at year-end. In China, semi-dull FDY70D/24F was down 5% from previous month while the year on year fall was 33%.
SOURCE: Yarns&Fibers
The tumultuous start to 2016 supports the belief that there is no reason to expect the global economy to be any stronger this year than in 2015, said Joseph Stiglitz, Nobel Laureate and professor, Columbia University. In a conference call with analysts organised by UBS, he spoke on a range of issues confronting the world economy and identified lack of demand as the major problem coupled with the slow deceleration in China. Biswajit Baruah reports:
Global Economic Outlook
The global economy is currently not doing very well. 2015 was one of the worst years in the century. The only time the economy was worse was during the previous two recessions — one at the beginning of the 21st century and the other during the global financial crisis. 2016 is likely to be as bad as there is a global slowdown, with countries like Brazil and Russia in recession. Though there are no structural problems, there are problems of global demand. Europe is stagnating, while the US is growing slowly. The deficiency in global demand will inevitable affect China, and due to weak global demand, China's exports will be affected which will weaken the economy.
Global Economic Risks
I think between 2016 and 2018, there would be another year of crisis. The Greece issue is still there in euro zone. About 60 per cent of voters from countries such as Greece, Spain and Portugal have voted against the austerity measures, while the euro zone has not changed its policy. I see lot of political and economic turmoil in Europe because they have not fix the economic framework. I don't think interest rates in US will increase very quickly, but in 2017 or 2018, there would be some pressure. The liquidity during the QE programme created asset price bubbles, now when this liquidity will be withdrawn from markets, one need to see how these asset prices will adjust.
Impact of Chinese Slowdown
The Chinese slowdown is going to adversely impact economies that are closely linked with the country, such as the East Asian countries. I think it's going to be a difficult year for many of the Asian countries. I am glad that China has moved to market basket for its currency. I have no convincing argument for why the renminbi is being very badly out-of-line as the country still has trade surplus. If one sees the magnitude of capital flight from China, then one has to see how the government is going to respond.
What China Can Do
China has to invest in new enterprises, new industries, innovations, and services. China needs to increase its tax base as this will support the government spending and stimulate the economy. China has moved to green or low carbon economy and one needs to incentivise that, which can be done through a carbon tax which will boost spending in sectors such as health, education, transport, and others. The major problem China is facing today is in spaces such as environment, health, education and financial instability. There are a lot of micro discussions about excess supply in steel and coal industries. I think though these discussions are important, it's not going to change the growth trajectory of the economy. It's now important to make the right investments and increase demand in the economy for which the government has to increase spending.
Stock Market Circuit Breakers
Stock markets, whether American or Chinese, are volatile and often are very unstable. There are a lot of people who believe that markets function well, but in reality markets are not only volatile and unstable, they are inefficient too. We need rules and regulations to make stock markets less volatile, less unstable and efficient. I think circuit breakers can provide stability to financial markets provided they are designed correctly, otherwise they can create more instability. The advanced countries have been learning the mechanism of circuit breaker for long time and they have still not got it right, and I think China has to learn and they have to design correctly.
SOURCE: The Economic Times
