INTERNATIONAL
Textiles Ministry will approach the Cabinet in a fortnight seeking approval for the new national textiles policy that seeks to create 35 million jobs, Union Minister Santosh Gangwar said today. "We will approach the Cabinet in 10-15 days for approval of the new Textiles Policy," Gangwar told PTI. The new policy aims to achieve USD 300 billion textiles exports by 2024-25 and envisages creation of additional 35 million jobs. It policy also aims to address concerns of adequate skilled work force, labour reforms, attract investments in the textile sector, and to provide a future road map for the textile and clothing industry. Keeping in view various changes in the textile industry on the domestic and international fronts and the need for a road map for the textile & apparel industry, Ministry of Textiles had initiated the process of reviewing the National Textile Policy, 2000.
SOURCE: The Economic Times
India exported a total of 2.56 million kgs of polyester spun yarn to 47 countries in November 2015 totaling US$5.73 million, out of which 16.8 percent was shipped by Turkey. The unit price realization was averaging US$2.24 per kg down by US cents 39 a kg and in value terms it was also 9.7 percent down as compared to November 2014. In November, thirteen new destinations were found for polyester yarn of which, Nigeria, Ecuador, Cote D'Ivoire, Togo and Mauritania were the major ones. Substantial slowdown in export was seen to Italy, Sri Lanka, Slovenia, Djibouti and Bangladesh. While on the other end Iran, Germany, Syria and Taiwan were among the fastest growing markets for polyester spun yarn, and accounted for 10 per cent of total polyester spun yarn export value. Nine countries that did not import any polyester yarn from India, including Argentina, Russia, United Arab Emirates and Peru.
SOURCE: Yarns&Fibers
The Chinese slowdown would hurt Indian spinning industry the most in the textile value chain. India exports 40 per cent of total cotton yarn to China. This is likely to come down significantly, creating an oversupply situation in the domestic market. Apparel exports are also likely to be impacted due to yuan depreciation. Since August 2015, yuan depreciated 5.6 per cent while Indian rupee fell 4.5 per cent. Till December, apparel exports grew at just 7-8 per cent, compared with estimated growth of 13-15 per cent. The weakening of yuan by over 5 per cent and apprehensions of further depreciation of Chinese currency have sparked concerns for the Indian textile industry. China is a major competitor in garments and made-up segments. India is strong in the value-added, hand- embroidered, casual fashion garments consisting of small orders. On the other hand, China is strong in high-value, basic garments.
If yuan depreciation continues, it would threaten Indian apparel exporters as both the countries have access to common markets — the US and Europe, said Rahul Mehta, president, International Apparel Federation and Clothing Manufactures’ Association of India. The garment and made-up exporters from India are expecting a stiff competition in global markets if China continues its depreciation spree, says Raman Saluja, managing director of Ludhiana-based SEL Manufacturing Company. Because of low demand from China, Saluja diverted his business to other parts of the world in the last few years. However, with the depreciation of yuan, he faces a fresh challenge. “Our exports are in most parts of the world except China. But with their cheaper goods, exporters from China may render us uncompetitive in the existing markets. Owing to the slowdown in Europe, our realisations have already been hit by 10-15 per cent. We have lowest cost of production and cannot trim it further. We are helpless,” Saluja told Business Standard.
Cotton yarn exports will see the highest impact. In domestic market, while cotton and hand-made segments would not be affected by yuan depreciation, companies in man-made fibre segment may face fierce challenge if the Chinese resort to dumping. Industry is planning to seek government protection against dumping of cheap Chinese man-made fibre. “China is not only a competitor but also a major buyer, especially for cotton yarn, which is why the vertical will see impact. This may be offset if China continues to buy from India,” said Sanjay Jain, managing director, TT Ltd. The vertically-integrated Nahar Industrial Enterprises Limited has reduced its exports to China in the past few months, focusing more on domestic market. “We are bleeding and in some segments operating at razor thin margins. But the competition is going to be fierce in global market as Chinese manufacturers have immense support of their government. They may also resort to dumping in order to utilize their capacities,” said Daman Oswal, Director of the company. The withdrawal of focus market scheme, duty drawback and interest subvention accentuated the challenges of Indian textile exporters. Yuan depreciation may be the last straw in the camel’s back. According to Oswal, the government should revisit its decision of excluding spinning industry from the interest subvention of three per cent. Of the total $40 billion worth textiles and clothing (T&C) exports from India, apparel is worth $16 billion. Yarn, fabric and made-up segments together are worth $21 billion.
SOURCE: The Business Standard
India has its strength in the value-added, hand-embodied, casual fashion garments consisting of small orders, whereas China has its strength in high value, basic garments. The depreciation of Yuan, if continued further, after yarn, the Indian apparel exporters would face a potential threat as both the countries have access to the common markets of US and European Union, according to Rahul Mehta, President International Apparel Federation and Clothing Manufactures' Association of India. Already, till December, apparel exports had been growing at a rate of 7-8% against the anticipated 13-15%. Much of the fall in exports growth rate is being attributed to decline in Indian apparel exports to markets like China, Europe and the US due to overall economic slowdown. Of the total $40 billion worth textiles and clothing (T&C) exports from India, apparel exports are worth $16 billion, while yarn, fabric and made-ups put together amount to $21 billion. The weakening of yuan by 3% and apprehensions of further depreciation of Chinese currency has sparked concerns for the Indian textile industry as China is a major competitor of garments and made-ups and importer of cotton yarn from India.
Raman Saluja, the managing director of Ludhiana-based SEL Manufacturing Company said that the garment and made-up exporters from India are expecting stiff competition in the global markets if China continues its depreciation spree. He diverted his business to other parts of the world in the last few years owing to a low demand from China, but the present move by the largest Asian economy may upset the plans of the Indian exporters. Their exports are in most parts of the world except China, but cheaper exporters from China may render them uncompetitive in the existing markets. Owing to the slowdown in Europe, their realizations have already been hit by 10-15%. They have the lowest cost of production and cannot trim it further so in this situation, they are helpless, Saluja added.
According to industry experts, while cotton yarn will see the highest impact, the domestic apparel is likely to remain immune to impact from the Chinese currency depreciation. China is not only a competitor, but also a major buyer, especially for cotton yarn, which is why the vertical will see impact. This may be offset if China continues to buy from India, said Sanjay Jain, managing director of TT Ltd. Daman Oswal, director of the vertically-integrated Nahar Industrial Enterprises Limited in the past few months has reduced its exports to China focusing more on domestic market. They are bleeding and in some segments operating at razor thin margins. But the competition is going to be fierce in global market as Chinese manufacturers have an immense support of government. They may also resort to dumping in order to utilize their capacities. According to Oswal, it was now high time the government revisited its decision of excluding spinning industry from the interest subvention of 3%. The withdrawal of focus market scheme, duty drawback and interest subvention accentuated the challenges of Indian textile exporters and Yuan depreciation may be the last straw in the camel's back.
SOURCE: Yarns&Fibers
48 important and traditional handloom products are registered under the Geographical Indications of Goods (Registration and Protection), Act, 1999. The authorized officers of the central and state governments are instructed from time to time to pay special attention to the complaints on faking of G.I. registered handlooms products. Recently, Ministry of Textiles has received complaints from various handloom associations/unions that duplicate versions of their famous G.I. registered handloom products are being manufactured by the mechanized sector of the textiles and are sold in the market by some textile marketing companies in the names of G.I. registered handloom products. This is hampering the niche market of these handloom products affecting their goodwill adversely and shrinking their market value due to encroachment on their registered geographical indications.
Registered users of G.I. registered products have rights under the provisions of the Geographical Indications of Goods (Registration and Protection), Act, 1999 to approach respective police authorities to safeguard their interests against such illegal manufacturing/marketing of G.I. registered handloom products. Recently, an FIR was filed on 17.12.2015 in the Pochampally Police Station, Telangana by the authorized users of the G.I. registered handloom products of pochampally ikat sarees against the sellers/manufacturers for selling/manufacturing duplicate G.I. registered product.
SOURCE: PIB
Tending losses for the second straight day, the rupee dropped further by 5 paise to settle at 66.86 per dollar today on persistent dollar demand from importers amid fall in equity market. Sustained foreign capital outflows also affected the market sentiment. Foreign investors withdrew $156.58 millions from the equity market yesterday. Fall in crude oil prices in global market strengthening the dollar overseas also weighed on the rupee sentiment, dealers said. The crude oil prices tumbled to 12-year low levels of $31 a barrel today due to a global supply glut, a strong dollar and tepid demand. The rupee resumed lower at 66.83 per dollar as against yesterday's closing level of 66.81 at the Interbank Foreign Exchange (Forex) market and dropped further to 66.9750 per dollar. However, it recovered afterwards to 66.72 per dollar before concluding at 66.86 per dollar, showing a loss of five paise or 0.07 per cent. The rupee has lost 23 paise or 0.35 per cent in two days. The domestic currency hovered in a range of 66.72 per dollar and 66.9750 per dollar during the day. Meanwhile, the dollar index was up by 0.12 per cent against a basket of 6 currencies in the later afternoon trade."Taking cues from domestic equity market $closed stronger by 5 paise. $traded in a narrow range maintaining 67 as cap. Trading range for the spot USD/INR pair is expected to be within 66.5 to 67 range and will take cue from domestic equity market," Veracity Group CEO Pramit Brahmbhatt said.
SOURCE: The Times of India
The Pakistani local industry of Acrylic Yarn is hit hard and continues to shut down due to overloaded supply of Indian Acrylic yarn in local market, as the massive import of this item is continuing at very nominal Custom Duty under HS Code: 5509.3200 through Wagha border. Pakistan has more than 1500 units in Gujranwala with almost 450,000 workers directly associated with Acrylic Yarn industry are likely to get jobless, which will increase the poverty levels not only in Gujranwala and Faisalabad districts but also throughout the country, warned President Gujranwala Chamber of Commerce & Industry Samee Ullah Ch. The GCCI President demanded that the regulatory duty (10%) was imposed on cotton yarn import to protect the local production units while Acrylic Yarn was kept out of loop. The same regulatory duty of 10% must be imposed on Acrylic Yarn to save local units. The RD (10%) is the only solution to safeguard the local industry. The Acrylic Yarn import has increased many folds since the trade through Wahga border is carried out. The cost and time efficiency and the Safta preferential tariffs (5%) are causing Acrylic yarn mills closure. The Custom Duty of Acrylic Yarn from India is fixed at 5% under SAFTA rate that makes it competitive to import in Pakistan. The item is in positive list through Wahga border hence causing effective transit cost and time. The ITP (evaluation) rate as fixed by Evaluation Ruling 4-Dec-2012 on import of Acrylic Yarn is $4.80 per kg. The imports from Karachi port are being accessed on fixed rate ($4.80 per kg) though, the evaluation at T-10 Terminal (Railway Shed) Lahore is being accessed at less than $2.50 per kg, hence making imports further feasible and competitive. Khwaja Arshad, a woolen miller and representative of Acrylic Yarn industry, has partially closed out their unit with soaring cost of doing business and started importing the Indian yarn for the last six month. He used to have 10,000 spindles running in his mills. The local industry of Acrylic Yarn is well equipped to cater the demand of local requirement. It would further generate employment, increase in revenue collection, reducing the import budget imbalance, besides improving foreign reserves and economy growth. This is only possible with government protective measures that can ensure the survival of Acrylic yarn industry.
SOURCE: Yarns&Fibers
Reliance Industries Ltd is looking at over 2-fold increase in sales to Rs 1,800 crore from its textiles brand Vimal in the next three years and positioning it as a youth-oriented affordable fashion label. The brand, which is also getting into ready-to-wear segment besides fabrics, is tapping young entrepreneurs and start-up co-founders to endorse the brand to connect with "new age Indian customers". The company will invest Rs 350 crore in a phased-manner in the next three years to increase its textile production capacity to 25 million metres a year from 20 million metres per year at present. "We have been focusing on product, branding and innovation for pushing growth of Vimal. We are looking for a retail sales of Rs 1,800 crore in next three years from our present base of Rs 800 crore," Reliance Industries Ltd CEO (Textiles Business) Pradeep Bhandari told PTI. The company, which has launched the Spring Summer collection for this season, is looking to have Vimal exclusive stores 150 in three years, up from 50 at present. "These will be a mix of company-owned and franchise," he said, adding that there would also be shop-in-shop in Reliance Trends stores.
Currently, Vimal is concentrated in East Indian states such as West Bengal and Bihar. "We are looking at expanding the reach of Vimal across all regions of India going forward," he said. Elaborating on the company's strategy to promote the brand, Bhandari said: "We want to position Vimal as a contemporary high-fashion product and yet affordable. We have approached new age entrepreneurs to promote the product." The company will be running Vimal ad campaigns featuring Zify Founder Anurag Singh Rathor, iD Fresh Food Co-founder Musthafa PC, Bankbazaar Founder Adhil Shetty, Local Banya Founder Karan Mehrotra and Chumbak Founder Vivek Prabhakar as it looks to connect with young aspiring Indians. On investments, Bhandari said Rs 350 crore will "mainly lead to increase in the capacity of production of high-end fabric".
Stating that fabrics will be the mainstay of the brand, he said: "As of now, we have around 90 per cent of sale of Vimal coming from fabrics and rest from apparels segment. In three years, we see it changing to 75:25." When asked about exports, he said currently Vimal is exported to different global markets, including US, Europe, Far East, Middle East and Africa. "Exports account for around 40 per cent of the turnover and it will remain the same going forward as out focus will be on growing the brand in the domestic market." On the need to offer "differentiated product", Bhandari said the company has been focusing on R&D and has patented an anti-microbial technology called DEO2 that is suitable for the "tropical Indian market".
SOURCE: The Economic Times
The Aditya Birla Group will support its textiles business partners to tap key international initiatives like 'Market Weeks' and 'Mill Weeks' to boost export of fabrics from the country to the West. This is planned as the next phase of the ongoing initiative under Liva Accredited Partners Forum (LAPF), being spearheaded by the Birla Group arm Birla Cellulose, which is the world's largest viscose staple fibre manufacturer with close to 95 per cent market share. Birla Cellulose will take up the global marketing drive along with its partners and has already has roped in some big industry names for this, including Mafatlal and Mercury, among 250 other brands as partners. A key element of this international marketing is holding 'Market Weeks' and 'Mill Weeks in key foreign markets, the company said. The Market Week is a key market-making initiative in the US where wholesale buyers meet with their global suppliers with the latest market trends that help them gauge the evolving consumer sentiment. Some of the other big textile manufacturers who have joined hands with the Birlas' initiative include Shreeji, Karuna Tex, Svarn Tex, MI Industries and VSM, who will work with the group in creating a better value chain for the industry. As part of the LAPF, the company recently organised a Liva partners forum in the textile hub of Noida where as many as 160 garment exporters and big domestic and global brands were in attendance.
SOURCE: The Economic Times
Indian banks have to establish networks in Cambodia, Laos, Myanmar and Vietnam to enable companies here to expand businesses in the region, said Commerce Minister Nirmala Sitharaman. The CLMV countries within the ASEAN present a huge opportunity for Indian investors and business. Indian banks will have to set up a branch network to facilitate trade and provide business comfort, she said. To drive Indian investments in the region, the Government will establish a project development fund focussed on CLMV countries. Special purpose vehicles will be set up to carry forward projects identified through feasibility studies. Addressing the 3rd India – CLMV Business Conclave, organised at Mamallapuram, about 50 km South of Chennai, she said connectivity and integration of Indian manufacturing with local value chain there will prove mutually beneficial. Improving connectivity by air, sea and road is key to strengthening trade ties and India is committed to the Trilateral Highway linking the North East with Myanmar and Thailand.
Negligible investments
Sun Chanthol, Cambodia’s Senior Minister for Commerce, said Indian investments in the regions were negligible. The CLMV market with a population of 165 million and growing income is a huge opportunity. Cambodia has eased its investment laws and businesses can register a company online in one hour.
Mineral resources
Somchith Inthamith, Vice-Minister of Industry and Commerce, Laos, said the country is keen on tapping the mineral resources which present on opportunity for India. Pwint Sam, Deputy Minister, Ministry of Commerce, Myanmar, said the country is focussing on logistics and infrastructure. Foreign investment laws and special economic zone laws encourage investors. Nguyen Cam Tu, Deputy Minister of Industry and Trade, Vietnam, said the country looks to India to further integrate with the ASEAN.
SOURCE: The Hindu Business Line
Industrial output registered its sharpest fall in four years with the index of industrial production (IIP) contracting 3.2 per cent in November, government data showed on Tuesday. Earlier, Nikkei's Manufacturing Purchasing Managers' Index (PMI) had fallen to a 28-month low in December. Taken together, these key macroeconomic indicators suggest softening industrial growth in the second half of the current financial year. Output is likely to suffer further in the coming months, as the full impact of the Chennai floods plays out. What is especially worrying in the data is that capital goods, considered a proxy of investment demand, contracted sharply by 24.4 per cent, which suggests no sustained pick-up in investments. The latest numbers come against the backdrop of growing clamour for the central government to deviate from its fiscal consolidation road map in order to boost public investments. Separately, the consumer price index (CPI) rose to 5.61 per cent in December, up from 5.41 per cent in November on the back of rising food prices. Pulses, the prime culprit, rose 46 per cent year-on-year. With rabi sowing as of the first week of January remaining lower than last year, inflation is likely to continue in the same range, though with an upward bias. This reduces the scope for further loosening of monetary policy.
The latest IIP numbers show that the manufacturing sector contracted by 4.4 per cent in November. But, what is especially alarming is that 17 of the 22 sub-sectors contracted in November, up from five in the previous month. Headwinds for economy According to CRISIL, declines were observed across consumer and investment sectors. Among the consumer sectors, food products fell by 1.5 per cent, textiles by 1.9 per cent and wood and wood products by 14 per cent in November, while in the latter category, electrical machinery, machinery and equipment, basic metals and other non-metallic products saw the sharpest decline. While the consumer durable goods segment grew by 12.5 per cent in November, it was in large part aided by a negative base effect, though there are some signs of demand, especially in urban areas picking up.
Going forward though the base effect is also likely to complicate matters further. According to CARE, given the high base effect, "the manufacturing sector has to clock growth of 14 per cent on a month-on-month basis, i.e., over November to even maintain zero growth in December 2015." On the inflation front, food inflation edged up to 6.4 per cent in December, from six per cent in November. Core inflation though stayed unchanged at 5.4 per cent for the fifth consecutive month. According to analysts, inflation is likely to edge upwards with the low base effect withering out and with rabi sowing lower than last year's levels. Currently, sowing of wheat and oilseeds has declined 5.9 per cent and 3.8 per cent on-year, respectively, while sowing of pulses has dropped 0.3 per cent.
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
All Pakistan Textile Mills Association (APTMA) Chairman Tariq Saud has urged Prime Minister Nawaz Sharif to pass on the impact of falling oil prices in full to the industry, giving benefit would revive the closed capacities on one hand and attract new investment to the textile sector on the other. He said the high cost of doing business had created a hole in the viability of textile industry, particularly the large section dependent on electricity supply in Punjab, which was resulting into fast closure of textile units, steep fall in textile exports and the consequent rampant unemployment. He expressed hope that reduction in industrial tariff by the prime minister would enable the textile industry to compete with immediate regional textile players through availability of level playing field. He appealed for removal of the tariff rationalisation surcharge, while adjusting the Rs 3 per unit reduction in industrial tariff. “Textile industry cannot pass on them system inefficiencies and line losses wrongly inflicted upon it in the name of tariff rationalisation surcharge,” he stressed. He urged the prime minister to direct the Ministry of Water and Power for issuing a notification in this respect, as reduction in the industrial tariff is applicable from January 1st. “It will enable the industry to book export orders without delay, as many textile millers are still uncertain over the fate of tariff rationalisation surcharge,” he said. He further added that only the prime minister could put an end to the ongoing indecisiveness by removing the tariff rationalisation surcharge from the industrial tariff. “A timely decision would enable the textile industry to deliver and materialise the prime minister’s dream of industrial revolution in Pakistan,” he vowed. He expressed his gratitude to the prime minister for Rs 3 per unit reduction in electricity tariff for Industry, saying that this single step would greatly help textile industry for revival of its presently compromised viability. “The present weighted average net of fuel price adjustment tariff for industry is Rs 12/kwh. Supply of electricity at tariff less than Rs 9 per unit would be a major step in restoring the industrial viability,” he stressed.
SOURCE: The Daily Times
The Rwandan government is mulling a joint venture with Chinese investors to establish a garment factory in the capital Kigali, an official has said. Speaking to tailors in Kigali, Minister of Trade and Industry, Francois Kanimba, said the Kigali garment factory, put at $1.3 million, was expected to open by the end of 2016. The investment would include the procuring of 670 machines to produce different types of clothes, according to officials. Rwanda wants to develop its own textile industry, cut imports of garments and create jobs through the factory. Last year, imported clothes both new and second hand cost Rwanda over 100 million dollars. Every year, the East African nation is said to spend over 15 million dollars importing second hand clothes. Kanimba said, to reduce the reliance on imported clothing, the government was seeking funds and skills from Chinese investors for the industry. "Recent study shows that among the economic platforms, tailoring tops opportunities for increasing more locally made products," Kanimba said, noting some imported "knitted clothes such as uniforms" can be made by locals. He said the Chinese investors had also offered to train local tailors. Rwanda has two textile companies in Kigali, including the Chinese-run C&H Garments whose products are exported. C&H Garments has invested in computerized sewing machines and will train up to 400 local workers.
SOURCE: The China Daily
Bangladesh Bank is set to form a $200 million fund to provide low-cost loans to textile and leather industries for switching to environment-friendly production. “We want to let the world know that we will manufacture green apparel and green leather products. We want to brand our country as green Bangladesh,” BB Governor Atiur Rahman said yesterday. Rahman's comments came at the opening of a conference, 'Green Finance for Sustainable Development', organised by Bangladesh Solar and Renewable Energy Association (BSREA) at the capital's Sonargaon Hotel. The move comes to help that the export-oriented industries take advantage of the current proclivity towards green products in the western world. Textile and leather sectors will initially enjoy low-cost loans from the 'Green Transformation Fund', which will be made open to the other sectors later, he said. Industrialists are likely to get loans for water conservation and management, waste management, resources efficiency and recycling, renewable energy and energy efficiency. “We are doing it from our own fund. These are only small initial steps, with lots more to do in our intended countrywide transition to environmentally sustainable output practices and lifestyles.”
Earlier in 2009, the BB set up a Tk 200 crore revolving fund for the banks and other financial institutions to disburse low-interest loans for solar energy, biogas and effluent treatment plants. The central bank has so far indentified nearly 50 green products that are eligible for the green refinance line available at the BB. The move comes at a time when Bangladesh is making efforts to generate more energy through renewable sources. Bangladesh has a capacity to generate 230 megawatts of solar electricity, with a big portion coming from solar home systems, of which there are over 40 lakhs of them at present, according to a publication by BSREA. Power generation has increased in recent years along with per capita consumption and coverage, said Anwarul Haque Sikder, chairman of the Sustainable and Renewable Energy Development Authority. The government has set a target of generating 3,100 megawatts of electricity through renewable sources by 2021. More than half of the green energy will come from solar systems, followed by wind energy, he added. Mahmood Malik, chief executive of the Infrastructure Development Company Ltd, said solar home systems are growing fast in Bangladesh. Mizan R Khan, professor at the Environmental Science and Management Department of North South University, said Bangladesh's economy is growing well. “But together with quantitative growth, we need more of qualitative growth and development, which will improve the quality of the lives of all citizens.”
SOURCE: The Daily Star
The textile printing industry is set to grow at a rapid pace within the next four to five years due to the growing demand within the fashion and retail industries stated, according to an expert. Abdul Rahman Falaknaz, chairman of International Expo Consults, said textile printing industry in the country is set to gather momentum as UAE stands as the world’s fourth largest trading centre of textiles, generating an approximate $17.5 billion annually. Brother Middle East, Magic Touch and several other brands showcased some of their textile printing machines at the SGI Dubai show that concluded today (January 12). The exhibition welcomed more than 400 exhibitors from over 34 countries and attracted close to 13000 local and international visitors. The event showcased innovative printers and digital signage panels worth over AED220 million. Exhibitors at the show have signed contracts worth millions of dollars during these three days. As per the Global Industry Analysts report printed textiles market is projected to touch 29.8 billion sq m by 2020, due to the technology enhancements aimed at improving print speeds, design and efficiency. “The UAE can capitalise on the fast growing textile printing industry and the country has a huge potential to become one of the market leaders. Screen printing continues to hold a major share of the global textile printing market, in terms of production volume of printed textiles," said Falaknaz. "However, it is facing a strong competition due to the fast adoption of digital technology. We have therefore tried to grow this market further by bringing global brands to our show in 2016,” he said.
Digital printing technology is also poised to benefit immensely from the success of fast fashion, which requires manufacturers to reduce time to market in order to capitalize on the short-lived window of opportunity offered by fast changing fashion fads. “Growth in the coming years will surely be driven largely by the digital textile printing market. Manufacturing of high-quality inkjet print heads, presence of open system inkjet print heads that enable use of inks from multiple vendors, and launch of lower priced competitive solutions are expected to fast-track the adoption of digital printing technology,” added Falaknaz. “As UAE is one of the most fashion forward places around the globe, we are sure to adapt this style—whether it’s for the fashion or the interior design industry. Digital printing gives freedom not just for designers but also for fashion enthusiasts as the latter can design their own prints and acquire a tangible version of it—whether it’s clothing, accessory, or even furniture,” he said. SGI Dubai 2016 had an exclusive textile printing focused pavilion called ‘SGI Textile’. This section of the show unveiled new technologies under two broad printing categories namely ‘technical fabric’ and ‘garment decoration’ alongside other major pavilions. “Especially UAE, Qatar and Saudi Arabia have created a huge demand within the sign, graphic and imaging industry with several high-end malls, new airports, industry exhibitions around the clock and launch of many other upscale clusters,” Falaknaz added.
SOURCE: The Trade Arabia
Crude oil slipped towards $30 per barrel to a near 12-year low on Tuesday, as heavy oversupply showed no sign of easing, while analysts scrambled to cut their price forecasts and traders bet on further declines. Prices are down around 16 per cent since the start of the year, dragged lower by a glut, China's weakening economy and stock market turmoil, as well as the strong dollar, which makes it more expensive for those using other currencies to buy oil. "The bearish sentiment surrounding the commodity has intensified," said Brenda Kelly, head analyst at London Capital Group. International benchmark Brent crude fell to a low of $30.43 per barrel, a level last seen in April 2004, before recovering to $31.43, down 12 cents or 0.38 per cent, by 1028 GMT.
It was down for the seventh consecutive session, and has fallen every day of 2016 so far. US crude West Texas Intermediate (WTI) fell to a low of $30.41 per barrel, a level last seen in December 2003, before crawling back to $31.06, down 35 cents or 1.11 per cent. Trading data showed that managed short positions in WTI crude contracts, which would profit from a further fall in prices, are at a record high, implying that many traders expect further falls. China's slowing economy has been another factor contributing to the oil rout, which has pulled prices down by around 70 per cent since mid-2014. And, while demand looks fragile, supply from key producers remains robust.
Iraq, the second-biggest producer within the Organization of the Petroleum Exporting Countries (Opec), plans to export a record of around 3.63 million barrels per day from its southern oil terminals in February, trade sources said. They cited a preliminary loading programme, up eight per cent from this month. Nigeria's oil minister said a "couple" of Opec members had requested an emergency meeting, adding that current market conditions support the need to hold such a gathering. Analysts have been shifting their price outlooks downward, with Barclays, Macquarie, Bank of America Merrill Lynch, Standard Chartered and Societe Generale cutting their 2016 oil forecasts this week. StanChart took the most bearish view. "We think prices could fall as low as $10/bbl before most of the money managers in the market conceded that matters had gone too far," the bank said.
SOURCE: The Business Standard
World stocks fell for the fifth straight day on Tuesday, anchored near their lowest level in over two years with investors rattled by the slump in oil prices and a surge in offshore Chinese yuan deposit rates. European stocks, however, recovered from early weakness thanks to a rally in the retail sector. British companies in particular posted strong seasonal updates, lifting the FTSEuroFirst 300 up from a three-month low. Earlier, the People’s Bank of China forced up overnight deposit rates in Hong Kong to 66.8 per cent to ease the heavy downward pressure on the yuan, analysts said, an indication of the drastic measures required to cool Chinese market volatility. As oil slid closer to falling below $30 a barrel for the first time in 12 years, deflation-wary investors in Asia shunned equities and pushed the value of the safe-haven Japanese yen. “Investors in Europe are shrugging off some of the angst around the Chinese market sell-off and showing some resilience today despite the up and down swings in Asia,” said Naeem Aslam, chief market analyst at Avatrade in London.
At 0900 GMT the FTSEuroFirst 300 was up 0.6 per cent at 1,342 points, only its second rise this year. Britain's FTSE 100 was up 0.5 per cent up, Germany's DAX was up 1.1 per cent and France’s CAC 40 rose 0.8 per cent. Shares in Morrison’s surged 12 per cent, Debenhams climbed 15 per cent, and Tesco rose five per cent. MSCI’s broadest gauge of world stocks, however, was down 0.2 per cent and has not risen since December 29. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.4 per cent lower, just shy of its lowest level in four years. It is down more than nine per cent since the start of 2016.
Japan’s Nikkei closed 2.7 lower at its lowest level in almost a year, while US futures pointed to a fall of around 0.3 per cent at the open on Wall Street. With investors still licking their wounds from last year's plunge in global commodity prices and a sharp sell-off in Chinese markets, 2016 has brought about more pain for investment portfolios in the form of a deepening slowdown in the global economy and volatile Chinese markets. Beijing set another firm fix for its currency, eliminating the gap between offshore and onshore yuan exchange rates. This was done by encouraging state banks to buy up yuan in Hong Kong, driving up the overnight deposit rate fixing to 66.8 per cent. "China is continuing to instil a degree of stability after the sharp volatility at the beginning of the month by announcing stable to firmer fixings," said Mitul Kotecha, currency strategist at Barclays in Singapore. "Tighter liquidity has contributed to a squeeze on long dollar/yuan positions and will mean investors are wary of shorting yuan in the near term," he said. The weakness in commodity markets since the start of the year showed no sign of easing, however, as Brent and US crude futures fell around 2 percent to new 12-year lows. Both flirted with a break below $30 a barrel. The bearish dynamics of slow demand and oversupply have pushed oil down 17 per cent so far this year. They also weighed on copper, pushing the industrial base metal down for the fifth day in a row to a fresh 6-1/2-year low of $4,354 a tone.
Commodity-linked currencies stayed under pressure. The Australian dollar fell 0.5 per cent to $0.6955 and the Canadian dollar hit a new 12-1/2-year low of C$1.4269 to the US dollar. The greenback fell against other major currencies as traders grew wary of how high US interest rates will rise this year, losing 0.3 per cent against the yen to 117.40 yen, while the euro rose 0.2 per cent to $1.0880. Money market futures are starting to price out the chance of multiple rate hikes by the Federal Reserve this year, with only a roughly 50 per cent chance of a second hike priced in. At the start of the year, futures were fully pricing in two rate increases. The market is far from convinced that the Fed is going to raise rates in March, after implementing its first rate hike in almost a decade only last month.
SOURCE: The Business Standard
