|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
935.193 |
USD/Ton |
-0.16% |
1/18/2016 |
|
VSF |
1845.98 |
USD/Ton |
0.25% |
1/18/2016 |
|
ASF |
1903.19 |
USD/Ton |
0.00% |
1/18/2016 |
|
Polyester POY |
938.244 |
USD/Ton |
0.00% |
1/18/2016 |
|
Nylon FDY |
2227.38 |
USD/Ton |
0.00% |
1/18/2016 |
|
40D Spandex |
4805.64 |
USD/Ton |
0.00% |
1/18/2016 |
|
Nylon DTY |
5684.39 |
USD/Ton |
0.00% |
1/18/2016 |
|
Viscose Long Filament |
1132.76 |
USD/Ton |
0.00% |
1/18/2016 |
|
Polyester DTY |
2044.3 |
USD/Ton |
-1.47% |
1/18/2016 |
|
Nylon POY |
2086.26 |
USD/Ton |
0.00% |
1/18/2016 |
|
Acrylic Top 3D |
1011.47 |
USD/Ton |
0.00% |
1/18/2016 |
|
Polyester FDY |
2471.47 |
USD/Ton |
0.00% |
1/18/2016 |
|
30S Spun Rayon Yarn |
2654.54 |
USD/Ton |
0.00% |
1/18/2016 |
|
32S Polyester Yarn |
1525.6 |
USD/Ton |
0.00% |
1/18/2016 |
|
45S T/C Yarn |
2471.47 |
USD/Ton |
0.00% |
1/18/2016 |
|
45S Polyester Yarn |
2807.1 |
USD/Ton |
0.00% |
1/18/2016 |
|
T/C Yarn 65/35 32S |
2425.7 |
USD/Ton |
0.00% |
1/18/2016 |
|
40S Rayon Yarn |
1693.42 |
USD/Ton |
0.00% |
1/18/2016 |
|
T/R Yarn 65/35 32S |
2120.58 |
USD/Ton |
0.00% |
1/18/2016 |
|
10S Denim Fabric |
1.06792 |
USD/Meter |
0.00% |
1/18/2016 |
|
32S Twill Fabric |
0.89248 |
USD/Meter |
0.00% |
1/18/2016 |
|
40S Combed Poplin |
0.97028 |
USD/Meter |
0.00% |
1/18/2016 |
|
30S Rayon Fabric |
0.71703 |
USD/Meter |
-0.42% |
1/18/2016 |
|
45S T/C Fabric |
0.73229 |
USD/Meter |
0.00% |
1/18/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15256 USD dtd.18/1/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Indian Texpreneurs Federation (ITF), an association representing the Indian technical textile value chain, will organise an event named 'Make in India – Textile Industry – Strategies for Success' to discuss the strategies which can be deployed for the Make in India vision to be a success in the Indian textile industry, according to media reports. Make in India – Textile Industry – Strategies for Success will be organised on the 21st of January, 2016 in Coimbatore. Union textiles minister Santosh Kumar Gangwar will be the chief guest at the event.
In view of the government's central role in Make in India, textile industry experts will present the various methods to achieve the Make in India vision. Indian textile industry has the potential to reach $141 billion by 2021. It has the potential to grow to the size of $500 billion in the next ten years, with domestic sales of $315 billion and exports of $185 billion, according to the Make in India website. India has a comparative advantage over other countries with respect to skilled manpower, cost of production, abundant raw materials, etc. A number of new initiatives are lined up to make India achieve its full potential, the website says.
SOURCE: Fibre2fashion
The long promised textile park at SIDCUL, Sitarganj to be completed in the current year for which over 103 acres land have been earmarked, said NK Koranga, DGM, SIDCUL, at Rudrapur. The establishment of the textile park at the Sitarganj SIDCUL in 2012 had been announced by the Former Chief Minister Vijay Bahuguna. While the foundation stone for the textile park had been laid by Union Textile Minister Anand Sharma in the presence of Bahuguna. If the park is established well, every company will create over 3,000 jobs. The park is to be established in joint venture with the Central government holding 40 percent share and the industrialists and the state government having the remaining 60 percent. Over seven textile manufacturers from across the country had applied to establish their units at SIDCUL, Sitargaj, said Gaurav Chatwal, Regional Manager, SIDCUL. SIDCUL sources said that some companies have even identified land to establish their units. SIDCUL have started inviting applications from industrialists for the textile parks at Pantnagar, Sitarganj, Jaspur and Rudrapur towns.
SOURCE:Yarns&Fibers
India's merchandise exports contracted for the thirteenth consecutive month in December, falling 14.75% from a year ago, data released by the commerce and industry ministry showed on Monday. A sharp 179% rise in gold imports in the month widened the trade deficit to a four-month high of $11.66 billion compared with $9.8 billion in November. Imports fell 3.88% from a year earlier to $33.96 billion. "The trend of falling exports is in tandem with other major world economies (the growth in exports have fallen for the US, the European Union, China by 10.30, 10.83, 6.94 % respectively for October 2015 over the corresponding period previous year as per WTO statistics)," the commerce department said in an official release. Exports fell in 15 out of 30 segments including iron ore, gems and jewellery, and engineering goods. The poor performance of merchandise exports this year had been cushioned by services exports and low oil import bill. "Merchandise export is affected by global commodity prices but we have done unusually well on services side," said Rita Teaotia, commerce secretary at a press briefing. Services trade data comes with a lag of one month.
Services exports fell 3.63% on year in November at $12.01 billion but the services trade balance has been stable. "Services exports and imports both contracted on a y-o-y basis in November 2015, in keeping with the trend recorded by other indicators of economic activity in that month. Nevertheless, the services trade surplus stood at a 10 month high in November 2015," said Aditi Nayar, senior economist, ICRA. Oil imports during December, 2015 were down 33.19% on year at $6.65 billion while non-oil imports were up 7.63% on year at $ 27.4 billion. "There's a global slowdown and we are integrated with the world. So, there will be an impact... Total merchandise exports for the year will be certainly less than last year," Teaotia said. In 2014-15, India's total exports were $310.5 billion. However, allaying industry' fears of job losses, she said employment oriented sectors have continued to be robust even in adverse global situation and that loss of jobs is not a corollary to fall in exports.
Slow global demand and rising volatility in currency markets including the devaluation of the yuan have hit Indian exports on which the Secretary said that though the yuan's devaluation does affect competitiveness of India's exports, but India is not head to head competing with most of Chinese merchandise exports. "My concern is how much I can export to China," she said. The commerce department doesn't plan any aggressive measures to control the ever rising import of gold, Teaotia said and added that her department has not made any recommendation to finance ministry in this matter. "Finance ministry will take the view if any controls are needed. We are watching the situation," she said. Gold prices in the international market have fallen to a five-year low fuelling a rise in imports of the yellow metal and hence, widening of the trade gap to a four month high. With the US and EU lifting economic sanctions from Iran, she said India will gradually move towards dollar trade with Tehran, which at present is done through the Rupee payment mechanism through UCO Bank. In 2012, after US imposed sanctions on Iran, UCO Bank started a new rupee trade mechanism through which 45% of oil imports of Indian oil firms are settled in rupee denomination. However, since there are $3 bn left in those accounts, the mechanism will go on for some more time.
SOURCE: The Economic Times
After a long hiatus, trade negotiators of India and the European Union met on Monday to take stock of the stalled talks for the proposed free trade agreement (FTA). India and EU had started talks for the FTA, dubbed Bilateral Trade and Investment Agreement (BTIA), in 2007 and the last meeting was held in October 2014. Till now, 16 rounds of negotiations have taken place. Commerce secretary Rita Teaotia described Monday's meeting as "extremely positive". Since the talks stopped India has moved ahead on many issues such as permitting 49% FDI in insurance, 100% FDI in telecom and easing of foreign investments norms in the banking sector. EU had demanded these steps in the proposed agreement. "So these have been the changes between 2013 and now. In addition to that, we have now a model Bilateral Investment Treaty approved by the Cabinet and that forms the basis on which investment discussions can also go on," Teaotia said. EU has suggested holding a secretary level meeting and India has expressed its willingness to conclude a balances agreement with the EU. The trade in goods between India and EU was $98.5 billion in 2014-15. The Indian side raised the issue of data security status, Mode-4 ceilings (movement of professionals), seamless intra-corporate movement and real market access in terms of sanitary and phyto-sanitary (norms related with plants and animals), and technical barriers to trade measures adopted by the union, while the European negotiators discussed the outstanding issue of the duty cut on automobiles, wines and spirits. Talks on the BTIA were stalled amid the prolonged downturn in Europe and its focus on concluding the Transatlantic Trade and Investment Partnership agreement with the US. India then deferred talks that were set to resume in August after the EU banned 700 generic drugs that were tested at Hyderabad-based GVK Biosciences. The government said it was "disappointed and concerned by the action".
SOURCE: The Economic Times
Wenzhou, one of the richest Chinese cities, has launched the India China Economic and Cultural Centre (ICECC) to promote investments in India. Over 120 leading entrepreneurs from Wenzhou who are looking at investing in India attended the ceremony held by the municipal government. A total of 10 MoU's were signed between leading companies from Wenzhou and their Indian counterparts to promote trade, investments and cultural cooperation with India in 2016, Indian Consulate General in Shanghai Prakash Gupta said. It was also decided that under the aegis of the ICECC, which will be exclusively channelising all Wenzhou's activities towards India, an 'India Culture Week' would be organised in mid June 2016 in Wenzhou, during which an Indian food festival, a film festival will be held, Gupta said in a statement. The core strengths of Wenzhou's small and medium industry include textile machinery, electronic goods, switches and electrical products, which also have a huge potential in India. Several Wenzhou manufacturers are also planning to set up manufacturing units in India in 2016.
President of Zhejiang Federation of Industry and Commerce (ZFIC) Nan Cunhui who heads the Wenzhou-based Chint Group plans to invest $1.6 billion in India. Similarly, another leading group from Wenzhou, the Aokang Group, which is into leather, real estate development and textile machinery is also looking at investing in India, its President Wang said. Yalong Group, one of China's leading groups for technical training equipments, signed an MoU with a Rajasthan-based institution for supplying technical training equipment to further improve the skill set of youth in Jaipur. Wenzhou located in the south east of Zhejiang province is one of China's richest cities famous for its legendary entrepreneurial spirit, with its entrepreneurs spread globally having invested in nearly 131 countries.
SOURCE: The Economic Times
Official data released on Monday tell a disturbing story about Indian merchandise trade, and about economic stability on the external account more generally. The headline bad news will be, of course, that India's exports dropped in December 2015 for the 13th straight month. This slump - a fall of around 15 per cent - can no longer be accounted for purely in terms of declining petroleum prices. It is true that refined petroleum products are a notable proportion of India's export basket, and the sharp reduction in the price of crude oil globally has caused this trade to decline equally sharply in value. But even non-petroleum exports fell in December by 7.9 per cent in dollar terms. Yes, the long decline in Indian exports does indeed coincide with slowing growth in world trade. But, it is not the case that world trade is actually declining; over the months of the exports slump, world trade has continued to grow at an average of around three per cent annualised, although it has shown signs of weakening further in recent months. In other words, in spite of the government's claims of pushing exports, India is under-performing even given poor global trade growth. This under-performance is clear from examining India's peer countries, which have seen good exports growth. Between July and December of 2015, months that India's exports were slumping, Bangladesh in fact saw exports grow by eight per cent year-on-year. Vietnam saw exports grow 9.2 per cent in 2015. This is a severe indictment of India's trade policy and the government's handling of exports.
The implications of the data for the trade deficit are also worrying. In December 2015, the trade deficit in dollar terms was 27 per cent higher than it was in December 2014. Cumulatively, however, the trade deficit for the first nine months of the current financial year was 11 per cent lower compared to that in the same period of 2014-15. This may make the trade deficit challenge look manageable as strong inflows on the capital account have beefed up India's external sector ever since the "taper tantrum" rocked emerging markets in 2013. But continued confidence about the external account is misplaced. Relying on fickle global capital is risky, particularly when sentiment on emerging markets is turning negative and there has been significant selling of Indian equities by foreign institutional investors. In addition, the government recovered from that period of weakness largely due to restrictions on the import of gold and the decline in the price of crude oil - the price of a barrel of the Indian basket of crude was just under $27 on January 15. Risks to the external account come not just from a possible increase in the price of crude oil from these lows, but also from a recovery in import demand - particularly for gold.
The December numbers for imports should, therefore, be scrutinised very carefully. In dollar terms, the import bill fell 3.9 per cent - not as much as it had fallen in prior months. Interestingly, however, imports in December, excluding oil and gold, fell by a lower rate of around two per cent. This is much lower than the 22 per cent decline in November for non-oil, non-gold imports, which reflect investment demand in the economy. But for the first nine months of the current financial year, non-oil, non-gold imports have declined by a little more than three per cent. The structural drivers of external weakness are, therefore, very much present and beginning to reassert themselves. Gold demand is once again on the rise. The gold import bill for 2015 was estimated at being 12 per cent higher than for 2014. It is doubly necessary, therefore, to examine the reforms necessary to make financial saving more attractive - and to re-energise exports through reducing red tape and integrating with new, behind-the-border trade agreements.
SOURCE: The Business Standard
The commerce department will soon seek Cabinet approval for expanding its preferential trade agreement (PTA) with Chile, a move aimed at removing the imbalance in trade between the two nations. "We will approach the Cabinet next month. Since there is little bit of tightening of 'rules of origin' from our side, it took time to expand it," a commerce department official told ET. Rules of origin are the criteria that determine the country of source for products. They determine how much concession an exporter will get. The need for stricter 'rules of origin' arose because despite India having a PTA with Chile since 2007, bilateral trade has been skewed in favour of Chile, with India's imports from the country rising faster than its exports to the nation. The government now needs the Cabinet's nod to reopen and expand the trade pact.
India's exports to Chile rose 11% from $507.55 million in 2010-11 to $565.82 million in 2014-15, whereas imports from the country doubled over the same period to $3.08 billion from $1.55 billion. India mostly imports metals such as copper from Chile, but with the government becoming strict with the rules of origin, it will become difficult for the South American nation to export those products that are made in neighboring countries, like Peru—this is often cited as the cause of the tilt of trade balance in Chile's favour. The PTA, in its current form, seeks to cut tariffs between 10-50% on 296 Indian products exported to Chile and 266 Chilean products imported by India. The agreement benefitted 91% of Indian exports and 98% of imports from Chile. The Indian sectors that benefitted from the PTA include cars, textiles, chemicals, pharma, engineering and agricultural machinery.
Among the Chilean products that benefitted from the PTA are copper, cellulose, newsprint, iodine, fish meal, wood boards and planks and salmon. In the expansion of the PTA, there will be further reduction in tariffs for some products and some new products will be added in the list. The official quoted earlier said expanding the PTA with Chile is only a step towards tapping the Latin American market, because the ministry is waiting for the Joint Study Group's report on trade with Peru to take a call on the framework for a trade agreement. India and Peru have set up a Joint Study Group to explore the possibility of a trade pact as Peru has emerged as India's sixth largest trading partner in the LAC region.
SOURCE: The Economic Times
India is a land of opportunities among BRICS nations but lack of knowledge about various compliance requirements seems to be posing a challenge to the corporates here, say experts. In recent times, stricter regulatory framework and disclosure requirements have been put in place as part of the efforts to ensure protect investor interest, increased transparency and make India an easier place for doing business. Describing India as a “land of opportunities”, a senior executive of global research group ‘The Conference Board’ today said efforts should be made to bring out the best practices of corporate governance here. “The main challenge to companies in India for compliance is lack of knowledge about regulations and legislature,” The Conference Board’s Asia Pacific Executive Director Nick Sutcliffe told PTI.
Speaking on the sidelines of the launch of ‘Handbook on Corporate Governance in India’, Sutcliffe said there is significant interest among corporates to have a better understanding about good governance practices. The book’s author, Afra Afsharipour, a professor at the University of California, said India stands out among its BRICS peers. “With most of the BRICS nation seeming to be in an economical difficulty, it is India which stands out and presents opportunity to the world. There was a real need to uncomplicate things,” she noted.
About various changes brought in the regulations by capital markets regulator Sebi as well as those in the Companies Act, Afsharipour said more things have now been brought under the ambit of legislature in a more structured manner. “These (the changes) are not drastic overhaul or a major change. These things were there and now it is brought under the purview of legislature in a more structure way,” she added.
SOURCE: The Financial Express
Exim Bank of India and the Government of Andhra Pradesh have entered into a Memorandum of Understanding (MoU) for promotion of exports from the state. The MoU was signed by the Chairman and Managing Director of the bank, Yaduvendra Mathur, and Secretary and Commissioner for Industrial Promotion, Government of Andhra Pradesh, Shamsher Singh Rawat. Exim Bank seeks to support the exporters having operations in Andhra Pradesh in achieving higher exports by facilitation of market linkages through its market advisory services, which will assist in identifying suitable partners and develop skills through capacity building workshops, select trade fairs and exhibitions and through research activities. It would also use its institutional linkages in advanced markets like the US, Singapore, Japan, Australia, the EU, etc, and facilitate technology transfer to enterprises in Andhra Pradesh, according to a release.
SOURCE: The Hindu Business Line
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$ 24.96 per barrel (bbl) on 18.01.2016. This was lower than the price of US$ 26.40 per bbl on previous publishing day of 15.01.2016.
In rupee terms, the price of Indian Basket decreased to Rs 1687.27 per bbl on 18.01.2016 as compared to Rs 1780.00 per bbl on 15.01.2016. Rupee closed weaker at Rs 67.59 per US$ on 18.01.2016 as against Rs 67.43 per US$ on 15.01.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 18, 2016(Previous trading day i.e. 15.01.2016) |
Pricing Fortnight for 16.01.2016 (Dec 30 to Jan 13, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
24.96 (26.40) |
30.63 |
|
(Rs/bbl |
1687.27 (1780.00) |
2040.26 |
|
|
Exchange Rate |
(Rs/$) |
67.59 (67.43) |
66.81 |
SOURCE: PIB
The Central Bank of Bangladesh has set up a Green Transformation Fund (GTF) to help drive sustainable growth in the export-oriented textile and leather sectors. In May last year, the bank earmarked US$500m of low-cost "green" funding to aid textile factories in adopting eco-friendly technologies and practices. It requested that all financial institutions in the country designate at least 5% of their lending to this fund by 2016. The GFT, now with a revolving fund of $200m, will be offered in US dollars and provided to authorised dealers for on-lending/re-financing to eligible borrowers. The objective of the fund is to improve access to foreign exchange financing for manufacturer-exporters in textile and textile products, as well as leather manufacturing, so that they can import capital machinery and accessories for environmentally-friendly initiatives. This includes water use efficiency and conservation, waste management, recycling, renewable energy, and initiatives to improve the work environment. The fund will be managed by the Forex Reserve and Treasury Management Department (FRTMD) of the Bangladesh Bank. The Sustainable Finance Department (SFD) will approve loan applications and monitor the lending. It will also, with other departments, conduct on-site inspection of authorised dealers and the borrowers to ensure effective use of the financing.
Bangladesh has the world's second largest textile industry, with washing, dyeing, and finishing (WDF) activities a key pillar of the country's economy. Around 1,700 WDF units are in operation, but despite their profitability, they consume around 1,500 billion litres of groundwater per year. Many mills use 250 to 300 litres of water per kilogram of fabric, far beyond the global best practice of 50 litres per kilogram or less. The Governor of Bangladesh Bank, Atiur Rahman, believes the funding will help the sector adopt eco-friendly technologies and practices, and follows recommendations made at a seminar last year jointly organised by the World Bank Group's Trade and Competitiveness Global Practice and the Policy Research Institute of Bangladesh (PRI).
SOURCE: Just Style
Exports by the local textile sector to the United States under the African Growth and Opportunities Act (AGOA) were down 11 percent at $7.6 million (P88 million) by November, figures released by that country’s trade department show. The figures indicate that local textile exports to the U.S have again turned south, after a recovery in 2014, when they jumped 61 percent to $9.5 million (P110 million) at current rates. Sam Lin, director at Carapparel Botswana – the country’s last remaining AGOA textile export – told BusinessWeek that many factors, including tight competition from China, conspired to depress sales last year. “The market was lower than average and demand was reduced,” he said. “We also struggled with power cuts, labour challenges and stiff competition for the U.S market from China. “Generally speaking, the textile industry globally was weak in 2015.” He said while the firm had installed a back-up generator, this was insufficient for optimal production and Carapparel frequently found itself having to suspend production.
Lin forecast an equally grim 2016, saying already the company was struggling with recruiting labour for its factories, after the mass resignation of many workers before Christmas. According to Lin, in December, the firm had 600 workers, but these numbers had dropped to 380 when the year kicked off on Monday. “People just resigned before Christmas while others who did not resign, did not return this week. “I have no idea why this happened,” he said. Mohammad Shahid Ghafoor, president of the Botswana Textile and Clothing Association (BTCA) told BusinessWeek that the festive season exodus was as a result of workers seeking to encash their severance benefits. Ghafoor, who is also the managing director of Western Apparels, said the benefits were payable after 12 months, as opposed to five years under previous laws. Western Apparels holds tenders for police and military uniforms. “Last year, we recruited many people in January/February and trained them, but many left in December,” he said. “They cited many reasons, but we know they wanted to encash their 12 month severance benefits. “Retaining staff is becoming an issue. Many of the workers are women and they are finding other sectors such as security companies, cleaning firms and malls, to work in. “We have been losing. The biggest problem is securing trained people, because there’s no training institution in Botswana to teach them.” Ghafoor said the depressed AGOA exports were also a result of high production costs, including shipment of raw materials and the export via Durban. “The costs include the utilities and together with the problem of productivity, these factors are affecting the industry,” he said. The BTCA president said the industry was adopting a positive outlook for 2016, and discussions with the trade and industry ministry were ongoing for possible mitigatory measures. “They know our problems and they understand. We are positive,” he said. The association represents about 40 textile firms in the country
SOURCE: The MMegi Online
Vietnamese garment and textile firms are increasing their investments in locally made raw materials in an effort to satisfy strict rules of origin set by free trade agreements of which Viet Nam is a member. "The garment and textile sector has depended on imported raw materials for a long time, under FTAs that the country has already signed or will sign, we cannot rely on imported sources any longer," Bui The Kich, chairman of Dong Nai Garment Corporation, said. On average, the garment and textile sector has to import about 70 per cent of raw materials, he said. The domestic content rate at his company has increased to 45 per cent, thanks to investments in producing nonwoven materials, he said. Last year the company also invested VND300 billion (US$13.39 million) in building the Hung Long Industrial Complex in Dong Nai Province, targeting to become a concentrated garment and textile place, he said. Vu Duc Giang, chairman of the Viet Nam Textile and Garment Association (Vitas), and chairman of Garment 10 Joint Stock Company, said domestic garment firms had been encouraged to invest in yarn, weaving and dye, but the safest and most suitable way was a capital contribution or purchase of a stake in domestic and foreign firms to ensure material supply sources.
In its investment plan for this year, the company plans to work with its partners to produce yarn, he said, adding that this would ensure material supply for products for export and domestic sale. Nguyen Hong Giang, general secretary of the Viet Nam Cotton and Spinning Association, said Viet Nam enjoyed high export growth last year with total export revenue of $28 billion, but the domestic supply of raw materials and accessories was very modest. For instance, the country needs about 8.5 billion metres of fabric annually, but it produces only three billion metres. The supply of domestic fabric has not kept pace with demand, while both the yarn-forward rule of origin under the Trans Pacific Partnership (TPP), and the fabric forward rule of origin under the Viet Nam - EU free trade agreement require intensive local supply, he said. Therefore, to be able to enjoy benefits from FTAs, Viet Nam must quickly increase capacity for fabric production. Dang Phuong Dung, Vitas's general secretary, said to maximise benefits from FTAs, besides Government support, domestic firms should invest more in upgrading their production technology, designs and quality to gain a firm foothold in the world market. She called for closer co-operation among domestic garment makers and raw material and accessory producers.
According to the Ministry of Industry and Trade, Vietnamese garments have to pay an average tariff duty of between 12-30 per cent when exporting to the US and EU. For example, exports worth $10 billion require a tariff duty of $1.7 billion. Once the TPP comes into force, tariffs will fall to zero, enhancing Vietnamese garments' competitiveness, the ministry said. According to Vitas, rules of origin, including the yarn–forward rule of origin, of FTAs will pose a business challenge, but in the long term this will motivate businesses to improve investment strategies and adjust production to meet market demand. Each firm must establish its own supply chain or join hands with counterparts to form a supply chain in order to add more value to their products as well as improve competitive capacity, Vitas said. With tariff advantages under free trade agreements, the garment and textile sector expects to enjoy export growth of more than 20 per cent this year, according to the association.
SOURCE: The Vietnam News
The government is setting a conservative target for the growth of exports for 2016 and the next three years, while stressing non-oil and gas products: 9 percent per annum. A more optimistic double-digit target, 11.5 percent per year, is estimated for 2020, Trade Minister Thomas Trikasih Lembong said. "We are more optimistic for 2016, but still on a limited scale. The infrastructure development and deregulation policies will help the economy. Nonetheless, the real effect on growth will be seen in two or three years,” he said in Jakarta on Monday. Currently, he added, the main Indonesian products scoring the highest growth, 19 percent, were coffee, tea, herbs, jewelry and footwear. Trade Ministry spokeswoman Ani Mulyati added that the prioritized non-oil and gas products would be textiles and textile products and forestry products such as furniture and handicrafts, as well as jewelry. The ministry is optimistic the three products will score around 8 percent growth this year, as Indonesia has excellent and unique designs, Ani said. Meanwhile, an expert staff member at the Trade Ministry, Iman Pambagyo, said that the government was eyeing more market in 2016, such as Australia, the European Union and ASEAN countries. "We have a pilot project for cow breeding with Australia. As for the EU countries, our focus is to open markets for agricultural and fishery products. In ASEAN, the Regional Comprehensive Economic Partnership [RCEP] is supposed to be completed this year," he explained.
SOURCE: The Jakarta Post
As international markets watch anxiously, China is due to release a flood of data Tuesday that are likely to show economic growth slowed in the latest quarter but still is among the world’s strongest.
BY THE NUMBERS
Private sector forecasters say growth in the world’s No. 2 economy at best came in slightly above the previous quarter’s 6.9 percent and at worst fell as low as 6.4 percent. That would be less than half 2007’s peak of 14.2 percent. But it would be the second-strongest among major countries, surpassed only by India, which is one-tenth China’s size. Growth has fallen steadily over the past five years as the ruling Communist Party tries to steer away from a worn-out model based on investment and trade to self-sustaining growth driven by domestic consumption and services. For the full year, the International Monetary Fund and private sector forecasters expect 2015 growth to have slowed to 6.8 percent. That would be in line with the ruling party’s goal of ”about 7 percent.” Growth is forecast to slow further this year and next before rebounding toward the end of the decade.
POSITIVE SIGNS
Forecasters say retail sales and other industries likely improved in December, suggesting government spending and repeated interest rate cuts have helped to put a floor under the downturn. Lending growth in December exceeded forecasts. Surveys showed manufacturing activity weaker than forecast, but analysts say it still grew.
Investment in factories, housing and other fixed assets also is expected to have ticked up, helped by heavier government spending on public works construction. Nomura analyst Brian Tan expects 4Q growth to be slower than 3Q, mainly due to weaker financial services, but says the”timelier December slew of data should hint that growth is stabilizing.”
ANXIETY ABROAD
On edge about the possibility of a global slowdown, foreign financial markets have taken every shudder from China as a sign of an impending slump. Slower Chinese economic growth, and especially the end of the country’s frenzied construction boom, has damped demand for iron ore, copper and other industrial raw materials from Australia, Brazil and other suppliers. Weakness in investment or consumer spending could hurt demand for technology and higher-margin manufactured goods from Europe, the United States and Japan.
STOCK MARKET TURMOIL
The collapse of a Chinese stock price bubble in June fueled fears abroad and raised doubts about Beijing’s management skills but had little impact on the rest of the economy. Chinese stocks have little connection to what the ruling party calls the ”real economy.” The biggest companies on China’s two stock exchanges are state-owned, so traders make decisions based on changes in government policy and the availability of credit to finance trading. The flood of money into financial industries as millions of novice investors rushed into stock trading briefly inflated the stock market’s contribution to economic growth. It collapsed along with the stock boom but the growth trend in other industries was unchanged. Stock prices rallied in late 2015 after a multibillion-dollar government intervention but have fallen back since late December as Beijing unwinds its emergency measures.
SOURCE: The Financial Express
The end of the US sanctions regime against Iran presents opportunities that are India's to lose. Easier crude oil imports are the most obvious of them, freeing both countries from a creative if convoluted rupee payment structure during the sanctions era. Roughly $6.5 billion in payments from India are pending from this system, and the prospect of paying for crude oil in dollars from now on could be a double-edged sword. But on the whole, India, the world's fourth largest oil importer, can look forward to the prospect of cheaper crude oil with the world's fifth largest producer returning to the world market. Beyond this, however, lie the prospects of an overseas market that could well help Indian businesses counter sluggish domestic demand - from auto-components, machine tools, fertilisers, pharmaceuticals and capital goods equipment to commodities such as rice and tea, for both of which India was once a monopoly supplier. Bilateral trade between India and Iran is just $14 billion, with oil tilting the balance of trade in Iran's favour, indicating the scope for growth. Indian business is well placed to cash in on this, given the pro-active role that current and past governments played in keeping relations with Iran on an even keel when sanctions were destabilising that country. In July last year, Prime Minister Narendra Modi took time out to meet President Hassan Rouhani on the sidelines of a global summit in Ufa, Russia. In December, External Affairs Minister Sushma Swaraj hosted the Iranian minister for economic affairs and finance for a review of the two major Indo-Iranian bilateral projects - the development of the Farzad-B field, in which ONGC Videsh had invested an estimated $100 million in exploring and discovering oil and gas, and the development of the Chabahar port and free trade zone, for which India hopes to pre-empt Chinese overtures by rushing through a $150-million line of credit. The big question is how efficiently India is able to follow up with concrete action on the ground. The Iranian government has already demonstrated some impatience at India's predilection for foot-dragging - a problem also visible in relations with Afghanistan and Myanmar. Then, Teheran has indicated that it may auction the rights to develop Farzad B to American and European oil and gas companies. Euro depreciation aids that continent's companies in bidding for large construction and engineering contracts in Iran to counter their own prolonged recession. There are reports that Iran is eyeing possible renegotiation on an order it signed with India for rail tracks because of price competition from Europe. Historic ties clearly only go so far. The Indian establishment urgently needs to re-establish its reputation by delivering on promises swiftly.
SOURCE: The Business Standard
Brent oil dipped to below $28 a barrel as it extended declines after international sanctions on Iran were lifted, paving the way for increased exports from the Organization of the Petroleum Exporting Countries (Opec) producer amid a global glut. Futures lost as much as 4.4 per cent in London, slipping to the lowest since November 2003. Iran is beginning efforts to boost output and exports by 500,000 barrels a day now that restrictions have been lifted, Amir Hossein Zamaninia, deputy oil minister for commerce and international affairs, said on Sunday. Saudi Arabia's Oil Minister Ali al-Naimi said prices will rise, and that market forces and cooperation among producing nations will lead to stability. "There is ongoing negative pressure on oil prices from oversupply," Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. "Iran is not new, but we've arrived now at the point where sanctions have been removed and it's going to be a key focus for the markets over coming weeks. The question is how much supply can come online in the short-term."
Crude oil dips below $28 Brent capped a third annual loss in 2015 as Opec effectively abandoned output limits amid a global surplus. Iran, Opec's second-biggest producer before sanctions were intensified in 2012, is trying to regain its lost market share and doesn't intend to pressure prices with an export increase, officials from its petroleum ministry and national oil company said this month. Brent for March settlement fell as much as $1.27 to $27.67 a barrel on the London-based ICE Futures Europe exchange and was at $28.31 at 2:28 pm Hong Kong time. Front-month prices declined 13.7 per cent last week for a third weekly drop. The European benchmark crude was at a discount of $1.55 to West Texas Intermediate for March. WTI for February delivery fell as much as $1.06, or 3.6 per cent, to $28.36 a barrel on the New York Mercantile Exchange. The contract slid $1.78 to $29.42 on Friday. Total volume traded was more than three times the 100-day average. Prices have lost 22 per cent this year.
Buyers of Iranian crude are free to import as much of its oil as they want after the International Atomic Energy Agency determined that the country had curbed its ability to develop a nuclear weapon. As holder of the world's fourth-largest reserves of crude and biggest deposits of natural gas, the nation gains immediate access to about $50 billion in frozen accounts overseas, funds the government says it will use to rebuild industries. "Uncertainty remains regarding how much oil Iran can bring on in the short term as well as their re-entry strategy," Victor Shum, a vice-president for Asia Pacific at IHS Inc, said by e- mail from Singapore Sunday. "Export levels could feasibly ramp up quite quickly due to releasing this pent-up supply." The Persian Gulf nation will only be able to increase oil production by 100,000 barrels a day, or 3.7 per cent, a month after sanctions are lifted and by 400,000 in six months, according to the median estimate of 12 analysts and economists surveyed by Bloomberg. Iran is the fifth biggest OPEC producer. Al-Naimi declined to comment when asked how the removal of economic sanctions against Iran might affect prices. The kingdom is the world's biggest crude exporter, pumping 10.25 million barrels a day in December, according to data compiled by Bloomberg. Hedge funds last week increased bearish oil wagers to a record as global equities fell and sanctions on Iran were poised to be lifted. Speculators' short position in WTI rose 15 per cent in the period ended January 12, data from the US Commodity Futures Trading Commission show. It's the highest in records dating back to 2006. Net-long positions fell to the lowest in more than five years. "Iran's additional crude shipments have the potential to further depress prices, perhaps to as low as $25 a barrel," Gordon Kwan, a Hong Kong-based analyst at Nomura Holdings Inc, said by e-mail Sunday.
SOURCE: The Business Standard
