The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 MARCH 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-03-10

Item

Price

Unit

Fluctuation

Date

PSF

1093.88

USD/Ton

0%

3/10/2016

VSF

2066.57

USD/Ton

0.07%

3/10/2016

ASF

1913.91

USD/Ton

0%

3/10/2016

Polyester POY

1104.62

USD/Ton

0.28%

3/10/2016

Nylon FDY

2239.93

USD/Ton

1.39%

3/10/2016

40D Spandex

4525.89

USD/Ton

0%

3/10/2016

Nylon DTY

5717.96

USD/Ton

0%

3/10/2016

Viscose Long Filament

1281.06

USD/Ton

0%

3/10/2016

Polyester DTY

2032.82

USD/Ton

0.38%

3/10/2016

Nylon POY

2098.02

USD/Ton

0%

3/10/2016

Acrylic Top 3D

1181.33

USD/Ton

0.26%

3/10/2016

Polyester FDY

2470.06

USD/Ton

0%

3/10/2016

10S OE Cotton Yarn

1795.01

USD/Ton

0%

3/10/2016

32S Cotton Carded Yarn

2914.98

USD/Ton

0%

3/10/2016

40S Cotton Combed Yarn

3574.69

USD/Ton

0%

3/10/2016

30S Spun Rayon Yarn

2761.56

USD/Ton

0.56%

3/10/2016

32S Polyester Yarn

1748.99

USD/Ton

0.88%

3/10/2016

45S T/C Yarn

2454.72

USD/Ton

0%

3/10/2016

45S Polyester Yarn

2914.98

USD/Ton

0.53%

3/10/2016

T/C Yarn 65/35 32S

2424.04

USD/Ton

0%

3/10/2016

40S Rayon Yarn

1841.04

USD/Ton

0%

3/10/2016

T/R Yarn 65/35 32S

2117.20

USD/Ton

0%

3/10/2016

10S Denim Fabric

1.07

USD/Meter

0%

3/10/2016

32S Twill Fabric

0.90

USD/Meter

0%

3/10/2016

40S Combed Poplin

0.97

USD/Meter

0%

3/10/2016

30S Rayon Fabric

0.72

USD/Meter

0%

3/10/2016

45S T/C Fabric

0.74

USD/Meter

0%

3/10/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.153429 USD dtd.10/03/2016)

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

 

Govt eyes Australia, Africa to boost textile exports

The Union textiles ministry is looking at Australia, the Commonwealth of Independent States and Africa to boost exports through bilateral agreements as free trade agreements (FTAs) with the European Union and the US are delayed. The ministry is chasing a target of doubling textile exports in 10 years and is working on a new textiles policy to promote value-addition. Guidelines had been finalised for a revised Textile Upgradation Fund Scheme and these would be placed before the Cabinet, Textiles Secretary Rashmi Verma said on the sidelines of the India International Handwoven Fair in Chennai. Textile exports are unlikely to reach their 2015-16 target of $47.5 billion (Rs 3.17 lakh crore) because the figure was $32 billion (Rs 2.14 lakh crore) till December. Last year, India’s textile exports were $42 billion (Rs 2.81 lakh crore), which was in large part cotton and yarn. Govt eyes Australia, Africa to boost textile exports “We might be a little short of target, but by and large we will achieve it,” Verma said and added since India did not have FTAs with the US and the EU, the sector was at a big disadvantage compared to Bangladesh and Vietnam. These countries export textiles to the West at zero duty while Indian exporters face duties of 10-14 per cent. The ministry has proposed relaxation in labour laws to allow women to work at night. “The simplified textile policy is also ready. We are in the process of sending it to Cabinet. We should be able to bring it out in two months’ time,” Verma said. The policy focuses on increasing the contribution of value-added products from the current 25 per cent. “We are trying to balance the value chain so that value addition can take place within the country. The share of raw material will come down when the overall exports grow,” she added. Verma said most incentives or subsidies offered by the ministry were related to production. Those related to processing and skilling would be continued, she added. A meeting of all stakeholders would be held next month to take stock of India’s commitments to the World Trade Organization, Verma said. It will review the subsidies that can be phased out.

SOURCE: The Business Standard

Back to top

 

India, other developing nations press WTO to deliver on ‘Nairobi promises’

India and other members of the G-33 group in agriculture have pressed the World Trade Organisation (WTO) to start work on a special safeguard mechanism (SSM) for farmers in developing countries and a permanent solution to the public stockholding programme as promised in the Nairobi Ministerial meeting in December. Developed countries such as the US and Canada, on the other hand, have warned the WTO against rushing into formal negotiations, stating that they need time to think. The discussions took place at the meeting of the WTO’s Committee on Agriculture on Wednesday, which was the first after the Nairobi meeting. “Different members stressed on the importance of different aspects of the negotiations. The chair of the meeting said that he would have another round of consultations to pin down the content as well as format of the negotiations,” an official tracking the meeting told BusinessLine . The G-33 group’s stress on starting negotiations on SSMs and finding a permanent solution to the public stockholding programme by the next ministerial in 2017 was backed by the least-developed countries (LDC) group, and the group of African, Caribbean, and Pacific States, the official added. The G-33 comprises more than 40 developing countries that seek to protect interests of their poor farmer such as China, India, Vietnam, Thailand, Sri Lanka, Venezuela and Cuba.

At the Nairobi Ministerial meet, all members agreed to work on a SSM for developing countries that would enable them to raise import duties on agriculture items in case imports rose steeply or there was a sharp fall in domestic prices. The Nairobi declaration also stated that meetings must be held in an “accelerated time frame” to arrive at a permanent solution to the problem of public stockholding which is necessary to avoid a situation when such programs get penalised. Agriculture items exporting countries such as Brazil, Argentina, Colombia, Mexico and Paraguay expressed hope that the areas of domestic support and market access should remain clear priority for future work. “Canada, however, said that it prefers that members should take time to review the landscape on domestic support. The US supported Canada’s views and said that the process of reflection will take time, and members must avoid the impulse to force formal negotiations too soon,” the official said. Some members also raised new issues in agriculture such as export restrictions, sanitary and phyto-sanitary standards, private standards in agriculture products, and subsidies for bio-fuel and bio-energy.

SOURCE: The Hindu Business Line

Back to top

 

 

No Sign of Sharp Economic Turnaround in FY17: Crisil

Ratings agency Crisil has said that there are no signs of the Indian economy sharply rebounding in the next financial year as the fiscal policy remains restrictive. "For economy, there is no sign of sharp turnaround in the coming fiscal. It needs support from accommodative monetary policy and less restrictive fiscal policy plus structural reforms (to have a turnaround)," Dharmakirti Joshi, chief economist, Crisil, told a gathering during the two-day India Rubber Meet-2016 that began here on Thursday. He said leverage and non-performing assets (NPAs) of banks will remain a challenge in financial year 2016-17. "The Narendra Modi-led government which is at its mid-point has a critical task of implementing the reforms during 2016-17, which were announced in 2015," Mr Joshi said. "Fiscal 2017 which will mark the mid-point of the Modi government will be closely watched for its success in getting the pending big ticket reform bills such as the GST (Goods and Services Tax) and Bankruptcy code passed. The passage of these bills would not only be a big sentiment booster but is necessary to enhance country's medium-term-growth potential," he said.

Fiscal year 2016-17 is a "critical year" for reforms and implementation of the measures announced in FY16 by the Modi government, the official said. "The big attention is required towards two sectors - power and banks," he said, adding that the NPAs, unless they are cleaned, will restrict the flow of credit into the system, and hence, will remain a constraint to growth. "Unless they (NPAs) are cleaned up it would be detrimental to the growth. The arteries of the banking system need to be de-clogged to ensure the smooth flow of credit," he said. The agency has predicted that monsoon will also be a major factor to decide the consumption. "At present the consumption is only on one leg that is urban. If it rains, the rural consumption will grow." "What Modi government has done in the Budget is that there is a clear focus on rural economy by introducing various measures that will also help the country's growth potential," Mr Joshi said. He opined that the private consumption which is 55 per cent of the GDP is expected to rise further during in FY17. "We believe that some factors like Pay Commission and One Rank One Pension (scheme) will increase spending power of certain sectors creating favourable environment to the private consumption," he said.

SOURCE: The NDTV

Back to top

 

Global Crude oil price of Indian Basket was US$ 37.01 per bbl on 10.03.2016

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$ 37.01 per barrel (bbl) on 10.03.2016. This was higher than the price of US$ 36.80 per bbl on previous publishing day of 09.03.2016.

In rupee terms, the price of Indian Basket decreased to Rs 2481.51 per bbl on 10.03.2016 as compared to Rs 2482.93 per bbl on 09.03.2016. Rupee closed stronger at Rs 67.05 per US$ on 10.03.2016 as against Rs 67.46 per US$ on 09.03.2016. The table below gives details in this regard: 

Particulars

Unit

Price on March 10, 2016 (Previous trading day i.e. 09.03.2016)

Pricing Fortnight for 01.03.2016

(12 Feb to 25 Feb, 2016)

Crude Oil (Indian Basket)

($/bbl)

37.01             (36.80)

30.61

(Rs/bbl

2481.51         (2482.93)

2096.17

Exchange Rate

(Rs/$)

67.05             (67.46)

68.48

 

SOURCE: PIB

Back to top

 

Man-made fibre yarn export value down by 11.9pc in January

100 man-made fibre yarns export from India was valued at US$16.82 million in January 2016, down 11.9 per cent YoY while volumes were at 6.4 million kg, edged down 0.5 per cent as compared to the same month last year. The total volume comprised 3.05 million kg of polyester yarn, 2.25 million kg of viscose yarn and 1.14 million kg of acrylic yarn. Polyester yarn exports were up 9.4 per cent in value while viscose yarn exports were up 3.9 per cent during the month. Acrylic yarn exports saw a drastic plunge of 44 per cent in January. Unit price realization was down US cents 45 a kg for polyester from a year ago and that of viscose yarn was unchanged. Acrylic yarn unit price realization was down US cents 74 a kg year on year basis.

Polyester spun yarns were exported to 45 countries in January with total volumes at 3.05 million kg, of which, 16.5 per cent was shipped by Turkey alone.  Twelve new destinations were found for polyester yarn this January, of which, Spain, United Kingdom, Uganda and Cote D'Ivoire were the major ones. Morocco, Italy and Brazil were the fastest growing markets for polyester yarns while ten countries did not import any polyester yarns during the month. Viscose yarn export was at 2.25 million kg and they were exported to 26 countries with Belgium at the top, followed by Iran. Both these markets accounted for 44 per cent of all viscose yarn exported in January 2016.  Bangladesh, Italy, Turkey and Algeria were the fastest growing markets for viscose yarns while South Korea, Pakistan, Saudi Arabia, Turkmenistan and Mauritius were the new major markets. Japan, Guatemala, Russia and Vietnam were the major ones among the 9 countries that did not import any viscose yarns during the month.

SOURCE: Yarns&Fibers

Back to top

 

Uganda: Delayed Policy Hindering the Upturn of Uganda's Textile Industry

Efforts to revive Uganda's textile industry have stalled, leading to the loss of about Ush500 billion ($149.4 million) annually, in the form of exports of unprocessed cotton. Uganda exports 90 per cent of its cotton as lint (primary form) as value addition continues to elude the industry due to the delayed National Textile Policy. The policy was formulated in 2009, debated and passed, but it is yet to be implemented. Samuel Ssenkungu, director in charge of the department of Trade, Industry and Co-operatives at the Ministry of Trade, said that the lack of funds is hindering the policy's implementation. "The policy, for example, requires all government primary schools to buy uniforms produced in the country. But this has not happened," said Mr Ssenkungu, adding that the biggest challenge is transferring the policy recommendations to respective ministries during the budgetary formulation process." A decade ago, Uganda produced 254,000 bales of cotton annually, each weighing 185kg. About 10 per cent of Uganda's annual cotton output is processed locally and 90 per cent is exported. The country has more than 38 cotton lint exporters with some ginning. The lack of value addition means the country earns far less revenue than it would otherwise get. Whereas a kilogramme of exported cotton fetches approximately $1, a twofold piece of cloth made from the same quantity of lint can fetch at least $8. This is in addition to other benefits from the industry such as job creation. Consequently, whereas Uganda earned $46.9 million from the 254,000 bales of cotton produced annually a decade ago, the same cotton would generate about $375. 9 million today, exported in processed form.

The National Textile Policy notes that with an East African population of 120 million people, the region has a market potential for 820 million metres of cloth per annum, generating about Ush1.4 trillion ($415 million). Uganda's cotton farmers also have a market potential of 400 million people in the Common Market for Eastern and Southern Africa (Comesa) which the country is part of. Comesa requires some 2.4 billion metres of clothes per annum, at an average per capita consumption of six metres. Other trading regimes that Uganda is part of are the East African Customs Union, the Economic Partnership Agreement (EPA) with the European Union, the Africa Growth and Opportunity Act (Agoa), and the Everything-but-Arms (EBA) initiative which guarantee broad market access. Such market sizes would be significant in attracting investors. However, AGOA and EPA duty- and quota-free access to the US and the EU has been constrained by Uganda's inability to produce internationally acceptable standards of fabric.

While the expulsion of Ugandan Asians in the 1970s disrupted the cotton sub-sector, leading to the collapse of some industries, a drop in production of the crop and industrial capacity, there is some renewed hope. Production has seen steady growth over the past five years. The growing of cotton in Uganda is done mainly by smallholder farmers, many of whom lack appropriate farming skills. In most cases, there are no farmer groups. The few available are ill-organised and have weak structures. This has constrained capacity building and farmers' ability to adopt new technologies. The country has one of the largest integrated mills in the East African region, Nyanza Textiles Ltd in Jinja. It performs all technical processes on textile, right from fibre preparation, including spinning, to garment construction. Other mills are Phenix logistics Ltd and Fine Spinners, which was recently opened in Kampala. However, these factories are unable to satisfy the demand for cotton yarns, forcing consumer from the neighbouring countries especially Kenya to look elsewhere when they require superior yarn for knitting finer garments.

SOURCE: The All Africa

Back to top

 

Dastagir inaugurates Textile Asia 2016 Exhibition : Pakistan

Minister for Commerce Engr. Khurram Dastagir Khan, Thursday said the export of Pakistani readymade garments has increased in the international market. After performing the inauguration of the 15th Textile Asia 2016 Exhibition at the Expo Centre Karachi, he told media that prices of Pakistani readymade garments have also increased in the international market. The minister further stated that from July 1 the value added tax would become zero. Dastagir was of the view that the holding of this event would be beneficial for the local textile industry and that there would be enhancement in the country’s exports. He said that the display of the modern machinery will also benefit this very sector and those associated with the industry would also enhance their capacity. The commerce minister pointed out that for the development of the country’s textile industry, Prime Minister Nawaz Sharif had announced reduction in the power tariff. S.M. Muneer, Chief Executive of Trade Development Authority of Pakistan (TDAP) along with Shaikh Muhammad Shafiq, Chairman PRGMEA and Dr. Khursheed Nizam President, Ecommerce Gateway Pakistan, were also present on the occasion. The event was jointly organized by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Ecommerce Gateway Pakistan.

PRGMEA Central Chairman Shaikh Muhammad Shafiq welcomed the Minister on the occasion. He further said that this trade fair is expected to be visited by 65,000 people from trade and corporate sector as well as more than 550 foreign delegates. He said: “the focus of this trade fair is value addition in Textile industry to increase the export of our value-added textile and garment products”. This three-day textile trade fair has been termed as the Pakistan’s biggest B2B textile, garment, embroidery, digital printing machineries and chemical and allied services. More than 550 International Brands will display their products in over 700 Booths and Over 500 foreign delegates from 27 countries mainly from Austria, China, Czech Republic, France, Germany, India, Italy, Korea, Taiwan, Turkey, UK, USA etc. will attend the event.

SOURCE: The Saam TV

Back to top

 

Italy aims to promote textile machinery at Indo Inter Tex 2016

Indo Inter Tex 2016 , the 14th Indonesia International Textile and Garment Machinery & Accessories Exhibition to be held in Jakarta, will feature the usual significant contingent of Italian textile machinery manufacturers, marking Italy’s interest in this important Asian market. Specifically, 10 Italian machinery manufacturers will be exhibiting in the common exhibition area hosted by the Italian Trade Agency and by ACIMIT, the Association of Italian Textile Machinery Manufacturers. The following ACIMIT associated companies will be present at the ICE-ACIMIT Punto Italia: Carù, Crosta, Durst, Fadis, Ferraro, Monti-Mac, Pugi Group, Testa, Textape, Triveneta. In terms of Italian exports, Indonesia is one of the most relevant markets in the area, with roughly 24 million euros worth of Italian machinery sold over the first eleven months of 2015. In spite of a drop recorded compared to the same period for 2014, Italian manufacturers believe that the Indonesian market is full of potential, and ready to develop business opportunities. The textile industry is a driving force for the Indonesian economy, states Raffaella Carabelli, president of ACIMIT. In recent years, the local government has supported an overall modernization of existing technology. However, they believe that further investments are required on the part of Indonesian manufacturers in order to allow them to establish themselves fully in world markets and increase the Country’s global share of exports in the textile and garment sector.

Italy’s participation at Indo Inter Tex falls squarely within an intense programme of activities aimed at promoting the Italian textile machinery sector in Indonesia. Among the most recent activities promoted in partnership with the Italian Trade Agency are the various technology workshops in Indonesia’s primary textile manufacturing districts, along with participation in local trade fair events, and a host of incoming missions in Italy for the Country’s textile operators. The eye of the textile and garment market will be fixated at Jakarta International Expo from 27 – 30 April 2016 and through this platform they will be sharing their event developments over the coming period of time.

SOURCE: Yarns&Fibers

Back to top

 

Soon, fabric and currency notes from banana stem

Banana stem could become the latest raw material for making cloth, home furnishing and even currency notes. The National Institute of Design (NID) has been considering such possibilities, stressing on the need for eco-friendly solutions, The Times of India has reported. If this becomes a reality, it could be a boon for Gujarat, which is one of the leading producers of bananas, growing around 5,000 metric tonnes of bananas every year. NID has been in consultations with the Gujarat government, which liked the idea and will sign a pact to increase remuneration for banana producers, the report said. Professor Pradyumansinh Jhala, head of the Innovation Centre for Natural Fibres at NID, said that that Gujarat government has shown keen interest in the idea to maximize the use of the banana plant. "NID was actively finding new fibre sources and had been roped in by the Union Ministry of Textiles to innovate and come up with new kinds of fabric. We have since come up with the idea of using banana fibres to make cloth and paper," Jhala said. "The fibres can be extracted from the stem of banana plants. As Gujarat is one of the leading banana producing states in the country, this can be beneficial for the state economy," Jhala added. Jhala stressed that using banana fibres can be a highly eco-friendly way of producing fabric or paper, and will help sustainable development. Japan has been successfully using banana to make currency notes so far, he added. He said that banana fibre can be used in home furnishings like decorative lampshades, cushions and curtains

SOURCE: Fibre2fashion

Back to top

 

Falling commodity prices have not benefitted importing countries fully: IMF

Commodity importing countries have not fully benefitted from fall in oil and commodity prices as governments have not fully passed on the benefit to consumers. The trend could be one of the major risks of global financial stability, besides a rising corporate debt which is also impacting the balance sheet of banks who have lent to them, according to a top IMF official.  Warning that the commodity super-cycle might have come to an end, Jose Vinals Financial Counsellor and Director of the Monetary and Capital Markets Department of the International Monetary Fund, said "Falling commodity prices have had a smaller than expected positive impact of fall in " He said that this could be due to the fact that the governments have not fully passed on the benefit of fall in prices to the consumer. "Also, many consumers have lesser appetite to consume" said Vinals in his address at the Reserve Bank of India headquarters in Mumbai.

India is one of the major commodity importing country has benefitted from commodity prices. "However, it faces its own challenges due to existing weakness in corporate and bank balance sheets" said Vinals. Though India is among the highest capital buffers (quoting 2014 data), it should not lead to complacency he warned. He expressed his concerns over the volatility in various asset markets including stocks, exchange rates and commodities, which is another risk to the global economic stability.  India has been witnessing volatile stock prices, tight liquidity in the bond markets as well as weak currency markets since January this year. Besides, large corporate debt has also resulted in weakness in bank balance sheets on account of high non-performing loans. Clean up of bank balance sheets need to be given top priority, Mr Vinals noted.

SOURCE: The Economic Times

Back to top