The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 27 APRIL, 2016

NATIONAL

 

INTERNATIONAL

Textile Raw Material Price 2016-04-26

Item

Price

Unit

Fluctuation

Date

PSF

1060.03

USD/Ton

1.32%

4/26/2016

VSF

2061.59

USD/Ton

-0.15%

4/26/2016

ASF

1938.51

USD/Ton

0%

4/26/2016

Polyester POY

1056.18

USD/Ton

0.96%

4/26/2016

Nylon FDY

2338.52

USD/Ton

0%

4/26/2016

40D Spandex

4461.65

USD/Ton

0%

4/26/2016

Nylon DTY

1284.65

USD/Ton

0.60%

4/26/2016

Viscose Long Filament

2161.59

USD/Ton

0.36%

4/26/2016

Polyester DTY

2115.44

USD/Ton

0%

4/26/2016

Nylon POY

1165.41

USD/Ton

0.66%

4/26/2016

Acrylic Top 3D

2538.53

USD/Ton

0%

4/26/2016

Polyester FDY

5737.07

USD/Ton

0%

4/26/2016

30S Spun Rayon Yarn

2846.23

USD/Ton

0%

4/26/2016

32S Polyester Yarn

1718.50

USD/Ton

0.63%

4/26/2016

45S T/C Yarn

2461.60

USD/Ton

0%

4/26/2016

45S Polyester Yarn

2984.69

USD/Ton

0%

4/26/2016

T/C Yarn 65/35 32S

2261.60

USD/Ton

0%

4/26/2016

40S Rayon Yarn

1846.20

USD/Ton

0.84%

4/26/2016

T/R Yarn 65/35 32S

2123.13

USD/Ton

0%

4/26/2016

10S Denim Fabric

1.37

USD/Meter

-0.11%

4/26/2016

32S Twill Fabric

0.82

USD/Meter

0%

4/26/2016

40S Combed Poplin

1.17

USD/Meter

0%

4/26/2016

30S Rayon Fabric

0.69

USD/Meter

-0.22%

4/26/2016

45S T/C Fabric

0.68

USD/Meter

0%

4/26/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15385 USD dtd. 26/04/2016)

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

Cheap Chinese fabric cripples Surat textile units

The Chinese dragon seems to have paralysed the country's largest man-made fabric (MMF) sector in the city with dumping of finished fabrics at throw-away prices. The weaving sector is facing the worst-ever crisis with over 50% of the powerloom machines shutting down in the last one month, rendering thousands of workers jobless. Textile entrepreneurs claimed that the dumping of the crores of meters of under invoiced finished fabric imported from China at the cheap rates of Rs 7 to Rs 8 per meter is the main reason behind the crisis. The production cost of finished fabric in the local market begins from Rs 50 per meter and goes upto Rs 500 per meter depending on the quality. Out of the 6.5 lakh powerloom machines, around 4 lakh machines have come to a grinding halt as the demand for fabrics in the domestic market has drastically reduced following dumping of the cheap imported fabrics from China. Surat weaves around 4 crore meters of fabric per day. It caters to around 45% of the MMF fabric demand in the country. Industry sources said that the powerloom sector is facing one of the never seen before situation in the last two decades. The godowns are stacked up with grey fabrics as there are no takers in the market.

Industry leaders on Tuesday called upon chief minister Anandiben Patel to urge her to take up the issue of imported fabric being dumped in the country by China with the central government and safeguard the interest of the textile industry in the state. Managing director of Fairdeal Filaments limited, Dhirubhai Shah told TOI, "Crores of meters of finished fabric is imported from China everyday. This finished fabric is cheaper than the fabric manufactured in Surat. Thus, the demand for Surti polyester fabric has decreased drastically." Shah added, "Over 50% of the weaving units in the city are closed. If this will continue for long then the industry will be in a dire crisis. We have represented the issue with the CM." President of the Katargam-Ved Road Weavers Association, Devesh Patel told TOI, "Around 70% of the weaving units in Katargam, Ved Road and Varachha have been shut since last 20 days. The weavers are contemplating to extend the shut-down till the end of May in order to deal with the over-production." He said that most of the textile workers have not returned after the Holi, whereas many have left for their hometowns.

SOURCE: The Times of India

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India won't succumb to any pressure on IPR issues: Nirmala Sitharaman

India today said its intellectual property rights regime is fully in compliance with global norms and the country will not succumb to "any pressure from anywhere" to modify it. "We are TRIPS compliant in every way. I think we move forward being consistently with the global expectations without yielding to any pressure from anywhere and I would like to state that India's legislative framework particularly in protecting patents is very strong and we would like to keep that strong framework," Commerce and Industry Minister Nirmala Sitharaman said at a function here. Trade Related aspects of Intellectual Property Rights (TRIPS) is a WTO agreement which deals with intellectual property related issues. She said that the new national IPR policy shall soon come to the Cabinet. "We have a robust IPR policy to guide us further," she added. Developed countries wants India to amend its IPR norms particularly with regard to pharmaceuticals sector. When asked about the India-US solar case in the WTO, Sitharaman said that India is working on a case based on the fact that several states in the US are also possibly giving a domestic content like benefit to their companies. "We are quoting them to highlight that when India does it particularly given the fact that we have given a commitment to the climate meet in Paris where countries will have to look at a sustainable way of providing renewable alternatives and if individual country's capacities in providing alternatives cannot be supported, how any country can fulfil its obligations is an argument which we are building. "Taking the example of some of those programmes which the USA's own states are offering and that's the case in the making," she told reporters. Last week, India has challenged certain provisions of the WTO's panel rulings, which held that the country's power purchase agreements with solar firms are inconsistent with international norms.

Speaking at the function, DIPP Secretary Ramesh Abhishek expressed concerns over low filing of patent applications by Indian companies or individuals. "Even though there are improvements in the number of total filings by Indians, still it is fact that filing of patent applications by Indians are just around 28 per cent which is in sharp contrast with many developed countries, despite our country having a vast pool of scientists and technologists and being world wide recognise as a hub for research," he said. "We lack in creation of sufficient IP based knowledge assets," he added. The low patent portfolio of the country is seen as a stumbling block for achieving competitive edge in the domestic as well as global markets, he said. "I would like to call upon you to make sincere efforts to promote innovation and channelise the force of creativity in the country," he said. When asked if government is looking at removing some steel products from the purview of the minimum import price (MIP), Sitharaman said no review has started yet on the issue. Further talking the Indian IPR regime, she said the government is taking several steps to strengthen the regime. There is a 30 per cent increase in the filing of patent application in India to 3.40 lakh in 2015-16 and 35 per cent increase in filing of trade marks applications. "The four patent offices and five trademark offices have introduced e-processing of applications. It will reduce paper work," she said, adding the Copyright and the Semiconductor Act has been transferred to the DIPP.

SOURCE: The Economic Times

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Indian economy likely to grow over 8% in FY17: Arvind Panagariya

The economy is expected to grow over 8 per cent this fiscal with the forecast of above-normal monsson raising hopes of the agriculture sector's revival after two successive drought years, Niti Aayog vice-chairman Arvind Panagariya said. "The economic growth rate will be more than 8 per cent during the current fiscal. There is a forecast of above-normal monsoon this fiscal," Panagariya said after delivering a lecture organised by the Central Vigilance Commission here. He said the economic growth in the current fiscal could be even higher in view of policy and monetary interventions by the government and the Reserve Bank, which will ultimately push the sluggish industrial growth. Finance Minister Arun Jaitley had also expressed hope that good rains will propel India's economic growth to 8.5 per cent during the current fiscal, higher than Central Statistics Office advance estimates of 7.6 per cent for 2015-16.

Earlier this month, Indian Meteorological Department has forecasted above-normal monsoon during this kharif season raising hopes of buoyancy in the economy this fiscal. According to IMD, there are 94 per cent chances of country receiving "normal to above normal" rainfall while there is only 1 per cent probability of "deficient" rainfall. Agriculture, which contributes 15 per cent to India's GDP and employs about 60 per cent of the country's population, is heavily dependent on monsoon as only 40 per cent of the cultivable area is under irrigation. Due to poor monsoon in 2015-16 crop year (July-June), 10 states have declared drought and the Centre has sanctioned a relief package of about Rs 10,000 crore to help farmers. In 2015, the monsoon deficiency was 14 per cent with Northwest India recording a deficiency of 17 per cent, followed by 16 per cent in Central India, 15 per cent in Southern Peninsula and 8 per cent in East and North-east India. In 2014, the monsoon deficiency was 12.3 per cent of the Long Period Average. The interest regime is also conducive for the economic growth now as the Reserve Bank has cut the key interest rate by 0.25 per cent to and introduced a host of measures to smoothen liquidity supply so that banks can lend to the productive sectors and indicated accommodative stance going ahead earlier this month. The repo rate, at which RBI lends to the financial system, has come down to 6.5 per cent. This will also push economic activities.

SOURCE: The Economic Times

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European Parliament President to visit India in June; FTA talks set to gain momentum

President of the European Parliament Martin Schulz is scheduled to visit India in June. The visit comes within months of the EU-India Summit that was held on March 30 in Brussels, where it was decided to take the talks further. Both sides are also gearing up to kick-start the stalled negotiations on the India-EU Broad-based Trade and Investment Agreement (BTIA) that started nine years ago. The topmost issue on Schultz’s agenda will be to re-start the BTIA negotiations, thereby paving the way for a formal round of talks, which has been stalled since 2013, sources told BusinessLine . The negotiations for an India-EU BTIA began in 2007. Since then there have been 15 rounds of talks without any agreement. The contentious issues that have suspended the talks include tariff elimination in automobiles, auto components, and wines and spirits – which are some of the EU’s main demands.

According to EU officials, the talks are currently going on at a technical level through back channels. However, no date has been fixed yet for the re-start of a formal round of negotiations. “We cannot allow ourselves to go back to the negotiating table and not be able to bring some real progress. So it is better to keep on preparing on a backstage level so that when we sit in front of each other we have something to deliver,” said Daniel Rosario, spokesperson, Trade - Directorate General Communication, European Commission. Rosario also made it clear that while the EU is ready to give a new approach to the talks, it will not be ready to begin from the scratch. He also said India’s move to cancel the chief negotiators’ meeting last year, after Hyderabad-based GVK’s drugs were banned, was “not justified”. “It was not us who cancelled the talks. For us this was a step that was not justified ... We cannot ignore all the work that has been done so far,” he added. Meanwhile, Commerce and Industry Minister Nirmala Sitharaman has written to EU Trade Commissioner Cecilia Malmström for identifying a date for the next round of talks. According to Rosario, the Trade Commissioner’s office is working on it. India believes that most of EU’s time is being taken up by the Transatlantic Trade and Investment Partnership (TTIP) negotiations with the US.

Following, the European Parliament President’s visit, the leadership on both sides are expected to meet again. Prime Minister Narendra Modi is likely to meet President of the European Council Donald Tusk and European Commission President Jean-Claude Juncker during the Asia-European (ASEM) Summit which will take place in July in Ulaanbaatar, Mongolia.

SOURCE: The Hindu Business Line

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NZ-India FTA on table for President's visit

Pushing a Free Trade Agreement will be top of the agenda when the Indian President makes his first trip to New Zealand this weekend. Shri Pranab Mukherjee and his delegation will arrive in Auckland on Saturday for a number of events, including talks with Prime Minister John Key. Mr Key says the visit will be a good opportunity to continue to talk trade and to "discuss where we're going". "India has demographics very similar to China," he says. "We do a lot less business with India than we do with China, and a lot less business with India relative to the size of the economy in India, so we're keen to really push that closer economic cooperation at some point." Mr Key hoped he'd be able to visit India later this year to continue the talks kicked off by the Prime Minister in 2011. The relationship between the two countries is strong, with more than $2 billion traded in goods last year. There are more than 160,000 Kiwis of Indian origin in New Zealand, while more than 23,000 Indian students who came to study last year. The tenth round of discussion on the possible FTA ended in February last year. During Mr Mukherjee's visit, he'll receive an official welcome at Government House and attend a State dinner hosted by the Governor-General. He will leave New Zealand on May 2.

SOURCE: The Newshub

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Global Crude oil price of Indian Basket was US$ 41.68 per bbl on 26.04.2016

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$ 41.68 per barrel (bbl) on 26.04.2016. This was higher than the price of US$ 41.56 per bbl on previous publishing day of 25.04.2016.

In rupee terms, the price of Indian Basket increased to Rs. 2781.18 per bbl on 26.04.2016 as compared to Rs 2771.52 per bbl on 25.04.2016. Rupee closed weaker at Rs 66.73 per US$ on 26.04.2016 as against Rs 66.68 per US$ on 25.04.2016. The table below gives details in this regard: 

Particulars

Unit

Price on April 26, 2016 (Previous trading day i.e. 25.04.2016)

Pricing Fortnight for 16.04.2016

(30 Mar to 12 Apr, 2016)

Crude Oil (Indian Basket)

($/bbl)

41.68                (41.56)

36.98

(Rs/bbl

2781.18            (2771.52)

2455.84

Exchange Rate

(Rs/$)

66.73                (66.68)

66.41

SOURCE: PIB

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Pakistan’s textile exports to EU increase by 21.3% in 2015

The textile exports to the European Union witnessed a 21.3 per cent increase during the fiscal year 2015 when compared with the exports of the commodity during FY 2013. The total textile exports increased from 545,698 metric tonnes in 2013 to 662,475 metric tonnes in 2015, official sources said. Among the textile products, the exports of textile garments increased from 137,399 metric tonnes to 179,901 metric tonnes in 2015, showing an increase of 31 per cent while the homemade textile exports increased from 195,243 metric tonnes to 259,557 metric tonnes in 2015, showing growth of 33 per cent. The cotton exports to European Union increased from 211,522 metric tonnes in 2013 to 220,899 metric tonnes in 2015, showing positive growth of 4.43 per cent. The footwear exports to EU increased from 4,336 metric tonnes to 4,861 metric tonnes, an increase of 12 per cent, the leather exports increased from 19,528 metric tonnes in 2013 to 21,7412 metric tonnes in 2015 while the carpet and rug exports increased from 1,803 metric tonnes to 2,116 metric tonnes in 2015, showing an increase of 17.35 per cent.

Pakistan’s imports, Trade deficit

Meanwhile, during the first three quarters of the current fiscal year (2015-16), the overall imports into the country declined by 4.22 per cent during the first three quarters of the current fiscal year as compared to the corresponding period of last year. Imports into the country during July-March (2015-16) were recorded at $32.515 billion, compared to the imports of $33.948 billion during July-March (2014-15), according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday. The exports from the country also witnessed negative growth of 12.92 per cent and fell from $17.921 billion last year to $15.606 billion during the current year.

Based on the figures, the overall trade deficit during the period under review was recorded at $16.909 billion compared to the deficit of $16.027 billion last year, showing increase of 5.50 per cent. On year-on-year basis, the imports into the country during March 2016 witnessed increase of 3.78 per cent compared to the same month of last year. The imports during March 2016 were recorded at 3.594 billion compared to the imports of $3.463 billion during March 2015, the data revealed. On the other hand, the exports from the country during March 2016 declined by 9.55 per cent and reached $1.742 billion compared to the exports of 1.926 billion in March 2015.

SOURCE: The Pakistan Today

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Pak-Turkey FTA talks focus on goods, services, investment

Pakistan and Turkey started the second round of talks on Free Trade Agreement (FTA) Tuesday with special focus on goods, services and investment. The three-day negotiations will conclude on tomorrow. The Pakistani side is being headed by the Additional Secretary Foreign Trade Ministry of Commerce Rubina Athar while Turkish Under-Secretary Ministry of Economy is leading his country in the negotiations. The main objective of the talks is an early conclusion of FTA for the mutual benefit of both countries” a well-placed source at the Ministry of Commerce told Pakistan Observer here on Tuesday. In October last year, both countries signed the Terms of Reference for negotiations on bilateral Free Trade Agreement. The relevant document was signed during the first round of talks in Ankara. The two sides reiterated to have a comprehensive free trade agreement and conclude negotiations on fast-track basis This year in March, both Pakistan and Turkey held first round of talks on FTA here in Islamabad. Both sides agreed to speed up the process for signing the FTA. According to Rubina Athar, on the first day of talks, both sides discussed the preliminary issues pertaining to the FTA and held only a few sessions of discussions. Currently, Turkey has levied heavy duties on Pakistani textile products and FTA would not be possible without lifting or easing the rates of duties by the Turkish government. Moreover, it is established that Pakistan has an immense potential for vegetable and fruit exports along with textile products. Therefore FTA would be helpful in earning foreign exchange reserves from the export of these products as well as by provision of comparatively cheaper products to Turkish consumers.

SOURCE: The PakObserver

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Biannual Egypt and Middle East expo create investment opportunities

Smart Egypt which organizes the biannual Egypt and Middle East expo in Kigali that opens on April 28 at at Amahoro National Stadium, Ashraf Mahmoud said that tradeshows create investment opportunities in any country. According to organisers, this year’s tradeshow will attract participants from Egypt, Iran, Malaysia, India, Singapore, Pakistan, who will be exhibiting a range of products, including textiles, leather products, jewelry, and kitchenware, among others. The expo is organized in conjunction with local businesspeople and the Egyptian Embassy.

Speaking ahead of this year’s expo, the Smart Egypt executive manager, said about 10 Egyptian businesses; mostly in general trade, and the health sector, have set up shop in Rwanda thanks to the bi-annual tradeshow. These firms will facilitate knowledge transfer, noting that each firm that opens business in the country partners with a local firm. This will, in the long-run, boost expertise of local people in the sectors where Egyptians invest. The bi-annual expo supports the tourism and hospitality sectors, especially hotels and accommodation facilities used by exhibitors. Natacha Haguma, a local entrepreneur and event organiser, said the expo provides an avenue for the local private sector to network and develop business linkages that they can exploit to enter new export markets.The expo also provides employment opportunities for more than 200 Rwandans each time the event is held. This money supports a lot of households and enables some youth to pay school fees. Therefore, one can say that Rwanda is benefiting significantly from the bi-annual trade fair. The expo was initially planned as an annual event, but it was transformed into a bi-annual event staged every April and October.

Smart Egypt has been organizing successful exhibitions and the first to bring Egypt to Mauritius through the annual Egypt Trade Fair, they have created strong awareness within the Mauritanian market for the Egyptian and Arab market. In addition to Mauritius, Smart Egypt has also been successfully connecting Egypt with the African markets in South Africa, Cote d’Ivoire, Mozambique, Ghana, Madagascar, Ethiopia, Cameroun, Gabon and Kenya, with future prospects in Zambia and Congo Brazzaville. Smart Egypt strongly believes in the potential of the African market and the ability of the Arab countries to accomplish strong foundations in the countries.

SOURCE: Yarns&Fibers

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Vietnam opens 300 new industrial parks and economic zones in Q1

Vietnam’s industrial parks and economic zones enticed 305 projects covering over 84,000 hectares and 16 economic zones covering 814,792 hectares of water and land during the first quarter with a large number of foreign investors, reported the Department for Economic Zones Management. Regarding domestic investment, industrial parks and economic zones enticed 270 projects with total registered capital of VND6.5 trillion ($292 million) in the first three months. The projects focus mainly on luxury garment production and support industries for the textiles and engineering sectors. HCM City and Đồng Nai Province led the country in terms of investment attraction. Some of the projects registered in Q1 included: DaYang Paper Mill Limited Company in Long Jiang Industrial Park (US$220 million); Maple Co’s (Singapore) garment factory in Bắc Ninh’s Việt Nam-Singapore Industrial Park ($110 million) and New Wing Interconnect Technology’s audiophones plant in Bắc Giang province ($100 million).

By the end of March this year, industrial and economic zones in the whole country attracted 6,608 projects with total registered foreign capital of US$145.5 billion, reported the Economic Zones Management Department. In addition, 6,592 domestically-invested projects also reached registered capital of VNĐ1.17 trillion. Some 214 industrial zones have been operational with a total land area of nearly 60,000ha and 91 industrial parks are being developed with total natural land area of more than 24,000ha. The total industrial land for lease reached more than 27,000ha with 49 per cent of filled land sites. Those are being operational having more than 69 per cent of filled land sites.

The Ministry of Planning and Investment (MPI) has given permission for 125 existing foreign projects to increase their investment by a combined $500 million. The MPI issued investment registration certificates for more than 160 foreign investment projects with total registered investment capital worth over $2 billion in the first quarter of 2016.

SOURCE: Yarns&Fibers

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Rwanda govt plan to waive 25pc customs duty on imported fabric

The Ministry of Trade and Industry confirmed that there is a plan to waive the 25 percent Customs duty on imported fabric, a move that is meant to boost the production of locally-made garments. But this could spell doom for Rwanda's only textile factory, L'usine Textile du Rwanda (Utexrwa) struggling to stay in business due to competition from imported fabrics. The mill, which opened in 1984, is also grappling with high production costs, making its fabric too expensive for ordinary Rwandans. Because the majority of Rwandans prefer secondhand clothes, the mill has been forced to cut production. The mill is currently operating at a loss, and sources believe that the removal of tax on imported fabric could be the final blow, and could also discourage investors eyeing the sector. According to textile expert, if taxes are waived, every tailor and fashion designer will go to China to import the fabric and this will benefits not Rwandan textiles but those in China, Thailand, Bangladesh and India. The number of garment makers and co-operatives is increasing in Rwanda in anticipation of a wider East African market after the Industrialisation Policy, adopted recently at an EAC Heads of State Summit is implemented. The policy seeks to, among other things, stimulate local industries by banning the importation of second-hand clothes.

Industry analysts argue that, on the one hand, Rwanda's fashion and tailoring sectors would experience a boon once the Industrialisation Policy comes to effect; but on the other hand, they could shrink and potentially disappear due to stiff competition from cheaper imports from Asia. Many co-operatives prefer to buy cheaper fabric from Asia, mainly China, India, Taiwan and Indonesia, rather than from Utexrwa as they are not satisfied with the quality and quantity that Utexrwa produces. Alvera Mukantwari, chairperson of the Rwanda Tailoring Association said that it is true that they mostly buy fabric from China and India, but that does not mean that they don't want to buy from Utexrwa. But their fabric is expensive and even then, they are unable to provide the required quantity and quality that they expect.  The association boasts 227 registered tailors in Kigali and plans to expand across the country.

According to Ritesh Patel, the general manager of Utexrwa, cheap imported fabric remains a challenge. With the waiver of 25 percent customs duty, there are no signs that this tax will be increased in order to support their growth. Utexrwa has capacity to produce 15 million metres of fabric per year, which is sufficient for Rwanda's textile market, but was only producing 10 million due to stiff competition from cheap imports.

SOURCE: Yarns&Fibers

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