INTERNATIONAL
Textile Raw Material Price 2016-06-13
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
947.62 |
USD/Ton |
-6.04% |
6/13/2016 |
|
VSF |
2059.77 |
USD/Ton |
0% |
6/13/2016 |
|
ASF |
1919.61 |
USD/Ton |
0% |
6/13/2016 |
|
Polyester POY |
987.23 |
USD/Ton |
-0.61% |
6/13/2016 |
|
Nylon FDY |
2224.31 |
USD/Ton |
0% |
6/13/2016 |
|
40D Spandex |
4341.98 |
USD/Ton |
0% |
6/13/2016 |
|
Nylon DTY |
2452.84 |
USD/Ton |
0% |
6/13/2016 |
|
Viscose Long Filament |
5681.13 |
USD/Ton |
0% |
6/13/2016 |
|
Polyester DTY |
1234.04 |
USD/Ton |
0% |
6/13/2016 |
|
Nylon POY |
2064.34 |
USD/Ton |
0% |
6/13/2016 |
|
Acrylic Top 3D |
2094.81 |
USD/Ton |
0% |
6/13/2016 |
|
Polyester FDY |
1115.96 |
USD/Ton |
0% |
6/13/2016 |
|
30S Spun Rayon Yarn |
2788.01 |
USD/Ton |
0% |
6/13/2016 |
|
32S Polyester Yarn |
1675.85 |
USD/Ton |
0% |
6/13/2016 |
|
45S T/C Yarn |
2437.60 |
USD/Ton |
0% |
6/13/2016 |
|
45S Polyester Yarn |
1812.97 |
USD/Ton |
0% |
6/13/2016 |
|
T/C Yarn 65/35 32S |
2132.90 |
USD/Ton |
0% |
6/13/2016 |
|
40S Rayon Yarn |
2925.12 |
USD/Ton |
0% |
6/13/2016 |
|
T/R Yarn 65/35 32S |
2209.08 |
USD/Ton |
0% |
6/13/2016 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
6/13/2016 |
|
32S Twill Fabric |
0.82 |
USD/Meter |
0% |
6/13/2016 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
6/13/2016 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
6/13/2016 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
6/13/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15235 USD dtd. 13/6/2016) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India may impose anti-dumping duty of up to $168.76 per tonne on imports of a chemical, mainly used in textile and packaging industry, from five countries including China and Iran to protect domestic players. MCC PTA India Corp and Reliance Industries Ltd (RIL) had jointly filed an application seeking anti-dumping investigations. In its final findings, the Directorate General of Anti-Dumping and Allied Duties (DGAD), under the ministry, has found that ‘Purified Terephthalic Acid’ has been exported to India from China, Iran, Indonesia, Malaysia and Taiwan below its normal value which has resulted in dumping. The DGAD said that it considers it necessary to impose the duty on the imports. “The authority recommends imposition of anti-dumping duty…so as to remove the injury to the domestic industry,” it said in a notification. It has recommended an anti-dumping duty in the range of $83.08 per tonne to $168.76 per tonne on the imports. While DGAD recommends the duty, the Finance Ministry imposes it. Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime. Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.
SOURCE: The Financial Express
The Prime Minister’s Office (PMO) has called a meeting of various ministries and regulators on Tues day to sort out issues concerning scrutiny of trade cargo with the overall objective of improving ease of doing business. The meeting has been called on the request of the Central Board of Excise and Customs (CBEC) which wants the PMO to resolve the differences among various departments over the issue of 10 per cent risk assessment, an official said. With a view to promote ease of doing business, the CBEC has proposed a new system under which only 10 per cent of the cargo would be scrutinised. However, the proposal is not agreeable to certain departments. Representatives of ministries and departments, including Shipping, Health, Plant Quarantine, Animal Quarantine, Agriculture and Food Safety and Standards Authority of India (FSSAI), would attend the meeting. According to an industry expert, countries world over follow the system of 1 per cent to 10 per cent risk assessment of containers. “This move would help importers and exporters cut transaction time and cost. Based on the risk assessment of importer or supplier, minimum number of containers should be scrutinised,” Director General of Federation of Indian Export Organisations (FIEO) Ajay Sahai said. The government is taking steps to improve India’s business climate in order to attract both domestic and foreign investments. In terms of trading across borders, India is ranked 133rd out of 189 economies, according to a World Bank report on ease of doing business. Overall, India is ranked 130th in terms of ease of doing business.
SOURCE: The Financial Express
We want to set up a STPI unit by sharing common office space on the same floor taken on lease by another STPI unit. Does it require any permission by the other entity from STPI? Does it require sub-letting or will an NOC from the landlord do? Should there be any demarcation of area for both units and also separate entry and exit points?
As per Para 6.01 (h) of the Handbook of Procedures, Vol. 1, “EOUs shall have separate earmarked premises for separate Letter of Permission. Similarly, EOUs may be approved on leased premises provided lease has been obtained from Government Department/Undertaking/Agency. However, in case lease is obtained from private parties, it shall have a validity period of five years from date of Legal Undertaking and Development Commissioner shall satisfy himself of genuine nature of lease.” Therefore, you must have separate earmarked premises with independent entry and exit, as well as a separate lease agreement with the landlord.
We have cleared some medicines on payment of duty to a Chennai party. After six months the description of the medicine in the licence is found incorrect and the same party has rejected the goods, which are not fit for reprocessing or repacking. We cannot sell them but have to destroy them. In the above situation can we take Cenvat Credit of the duty paid? Can we get remission of duty on destruction of the goods? Also, when we destroy the goods, do we have to reverse Credit of the duty paid on inputs?
Rule 16 of the Central Excise Rules, 2002 allows you to bring back the duty paid goods to your factory and take Credit of the duty paid, as though such goods are received as inputs. Rule 20 of the said Rules allows the proper officer to grant remission of duty when goods are claimed by the manufacturer as unfit for consumption or for marketing, at any time before removal. If remission is granted, the Credit taken on the inputs and input services in or in relation to the manufacture of the goods must be reversed, in accordance with Rule 3 (5C) of Cenvat Credit Rules, 2004.
I want to buy a residential apartment in a non-processing area of a SEZ. The developer says that we have to pay service tax on maintenance charges, etc. Is this correct?
Yes. Services provided by a SEZ developer to DTA entities for consumption in non-processing area are not exempt from service tax.
In our shipping bill, by mistake we have mentioned wrong ITC (HS) Code. How can we rectify this so that our claim under Merchandise Exports from India Schemes (MEIS) is not denied?
Section 149 of the Customs Act, 1962 allows amendment of the shipping bill on the basis of any document that existed at the time of exports. So, if you have the ARE-1 duly endorsed by the Customs, showing the correct ITC (HS) Code, you may seek amendment on that basis.
SOURCE: The Business Standard
Goods worth over Rs 2,800 crore were traded through Line of Control (LoC) during the last three years as part of the cross-LoC trade, Jammu and Kashmir government said. Goods worth Rs 1,496.96 crore were exported through Salamabad and Chakan-da-Bagh route between April 1, 2013 and March 31, 2016. Similarly, items worth Rs 1,307.62 crore were imported through Salamabad and Chakan-da-Bagh route in the past three years, Minister for Industries and Commerce Chander Parkash informed the Legislative Council. He said this in a reply to a question raised by National Conference (NC) MLC Shehnaz Ganai. The state government has taken various steps to encourage the cross-LoC trade and travel at Salamabad and Chakan-da-Bagh, the minister said. Besides, establishment of banking facilities at Salamabad and Chakan-da-Bagh trade facilitation centres have been approved by the government and the same has been conveyed to the Government of India, he said, adding that revised agreed list of items has been sent to the Ministry of Home Affairs. The minister further said the development of Chakan-da-Bagh and Salamabad crossing points has been proposed by the Tourism Department under Integrated Border Tourism Circuit Jammu and Border Tourism Circuit Kashmir under Prime Minister s Special Package. Single entry permit and triple entry permit are presently in vogue to facilitate the cross-LoC travel, he added.
SOURCE: The Economic Times
The government plans to invite prominent international startups to enter India’s growing new economy. The department of industrial policy and promotion will organise a start-up conference next January to coincide with the first anniversary of the StartUp India initiative, according to an official. While foreign start-ups like Uber have set up shop in India, the government feels there is a lot of room for growth. The event will aim at drawing foreign investment in startups and push local partnerships. Travis Kalanick of Uber and Adam Newmann of Wework were present at the launch of the StartUp India, apart from Softbank Chief Executive Officer Masayoshi Son. Successful Indian startups like Snapdeal, Ola and Paytm were also represented on the occasion. This time, too, major international startups could show up because of the policy push being provided to the sector, industry body Nasscom said. Alibaba and AirBnB are planning to start India operations. The StartUp India initiative had announced easier labour, tax and compliance regimes for start-ups. The government has declared a fund for startups that will invest Rs 2,500 crore each year over the next four years in venture capital funds listed with the Securities and Exchange Board of India. Another conference aimed at local start-ups will be organised by the DIPP in Hyderabad in August. The government will showcase its initiatives for the sector and conduct seminars to help new entrants. The official said 10,000 participants and incubators would be invited to the event.
SOURCE: The Business Standard
A panel headed by chief economic advisor Arvind Subramanian could suggest that India renegotiates its free trade agreements because these pacts appear to have boosted imports more than exports. Officials said the panel is expected to shortly finalise its recommendations, which will come in handy as India negotiates the Regional Comprehensive Economic Partnership that will have China as a member. "The report will be finalised soon," said one of the officials, who did not wish to be identified. The country needs to have a more focused approach to maximise advantages of free trade agreements or FTAs, another official said.
Subramanian, a former IMF economist who was associated with the multilateral General Agreement on Tariffs and Trade (GATT), was tasked with reviewing India's overall trade engagement, with a special focus on FTAs. The panel's inputs will be crucial when some of the agreements come up for review, officials said, as India is looking to regain some lost ground. Subramanian had alluded to FTAs in the Economic Survey tabled in Parliament ahead of the budget this year and highlighted their impact on the country's trade. "In the current context of slowing demand and excess capacity with threats of circumvention of trade rules, progress on FTAs, if pursued, must be combined with strengthening India's ability to respond with WTO-consistent measures such as anti-dumping and conventional duties and safeguard measures," the Survey had said while emphasising that the country prepare for its engagement with the world. It had further said, "No matter what India ultimately decides, one thing is clear. Analytical and other preparatory work must begin in earnest to prepare India for a mega-regional world." There has been a growing feeling in some sections in the government that the country may not have gained as much in services, its area of strength, and given awa much in goods, hurting its manufacturing sector. The departments of economic affairs and revenue have in the past expressed concerns that these trading agreements have ended up boosting imports.
The revenue department had also pointed out that the rules of origin framework allowed third country imports without substantial value addition under the FTAs. The Department of Economic Affairs had separately asked the Indian Institute of Management to study the impact of FTAs after the May 2013 currency crisis highlighted the country's vulnerability on account of widened current account deficit. India had suspended gold jewellery imports under the India-Thailand early harvest scheme after third country goods found entry into India at lower duty in violation of the rules of origin under the agreement. A Japanese consumer durable manufacturer announced setting up of a manufacturing facility after a Directorate of Revenue Intelligence investigation caught it violating India-Asean FTA rules of origin to route goods manufactured in another country and forced it to cough up duty for the past period.
SOURCE: The Economic Times
Targeting April 2017 for the rollout of Goods and Services Tax, the government is betting on support from smaller regional parties to pass the national sales tax legislation in the Parliament session from next month, and expects approval for supporting laws by year-end. GST was earlier planned to be introduced from April 1 this year, converting 29 states into a single market through the new indirect tax regime, but the deadline was missed as the bill to roll it out remains stalled in the opposition- dominated Rajya Sabha. "If we can pass it in the monsoon session (of Parliament beginning next month), then we can implement it in April 1, 2017," Minister of State for Finance Jayant Sinha told PTI. The government has enough backing from smaller regional parties to pass the Bill in Rajya Sabha without support from the main opposition Congress party, he said. Congress, which first proposed the constitutional amendment in 2006, is demanding capping the overall rate at 18 per cent and scrapping an additional 1 per cent tax designed to compensate manufacturing-heavy states that fear losing revenue once the measure is implemented.
After Parliament approves the constitutional amendment to allow GST, it needs to be ratified by more than half of states. Then Parliament must pass another bill to implement the GST, Sinha said. "First the Constitution Amendment will have to be ratified by 50 per cent of the state assemblies, then the GST Bill will be passed by all the state assemblies," he said. After the Constitution Amendment Bill is passed in Parliament, there are three more legislations - Central GST (CGST), State GST (SGST) and Integrated GST (IGST) - which are required to be passed. "Of course, there is a complicated legislative calendar that we have to work through. Then there are implementation issues which are working, but we feel that we can get all of that done in time," he said.
Meanwhile, the Empowered Committee of State Finance Ministers will deliberate on the model GST law at a two-day meeting in Kolkata beginning tomorrow. Finance Minister Arun Jaitley will participate in the meeting and try to iron out differences with the states over the new regime. The GST bill -- which will help create a single national sales tax to replace several state and central levies -- has already been approved by the Lok Sabha or Lower House of Parliament and is pending in the Upper House where the government doesn't have a majority. Sinha hoped to get support of most of the parties on GST Bill so that it is passed with national consensus. "Our expectation is that we will get support from many parties. We would like it to be passed with a national consensus, so we would like all parties to approve it. In the Lok Sabha when the Constitution Amendment was passed, it was passed unanimously. So we would like it to be passed in Rajya Sabha unanimously as well," he said.
SOURCE: The Economic Times
The government on Monday set up a Working Group to examine the consequences of the recent amendments to the India-Mauritius Double Taxation Avoidance Agreement (DTAA) and related issues. The group will be headed by a joint secretary-level official at the income tax department and have departmental officers, representatives of Securities and Exchange Board of India, custodians, brokerage firms and fund managers as its members. “The Working Group will submit its report to the Central Board of Direct Taxes within three months, after examining the relevant issues,” the government said in a release. After over a decade of negotiations, India and Mauritius amended the bilateral tax treaty to give New Delhi the right to tax capital gains arising out of transfer of shares. Investments made prior to April 1, 2017 will be grandfathered and not be applicable for capital gains tax. Although those fulfilling the limitation of benefits clause introduced in the treaty will have to pay just 50 per cent of applicable capital gains tax till April 2019, after which the full tax will kick in. “The Working Group will submit its report to the CBDT within three months, after examining the relevant issues,” according to the official statement. The protocol addresses India’s long-pending issue of suspected treaty abuse and round tripping of funds, taking advantage of a much lower taxation rate in Mauritius.
Experts say there was uncertainty over whether the limitation of benefits (LOB) clause in the treaty, which mandates a threshold of Rs 27 lakh was applicable only for transaction of shares and not investments in other securities. “These aspects are of very high importance since derivatives account for over 90 per cent of all equity trading in India. While exact data for FIIs is not available, it is highly likely that their exposure to India markets is largely in line with this position,” said Rahul Jain, partner, Nangia & Co. “It is good to see that instead of leaving the amended provisions open for interpretation by the taxman as well as the taxpayers, the CBDT has constituted a Working Group of the stakeholders who will examine the various issues at hand in a time-bound manner,” added Jain.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 47.46 per barrel (bbl) on 13.06.2016. This was lower than the price of US$ 48.41 per bbl on previous publishing day of 10.06.2016.
In rupee terms, the price of Indian Basket decreased to Rs. 3183.17 per bbl on 13.06.2016 as compared to Rs. 3233.64 per bbl on 10.06.2016. Rupee closed weaker at Rs 67.07 per US$ on 13.06.2016 as against Rs 66.79 per US$ on 10.06.2016. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 13, 2016 (Previous trading day i.e. 10.06.2016) |
Pricing Fortnight for 01.06.2016 (12 May, 2016 to May 27, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
47.46 (48.41) |
46.17 |
|
(Rs/bbl |
3183.17 (3233.64) |
3098.47 |
|
|
Exchange Rate |
(Rs/$) |
67.07 (66.79) |
67.11 |
SOURCE: PIB
Eighteen workers in the Koum Hamada textile factory in Beheira were refereed Sunday to the Administrative Prosecution following reports by the company’s CEO Youssry Nasr. An announcement has been distributed, which identifies the 18 workers and accuses them of inciting fellow workers to go on strike last Thursday. It added that the workers will be suspended from their work until the investigation concludes. The incident started when the company’s CEO Youssry Nasr was accused of filing a report against a fellow worker, Mohamed Fawzy, leading to his imprisonment last Wednesday. Fawzy presented a document to management with several demands from his colleagues. After he finished his shift, he was arrested by the company’s security and the police. Other demands presented by the workers included a late 7% bonus to those who are holders of degrees and the right to 10 days off annually. Around 8,000 workers have staged an open-ended strike since last Wednesday demanding the removal of Nasr as a result of the incident. The worker was accused of inciting fellow workers to protest. Although the prosecution acquitted him from the charges after a bail of EGP 5,000, the workers are insistent on continuing the strike. As the strike is entering its fifth day, negotiations between the workers, assisted by MP Mohamed Emara, and management have not reached an agreement. The workers cancelled a negotiation session which was set to take place with the governor of Beheira, Mohamed Sultan, after the announcement was published and distributed to the workers.
SOURCE: The Daily News Egypt
At the beginning of the new millennium the South African textile and clothing sectors faced serious challenges. Following China's inclusion in the World Trade Organisation in 2001, local textile and clothing manufacturers suffered because of the cheaper imports of Chinese fabrics and finished products. Employment in the sectors slumped dramatically and more than 100,000 textile and clothing jobs were lost. The government and the Department of Trade and Industry (DTI) stepped in to revive the industry with the introduction of the Clothing Textile Competitiveness Programme (CTCP), a programme managed by the IDC and the CTCP Desk, which was structured to drive competitiveness and increase productivity and employment opportunities in the South African textile and clothing sectors.
Realising the opportunity for growth under the DTI’s new CTCP programme, the South Africa Technical Textile Cluster (SATTC) was formed in 2011. The SATTC is a vertically integrated value chain cluster with an interlinked and innovative product offering, which is currently participating in the CTCP initiative. This market-driven public-private partnership cluster currently includes Gelvenor Consolidated Fabrics, Canvas and Tent, Stepahead Military Headwear Distributors, Fields Wear, Parachute Systems and Durban Overall, all of whom share a collective vision to become recognised global suppliers who set the standards for quality and innovation in the technical textiles sector and to make South Africa a preferred global supply source.
Ground-breaking technological developments
Over the last five years the SATTC has introduced a number of ground-breaking technological developments that have both increased productivity and product quality output. These developments include the installation of the Eton Material Handling System, a productivity improvement system, which was implemented by Canvas and Tent and yielded significant improved productivity results. Other technological advancements by SATTC include Gelvenor Consolidated Fabric’s investment in multi-axial machinery for energy-efficient fabric applications, which has created new product avenues, opened new international markets and has benefitted both Parachute Systems and Fields Wear in new innovative product applications.
These innovations and developments have resulted in the SATTC achieving a 12% increase in employment, a 54% growth in total sales and 126% growth in total export sales since 2012, while also increasing export markets from 13 to 25 countries globally and from one to 14 countries in Africa. The cluster also achieved a comprehensive manufacturing value add (MVA) growth, which further supports their high performance outcome. The significant growth achieved over this period would not have been possible without the collaborative efforts from the CTCP’s Competitiveness Improvement Programme (CIP) and Production Incentive Programme (PIP), along with the SATTC’s own commitment to realising their growth potential. The main objective of the CTCP is to assist industries in upgrading production, product and people developments to re-position it to compete effectively against other low cost producing countries; a goal which the SATTC is achieving as it continues to increase the competitiveness of South African technical textiles in the global market.
Innovative, visionary approach
As the SATTC looks towards the future, it is committed to continuing to grow the position of the technical textile sector both in South Africa and abroad through an innovative, visionary approach which improves competitiveness, integrated value and enhanced quality output at every stage of the chain; from fabrics to finished textile and apparel products. SATTC is also focussed on steadily increasing the number of manufacturers participating in the cluster, both as core members and incubation members, and aims to develop BBBEE and women-owned SMME manufacturers in their own supply chains to facilitate their growth into full members of the cluster. In terms of support for black industrialist development, the cluster has been instrumental in the establishment of two black-owned businesses, one on the supply side and one on the demand side of the value chain. The combined turnover of these businesses is already in excess of R14 million per annum. The SATTC is also in the process of expanding the South African Technical Textile Sector into the digital realm by developing a Technical Textile National Digital Resource Portal, which is focused on building an international community of technical textile connections and customers that will benefit from sourcing South African technical textile products.
Finally, the SATTC is dedicated to evolve into a sub-national cluster, with a mandate of growing the sector to increase export opportunities, innovative product development, employment opportunities and sustainability in the sector. The SATTC participation in the DTI’s Clothing Textile Competitiveness Programme (CTCP) and the accomplishments, which have come as a result of such, are evidence that the public-private partnership is a rewarding business approach that can yield meaningful and sustainable growth for South African specialist textile and clothing sectors.
SOURCE: The Biz Community
Purified terephthalic acid (PTA) producers in China are expected to maintain high operating rates at their facilities in June and July to build up stocks ahead of the G20-related shutdown of petrochemical plants, market sources said Tuesday. The plants are currently running at an average rate of about 70%, which will likely be kept in the near term, they said. Downstream polyester units are no longer expected to reduce production from the second half of June - foregoing their usual practice when demand goes on a seasonal lull - to have sufficient inventory during the expected shutdowns in late August to early September, industry sources said. The G20 summit will be held in Hangzhou City, Zhejiang province in eastern China on 4-5 September. Most petrochemical plants within the 300-kilometre (km) radius of the G20 meeting locations are being required to shut operations completely about two weeks before the actual summit, to ensure better air quality in Hangzhou City, where G20 leaders will discuss a host of issues facing the global economy, including climate change. “Demand for finished polyester products should continue throughout August and September,” said a source at a major PTA producer in China. “This means that PTA and polyester producers would continue running at high rates to stock up on PTA and fibre/yarns/PET [polyethylene terephthalate] chips inventories in July and August before they shut,” the source said.
At Zhejiang province’s industrial hub of Ningbo, polyester producers are expected to continue purchasing PTA cargoes between June and August to avert any tight supply arising from the expected plant shutdowns in the fibre intermediates chain, industry sources said. “While some polyester producers have started lowering run rates, including major polyethylene terephthalate (PET) bottle producers in east China, the extent of reduction is limited, compared to the end of the peak season in previous years,” a Singapore-based industry observer said. No turnaround is scheduled for Chinese PTA plants in June and July, industry sources said. Among PTA producers with facilities in eastern China, Yisheng Petrochemical is running its units in Ningbo plants at high rates, and has decided to delay the units' turnaround schedule to August-September. The company’s three Ningbo PTA facilities with a combined capacity of 5.05m tonnes/year are among the petrochemical plants being required to completely shut down ahead of the G20 summit. Tongkun Group has delayed the shutdown of its 1.5 m tonne/year PTA facility in Jiaxin, also in Zhejiang province, to August-September, in line with the stipulated shutdown period for most petrochemical plants in Ningbo. In northeastern Liaoning province, Yisheng Petrochemical’s PTA plants in Dalian are also running at full capacity. These units may not be affected by the mandated shutdown as they are located at a considerable distance to Zhejiang province. Hengli Petrochemical’s three major production lines in Dalian are currently running at full capacity. Most PTA producers are checking if their downstream customers are affected by the shutdown so they can plan their production accordingly, and prevent any strong build-up in supply that could weigh down on prices, industry sources said. In Jiangsu, another northeastern province of China, Shenghong Petrochemical’s 1.5m tonne/year PTA unit in Lianyungang is currently running at high rates, and is due to shut for two weeks around the time of the G20 meeting, in line with production stoppage at downstream polyester units. Hanbang Petrochemical’s PTA production lines at Jiangyin in the same province, meanwhile, are expected to run at low rates at that time. It has two 1.1m tonne/year units and a 600,000 tonne/year unit at the site. Meanwhile, overall supply in the Chinese market will get a boost in September with the expected delivery of physical PTA cargoes under futures contracts, industry sources said.
SOURCE: The ICIS
China's economy held steady, as industrial production gathered pace in May, retail sales maintained strong growth while investment cooled with improved structure, according to data released by National Bureau of Statistics (NBS) on Monday. On a month-on-month basis, industrial output was up 0.45 per cent in May, according to the NBS data, the official Xinhua news agency reported. Value-added industrial output, one of the leading indicators for economic growth, rose 6 per cent year on year in May, unchanged from April and in line with expectations. In the first five months, industrial output grew 5.9 per cent from one year earlier, up from 5.8 percent registered during the January-April period. An NBS official said the data indicated that China's industrial structure had continued to improve. The output of the hi-tech and equipment manufacturing industries maintained strong growth, rising 11.5 per cent and 8.5 per cent in May. Retail sales climbed 10 per cent in May from one year earlier, compared with an increase of 10.1 per cent in April. However, fixed asset investment growth weakened to 9.6 per cent in the January-May period as tepid demand and industrial over capacity continued to weigh on the economy. This compared with a 10.5 per cent increase in the four months through April. Although investment growth cooled, investment structure improved with more money spent on the hi-tech and service sectors, while less money flowed into industries with high energy consumption or excessive capacity.
China's economy fared at a stable rate amid headwinds from both home and abroad, and it would maintain “stable and relative fast growth,” the official said. China will continue to push forward supply-side structural reform while expanding aggregate demand, he said. The country's GDP expanded 6.7 per cent year on year in the first quarter, the slowest growth since the global financial crisis in early 2009 but still in line with the official 2016 target range of between 6.5 per cent and 7 per cent.
SOURCE: Fibre2fashion
