INTERNATIONAL
Textile Raw Material Price 2016-08-07
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1031.81 |
USD/Ton |
-0.15% |
8/7/2016 |
|
VSF |
2403.04 |
USD/Ton |
0% |
8/7/2016 |
|
ASF |
1892.39 |
USD/Ton |
0% |
8/7/2016 |
|
Polyester POY |
1049.08 |
USD/Ton |
-0.29% |
8/7/2016 |
|
Nylon FDY |
2282.89 |
USD/Ton |
0.33% |
8/7/2016 |
|
40D Spandex |
4325.47 |
USD/Ton |
0% |
8/7/2016 |
|
Nylon DTY |
1944.96 |
USD/Ton |
0% |
8/7/2016 |
|
Viscose Long Filament |
2065.11 |
USD/Ton |
0% |
8/7/2016 |
|
Polyester DTY |
1171.48 |
USD/Ton |
-0.06% |
8/7/2016 |
|
Nylon POY |
2478.14 |
USD/Ton |
0% |
8/7/2016 |
|
Acrylic Top 3D |
5600.59 |
USD/Ton |
0% |
8/7/2016 |
|
Polyester FDY |
1301.40 |
USD/Ton |
-0.29% |
8/7/2016 |
|
30S Spun Rayon Yarn |
2988.78 |
USD/Ton |
0.51% |
8/7/2016 |
|
32S Polyester Yarn |
1802.28 |
USD/Ton |
0% |
8/7/2016 |
|
45S T/C Yarn |
2410.55 |
USD/Ton |
0% |
8/7/2016 |
|
45S Polyester Yarn |
3138.97 |
USD/Ton |
0.48% |
8/7/2016 |
|
T/C Yarn 65/35 32S |
2388.02 |
USD/Ton |
0% |
8/7/2016 |
|
40S Rayon Yarn |
1952.47 |
USD/Ton |
0% |
8/7/2016 |
|
T/R Yarn 65/35 32S |
2342.96 |
USD/Ton |
0% |
8/7/2016 |
|
10S Denim Fabric |
1.38 |
USD/Meter |
0% |
8/7/2016 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
8/7/2016 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
8/7/2016 |
|
30S Rayon Fabric |
0.70 |
USD/Meter |
0% |
8/7/2016 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
8/7/2016 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15019 USD dtd 07/08/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The much anticipated Goods and Services Tax has cleared the Rajya Sabha obstacle and will be a reality next year. Many manufacturing sectors like auto and FMCG stand to benefit from the elimination of cascading impact of central and state taxes. Speaking to Deepanshu Bhandari of BTVI, Arvind Ltd chairman and managing director Sanjay S Lalbhai says there is a huge potential for textiles sector to grow and create millions of jobs once the country switches to GST. India can take away the market share from China as well, he said.
DEEPANSHU: What’s your perspective on the GST and the kind of impact that it can have on the textile space? There are selected categories that enjoy exemptions right now on textiles and that will go away on GST roll out. So on the whole is it positive or negative for the textiles in general?
SANJAY: I think it is one of the most path-breaking things, which have happened in India. And I am extremely buoyant on GST getting applicable to our industry also. So my take is that this is one industry where evasion is one of the biggest problems. So if we have to really compare China and India, China has acquired 30-35 per cent market share of the world trade and domestically also I think that the Chinese textile industry is very robust. And if you really see that they have a very logical GST regime for so many years—there is no evasion and there is no kind of distortions in the entire value chain of textile. Here, we have so many pockets, huge amount of evasion and so many problems. Just now, there is taxation on polyester. There is zero tax on cotton. There are all kinds of issues. So when you call zero tax on fabric, we have 8-9 per cent of input cost, which in any case we are incurring. So if you really read the report of Chief Economic Advisor Arvind Subramanian, he said very clearly that the clothing it is 3.5 per cent while it warrants the merit rate which is 12 per cent. Suppose we are looking at 12 per cent for the value change, it is going to be transformational—the kind of jobs it will create, the kind of evasion it will take away and the kind of revenue buoyancy you will see for the government. So it is the single most important thing, which is likely to happen to textiles. And it will completely change the dynamic of this industry, which is based evasion, all kinds of arbitrages and irrational pockets of exemptions. I am very encouraged by this. We really are looking forward to a logical and proper roll out of GST and its applicability to the entire textile business.
DEEPANSHU: You spoke about 12 per cent as the merit rate and I am assuming that is the rate that you would be happy with. What if it is high? What if it is somewhere around 18 to 20 per cent? What is the kind of margin impact that we could see on the textile sector?
SANJAY: Evasion is the biggest problem not taxation.
DEEPANSHU: Also just to touch upon the export perspective as well, it’s likely to provide benefit to the textile space. What is your view on that?
SANJAY: On exports, we have had a long discussion with our nodal agencies—Textile Ministry, Finance Ministry and with the Chief Economic Advisor and the Commerce Ministry. We have been able to convince them that this is the only industry, which can create millions of jobs. On the contrary, we have said that if the policy and support is right then we can create 5 million jobs and we can take the export to $80 billion in a very short time from something like $40 billion now. We can double exports by 2020. So I think that there is a huge potential and we can take away the market share from China just now because Chinese costs have gone up dramatically and India is very well poised. All that we need is logical taxation and logical kind of support from the government. And you have already seen that they have already announced a huge support of Rs 6,000 crore to the garment industry. So, we are now very encouraged. I think we are all on the same page with GST coming in. The government is looking at creating million of jobs and these jobs will be created for women in this country. And this is what is exactly required in our economy. We can't have an economy and GDP growth of 7.8 per cent, where jobs are difficult to find. So there is a win-win, there is complete consensus at all levels and there is complete consensus in the entire value change of textile. For the first time, the garmenting community, the fabric community and all of us have come together and talked in one voice to the government. And I think it is going to be transformational.
SOURCE: The BTV
The government has embarked on linking its skill development initiative with its programme to develop handloom industry. An MoU in this regard was signed between the Ministry of Skill Development and Entrepreneurship (MSDE) and the Ministry of Textiles here on National Handloom Day to "bring a paradigm shift in the handloom industry". "Spinning, dyeing, 'beem bharai', designing, weaving - all these are traditional skills which are there from decades but have never been realised formally. We must revive interest in these skills and make them viable, paying and valued. "This will bring about entrepreneurial and managerial capability and skills of IT and financial planning which will change the way how young loom craftsperson organise their traditional skills into aspiring businesses," Rajiv Pratap Rudy, Minister of State for Skill Development and Entrepreneurship, said.
An official release said MSDE and the Ministry of Textiles have chalked out a new strategy for promoting production and marketing of high value quality handloom products with the key objective of enhancing the earnings of handloom weavers. "Our conversation about skills have always been focused on learning the art of working with our hands. Who would know and value this more than our own weavers and loom craftsmen who have retained the culture and tradition of our country with their works," Rudy said. The MoU was signed in the presence of Union Minister for Textiles Smriti Irani, who is steering the vision of scaling the handloom and textile sector to new heights, the release said. At present, 28 Weavers Service Centres (WSCs) across the country are providing technical assistance to handloom weavers, it said. WSCs are the nodal agency for carrying out skill up-gradation training in the areas of weaving, designing, dyeing/printing, managerial functions and use of technology in handiworks.
Additionally, the Ministry of Skill Development and Entrepreneurship, through the National Skills Qualifications Framework (NSQF), has institutionalised the entire framework and the Central government awards nationally recognised certificates to these skills, it said. The release said a special focus has been on reviving the handloom clusters in the North Eastern states. The handloom sector under the textile industry is the largest economic activity after agriculture. Around 43 lakh people are engaged in hand weaving and allied activities, it said. The workforce distribution in this sector is highly concentrated with 60.5 per cent (16.83 lakhs) of handlooms/weaver households located in northeast India. As per the third handlooms Census of 2009-10, more than 43 lakh people are engaged in weaving and allied activities. The figure for the same was 65.5 lakhs as per the second handloom census conducted during 1995-96, it said. Out of the 38.47 lakh adult weavers and allied workers in the country, 77 per cent are women and 23 per cent male weavers. 10 per cent of the weavers are from scheduled castes (SCs), 18 per cent from scheduled tribes (STs), 45 per cent from other backward classes (OBCs) and 27 per cent from other castes, the release added.
SOURCE: The Business Standard
Trade and investment opportunities will only grow in India with recent changes in government policies, the World Trade Centers Association (WTCA) today said. WTCA CEO Scott Ferguson is gung-ho particularly about the legislation for the real estate sector. “Real estate globally is seen as a key driver of economic growth and needs to be seen as (something) beyond an asset class,” a statement quoted Ferguson as saying. “I congratulate WTC Noida on becoming the first operational facility in North India, delivering its first two towers which are completely leased and hope to see great results for the next phase as well. Viridian group is our main partner in India,” Ferguson said.
Addressing the business community, he said: “By being a business member/tenant/client here at WTC Noida facility, one gains access to introductions and connections in cities around the world. The facility acts as a gateway for local business and provides them services through hub and spoke model of connected complexes.” Scott Wang, Vice-President, Asia Pacific, WTCA, said India is the fastest growing market for World Trade Centres as the number of WTCs in India has risen from mere 5 in 2011 to 26 in 2016. The World Trade Center’s Association stimulates trade and investment opportunities for commercial property developers, economic development agencies, and businesses looking to connect globally and prosper locally.
SOURCE: The Financial Express
As many as 25 new products for the textile sector will be launched at the 10th India International Textile Machinery Exhibition (ITME) to be held in Mumbai in December this year. The products, which would benefit the entire textile industry, include eight for the spinning sector, seven for processing and nine for weaving, Chairman of India ITME 2016, Sanjiv Lathia told reporters last night here. Apart from new products, 162 new companies, including 32 from abroad, will participate and showcase their products at the six-day event beginning December 3. The event, which is supported by the Union Heavy Industry and Textile Machinery Department with Gujarat as the state partner, makes it the only privately organized exhibition supported by central and state governments, Lathia said. A new and exclusive hall for digital printing, testing and measuring equipment, dye stuff and chemicals will be showcased by overseas companies, including those from Taiwan, Turkey, Italy, China and Australia. Another major attraction will be green technology and waste water technology from Italy, China and India, which will provide much required solutions for domestic textile units, he said. Estimating that the exhibition will see 1.5 lakh visitor footfall, Lathia said ITME 2016 is a catalyst and also the best avenue to take advantage of India's improving manufacturing competitiveness, cost advantage and large urban and rural market.
SOURCE: The Business Standard
Providing a common platform for sourcing and marketing of entire range of machinery and raw materials needed for garment production, the Knit Show- 2016 got off to a colourful start at Hotel Velan Fair Grounds on Sunday. The exhibition featuring products of both foreign and domestic companies had been considered as a meeting point for the past many years for the entrepreneurs in Tirupur knitwear cluster who look for procuring latest gadgets at competitive prices. “Exhibitions like this are one-stop sourcing points and extremely beneficial for small and medium scale garment entrepreneurs who might not be able to go abroad searching for sophisticated machinery to suit the modern needs,” said T. R. Srikanth, president of Tirupur Export Knit Printers Association. For the suppliers of machinery too, the event is turning out to be a platform to reach out to wide range of customers. Francis Xu, marketing manager of a Chinese company that sells textile printing machines, said Tirupur remained a potential market for expansion of their company. “Already, we have sold a few varieties such as sublimation printing machines in Tirupur knitwear cluster. We expect to sell more of the latest versions of the machinery,” she added.
Among the display of machinery and raw materials include eco-friendly printing inks, imported embroidery machines from China, apparel printing machines from Poland and a few other nations, sewing machines from Asian countries, automatic ironing and fabric spreading machines, and elastic cutting machines. Tirupur Exporters Association president A. Sakthivel inaugurated the three-day fair in the presence of representatives of various textile associations and other industry stakeholders.
SOURCE: The Hindu
For the first fiscal quarter ended June 30, 2017, CS Nopany led Sutlej Textiles and Industries reported a 43 per cent year over year jump in net profit at Rs 45.09 crore. Resultantly, earnings per share too surged to Rs 27.52 per share compared to Rs 19.26 that Sutlej announced in the first quarter of fiscal 2015-16. The company posted total income of Rs 561.45 crore in the reporting quarter, which is an increase of 20 per cent over the Rs 469.58 crore it recorded in the fiscal ago quarter. EBIDTA too was up 23 per cent at Rs 86.44 crore in the first quarter of fiscal 2016-17 as against Rs 70.20 crore in the prior fiscal's first quarter. Sutlej said it invested around Rs 17 crore during the quarter, towards technology up-gradation and debottlenecking, etc, which will result in improvement of efficiency and sustaining plant utilisation. The company intends to invest a further amount of Rs 67 crore during the fiscal towards technology up-gradation and debottlenecking, etc.
SOURCE: Fibre2fashion
India's biggest denim fabric producer and Sanjay Lalbhai led Arvind Ltd's consolidated net profit soared 27 per cent year on year at Rs 74 crore for the first fiscal quarter ended June 30, 2016. In a BSE filing, the company said its consolidated revenue also rose 18 per cent to Rs 2,104 crore in the reporting quarter compared to Rs 1,787 crore in the comparable quarter of prior fiscal. Arvind added that its textiles business continues to deliver a strong performance as it continues to pursue a calibrated growth strategy in reporting 14 per cent year over year revenue growth. “However, the brands business continues to demonstrate strong growth in the quarter under review with 26 per cent sales growth over the previous fiscal's first quarter,” the company informed. "Our established power brands consolidated their market positions, while we are also excited about India's first true omni-channel experience, Nnnow.com which we launched during the quarter,” CFO Jayesh Shah too said.
SOURCE: The Global Textiles
Textile behemoth Raymond has fixed a business target of Rs 80 crore in the state in the current fiscal, said Vishwajit Jha of the company. Today, the company threw open its 14th retail conference exhibition at a hotel in the holy city, once known as ‘Manchester of India’. Jha said 700 designs of suiting and 600 designs of shirting were displayed in the exhibition in which 600 retailers were participating. He said exhibitions of this kind would catapult the imagination of local textile manufacturers and keep them abreast with latest designs. Members of the Textile Manufacturers Association said the different excise tax slabs for composite and independent units, too, led to the downfall, as the overhead costs climbed. The non-disbursal of timely subsidy deteriorated fiscal condition of many companies, which resulted in their bankruptcy.
SOURCE: The Tribune India
Business chamber Assocham on Sunday pitched for up to 20 per cent standard GST rates. It also batted for including services of mass consumption in the ‘merit’ list to ensure that prices of critical services like telecom, banking, healthcare and railways do not lead to inflation. Demerit goods or sin goods may draw higher tax than standard ones. “An interaction with a large number of Assocham constituents felt that the focus should be to get the maximum tax buoyancy through more and more trade and industry channels in the small scale and unorganised sectors joining the mainstream value chain, rather than keeping the standard GST rate high,” Assocham said in a press statement. Chief Economic Advisor Arvind Subramanian recently said that his report has observed that at 18-20 per cent GST rate, inflation will be zero.
SOURCE: The Business Standard
India plans to examine the feasibility of a free trade agreement (FTA) with Mexico in line with its objective of diversifying trade beyond the European Union and the US, a government official has said. The North American country holds opportunities for India to expand trade and a visiting trade delegation has already been promised increased opportunities for sectors, including dairy, pharmaceuticals and telecom outside a free trade pact, he added. “The Commerce Secretary recently led a trade delegation to Mexico, including representatives from industries such as dairy, telecom, tyre manufacturers, pharmaceuticals and IT. There were a lot of productive meetings with both the private industry and government agencies and we do see a lot of potential to expand,” the official said. India had looked at a possible free trade pact with Mexico in 2012, but it had not seemed a good idea because of limited trade at that time. “Since then (2012), bilateral trade has grown three-fold to $6 billion and a lot of product diversification has taken place. It makes sense to carry out a feasibility study again and see if an FTA would help in mutual expansion of trade in goods and services,” the official added.
While India’s total exports to Americas declined more than 10 per cent in 2015-16 to $52.882 billion and exports to the US declined 4.57 per cent to $45.3 billion, exports to Mexico, at $2.86 billion, remained unchanged. “Our exports to Mexico are just a little more than 1 per cent of our total shipments, but that is because our industry has not been focusing on it due to the distance between the two countries. Now that both sides are willing to engage, we see immense potential,” the official said. The dairy industry, for instance, hopes to gain access to the country soon as an outcome of a fruitful meeting with officials from Mexico’s Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food. “The Mexicans have not been importing casein and caseinate products from India as they fear infection of Foot & Mouth Disease. The Indian industry explained how such items produced out of milk are treated at high temperatures at which FMD virus cannot survive and underlined that several developed countries, including the US, import such items from India,” he said. Mexico has said that it will examine the Indian dossier on the issue and will respond in two months. Similarly, in the area of pharmaceuticals, India’s proposal of getting into an equivalence agreement, which will help in registration of new drugs from the country, was received positively. Mexico has similar agreements with the US Food and Drugs Authority and Canada Health. “We were asked to submit our proposal officially to their drugs regulator,” the official said. Indian telecom companies, too, are positive about Mexico with the country going in for a massive expansion of its optic fibre network, broad-band coverage and setting up of solar power based mobile towers. Companies such as Tejas Network and Vihan Network discussed possibilities with their Mexican counterparts and officials.
SOURCE: The Hindu Business Line
The Ministry of Jute and Textile has decided to send a letter to the Prime Minister’s Office, and the power, energy and mineral resources ministry requesting them not to increase gas price for captive power generation for textile industries. The decision came from an inter-ministerial meeting presided over by state minister for jute and textile Mirza Azam at the ministry auditorium in the capital on Sunday. In the meeting textile mill owners said that the proposed hike in gas price by 130 per cent to Tk 19.26 per unit from existing Tk 8.36 per unit would make the industry uncompetitive leading to loss of exports, closure of mills, unemployment and fall of foreign exchange earnings and retention. ‘The textile sector has been passing through a tough time due to slowness in the global economy, Britain’s exit from the European Union and the recent terror attack at Dhaka’s Gulshan. Under the circumstances, if the government increases the tariff of gas, the textile sector will lose its competitiveness and the country will have to depend on export for yarn and fabric,’ Bangladesh Textile Mills Association president Tapan Chowdhury said. He said that the proposal to increase the price of gas for the captive power by 460.77 per cent within a year was not acceptable.
The government increased the price of gas for captive power by 100 per cent to Tk 8.36 per unit from Tk 4.18 per unit on September 2015. Salman F Rahman, vice-chairman of the Beximco Group, said the government could increase the price of gas but the rate should be reasonable. If the textile mills face trouble due to the gas price hike, the value addition in the readymade garments export will decrease, he said. The proposed hike of gas price for captive power is a grave threat for the sector as the textile makers compete with the globally-controlled market, Salman said.
Citing the hearing process of the Bangladesh Energy Regulatory Commission he said, ‘We have no confidence in the BREC. It made a decision as per the will of the government,’ he said. Former BTMA president Abdul Matin said no industry in global business could adjust such a big increase in price of utility within one year and therefore this would be impossible for the industry to absorb. For the last six months the textile sector has been impacted negatively by the slow global market, devaluation of the euro and the pound sterling, volatile cotton market and the terror attack at Gulshan, he said. For the captive power producers the rate of gas is more than four times for the same purposes of power generation which is very negatively hitting the industry — a sector on which the export of this country is dependent, Matin said. In the meeting officials of several ministries commented that the arguments of the textile mills owners were logical and the government decision of gas price hike should be rational. ‘For the survival of the textile industry I am not in favour of price hike in gas for the captive power and I think the government decision is not justified this time,’ state minister for jute and textile Mirza Azam said.
SOURCE: The Global Textiles
After declining in the first fortnight of July, Brazilian cotton prices started regaining lost ground and started increasing in the second fortnight of July. Cotton availability in the spot market fell in mid-July, although harvesting of the 2015/16 crop was steady and firm, thereby pushing up cotton prices. “Keeping an eye on international price rises, Brazilian cotton sellers pushed for quicker deliveries in the domestic market, leading to a quickening of pace in cotton trades,” CEPEA said in a report. Although textile mills were slower in purchasing in late July, Brazilian traders ensured higher liquidity and stability to prices. In the second fortnight of July, traders searched for batches to accomplish contracts for prompt-delivery, while processors were cautious about buying new batches, concerned with the prices. Brazilian cotton growers continued harvesting and processing cotton from the new crop, but a lack of rains in some producing regions, resulted in a production break, a scenario that concerned growers. Between June 30 and July 29, the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo, dropped 1 per cent, closing at BRL 2.63 or $0.8123 per pound on July 29.
SOURCE: The Global Textiles
The European Commission has released its third annual report on progress achieved in the Bangladeshi garment sector through the Sustainability Compact for Bangladesh – an international response to the 2013 tragic collapse of the Rana Plaza factory complex. Since the launch of the initiative, the Compact has contributed to tangible improvements in workplace safety. However, respect of workers' rights remains a challenging area, with a particular urgency as regards freedom of association, says the report. While some improvements can be noted, sizeable efforts still need to be made to ensure that real change takes place and is sustained over the long term, according to the report. As regards to legislative improvements, the EU expects in particular further development of labour-related legislation and enforcement of the existing rules, in full compliance with the fundamental rights to freedom of association and collective bargaining, as defined by the International Labour Organisation (ILO). “Those rights should be granted to all workers without exception, including to those in the export processing zones,” states the report. “Room for improvement also exists as regards registration procedures for new workers' unions, which should ensure expeditious and non-arbitrary processing of applications.”
On administrative aspects, the report points at the need for a new strategy for safety inspections and remediation, ensuring effective coordination between key Bangladeshi regulators with competences in that area. The EU also calls for further reinforcement of administrative capacities through recruitment and training of inspectors and for a full transparency as regards the outcomes of factory inspections. Further to that, the EU report underlines the need for continuous education, training and capacity building on issues such as labour rights, and occupational safety and health. The report, together with recommendations addressed to the authorities of Bangladesh, also formulates the wish for a strong longer-term engagement of international private companies involved in business operations in Bangladesh, which have been key in bringing progress on the ground over the last years.
SOURCE: Fibre2fashion
It’s been a year since Beijing’s surprise one-off depreciation of the yuan and Chinese exports are still falling, raising the question: did the move really help the world’s second largest economy? China’s total exports by value fell 6.25 per cent to US$180.3 billion in June, down from US$192.01 billion in the same month last year, while exports in the first six months are down 2.1 per cent year on year. Amid a weak global and mainland Chinese economy, the falling export numbers only go to show that a weaker yuan won’t necessarily help exporters sell more. That’s especially true of the textile sector, which has seen its exports decline 3.7 per cent year on year in the first half. The People’s Bank of China shocked financial markets on August 11, 2015 when it devalued the yuan by lowering its daily reference rate by 1.87 per cent against the US dollar. One year later, the central bank’s fixing rate is down by 8.6 per cent, or 5,222 basis points, from 6.1162 to 6.6406. The yuan is not yet fully convertible so the PBOC sets a daily reference point for the yuan, with traders allowed to trade up to 2 per cent either side of the mid-point. Consequently, currency traders closely monitor the reference rate to see what guidance the central bank wants to give the market.
On shore yuan traded in Shanghai has weakened 7.14 per cent against the US dollar from August 10 last year up until Friday while offshore yuan traded in Hong Kong is down 7.36 per cent against the dollar over the same period. The devaluation is viewed by analysts as a bid to boost the competitiveness of China’s exports. “There have been no clear signs that Chinese exports have benefited from a cheaper yuan, as shown by the recent [export] figures,”said Wen Bin, chief researcher at China Minsheng Bank, a privately-owned lender. As the world’s biggest textiles exporter, China has seen its exports of textile products decline by 3.7 per cent in US dollar terms in the first six months compared to the same period last year, according to Ma Ying, director of the apparel department at the China Chamber of Commerce of Import & Export of Textiles and Apparel. Not only is the absolute amount declining, but the market share of Chinese textile products in the overseas market is also shrinking. “Although the official figure of the share of Chinese textile exports in the overseas market in 2015 has not been released yet, I expect it to be slightly lower,” said Ma. According to data from Ma’s chamber, the share of mainland Chinese textile and apparel products in the US market from January to May this year is 33.8 per cent, down from 34.7 per cent for the whole of 2014.
Meanwhile, China’s exports of home appliances in the first four months of this year declined by 1.08 per cent year on year, according to data from the China National Light Industry Council. “I would say the cheaper yuan still has some positive impact on exports. It would have dropped even more without the yuan’s depreciation,” said Ma. However, the impact of depreciation seems not significant enough to reverse the decline of exports. “More importantly for exporters, overseas demand has been shrinking given the slowdown of major economies,”said Wen of Minsheng. “Meanwhile, China is in a stage where it is challenged by surging labour and other production factors, which a cheaper yuan has been able to offset to some extent,” he said.
SOURCE: The South China Morning Post
