The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 18 NOV, 2016

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2016-11-17

Item

Price

Unit

Fluctuation

Date

PSF

1067.90

USD/Ton

4.41%

11/17/2016

VSF

2215.88

USD/Ton

-3.06%

11/17/2016

ASF

1863.55

USD/Ton

0%

11/17/2016

Polyester POY

1118.86

USD/Ton

0.79%

11/17/2016

Nylon FDY

2416.79

USD/Ton

1.84%

11/17/2016

40D Spandex

4294.91

USD/Ton

0%

11/17/2016

Nylon DTY

2591.50

USD/Ton

3.19%

11/17/2016

Viscose Long Filament

5488.74

USD/Ton

0%

11/17/2016

Polyester DTY

1339.43

USD/Ton

0.55%

11/17/2016

Nylon POY

2227.53

USD/Ton

4.08%

11/17/2016

Acrylic Top 3D

2038.26

USD/Ton

0.14%

11/17/2016

Polyester FDY

1353.99

USD/Ton

1.09%

11/17/2016

30S Spun Rayon Yarn

2853.56

USD/Ton

0%

11/17/2016

32S Polyester Yarn

1725.24

USD/Ton

0%

11/17/2016

45S T/C Yarn

2562.38

USD/Ton

0%

11/17/2016

45S Polyester Yarn

1848.99

USD/Ton

0%

11/17/2016

T/C Yarn 65/35 32S

2198.41

USD/Ton

0%

11/17/2016

40S Rayon Yarn

3013.71

USD/Ton

0%

11/17/2016

T/R Yarn 65/35 32S

2242.09

USD/Ton

0%

11/17/2016

10S Denim Fabric

1.34

USD/Meter

0%

11/17/2016

32S Twill Fabric

0.82

USD/Meter

0%

11/17/2016

40S Combed Poplin

1.16

USD/Meter

0%

11/17/2016

30S Rayon Fabric

0.66

USD/Meter

0.22%

11/17/2016

45S T/C Fabric

0.64

USD/Meter

0%

11/17/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14559 USD dtd. 17/11/2016)

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

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Shift in US policies could affect trade and FDI: Moody's

US president-elect Donald Trump's campaign proposals indicate that there could be a shift in policies of the world's largest economy once he assumes office. Any shift in US' international orientation, at a time when global trade is muted, could challenge output growth and potentially constrain policy space for trade-reliant and FDI-supported countries.In addition, a tightening of immigration rules in the US -- as proposed by Trump during the election campaign -- would over time dampen growth in remittances from foreign workers, which are significant for some economies in Latin America and Asia Pacific, Moody's Investors Service noted in latest report 'Sovereign Monitor -- Focus on the Pacific Rim'. While Moody's expects trade agreements that have already been implemented to remain in place following the change of presidency in the US, policies going forward could incentivise onshoring -- the repatriation of jobs at overseas-based suppliers back to the US -- and a focus on domestic production and sourcing. In such a scenario, Costa Rica and Mexico would be most vulnerable as these countries are most reliant on exports of high value-added goods and services. Meanwhile, India and the Philippines could also suffer in the event of policies that disincentivise foreign sourcing of business services. If demand from the US, the largest importer globally, were to slow markedly and durably as a result of a shift in government policies, international and intraregional trade would amplify the economic impact. The most open economies would be particularly vulnerable. However, Moody's considers the probability of this scenario to be very low. Over a longer period, a more insular climate in the US could also crimp FDI outflows. FDI from various countries finances a large proportion of the current account deficits among Latin American sovereigns, helping to reduce the region's dependence on more volatile portfolio inflows. Moody's notes that worker remittances also provide a stable source of foreign-currency earnings that support current accounts, and underpin consumption and domestic economic activity. For sovereigns with wider current account deficits and thinner foreign reserves, or where growth is subdued, a slowdown in remittances would exacerbate such challenges.

Source: Fibre2fashion

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Govt plans ATMs, cashless transactions at trade fair

The Union commerce ministry plans ATMs, card swipe machines, and digital-wallet tie-ups for India International Trade Fair.      Withdraw Rs 25000 a week: Govt announces measures to ease cash crunch for farmers Demonetisation: Cash limit relaxation at mandis Demonetisation disrupts Chhattisgarh Assembly business Retail businesses take a hit due to demonetisation Currency freeze to hit realty funds.  In the face of cash crunch from note ban, the Union commerce ministry plans ATMs, card swipe machines, and digital-wallet tie-ups for India International Trade Fair, in order to draw visitors to the event that opens up for the public on Saturday. ATMs are expected to pop up on site, swipe machines at ticket counters, and digital-wallet tie-ups will likely be with Paytm and Freecharge to allow cashless transactions. ATM is automated teller machine, from which you can take money out of your bank account using a special card. "Our projections suggest fewer people might turn up owing to the current situation," an official from India Trade Promotion Organisation, the body under the ministry in charge of the fair, said. A proposal to raise ticket prices has been shelved due to low turnout expectations, he added on the condition of anonymity. The prices of tickets for general visitors have been kept at Rs 60 on weekdays for adults and Rs 120 on weekends. These can be bought online. Based on the theme of Digital India, the fair has kicked off with 7,000 participants in an exhibition area of more than 100,000 square metres. This year, partner country is South Korea and focus country is Belarus. The fair saw business-to-business interactions and events Monday to Thursday.   During this period, business tickets, priced at Rs 500, kept smaller traders away, another official said. Apart from ticket booths with enough swipe machines, the ministry has also promised to provide exhibitors with the machines through a tie up with State Bank of India (SBI) and Axis Bank. This will be supplanted by a higher number of ATM machines being installed, up from 2 last year to 14 this time.  One or more mobile ATMs are also expected to be set up. However, visitors have complained of the machines running on empty, same as others across the city.  For small artisans and exhibitors, SBI has been tied up to open bank accounts, if needed, on site. Apart from exhibition stalls being set up by various Ministries, state governments of Punjab, Tamil Nadu, West Bengal, Bihar, Odisha, among others are expected to be major crowed pullers with a significant amount of buying and selling.

Source: Business Standard

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Govt to develop new and small ports to boost commercial shipping: Minister

The government on Thuesday said a number of new and small ports will be developed for commercial shipping transportation. "Based on the traffic and cargo scenario of the 12 major ports, a master plan has been prepared for expansion of port capacity, which includes a number of new ports," Minister of State for Shipping Pon. Radhakrishnan informed the Lok Sabha. According to the Minister, three major ports that are proposed to be developed -- Sagar Island (West Bengal), Enayam near Colachel (Tamil Nadu) and Paradip (outer harbour) (Odisha). "The Sagar Island port is estimated to cater traffic of 3.5 million tons per annum (MTPA) in 2020 and 27 MTPA in 2035," the Minister said in a written reply. The cost of the first phase of the Sagar Island port is pegged at Rs 1,464 crore. "The Enayam Port is expected to generate income of Rs 1,149 Cr per annum by the year 2020. Its first phase will cost Rs 6,575 crore, while the total project cost is pegged Rs 27,570 crore," the Minister said. "The Rs 8,767 crore Paradip Outer Harbour project will augument the existing port's capacity from 140 MTPA to 250 MTPA by 2020. Its first phase is pegged at Rs 4179 crore."

Source: The Economic Times

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India, US resolve tax disputes worth Rs 5,000 crore via APA

India and the US have resolved tax disputes of about R5,000 crore through bilateral advance pricing agreements (APA), the finance ministry said in a statement here on Thursday. The Central Board of Direct Taxes (CBDT) said the cases pertained to assessment years ranging from 1999-2000 to 2011-12. Further, during a meeting, the two countries also reached an agreement on the terms and conditions of the first-ever bilateral APA involving the two nations. The APA scheme, introduced in the Income Tax Act in 2012, is aimed at providing certainty to taxpayers with regard to “transfer pricing” by specifying the methods of pricing and setting the prices of international transactions in advance. These agreements allow MNC units to declare a value for their transactions with their overseas parents as per the rules prescribed by India and avoid audit or questioning by Indian authorities for five years. As for bilateral APAs, the tax authorities in the home country of the MNCs could accept the taxes paid in India by the Indian unit as a valid business expenditure, negating the chances of double taxation. Although a comprehensive list of companies that benefited from the development could not be immediately drawn up, IT majors like Microsoft, IBM, Google, Cisco, Honeywell, AT&T, Dell, Intel and Alcatel had in the past been subjected to transfer-pricing audits in India for their cross-border transactions. “The proceedings involved extensive work on both sides and several discussions with the taxpayer. The successful conclusion of these cases will go a long way in building confidence of taxpayers who look to resolve complex cross border transfer pricing issues under a bilateral dialogue in order to obtain a comprehensive solution that is accepted by both the tax jurisdictions,” said Anuj Khorana, transfer pricing partner at EY. The global consultancy firm was involved in the first ever bilateral APA between India and the US. What paved the way for the agreement was the provision of mutual agreement procedure (MAP) in the India-US Double Taxation Avoidance Convention. “During the meeting, 66 MAP cases relating to transfer pricing issues and 42 MAP cases relating to treaty interpretation issues were agreed to be resolved successfully. The resolved cases pertain to various issues like transfer pricing adjustments made to the international transactions in the nature of payment of royalty, payment of management fees, cost contribution arrangements, engineering design services, contract R&D services, IT-enabled services (both BPO and KPO services) etc,” the CBDT said. Some treaty interpretative issues in the nature of presence of permanent establishment in India and profit attribution to such PEs, disputes pertaining to royalty income v/s business income of foreign companies, etc were also resolved.

Source: The Financial Express

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Technical Textiles Market Growing Strongly as Demand from China and India Surges

The global technical textiles market is expected to surpass US$ 193 billion in revenues in 2020. China and India will continue to remain at the forefront of global demand. The global technical textile market is expected to reach US$ 193 billion in revenues in 2020, with global consumption expected to surpass 37 million tonnes. Robust demand from China and India is projected to continue, whereas the demand for advanced materials will become stronger in the U.S. and EU5. Global consumption is expected to grow at a CAGR of 5.4% through 2020, indicating steady growth opportunities for textile companies.  

The key factors anticipated to boost demand for technical textiles include, Steady growth of automotive sector: The automotive sector in emerging economies is anticipated to fuel demand for technical textiles. Use of technical textiles per mid-size car is anticipated to increase from the current 25-27 kg to 34-36 kg by 2020. Rapid industrialisation in emerging economies: The global industrial production is anticipated to increase by 3.5% to 5% from 2015 to 2020. Owing to steady industrial growth, demand for woven and dust filters, and conveyor belts is expected to receive a boost. Robust demand from healthcare sector: Demand for Meditech technical textiles is projected to grow in Asia Pacific, as providing affordable healthcare becomes a priority for governments. Growing environmental awareness: On the back of mounting concerns over conservation of environment, Oekotech technical textiles are gaining traction among end-users. Demand for Oekotech is expected to grow at a high CAGR during the forecast period 2015-2020.  While the global technical textiles market is anticipated to grow at a steady CAGR, few challenges can restrain growth. High price of finished products has remained a longstanding challenge for end-users, and in price-sensitive markets, it can be a major impediment. Further, the technical textile market is highly fragmented with small and medium scale enterprises in Asia Pacific giving intense competition to European players.  The key trends anticipated to shape up the global technical textiles market include development of e-textiles and robust government support programmes to boost manufacturing of technical textiles. Further, investment in R&D to create advanced technical textiles is also expected to receive an impetus, especially in the U.S. and EU5.  By application, Hometech, Buildtech, and Meditech will remain the highest-selling technical textiles throughout the forecast period 2015-2020, with Homtech technical textile consumption anticipated to reach 6.43 million tonnes by 2020. By process type, non-wovens will continue to have a dominant edge over composites, owing to their versatility in medical and industrial applications.

Source: China Textiles

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Iran overtakes Saudi Arabia as top oil supplier to India

Iran overtook political rival Saudi Arabia as India’s top oil supplier in October, shipping data showed, just ahead of a producers’ meeting this month to hammer out the details on output cuts aimed at reining in a global glut. Iran used to be India’s second-biggest oil supplier, a position it ceded to Iraq after tough Western sanctions over its nuclear development programme limited Tehran's exports and access to finance. But India’s oil imports from Iran have shot up this year after those sanctions were lifted in January. In October they surged more than threefold compared with the same month last year, rising to 7,89,000 barrels per day (bpd), according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts. That compares to 6,97,000 bpd supplied last month by Saudi Arabia. Over the whole January to October period, though, Saudi Arabia still holds India’s top supply spot, at an average of 8,30,000 bpd versus Iraq’s 7,84,000 bpd and Iran’s 4,56,400 bpd.

But Saudi is more ‘refined’ Iran’s surge to the No.1 spot is due partly to less available crude from Saudi Arabia, which has increased its capacity to refine oil instead of just exporting more crude. “Saudi Arabia’s refining capacity has increased over time and so it is not in a position to increase its exports further, whereas Iran is better placed to raise its output and sales to India,” said Ehsaan ul Haq of the United Kingdom-based consultancy KBC Energy. The surge is also thanks to Iranian price discounts, which attracted purchases from India’s programme to build up its strategic petroleum reserves (SPR). Last month, India took in 2 million barrels of Iranian crude for the SPR stocks, and another 4 million barrels is expected to be shipped in November. In the first seven months of its fiscal year, between April and October, India imported 5,23,200 bpd from Iran, compared to 2,49,100 bpd for the same period a year ago.

Returning buyers

Indian refiners including Reliance Industries Ltd, operator of the world’s biggest refinery complex at Jamnagar that had stopped imports from Iran during the sanctions period, have also returned as buyers of Iranian oil. Iran produces almost 4 million bpd of oil and exports 2.4 million bpd. Tehran’s exports dropped to 1 million bpd during sanctions, down from a peak of almost 3 million bpd in 2011, before tougher Western sanctions were implemented. Gaining the top position as oil supplier to the world’s third-biggest importer, even if only for one month, comes at a sensitive time. The Organization of the Petroleum Exporting Countries (OPEC) is due to meet on November 30 to finalise a planned production cut aimed at propping up prices, which continue to languish below $50 per barrel due to oversupply. Exemptions to the planned cuts were given to Libya and Nigeria, where output has suffered from conflict, and sanctions-hit Iran. Given Iran has now pipped de facto OPEC leader Saudi Arabia in India, those exemptions might be more difficult to defend during the upcoming meeting.

Source: The Hindu

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India is ‘non-committal’ on market economy tag for China

Nations’ slugfest: An MES tag will prevent other nations from imposing anti-dumping duty on Chinese imports. Beijing cites 2001 protocol that status be made effective from Dec. 2016 India is not inclined to automatically grant the coveted ‘Market Economy Status’ (MES) to China this December under World Trade Organisation (WTO) norms, highly placed official sources said. Citing the provisions in the ‘Protocol on the accession of China to the WTO’ in 2001, Beijing has said WTO member countries must fulfil their promise to deem China a ‘market economy’ from December 2016. However, granting MES to China will severely curb the ability of nations including India to impose anti-dumping duties on “unfairly priced” Chinese imports. The matter was discussed recently by the Ministries of Commerce & External Affairs, with the Centre for WTO Studies (at the Indian Institute of Foreign Trade). Of the 535 cases where anti-dumping duties were imposed by India during 1994 to 2014, a maximum of 134 has been on goods from China. To refuse China the ‘MES’, India has taken sides with the U.S. and European Union in stating that unlike in 'market economies' where prices of items are market determined (based on demand & supply conditions), there is still a significant government influence in the Chinese market. China subsidies In this regard, they have referred to the Chinese government subsidies for various sectors, currency ‘manipulation’ and the related ‘price fixing’, ‘absence of transparency’ in lending rates and bad loans of banks as well as in minimum wages & property rights besides the ‘lack of’ proper business accounting standards – all of which in turn cause distortions in global trade, the sources said. As of now, India is “non-committal” on according MES to China, the sources said, adding that “ultimately it will be a political call after considering the stance of other countries and India’s relations with China. “The intention will be to ensure India’s manufacturing sector is not hit by unfairly priced Chinese goods.” The sources said decision to “wait-and-watch and to further study the matter” has been conveyed to the Permanent Mission of India to the WTO at its headquarters in Geneva. There is a clause in the 2001 Protocol, according to which countries need to grant the MES only after China has established that it is a ‘market economy’ “under the national law of the importing WTO Member” — something that allows a country to contend that China might be establish itself as a market economy only in the case of some goods, and not all, sources said. The sources said several nations that have a strong manufacturing base are concerned about according MES to China, while nations including in Africa and Latin America — dependant on Chinese investments to boost manufacturing — are inclined to grant Market Economy Status to China.

Source: The Hindu

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Rupee cracks 68-level, tumbles 32 paise

The rupee took a sharp plunge of 32 paise to crash below the 68-mark against the US dollar in early trade on Friday on higher dollar demand from importers after the American currency strengthened overseas coupled with lower opening in the domestic stock market. Dealers said dollar’s strengthening against rivals overseas following hints of interest rate hike in December from US Federal Reserve chief Janet Yellen also weighed on the domestic currency. Besides, foreign fund outflows kept pressure on the rupee, they added. The rupee had staged a smart rebound against the US dollar to end higher by 12 paise at 67.82 in Thursday’s trade on fresh selling of the greenback by exporters and banks.

Source: The Financial Express

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Surat: Textile hub shut half the week, works one shift only

The textile industry of Surat, which sustains the families of nearly 10 lakh people directly or indirectly linked with it, has ground to a near halt since November 8, the day after it had opened on the conclusion of the Diwali vacations. The cash crunch has forced textile and powerloom units to shut at least three days in the week and do away with the night shift entirely, causing what industry insiders say is an 80 per cent loss. The textile business has an annual turnover of nearly Rs 350 crore. The South Gujarat Textile Processing Federation will plead with Union Textiles Minister Smriti Irani, who is visiting Gujarat Saturday, to bail the industry out of the crisis. Surat has over 165 textile markets with 65,000 textile trading shops, 350 textile processing houses, and over 6 lakh powerloom machines. The units had shut for Diwali on October 31. Insiders say that after reopening, it takes two to three days to rev up the machines and for production to return to its original momentum. The bulk of the workforce is with dyeing and printing units in the textile processing houses, with the powerloom sector, and with packaging and unloading in the trading sector. Most of the workers employed in this industry are migrants from Uttar Pradesh, Bihar, Maharashtra, Rajasthan, Odisha and Andhra Pradesh. They are paid about Rs 200 a day and get double if they work on night shifts. The wages are paid in two instalments a month. Said Jitu Vakharia, president of the Federation of South Gujarat Textile Processing Association, “In view of the situation, we are not in a position to give salaries to workers in notes other than Rs 500 and Rs 1,000. Some factory owners use their old savings of other denomination notes while some have even bought Rs 100 and Rs 50 notes from markets at higher rates. But most factory owners do not have enough cash to run the factory and meet daily expenses.” He added that many workers did not show up at work because they were queuing up in banks or had gone back home with whatever savings they had, so the processing houses were running for only three or four days a week. Vakharia said he had also heard about clashes between workers and factory owners over disbursing salary in the old currency notes. “The average production of processing houses per day is around 4 lakh crore metres which is now down to below one crore metres. The textile workers also take leave for a day or more to stand in long queues outside the banks to change Rs 500 notes.” He emphasised that small currency was necessary for the industry and that the workers were not accepting the new Rs 2,000 notes. “We will request the Union minister to arrange for a regular cash flow into the textile industry,” said Vakharia. Powerlooms too ran barely four days in the week and in one shift only. Even trading shops, which used to open from 10.30 am to 9 pm, are now closing at 6 pm for want of business, said Federation of Surat Textile Traders Associations president Manoj Agrawal. “Local sales have gone down as have exports. The annual turnover of the textile trading business is around Rs 350 crore. Buyers from other states have cancelled bookings. Currently the industry is facing a loss of 80 per cent of the business expected after Diwali. Generally after Diwali, it is the beginning of the wedding season and the festive season in south India and we get good business, but not this time,” said Agrawal. The ancillary transport business too has been hit and trucks are idling in godowns. Surat Textile Goods Transport Association Yuvraj Deshle said, “We aren’t getting delivery orders from textile traders. We too are struggling, as we have to pay labourers and truck drivers daily.”

Source: Indian Express

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Surat’s textile industry set to lose its sheen

The ‘Silk City’ of India, Surat, looks poised to lose its sheen in the wake of the recent demonetisation of R500 and R1,000 notes by the Centre. The city’s power loom sector has already clocked losses amounting to R800 crore and they are mounting by the day.

Ashok Jirawala, president, Federation of Gujarat Weavers’ Association, said, “This has been a deadly decision by the government. The circulation of money has stopped but who will do the work now? Everyday, we are making crores of losses and even after a year, it is going to be difficult for businesses to sustain themselves.” According to Jirawala, production in the textile sector has halved since demonetisation came into effect. “Earlier, there was production of four crore metres of cloth per day. Now, after this move by the Centre, production has fallen to two crore metres per day. This is bound to drop even further,” he said. A largely unorganised sector, Surat is home to 50,000 power loom units, another 40,000 units for value addition and about 400 dyeing units. Jirawala estimated that about 10 lakh workers are directly or indirectly employed within the textile sector in Surat, which is also a major hub for the diamond trade in the country and overseas. Talking to FE, Jirawala said, “Each unit in Surat employs about 200 workers who have to be paid their salaries twice each month. Every month, owners of textile units end up spending at least R12 lakh for the salary of their workers. With the limit on withdrawal, how are we supposed to pay our workers? The government should be encouraging trade, but right now we are just making crores of losses daily.” Traders in Surat have submitted a memorandum to the collector in this regard. Jariwala added that the Vyapari Mahasangh in Surat, which includes traders from all sectors including textiles and the diamond industry, would soon send a delegation to make representations to the government. Ahmedabad, formerly called the ‘Manchester of the East’, has also seen trade fall by 80%. Sources indicate there is a 25% cash component within the textile sector, especially in retail. Arpan Shah, senior vice-president, Gujarat Garment Manufacturers’ Association, said, “Manufacturing has also been cut down by almost 70%. Diwali vacation ended for the textile industry, and trade has not picked up at all. Many people are unable to understand the situation, and a lot of orders are being cancelled.” Traders in Ahmedabad, which is home to at least 17,000 textile manufacturing units, have adopted a ‘wait-and-watch’ outlook towards the demonetisation move. Shah said, “This is a good move for the economy definitely because as people move towards plastic money, their purchasing power will grow which is good for business in general. The situation right now is bad, but everyone expects it will improve in about a month or so.” According to data available with the textile commissioner’s regional office in Ahmedabad, Gujarat is home to 144 composite mills, including those for spinning, 897 cotton ginning and processing units, 22 surgical cotton units, 2,362 units for processing of readymade garments, 362 units for technical textiles, 513 power processing units and 1,146 hand processing units, of which 95% are located in Rajkot.  Additionally, Gujarat has 60 home textile units and 5,053 preparatory units for weaving.

Source: The Financial Express

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Global Crude oil price of Indian Basket was US$ 44.18 per bbl on 16.11.2016

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$ 44.18 per barrel (bbl) on 16.11.2016. This was higher than the price of US$ 42.95 per bbl on previous publishing day of 15.11.2016. In rupee terms, the price of Indian Basket increased to Rs. 2994.45 per bbl on 16.11.2016 as compared to Rs. 2908.14 per bbl on 15.11.2016. Rupee closed weaker at Rs. 67.78 per US$ on 16.11.2016 as against Rs. 67.72 per US$ on 15.11.2016. The table below gives details in this regard:

Particulars     

Unit

Price on November 16, 2016

 (Previous trading day i.e.

15.11.2016)                                                                  

Pricing Fortnight for 16.11.2016

(Oct 27, 2016 to Nov 11, 2016)

Crude Oil (Indian Basket)

($/bbl)

                  44.18              (42.95)        

44.80

(Rs/bbl

                    2994.45       (2908.14)       

2990.85

Exchange Rate

  (Rs/$)

                  67.78              (67.72)

66.76

 

Source: PIB

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Bangladesh on track to receive EU GSP Plus status

Once Bangladesh graduates to the developing country bracket in 2021, the country is on track to receive the GSP Plus status from the European Union (EU), but in the process will lose the zero duty benefits in exports to the region. As a least developed country, Bangladesh has been enjoying zero duty privilege in its exports to the EU since 1971.  “The GSP Plus scheme will be applicable for Bangladesh in 2021, for which the country will have to fulfil some conditions including improved labour rights, strengthening workplace safety, reduction of corruption and saving the environment,” Bangladeshi media reported. These are some of the main conditions which the country needs to fulfil to receive the GSP Plus status from the EU, to which it exports 60 per cent of its apparel exports. At a joint press briefing with the visiting EU trade delegation, Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, “Bangladesh's claim on the EU GSP Plus status will be better after 2017, once all apparel production factories complete remediation works.”

Source: Fibre2fashion

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Irani reviews scheme to impart skill development in textiles

Union Minister Smriti Irani today reviewed implementation of the Integrated Skill Development Scheme(ISDS) and suggested measures to strengthen its monitoring mechanism and increase its outreach for imparting training to individuals in the textile sector. At a meeting here, Irani had discussions on functioning of Project Management Unit under ISDS. The textiles minister also reviewed the web-based Management Information System (MIS) devised to monitor skill training programmes in the sector. To strengthen the monitoring mechanism, she emphasised on physical verification module with a feature to upload videos of visits in stipulated time. As of now, 21,577 trainees are being trained under ISDS in the textile sector through 556 centres across India. In order to ensure benefits reach maximum number of people, Irani emphasised on displaying scheme details in the public domain. PTI RSN ARD

Source: India Today

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Germany-Suessen to show new spinning components at India ITME

Spindelfabrik Suessen GmbH, Germany’s leading manufacturer of spinning systems and components for spinning machines, is set to present various new components for ring and rotor spinning machines at India ITME 2016, India’s leading international textile machinery expo, from December 3 to 8, 2016, at the Bombay convention and exhibition centre, in Mumbai. All Suessen innovations are aimed for optimal yarn quality and high productivity, while costs are reduced at the same time. In ring spinning, one of the highlights at the expo will be the EliTeCompactSet, a compact spinning system, which can be installed on nearly all types of ring spinning machines. The system includes various innovations resulting in better yarn quality and increased productivity. An example is the EliTube Concept: as the fibre path within the drafting system is off-centred and the slot inclination is varied from left to right depending on the machine side, the use of top roller cots and aprons cans be doubled. The main goal of this and the other innovations is increasing lifetime of the components and reducing maintenance costs. The EliTeCompactSet can be equipped with the optional EliTwist enabling the production of compact two-ply yarn on ring spinning machines. EliTwist is highly suitable to spin two-ply core yarns. Suessen will also present various new premium parts for rotor spinning machines. The new TwistTrap Navel is a modified navel with a patented twist-retaining element. The navel, which is applicable to all types of SpinBoxes, provides an additional false twist, which results in better spinning stability. The production increases by 10 per cent to 15 per cent due to the possible twist reduction. Another new premium part is the PS7 TwinDisc. There is substantially less flexing work between rotor shaft and disc, as the width of the disc is reduced from 10 millimetre to 7 millimetre. Due to the lower energy consumption–up to 11 W per spinning unit are possible depending on the rotor speed–the pay-back period of this innovative component is very short.

Source: Fibre2fashion.

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Vietnam-Int’l conference promotes product safety, local exporters’ compliance

Product safety and compliance to export markets’ requirements were discussed at an international conference in Ho Chi Minh City on November 15.  The event was organised by the American Chamber of Commerce in Vietnam - HCM City chapter and the American Apparel & Footwear Association (AAFA ).  Speaking at the event, Director General of German TUV Rheinland Vietnam Frank Juettner, said Vietnamese enterprises need to comply with legal regulations and the requirements of each export market.  Vietnamese exporters need to focus on developing brand names and labeling to ensure their products meet international safety standards, Juettner said.  He suggested that ministries, sectors and businesses develop a management system for a supply chain from materials to finished products, especially for apparel and footwear.  AAFA Senior Vice President, Supply Chain Nate Herman said all stakeholders in a supply chain, such as producers, exporters and partners need to communicate closely with one another and comply with legal regulations.  According to experts, Vietnam will need to join global supply chains and customs reform to fulfill its commitments it has made to join the free trade agreements (FTA), such as the Trans Pacific Partnership and the Vietnam – Europe FTA.  Business representatives pointed to difficulties facing them in meeting the US requirements, particularly the safety requirements of each state.

Source: VietNamNet.

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China weakens yuan to eight-year low

China on Tuesday weakened the yuan's fix against the dollar to a nearly eight-year low as the surging dollar put further pressure on the unit, complicating Beijing's efforts to manage it. The central People's Bank of China set the value of the yuan -- also known as the renminbi -- at 6.8495 to the greenback, down 0.30 percent from Monday's fixing, according to data from the Foreign Exchange Trade System. The unit has reached a series of six-year lows in recent weeks in the face of a greenback rising on expectations of sharper US interest rate hikes, with President-elect Donald Trump pledging during his campaign to ramp up spending and cut taxes. But Tuesday's fix was the weakest since December 2008, and beyond the roughly 6.83 level at which Beijing virtually pegged the unit for nine months in 2009-10, in the aftermath of the global financial crisis. China only allows the yuan to rise or fall two percent on either side of the daily fix, one of the ways it maintains control over the currency. During the presidential campaign Trump repeatedly accused China of keeping the yuan undervalued to boost exports and threatened to declare Beijing a currency manipulator once in office. But analysts and officials say that Beijing is now intervening in the opposite direction, and trying to prop up the unit's value against a strengthening greenback. The US Treasury in October cleared China of keeping the yuan cheap for trade advantages, saying the currency could have fallen more had Beijing not acted. "It's a USD story so far -- and possible intervention to see us back from the brink," Michael every, head of Asia-Pacific financial markets research at Rabo Bank, said in a written response to AFP. Barclays forecasts that the onshore yuan will fall to 7.15 against the dollar by the end of the third quarter next year. The bank's Singapore-based head of Asia FX and rates strategy Mitul Kotech said the yuan was basically tracking moves by the dollar. "We are still awaiting what policies are going to be in terms of Trump's policies towards (China) given what he said in the run-up to the election." It was "not a cause of concern at this point in time" he said. But while Trump's direction in office remains unclear, he has also threatened to impose tariffs of 45 percent on Chinese-made goods, raising the prospect of a trans-Pacific trade war. Dariusz Kowalczyk, senior emerging market strategist at Credit Agricole, warned that "concerns over the impact of US tariffs on China's growth and external position would magnify the outflow. ‘China's international investment position shows that there is still a lot of capital that could leave," he said in a note. A weaker yuan could help Chinese exports, which fell for a seventh consecutive month in October but are still a key growth driver for the world's second-largest economy. But it also threatens to accelerate capital flight -- which in turn adds to downed pressure on the currency. In August last year, Beijing suddenly devalued the yuan, causing investors to dump the unit in volumes not seen since 1994 and sparking an outflow of money from China. China has spent hundreds of billions of dollars from its vast foreign exchange reserves, the world's largest, in its efforts to keep the renminbi from falling too rapidly. "Yuan deprecation means more capital outflow and more pressure on China's foreign exchange reserves," Liao Qun, Citic Bank International Chief economist, told AFP. "This will affect the world's confidence towards the renminbi, as well as faith in China's economy. "China is trying to push for the internationalisation of the yuan and if the market lost its faith in the unit, the process could become more difficult." The International Monetary Fund in October officially included yuan in its elite SDR reserve currency basket, a symbolic coup for Beijing policymakers.  The onshore yuan closed at 6.8530, 0.18 percent weaker than Monday's close of 6.8409, according to the Foreign Exchange Trade System.

Source: AFP.

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Pakistan-Cotton buying picks up

Relentless buy­­ing was witnessed in quality cotton on Wednesday as spinners remained focused on first-grade cotton to accumulate maximum quantity before the end of first picking. The smooth flow of phutti (seed cotton) also assisted buyers who remained focused towards quality cotton, brokers said. However, some small mills also purchased lower-grade cotton, they added. Steady world cotton markets were another factor which kept buyers active. The New York cotton market touched a seasonal high while markets of China and India also closed higher. Amid no possibility of getting cotton from across the border, leading spinners are bent upon to meet their demand from the domestic market. The Karachi Cotton Asso­ciation left its spot rate unchanged. Major deals on the ready counter were: 1,000 bales from Sanghar done at Rs5,550, 1,400 bales Khair­pur (Rs5,975 to Rs6,000), 2,000 bales Saleh Pat (Rs6,000 to Rs6,100), 2,000 bales Rohri (Rs6,000 to Rs6,200), 1,000 bales Dharki (Rs6,225 to Rs6,275), 1,000 bales from Mirpur Mathelo (Rs6,225 to Rs6,275), 1,200 bales Mian­wali (Rs6,000), 1,000 bales Kassowal (Rs6,100), 1,000 bales Khanewal (Rs6,100), 1,600 bales Mian Channu (Rs6,100), 2,200 bales Haroon­­abad (Rs6,200), 1,600 bales Fort Abbas (Rs6,200 to Rs6,220), 1,000 bales Chishtian (Rs6,200 to Rs6,225) and 3,400 bales Rahimyar Khan (Rs6,250 to Rs6,275).

Source: Dawn.

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Foreign orders for Italian textile machines rise

The orders index for textile machinery recorded an increase for the third quarter of 2016, thanks to positive sales figures abroad, a survey carried out by the Association of Italian Textile Machinery Manufacturers (ACIMIT) showed. For the period from July to September 2016, the overall order intake increased by 16 per cent compared to the same period last year. The third quarter value for 2016 stood at 101.1 points (2010 basis = 100). However, this growth applies to foreign markets only, where the index recorded an absolute value of 112.3 points (+20 per cent compared to July to September 2015). In Italy, the index stood at 48 points, dropping off by 14 per cent over the same quarter in 2015. ACIMIT president Raffaella Carabelli said, “This data on orders confirms the significant vitality in foreign markets. The order intake from Italy's domestic market has declined after two consecutive quarters of growth. We're still far from an effective recovery for the domestic market. However, we're confident that the plan put forward by the Italian Government for 2017 fiscal year can give confidence to businesses who need to invest.”

Source: Fibre2fashion.

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