The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 4 FEB, 2017

 

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2017-02-03

Item

Price

Unit

Fluctuation

Date

PSF

1198.73

USD/Ton

0%

2/3/2017

VSF

2419.25

USD/Ton

0%

2/3/2017

ASF

2005.14

USD/Ton

0%

2/3/2017

Polyester POY

1235.05

USD/Ton

0%

2/3/2017

Nylon FDY

3370.96

USD/Ton

0%

2/3/2017

40D Spandex

4576.95

USD/Ton

0%

2/3/2017

Polyester DTY

5515.59

USD/Ton

0%

2/3/2017

Nylon POY

1482.06

USD/Ton

0%

2/3/2017

Acrylic Top 3D

3138.48

USD/Ton

0%

2/3/2017

Polyester FDY

2150.44

USD/Ton

0%

2/3/2017

Nylon DTY

1569.24

USD/Ton

0%

2/3/2017

Viscose Long Filament

3545.32

USD/Ton

0%

2/3/2017

30S Spun Rayon Yarn

3065.83

USD/Ton

0%

2/3/2017

32S Polyester Yarn

1816.25

USD/Ton

0%

2/3/2017

45S T/C Yarn

2673.52

USD/Ton

0%

2/3/2017

40S Rayon Yarn

3196.60

USD/Ton

0%

2/3/2017

T/R Yarn 65/35 32S

2295.74

USD/Ton

0%

2/3/2017

45S Polyester Yarn

1961.55

USD/Ton

0%

2/3/2017

T/C Yarn 65/35 32S

2237.62

USD/Ton

0%

2/3/2017

10S Denim Fabric

1.34

USD/Meter

0%

2/3/2017

32S Twill Fabric

0.83

USD/Meter

0%

2/3/2017

40S Combed Poplin

1.16

USD/Meter

0%

2/3/2017

30S Rayon Fabric

0.66

USD/Meter

0%

2/3/2017

45S T/C Fabric

0.66

USD/Meter

0%

2/3/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14530 USD dtd.03/02/2017)

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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Union Budget 2017 provides big boost to textiles sector; here’s why

Higher fund allocation for labour skilling and end-to-end logistics solutions, including rail and coastal shipping last-mile connectivity, will help the country’s textile industry to achieve the $350-billion target in next few years as set by the union government, industry experts have said. Though there was no big announcement in the Budget, continuing with the existing tax structure, including service tax and optional Cenvat route extended for textile industry till GST is implemented, has been considered as a big boost for the sector. Higher fund allocation for labour skilling and end-to-end logistics solutions, including rail and coastal shipping last-mile connectivity, will help the country’s textile industry to achieve the $350-billion target in next few years as set by the union government, industry experts have said. Though there was no major announcement in the Budget, continuing with the existing tax structure, including the service tax and optional Cenvat route extended for textile industry till the GST is implemented, has been considered as a big boost for the sector. The cluster approach for contract farming would greatly benefit the predominantly cotton based textile industry in India, where more than 80% of MSMEs are located across the country. The government’s proposal to allocate funds for affordable housing scheme (as sought by the textile sector) is a boon to the sector. While the overall allocation for the textile sector has remained flat, there has been an increase in allocation towards remission of state levies to R1,555 crore for 2017-18 from R400 crore for 2016-17, which is likely to result in 1-1.5% cost savings for a section of exporters. Speaking to FE, Raja M Shanmugham, president of Tirupur Exporters’ Association (TEA), lauded the enhancement of allocation of fund to Mudra Bank from R1,36,000 crore to R2,44,000 crore which will encourage the new entrepreneurs in the region to invest in sectors such as knitwear. “The announcement on allocation of fund for affordable housing scheme is quite encouraging which has been requested by the association since there has been a plan to construct one lakh houses for labourers. The profit exemption announced for construction of 60 sq mt will encourage more promoters to enter for construction of houses. Similarly, the like change in labour reforms, which has been pending for some time, would also help clusters such as Tirupur where they have lakhs of workers working for day and nights.” A sum of R2,200 crore to upgrade labour skilling is also a major measure for labour intensive industry like textiles, he added. Moreover, the allocation to textile sector remains relatively unchanged — R6,230 crore in 2017-18 from R6,290 crore in 2016-17. However, the lesser allocation for both Amended Technology Upgradation Fund Scheme (ATUFS) and cotton procurement is offset by higher allocation for the textile package announced on June 22, 2016. With a significant proportion of textile sector in the SME segment, reduction in tax rate will improve bottomline of companies, felt Crisil in its analysis. M Senthilkumar, chairman, Southern India Mills’ Association (SIMA) said the objective of doubling farmers’ income, housing for one crore rural Indians, skilling of youth by establishing 100 India international skill centres, development of infrastructure to provide end-to-end solution by integrating road, rail & ship would greatly benefit the textile industry.

Source: The Financial Express

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Opening of Bank Accounts and Promotion of Digital Payments in Textile Sector

Opening of Bank Accounts and Promotion of Digital Payments in Textile Sector

Government has launched a special drive for opening of bank accounts and promotion of digital payments in the textiles sector, by organizing special camps. As on 20.01.2017, a total of 11,86,203 bank accounts have been opened and activated for textile workers, which includes 17,245 jute workers. For weavers and artisans of handloom and handicraft sectors, 1,912 camps were organized upto 20.01.2017; a total of 6,28,215 bank accounts have been opened/mobile apps downloaded by the participants of these camps. Banks have provided micro-ATM facilities at weaving clusters. The above information was given by the Union Textiles Minister, Smt. Smriti Zubin Irani today, in a written reply to a Lok Sabha question.

Source: Business Standard

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Union Budget 2017: Arun Jaitley encouraged Make in India, digital payments; all eyes now on GST rollout

On the backdrop of the recent demonetisation and the ensuing introduction of the Goods and Service Tax (GST), the finance minister presented the Budget for 2017-18, classifying these two as the tectonic policy initiatives of the government. As introduction of the GST is looking possible from July 1, the industry was not anticipating major changes in indirect taxes. As expected, Arun Jaitley did not make any major changes in the area of indirect taxes. The budgetary changes proposed are limited to tweaking of rates/duties, correction of inverted duty structure, changes on the procedural aspect, etc. However, the finance minister has used the opportunity to achieve the stated objectives of the government such as encouraging the Make in India initiative, correcting the inverted duty structure, promoting cashless transaction and the interest of public health by imposing additional taxes on tobacco. In order to encourage Make in India and reduce costs, the finance minister has reduced custom duties on LNG, nickel, and machinery required in the specified renewable energy sector. Further, to address the problem of the inverted duty structure in textiles, chemicals and petrochemicals, metals and renewable sectors, the basic custom duty has been reduced on inputs/raw materials. Towards encouraging cashless transactions, PoS machines and parts and components of such machines have been exempted from customs duties. On the excise duty front, the rate of duty has been increased on cigars, pan masala, etc. Further, products promoting the digital economy such as micro ATMS, fingerprint scanner, PoS card reader for mPOS and their parts have been exempted from the excise duty. One key amendment is repealing of the Research and Development Cess Act and corresponding removal of exemption from service tax w.r.t import of technology from April 1, 2017. By this amendment, the imported technology will cost less as the non- creditable R&D cess is replaced by creditable service tax. As expected, the finance minister reiterated the commitment to implement the GST and mentioned that extensive efforts to reach out to trade and industry would commence from April 1, 2017. Jaitley expressed satisfaction with the level of progress being made towards implementation of the GST and IT-related preparedness. Overall, this Budget is neutral on government revenues as far as the indirect tax collections are concerned. It is apt to say now that all eyes are set on the introduction of the final GST laws in the Budget session to pave way for the implementation of GST from July 1.

Source: The Financial Express

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Every budget decision is a step towards reforming and improving upon present systems: Arun Jaitley

Finance minister Arun Jaitley on Friday defended his decision to impose a 10% surcharge on income above Rs 50 lakh and said that in a tax non-compliant society, the state needs resources that have to come from the affluent. In a post Budget interaction with industry chambers, he noted the need for the industry to step up on various issues including bad loans.  Laying the onus on the industry to support and facilitate the government’s drive against the shadow economy and programmes such as Make in India, Jaitley said every decision the government has taken has been in the direction of reforming and improving upon the present systems. “Whether it was to target subsidies to the more deserving, end discretions, ease the process of doing business, rationalise taxes or cleaning up the system,” he said.  On goods and services tax, the finance minister said he hopes to get central GST (CGST) and integrated GST (IGST) draft legislations approved at the next GST Council meeting on February 18 and bring them in the second half of ongoing Budget session. “Hopefully, my target currently is to finalise those drafts and take them in the second part of the budget session in Parliament.”  The finance minister noted that a realistic fiscal deficit target of 3.25% of GDP has been fixed for 2017-18 and 3% for the next year that could be achieved on account of higher tax revenues and disinvestment proceeds.  “This year, our collections are higher than anticipated and hopefully we will maintain that course even next year,” said Jaitley adding that the government intends to list more PSUs to make them competitive and transparent. When asked if the government is looking to set up a bad bank, as also suggested in the Economic Survey, Jaitley said, “It (bad bank) is also a possible solution. We will take it on board for discussion.”  The finance minister, however, said that the government does not want to get into a situation where eventually it will all converge to a government issue and then the whole thing will have to be supported only out of the budget.

Source: Economic Times

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Centre should free bad assets to revive economy: Experts

To revive economy and create employment, the Centre’s focus should be on freeing up bad assets to increase corporate borrowing and skilling people in textile and leather industry, say experts. Speaking at a panel discussion on the Union Budget 2017 organised by The Hindu Centre for Politics and Public Policy, Praveen Chakravarty, Senior Fellow, IDFC Institute, said to revive economy and spur growth, we need to free up bad assets that have been festering for the past three years. “There are ₹15 lakh crore worth of bad assets in corporate and bank balance sheets. It largely impacts how loan decisions are made and corporate’s ability to borrow more. This should have got lot more attention this budget,” Chakravarty said. The solution would be freeing up bad assets by public sale or auction. “This will help corporates borrow more and result in investments and lead to growth,” he said at the discussion moderated by Raghavan Srinivasan, Editor, BusinessLine. In terms of allocation or policy education, healthcare and skilling did not get much attention. Chakravarty said. “We need to focus on textile and leather if we want to create more jobs in the country.” CVS Krishnakumar, member of Taxation Committee, South Indian Chamber of Commerce and Industry, said, “Though not much happened in terms of skilling, industries like textiles and leather have been identified as potential sectors by the current government. But implementation is going to take time.”

Private participation

R Srinivasan, Associate Professor in Econometrics, University of Madras, said the Centre’s motive to involve more private participation is clear from GDP to expenditure and revenue ratio. The tax revenue to GDP ratio has gone down from 9.74 per cent to 9.50 per cent. “But to control deficit with tax revenue declining, the government is cutting down on expenditure,” he said. “This way the Centre wants to put money into private enterprises that will help in the revival of the economy,” he added. The government should have a mechanism to incentivise the States to spend the Centre’s funding efficiently. “Around 20 per cent of total expenditure of the Centre is transferred to the State as direct spending ability of the central government is limited,” he added.

Source: The Hindu Business Line

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Govt hints at 'positive' news for powerloom industry

Government today hinted at giving a "positive" news with regard to addressing the problems being faced by the powerloom industry once the elections in five states are over. Textiles Minister Smriti Irani said in the Rajya Sabha that meetings have been held with stakeholders to address the problems being faced by the powerloom industry. "But I am currently constrained that I cannot make declaration because of Model Code of Conduct (in force because of assembly polls in five states). I can only say that outcome of stakeholders' meetings will be positive. I am duty bound not to explain in detail.  "I can only make this declaration to the benefits to the industry after Code of Conduct is lifted," she said. She was responding after NCP member Majeed Memon highlighted the problems of powerloom sector during Zero Hour. He said the industry needs to be supported as it supports a million people, mainly those from minority community. Memon said there was no mention about the sector in the Union Budget even though powerlooms are on the verge of closure, and some workers were commiting suicide. Irani said Memon had made a representation to her ministry regarding the powerloom sector, after which stakeholder meetings were held and MPs were invited so that a "holistic solution" could be found out. Irani also said that under the Mudra Yojna, capital at reduced rates was available for all segments of the society. The House also witnessed heated arguments between Treasury benches and members of TMC as Swapan Dasgupta (nominated) tried to raise an issue related to Saraswati Puja in West Bengal. Nadimul Haque (TMC) repeatedly disrupted Dasgupta as the latter tried to present his point. Agitated over Haque's behaviour, Deputy Chairman P J Kurien warned him several times that he would "name" him, inferring suspension from the House for a specified period. Haque argued that the issue being raised was a state subject.

Source: The Financial Express

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Welfare Schemes for Weavers of Varanasi

 In the Budget 2014-15, the Government announced setting up of Trade FacilitationCentre and Crafts Museum (TFC&CM) at Varanasi to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi. The estimated cost of project is Rs.300 crores. The first phase of the Project consisting of Crafts Museum, Entrance Plaza and Shopping arcade has been inaugurated on 22nd Nine Common Facility Centres (CFCs) alongwith Common Service Centres (CSCs) have been set up in different blocks/urban areas to provide facilities like training, yarn, dyeing, warping, IT-enabled services etc. CSC provides services like banking,December, 2016. Ten block level clusters have been sanctioned in different blocks/urban areas of Varanasi at a total project cost of Rs.7.89 crore with Central share of Rs.7.70 crore and first installment of Rs.5.12 crore released, covering 4129 weavers. Aadhaar Card, e-commerce, e-ticketing, Mobile charging etc. So far, more than 21000 persons have benefitted. The Government has taken several steps to help weavers in opening bank accounts and taking benefits of digital payment modes. The Common Facility Centres have taken banking services to the door step of handloom weavers. Several camps have been held in Varanasi to train the handloom weavers in accessing digital payment modes. 307 such camps were organised in Varanasi in which 12,502 persons participated. Micro-ATM/Banking Correspondent(BC) facility was extended in association with various Banks for easy withdrawal of money. National Handloom Development Corporation has also implemented e-Dhaga Mobile App which has facility of making online payment for purchase of yarn. E-commerce players have been facilitated to work with handloom weavers of Varanasi with the arrangements that the sale proceeds are transferred into their bank accounts. The above information was given by the Union Textiles Minister, Smt. Smriti Zubin Irani today, in a written reply to a Rajya Sabha question.

Source: Business Standard

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Global Crude oil price of Indian Basket was US$ 55.49 per bbl on 02.02.2017

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$ 55.49 per barrel (bbl) on 02.02.2017. This was higher than the price of US$ 54.26 per bbl on previous publishing day of 01.02.2017. In rupee terms, the price of Indian Basket increased to Rs. 3742.44 per bbl on 02.02.2017 as compared to Rs. 3670.13 per bbl on 01.02.2017. Rupee closed stronger at Rs. 67.45 per US$ on 02.02.2017 as compared to Rs. 67.65 per US$ on 01.02.2017. The table below gives details in this regard: 

Particulars     

Unit

Price on February 02, 2017 (Previous trading day i.e. 01.02.2017)                                                                  

Pricing Fortnight for 01.02.2017

(Jan 12, 2017 to Jan 27, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  55.49             (54.26)       

54.03

(Rs/bbl

                 3742.44       (3670.13)       

3680.52

Exchange Rate

  (Rs/$)

                  67.45             (67.65)

   68.12

Source :PIB

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Sanjeev Sanyal, economist and author, appointed as principal economic adviser

The Appointments Committee of the Cabinet (ACC) has appointed Sanjeev Sanyal, noted economist and former managing director and global strategist at Deutsche Bank, as the principal economic adviser in the department of economic affairs in the finance ministry. Sanyal is likely to serve as the second in command in the economic division of the finance ministry currently led by the chief economic adviser in the finance ministry Arvind Subramanian. Subramanian’s three-year term expires in October this year.  A notification by the department of personnel and training (DoPT) on Friday said Sanyal has been appointed on contract for a three-year period from the date of assumption of charge of the post or until further orders. Sanyal has spent two decades working in international financial markets and was named Young Global Leader 2010 by the World Economic Forum. In 2007, he was awarded the Eisenhower Fellowship for his work on urban issues and was also honoured by the Singapore government at the World Cities Summit, 2014.  Sanyal attended Sri Ram College of Commerce in New Delhi and St. John’s College, Oxford where he was a Rhodes Scholar.

Source: Economic Times

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Pakistan: FPCCI seeks incentives for export-oriented sectors

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) organised an interactive session on the recently announced export package worth Rs180 billion, a statement said on Friday. Zubair F Tufail, president of the FPCCI, briefly explained the outcomes of his meetings with the prime minister and finance minister and said that he has requested the prime minister for an incentive package for rice and all export-oriented sub-sectors to exploit their maximum potentials. He also appreciated the efforts of S M Muneer in bringing the package for exporters and said that this package is basically for the five zero-rated export sectors. He also invited budget proposals from the associations to be included in the Federal Budget 2017/18. Tufail assured the member associations that their problems will be taken up in the next meetings with the prime minister, finance minister and commerce minister. During the session, the fruits and vegetable exporters requested for exemption of withholding tax of 1.25 percent and duty-free imports of chemicals for value-added fruits and vegetables exports. They also insisted on the early verification of machinery from the Engineering Development Board, as it takes at least six months. The exporters also demanded ban on the imports of injurious and non-halal juices. The representatives of textile associations requested for level-playing field, as the cost of production, particularly prices of utilities, are very high in Pakistan as compared to regional countries such as Vietnam, India, Bangladesh, Sri Lanka, etc, which makes Pakistani goods uncompetitive in the international market. They also demanded zero-rated imports of textile machinery and spare parts. Moreover, they urged early payments of sales tax refunds, as millions of rupees in textile refunds are still pending. The stakeholders also said the recent package will only benefit the yarn sector because its price has increased 12 percent, while the bed-wear and towel-related industries will be highly affected with the package. Further, commercial exporters may also be included in the package, as currently the package is only for the manufacture-cum-exporters. They also requested for the implementation of textile policy (2014/19), wherein several incentives were announced such as to increase the share of value-addition in products, reduction in export refinance rate (EFS) and long-term financing facility (LTFF), subsidy on long-term loans and development and special duty drawbacks, etc. The rice exporters requested for the five percent DLTL, as they are facing high input cost in terms of utility prices. Earlier, Irfan Sarwana, vice president of the FPCCI, explained the salient features of the package and said that the exporters will be liable to increase exports by five percent in the first six months and then by 10 percent in the next year. There would be no condition during the first six months of the package, but later on duty drawback would be linked to an increase in exports, he added. Sarwana also said that the package gives larger incentives to the textile sector, which is the backbone of the economy; contributing eight percent in GDP and more than 50 percent in exports of Pakistan. The session was also attended by Ishtiaq Baig and Saquib Fayyaz Magoon, vice presidents of the FPCCI and other prominent businessmen.

Source: The News International

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Bangladesh apparel sector has 540 trade unions

The readymade garment industry of Bangladesh boasts of 540 registered trade unions, according to M Mujibul Haque Chunnu, the state minister of labour and employment. He also said that a worker welfare foundation fund has been formed by the government and close to Taka 190 crore has already been deposited in it, which will be spent for workers’ welfare. The present government of the country is worker-friendly and it has simplified the process of registering trade unions, said a Bangladeshi media news agency quoting Chunnu. The minister added that forming trade unions was workers’ fundamental right. While addressing the Jatiya Sangsad or the House of the Nation, Chunnu said that his ministry has adopted various measures to ensure that workers at factories and mill get their due remuneration. The minimum wages of workers of 38 industries have also been fixed based on the recommendations of the Minimum Wage Board. The minimum wage of RMG workers has been increased from Taka 3,000 to Taka 5,300 from December 1, 2013, informed the minister.

Source: Fibre2Fashion

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 Pakistan: Kisan Package helps cotton yield exceed target

The Kisan Package was launched by PMNawaz Sharif for social welfare of farmers KARACHI : The Kisan Package launched by Prime Minister Nawaz Sharif has profited the farmers. For the first time in eight years, cotton production has exceeded its estimated target, reported Dunya News. The government had predicted cotton yield to be one crore and five lac bales, however, the total yield of cotton this season has been calculated to be one crore and six lac bales. In this way, the cotton yield has been one lac more than expected. Cotton Ginners Forum Chairman Ihsanul Haq told that about 95 lac bales of cotton were bought by textile mill owners while two lac cotton bales have been purchased by exporters. It must be noted that over 40 lac of cotton bales will have to be imported this year due to the increased national consumption out of which approximately 20 lac bales have been imported yet.

Source: Dunya News

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BGMEA bats for industrial zones in Dhaka Chittagong

In order to boost manufacturing of apparels in the country, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has suggested the government to establish two new industrial zones near Dhaka and Chittagong. Prime Minister Sheikh Hasina has already announced that her government will set up 100 such industrial zones in Bangladesh. The proposed 100 industrial zones are likely to require some time for establishment and coming into operation, said Md Siddiqur Rahman, president of BGMEA at a press conference held recently. He said that this is the reason why the association is requesting the government to set up the zones for the garment sector on a priority basis. In case it is not possible to establish the industrial zones, Rahman asked for limited governmental land to help relocate RMG factories from their current locations. Besides helping the manufacturing units, this move is also likely to aid the banks to overcome crisis, according to the president. He also urged the people of the country as well as the government to save the RMG industry and said that their cooperation is needed to achieve the target of earning $50 billion in apparel exports by 2021.

Source: Fibre2Fashion

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Vietnam rise in demand for raw cotton, a positive sign for U.S. exports

American cotton has made up about 40 percent of Vietnam’s cotton imports over the last three years as Vietnam’s demand for raw cotton has risen steadily for six years, with August to January (Marketing YTD) imports at their highest levels ever. This is a particularly positive sign for U.S. cotton exports. U.S. exports of cotton have made up about 50 percent of Vietnam’s imports year to date, suggesting even greater market share than in the past. Much of Vietnam’s growth in recent years has been driven by declines in cotton spinning in China. China’s now-ended cotton price support program required that the state reserve purchase large amounts of cotton, which drove up cotton prices in China relative to global levels. As a result of this uncompetitive pricing, a wave of Foreign Direct Investment flowed into Vietnam’s spinning sector. With the implementation of the ASEAN-China Free Trade Agreement, Vietnam-produced cotton yarn has duty free access to China, versus a 40 percent above-quota duty on raw cotton imported into China. Many Chinese-owned mills relocated to Vietnam from China, spinning the same yarn using the same (mostly U.S.) cotton, then shipping the yarn to China for the next stage in the value chain. About half to two-thirds of Vietnam’s cotton imports are spun in foreign-owned mills, with much of it exported to China. However, the very situation that gave Vietnam its startlingly fast growth threatened to take it away earlier this year and, with that lost cotton spinning, so too would be lost U.S. exports to Vietnam. As China sold its reserves at auction earlier this year, local prices in China moved closer to global levels, which stimulated some recovery in China’s domestic spinning industry. Likewise, generous governmental support for yarn spinning in western China also helped increase China’s demand for raw cotton. The result of this was straightforward: those countries that had previously benefited from China’s high internal prices began to struggle. With fall in China’s cotton prices, spinning activity in competitors like Vietnam sank in tandem. Many market observers believed this trend would continue and that Vietnam would lose a much larger share of the gains it had made in spinning activity. Given the United States’ pre-eminent position in the Vietnamese cotton sector, any decline in Vietnam’s spinning would likely prove injurious to U.S. exports. This would be particularly frustrating as the U.S. 2016/2017 crop is large, and stocks have been building. Additionally, when U.S. exporters were shut out of China by its initial policy moves, they were mostly able to shift to other markets, especially Vietnam, as spinning moved. But if demand in Vietnam dried up as a result of reserve auction sales in China, there would be no new spinning transferred to markets where U.S. cotton could compete for business. U.S. exports would have been replaced by releases from China’s state reserves. However, the scenario described has not occurred. Vietnam’s cotton imports have turned upwards in recent months and are at record levels for August to November. Vietnam’s strength relative to India and Pakistan may have several sources. Both India and Pakistan have faced crop shortfalls and tighter stocks in the last year, which led to comparatively high internal prices even as China’s domestic prices were becoming more competitive. Another key factor driving Vietnam’s relative strength may be the China-ASEAN Free Trade Agreement, which began to come into effect in 2010. With full implementation of provisions related to cotton and yarn implemented fairly rapidly, China’s customs duty on yarn imported from Vietnam, or from any ASEAN country, is zero. If duty-free access for yarn is driving increased spinning in Vietnam, then the China-ASEAN Free Trade Agreement could be pushing U.S. cotton exports higher. Yarn spinning being shifted from producer-countries like India, Pakistan, Uzbekistan, and to some extent China, into duty-preferred importer countries like Vietnam bodes well for U.S. exports. Because the China-ASEAN Free Trade Agreement does not require that raw cotton inputs be sourced within the area, U.S. exporters are able to derive an indirect benefit from China’s duty-free ASEAN access. Notably, some other ASEAN countries such as Indonesia also saw yarn exports to China rise, while yarn exports from major non-ASEAN countries such as Uzbekistan and South Korea experienced declines.

Source: Yarns and fibres

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Italy gets first textile finishing company Imprima S.p.a

Imprima S.p.a., the first global holding company dedicated to textile printing and finishing sector, has opened in Italy. Imprima is funded by a pool of financial investors led by the Italian Private Equity Fund Wisequity IV, managed by Wise SGR, a company that has already supported the development of other successful companies in the textile supply chain. With the creative heritage of the brands acquired, clean and smart manufacturing, proximity to markets, outstanding quality, and sustainability, Imprima aims to establish itself as a preferred partner for brands and retailers in the world of fashion. Thanks to the acquisition of 100 per cent of the German finishing and textile printing company KBC and 100 per cent of the Italian company Guarisco by WISE SGR, Imprima is enriched, already at this early stage of development, by an international outlook that makes it extremely competitive in the market, which will be reinforced in the coming months with additional acquisitions in Italy and abroad. Leading the new company will be Paolo Gramaglia and Chiaretto Calò, who share the role of Co-CEO of the Imprima group, assisted by vice president Gianluca Boni and CFO Giovanni Lorato. The management will act in coordination with Valentina Franceschini, partner of Wise SGR and president of IMPRIMA, and Luca Boni, director Wise SGR. The entrepreneur Marco Guarisco and associate Andrea Moretti will remain in all operational effects in their current positions. The CEO of KBC Henri Rowienski will also continue to lead the German company. Over €30 million are planned for investments in technology and an acquisitions program with some really excellent Italian styles will be a part of the company. Paolo Gramaglia said, “We started with two milestones in the industry: KBC, a company with more than two and a half centuries of history that is characterised by a refined and distinctive design and creative heritage and positioning, and Guarisco, an Italian family company, dynamic, young, known for design that rapidly transposes the fashion factor to bring it to the world of fast fashion.” Chiaretto Calò said, “We are working to finalise other top level acquisitions in Italy and abroad. There are industrial solutions but their adoption on a global scale requires volumes, capital, human resources and management, which are in an advanced stage of the necessary learning curve.”

Source: Fibre2fashion

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Americhem's China plant gets ISO 14001 certification

Americhem, a global provider of custom colour and additive solutions for polymer-based products, has recently received the ISO 14001 environmental certification for its Suzhou, China, manufacturing plant. This standard recognises Americhem’s special focus on environmental management to ensure social well-being in addition to business goals. The certification audit was performed by SGS, one of the world's leading inspection, verification, testing and Certification Company. Americhem’s China plant also holds ISO 9001 and ISO 13485 certifications. “The certification of compliance with ISO 14001 recognises that the policies, practices and procedures of our plant highlight our commitment to environmental protection,” said Stanley Teoh, Americhem’s vice president and managing director for the Asia Pacific region. “With this certification, our customers can rest be assured that our plant exercises the highest level of dedication to our environment through waste reduction, energy efficiency, green business initiatives, safe work practices and sustainable development. ”One of the main outcomes of the certification is the development and implementation of systems that continuously reduce waste. The environmental certification has led to a goal of working towards zero waste generation and emissions from the plant The Suzhou team began working on improvements in early 2016.
Source: Fibre2fashion

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Danish envoy sees opportunities in Pak textile sector

During a visit to the Pakistan Textile Exporters Association (PTEA) office, deputy head of the Denmark embassy Jakob Rogild Jakobsen said Pakistan offers very good opportunities to Danish businessmen in various sectors, particularly in the textile industry. He also said that trade volume between the two countries was less and can be expanded further. According to Jakobsen, there must be efforts from both sides to strengthen relations through exchange of trade delegations, holding B2B meetings and various other initiatives.

Source: Fibre2fashion

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Texollini to invest in new technology

California based vertical textile mill Texollini established in 1986 was designed to be among the most technologically advanced knitting mills and fabric suppliers in America. Amit Bracha, president and chief operating officer said the textile mill have five reasons to invest in new technology, as it will yield an environmental benefit. It will meet the stringent regulations or to save water in one of the reasons for making investment. By saving water, you will be saving energy and also saving chemicals, said Bracha. Sometimes a company invests in new machinery simply to replace existing worn-out machinery. Or the company is looking to realize a boost in efficiency at the mill. Technological developments can also spur investment. And the fifth reason is to improve the quality of the fabric produced, said Bracha. The new machines are more diversified. Because of improvements in design, the machines are capable of producing a wide range of fabrics. Texollini has been in an ongoing investment phase that included spending $2 million on new equipment over the last year. The 27-year-old vertical mill recently installed new circular knitting machines, new dyeing machines and new finishing machines in the company’s 250,000-square-foot factory in Long Beach. The knitting machines are installed in climate-controlled clean-room environments to ensure the fabric is free from foreign fly lint. Two years ago, Texollini purchased a winding machine that allows the mill to calculate the exact amount of yarn needed for each production run. By using just the amount needed, Texollini ensures that the remaining yarn is free from contaminants. Research and investment are ongoing efforts for the mill. Lab dips are done using a robotic machine that determines the precise formula needed, which is sent to the dyeing machines. Dye and chemicals are automatically fed into the dyeing machines. The mill also has several small sample machines for small runs as well as a “super-dip machine” for prototypes or small orders for photo shoots. Texollini is a vertical operation that knits, dyes, prints and finishes its textiles. Everything is completely made in the USA, completely under one roof, Bracha said. The mill supplies fabrics for the activewear, swim, ready-to-wear and lingerie markets. Texollini also produces technical fabrics for the military as well as medical, safety and other industrial applications. Yarns are sourced from all over the world—including the U.S., Europe and Asia—depending on the customer’s needs and requirements. They have total control over all the raw materials. In the Texollini warehouse, each box of yarn is given a unique barcode, which allows the company to track the yarn through the production process. If there’s a problem at any stage, Texollini can use the barcode to trace it back to the exact shipment. To help designers and manufacturers develop fabrics, Texollini has created a menu of options that includes all the fibers offered—including Tencel, DuPont Sorona, Repreve, Protura, Dri-Release, Coolmax, Emana and Celliant—as well as special finishes such as anti-static, anti-microbial, enzyme, silicone, brushing and sueding, nano-silver applications and UV protection. There is a menu detailing Texollini’s print capabilities as well, including pigment, resist, disperse, puff, glitter, metallic, and burn-out and block-out printing. The company also offers fluorescent and glow-in-the-dark printing. Fabrics can be pigment printed in-house. Texollini customers can bring their own print or search through the mill’s print library. For digital and sublimation printing, the company sends the fabric to a third party. For companies looking to source and produce locally, Texollini provides referrals to factories in the area. In the quality-control department, technicians perform the standard industry tests for shrinkage, crocking, pilling, stretch and recovery. Fabrics can also be sent to a third-party lab for certified testing. They provide full testing results with every production lot whether it’s 100 yards or 50 yards, Bracha said. To keep customers—and potential customers—apprised on the latest developments at the mill, Texollini sends out a monthly newsletter outlining new qualities, added capacity, testing methods and trends. Texollini shows at the Los Angeles International Textile Show, Texworld USA in New York and Outdoor Retailer in Salt Lake City. According to Sherry Wood, the company’s director of merchandising, when Daniel Kadisha, Texollini’s chief executive officer, opened the company in 1989, much of the mill’s fabrics were cotton and cotton blends. As the company grew into a vertical operation its offerings diversified. Today, Texollini offers more than 5,000 fabrics and new styles are introduced monthly.

Source: Yarns and fibres

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Export of jute items from Nepal to India resumes

The export of jute products from Nepal to India has resumed after the Indian Customs Office agreed to release the consignments of Nepali jute traders to the Indian market keeping the 12.5 percent countervailing duty (CVD) as a guarantee. The Indian government had imposed 12.5 percent CVD on Nepali jute products like jute sacks and hessian jute fabric from December 15, thereby completely halting export of jute products to India. India is Nepal’s largest jute importer. According to traders, more than 90 percent of jute products manufactured in Nepal is exported to India. Raj Kumar Golchha, president of Nepal Jute Industries Association said that export of jute products, including jute sacks and hessian jute fabric, has resumed to India. However, they have to keep a guarantee worth the imposed CVD for their goods, which is refundable. The fund will be refunded once the Indian government revisits its decision on imposing CVD on Nepali jute products. Golchha further said that the Indian government is likely to scrap the countervailing duty being imposed on Nepali jute products very soon. Similarly, Rabi Shankar Sainju, joint secretary of Ministry of Commerce (MoC), said that the Indian government is positive towards Nepal’s request to scrap CVD on Nepali jute products. They are optimistic that the Indian government will soon give duty-free access to Nepali jute products in the Indian market. Currently, four jute factories are operating in Nepal and traders claim that these factories employ more than 1,000 workers. Almost 200 tonnes of jute products are manufactured in the country every day of which only 10 percent is consumed in the domestic market. Similarly, domestic traders import more than 70 percent of raw materials for the jute industry from India itself and exports only finished products.

Source: Yarns and fibre

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Biofunctional Proneem inhibits dust mites in textiles

A new product made by Proneem France, which contains alternative active ingredients instead of Permethrin, has proved highly effective against dust mites, according to German researchers. Permethrin, a widely used substance for treating textiles against mites, is a neurotoxin that may cause undesirable side effects like headaches or deafness in humans. Proneem France has been tested by researchers from the William-Küster-Institute for Hygiene, Environment and Medicine at the Hohenstein Institute in Germany. Arachnids prefer to live in duvets and mattresses, upholstered furniture and carpets where they find ideal hygrothermal conditions. Using treated bedding can reduce the rate of reproduction of the mites and so decrease the allergen load, says the Hohenstein Institute website. Finishing treatments normally contain the acaricide permethrin. As a toxin that can be ingested or absorbed, it is effective against numerous insects, including mites. Permethrin is a neurotoxic chemical which, in insects, causes agitation and cramps, then coordination disorders and finally paralysis. Permethrin is poorly absorbed by healthy skin, but nevertheless attempts are being made to find alternative finishing agents. Now Proneem France has shown that this is entirely possible. In a test in accordance with NF G39-011, their ‘Proneem’ finish was able to inhibit the growth of a mite population by over 90 per cent and was therefore awarded the Hohenstein quality label ‘effective against dust mites’. The Hohenstein test for effectiveness against dust mites in accordance with standard NF G39-011 is also suitable for alternative, permethrin-free finishing treatments and offers textile manufacturers a way of developing optimised bedding and home textiles that will reduce the symptoms of house dust allergy-sufferers.

Source: Fibre2fashion

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