India’s total containerised cargo capacity of 8.75 million twenty-foot equivalent units (TEUs) at its 12 major ports is less than a quarter of the 36.5 million TEUs containerised goods handled at the Shanghai port, making it imperative for India to pay attention to this gap, says a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The total containerised cargo capacity is a key indicator of a country’s integration with global supply chain for value-added manufactured goods. The study titled ‘Indian ports sector: challenges of scale and efficient operations,’ was released recently by ASSOCHAM secretary general DS Rawat and chief advisor Arvind Kumar in Bhubaneswar, capital of Odisha state. China has four ports — Shanghai, Shenzhen, Ningbo & Zhoushan and Hong Kong China — that handle more than 20 million TEUs. Even on the parameter of overall cargo, both with or without containerisation, India has a fragmented capacity at different ports. In China, there are six cargo ports which can handle over 500 million tonnes cargo per annum and it has another eight ports which handle cargo more than 100 million tonnes up to 500 million tonnes, said an ASSOCHAM press release citing the study. “The port scaling in China is not only ahead of us, but it over-awes even the major countries. Of the world’s top 20 ports, 14 are in China. No Indian port figures in the world’s top 20,” Rawat said. “In contrast, India has just two ports which handle beyond 100 MT – Kandla and Mundra....Large productivity gains can be achieved by improving existing ports at a much lower marginal cost,” the study noted. Though India’s ports have handled the rapidly expanding traffic, handling more than a billion tonne of cargo in 2016-17 and the capacity is expected to increase to 2.5 billion tonnes by 2025, the freight mainly comprises POL (petrol, oil, and lubricant), coal, iron ore and other commodities. It is only recently that freight in containers, which are easy to load, unload and can be carried to the hinterland through multi-modal transport, is catching up in India. The ASSOCHAM report said that use of containers is imperative to promote multi modal transportation. The study suggested that it would be appropriate to augment capacity of existing ports to create ports with large capacity of 100 MT rather than creating new ports and spreading resources thinly. It also recommended the need for India to revisit the Major Ports Trusts Act, 1963 to modernise the institutional structure of major ports and to secure greater operational freedom for ports, matching with present requirements. (DS)
Source : Fibre2fashion
After contracting by 1.1 per cent in October, India’s merchandise exports grew by a staggering 30.6 per cent in November, showed the latest data from the Ministry of Commerce and Industry (Chart 1). Excluding oil, exports grew at a robust 28.2 per cent (Chart 2). Over the entire April-November period in FY18, exports grew at a healthy 12 per cent. Imports also registered a strong performance, growing by 19.6 per cent in November. Excluding oil and gold, imports were up 22.6 per cent, suggesting strong domestic demand. The top export items in November were engineering goods followed by petroleum products, gems and jewellery, organic and inorganic chemicals, pharmaceuticals, and textiles. On the other hand, the top import items were petroleum products, electronic goods, gold, machinery, electrical and non-electrical products, and pearl, precious and semi-precious stones.Based on these numbers, the trade deficit for November is pegged at $13.82 billion, which is only slightly lower than the 35-month high of $14 billion recorded in the previous month. This is likely to put upward pressure on the current account deficit (CAD). CAD had slipped to 1.2 per cent of GDP at the end of Q2, from 2.5 per cent in the previous quarter. This recent spurt in exports, the contraction in the previous month notwithstanding, comes at a time when the rupee has strengthened against the dollar. On the Reserve Bank of India’s (RBI) index too, the rupee continues to remain overvalued. Perhaps stronger global growth, other Asian economies are also witnessing strong export growth, is helping push the country’s exports despite an overvalued currency.
Source: Business Standard
Rising prices of crude oil, higher local inflation and slim chances of lower interest rates threaten to rein in the economy even as the performance in 2017-18, so far, points to a muted recovery. While the worst may be over, unless the government keeps up spending in 2018-19, the economy may see middling growth in the next few quarters. India’s GDP growth slowed to a 13-quarter low of 5.7 per cent year-on-year in the April-June period but recovered to 6.3 per cent y-o-y in the July-September quarter. Despite a small base, many segments of the economy haven’t really reported improvements so far. Railway freight (in tonnage) has increased by just 4.7 per cent till October. The M&HCV segment reported a growth of just 1.2 per cent y-o-y between April and November, on a negative base. The biggest disappointment has been exports which have grown just 12 per cent in FY18; in the corresponding period of FY17 they had stayed virtually flat. Economists expect a slight deterioration in the current account balance, should oil prices move towards $70 per barrel, from current levels of about $65 per barrel, with the possibility of the balance of payments turning negative in 2018. Moreover, it would stoke inflation leaving RBI with little option but to hold rates. Consumer inflation came in at 4.88 per cent for November, highest in 15 months. Another worry is the rural distress, even though both the kharif and farm harvests should be reasonably good. On the positive side, they believe growth would normalise over the next four or five quarters as the impact of demonetisation and the GST rollout fades. While the liberalised rules will make it easier for firms to comply with the provisions, the cuts in the tax rates under GST and the higher level of cash in the system, they feel, would stimulate demand. Moreover, the Rs 2.11-lakh-crore recapitalisation of banks’ balance sheets would set the stage for renewed lending. The rise in bank loans has been modest though there is a fairly sharp jump in borrowings from the bond markets, accessed both by firms and NBFCs. Economists at Deutsche Bank believe real GDP growth could bounce back to 7.5 per cent in 2018-19 from a possible 6.6 per cent in 2017-18, supported by strong consumption spends and some pick-up in private capex activity. Gross fixed capital formation (GFCF) slipped to 26.4 per cent of GDP in Q2FY18 from 30.4 per cent in Q1FY16. Firms remain highly leveraged. A study by Credit Suisse showed for the September quarter the share of debt with companies that have an interest cover of less than one saw little change at 40 per cent compared with 42 per cent in the June quarter even as the aggregate interest cover improved sequentially to 2.4 times on the back of a growth in operating profit or ebitda of 4 per cent.
Source: Business Standard
In the first six months of this financial year, cotton yarn exports declined 10 %, mainly due to policy lapses, according to Confederation of Indian Textile Industry. Sanjay Kumar Jain, chairman of the confederation, has said in a press release that cotton yarn exports between April and September in 2016 was 517 million kg and it was 464 million kg during the same period this year. In 2013-14, spinning mills took advantage of the 2 % incremental export incentive, 2% interest subvention, and 3 % focus market incentive. In 2014, these incentives were withdrawn and cotton yarn exports in 2016-17 registered 26 % decline in value terms. Mr. Jain said that the country exports almost 20 % of its cotton produced. During the current cotton season, the prices might touch minimum support price level as the production is expected to be high. According to the Financial Stability Report of the Reserve Bank of India, textiles has one of the highest levels of non-performing assets. When exports benefits such as MEIS and IES were introduced, all segments of the textile value chain were covered except cotton yarn. Thus, cotton yarn exports to China dropped. “Withdrawal of export incentives for cotton yarn has reduced our competitive edge by increasing our prices to the tune of 5 % to 6 %.”
IES benefit
The 3 % IES benefit is essential to maintain six to nine months cotton inventory and to ensure consistency in quality of yarn supplied. He appealed to the government to restore the MEIS and IES benefits for cotton yarn.
Source: The Hindu
Amravati: Textile major Raymonds commissioned the first phase of its greenfield project in the cotton growing district of Amravati. However, the company will be currently manufacturing only linen, a high-end fabric made from flax, a crop grown in France and Belgium. Plans for the second phase, which may use locally grown cotton, would be announced in due course. The commercial operations of the unit are slated to begin by April 2018.The government has been encouraging textile units in the district to provide a boost to local cotton growers. Raymonds was being dubbed as an anchor investor, which would pull more units to the district. The unit set up at MIDC's Nandgaon Peth industrial estate here, is also the first industry in the state to start operations after a MoU was signed at Prime Minister Narendra Modi's Make-in-India event, last year. The MoU was signed in February last year, and the unit has been set up in a record time in December. This would be Raymond's third unit in Central India, and the second in Vidarbha. The company has a denim plant at Yavatmal, and a woollen fabric unit in Chhindwara district, on the Madhya Pradesh-Maharashtra border. The plant has been set up with an investment Rs220 crore. It would be providing direct employment to 500 persons, which gives it the status of a mega project as per the state's industrial norms.
The unit was inaugurated in the presence of Raymond Group chairman, Gautam Hari Singhania, chief minister Devendra Fadnavis and union surface transport minister Nitin Gadkari. Fadnavis also attended the stone laying ceremony of Mahi Terri Cot, which will be setting up a unit to make towels, on Sunday. He said, "Prime Minister Narendra Modi's idea is to have industries to process agriculture produce. With Amravati being a cotton growing area, the stress was to have an integrated chain from the crop to garment itself." However, Raymonds will not be depending on local cotton in its first phase at least. This is Raymond's first plant to make linen directly out of fibre. The fibre is, however, made from flax, which India does not grow in the desired quality or quantity. The company officials did not reveal any fixed plans for the second phase of the unit, which is supposed to use cotton. Earlier, there was a plan to have a denim manufacturing unit in the second phase, for which cotton is required. But now it would not be denim, and further plans are still to be firmed up, said SK Gupta, company's president (corporate), told TOI without divulging further details. "The company already has a denim facility at Yavatmal, which has been expanded by 10 million meters over last two years with Rs150 crore investment. The country already has an excessive capacity for denim at 1.8 billion meters a year. This leaves little space for expansion," said Gupta. At Yavatmal, which is also a cotton growing area, Raymonds purchases 2,200 tonnes of cotton, 98% procured locally, he said. Fadnavis asked the company to come up with the second phase at the earliest. Singhania said the company will also have a Singhania School, with capacity to take in 3,500 students, including outsiders. The company also inaugurated a 200-unit residential complex, which will also be expanded later. Gadkari said he supported industries not because he favoured industrialists, but because they could create jobs. Being a union leader himself, he has been instrumental in reviving units.
Source: The Times of India
The “collapse” of talks at last week’s trade ministerial may have raised questions about WTO’s future, but they did not go off too badly for India. Unlike the ministerials at Bali (2013) and Nairobi (2015), India did not concede any ground. At Bali, India agreed to trade facilitation rules in exchange for virtually nothing — a ‘peace clause’ till 2017 on its food procurement subsidies. At Nairobi, India unconditionally agreed to phase out export subsidies by 2023. Perhaps, India fielded a better prepared negotiation team this time. The focus of the Buenos Aires meet was public stockholding and e-commerce. India, backed by China, managed to get the developing countries, including LDCs, to push for a permanent solution to public stockholding. To the credit of the Modi government, it managed to prolong the ‘peace clause’ soon after the Bali meet, till a permanent solution was arrived at — a view reiterated in Argentina. India’s joint paper with China on how the US and EU are chiefly responsible for trade-distorting farm subsidies has helped in pushing for a solution where the existing method of evaluating subsidies is dismantled. The WTO allows price subsidies to the extent of 10 per cent of the gross value added of the product concerned; the controversy over the years has been over which subsidies should come under scrutiny and manner of arriving at the market price, or fixed reference price, against which the amount of subsidy was calculated. With these wranglings not getting anywhere, and the rich countries managing to mask their subsidies while blaming the rest, there has now been a change of tack. That said, India should reconsider allowing exports out of its PDS pool (it is the world’s largest rice exporter) if it is to push towards a new regulatory order. A food security arrangement does not sit well with one that confers export advantage. By presenting a joint front with the LDCs on e-commerce and stalling efforts by the developed world to fast-track rules, India managed to buy time for its MSME-dominated brick and mortar trading sector. Efforts by the rich countries to introduce Singapore Round issues, such as investment rules did not gain traction. The Doha Round (2001) principles of according differential treatment to developing countries and not piling on issues extraneous to trade were implicitly underscored here. But the question is what happens to WTO if there is no broad consensus on trade rules. It does not seem to matter much if the US plays spoiler in multilateral forums, as the progress on TPP and even climate talks seem to indicate. India cannot set store by FTAs, given its experience over the last decade. It needs to play a leadership role in working out a new multilateral trade paradigm, because that’s its best bet in an increasingly chaotic world. Inconsistencies between its positions at WTO and other forums such as RCEP need to be avoided.
Source: Business Line
Members of various farmers organisations and political parties staged a demonstration in the Perambalur on Saturday demanding a ban on BT cotton and condemning the State government’s failure to provide compensation to families of farmers who were killed due to pesticide poisoning in Perambalur district and other parts of the State. They also demanded a ban on harmful pesticides. A committee should be formed to study the issue, the agitators said.
Source: The Hindu
Brand Factory is set to open 40 new stores over to next 8-10 months to reach the 100 mark, and will thereon add 40-50 outlets each year until it gets to 200, says business head Suresh Sadhwani Brand Factory has been in existence for a decade and has 60 outlets currently, which means on average, it opened six new stores every year. Future Lifestyle Fashions Ltd’s discount chain Brand Factory is looking at aggressively expanding its store footprint and plans to focus on smaller towns and cities in particular as part of this strategy. The retail chain, part of Kishore Biyani’s Future Group, is set to open 40 new stores to touch the 100-store mark over the next 8-10 months, said Suresh Sadhwani, business head of Brand Factory. From there on, the company will add 40-50 new stores each year until it gets to 200, Sadhwani added. Brand Factory has been in existence for a decade and has 60 outlets currently, which means on average, it opened six new stores every year. The pace, which picked up to 10-15 new stores over the last year, is set to rise. Brand Factory operates in a space over which it has a clear dominance, considering individual factory outlets are the only competition in the fashion discounting market, according to Ankur Bisen, senior vice-president at Technopak Advisors and another analyst who declined to be named. But to some extent, the analysts said, any retailer selling value fashion could be construed as competition. “Last year, we did a free shopping weekend. A lot of customers came to know about Brand Factory (through that) and since then, growth has been fantastic. We were growing by 30-40% (revenue) before the event and suddenly growth went much higher,” Sadhwani said in a telephone interview. People from smaller cities where Brand Factory does not have any outlets travelled to the closest stores for its free shopping festival last year, Sadhwani said. For instance, customers from Belgaum travelled to Bengaluru to shop at Brand Factory during the event. The interest from smaller cities has prompted Brand Factory to look at opening additional Tier II stores. It has already signed deals to open stores in cities such as Surat, Gorakhpur, Baroda, Lucknow, Salem and Trichy. Brand Factory’s free shopping weekend is a promotional event where the company offers customers steep discounts and gives them free merchandise, gift vouchers or cash back in its mobile wallet. This year, the discount chain’s free shopping festival was held across the country between 22 and 26 November, and did business worth nearly Rs450 crore on a gross value basis. “Overall, we are bullish about this (Brand Factory) model and I see no reason why this model should not grow,” said Bisen. In 2016-17, Brand Factory clocked Rs1,045 crore in sales. The unit is the second-highest revenue earner in Future Group’s Future Lifestyle Fashions division, which includes other fashion chains like Central and Planet Sports. Brand Factory stocks products across categories ranging from apparel to sportswear and accessories. A majority of its revenue comes from sales of men’s apparel, followed by apparel for women and children. It expects revenue contribution from the footwear category to grow much faster than the rest, Sadhwani said. Footwear currently accounts for 4% of the retailer’s total sales and is expected to double over the next two years. “When online (boomed) one of the categories that was most affected across offline was footwear. It is easier to buy footwear online than apparel. But it is coming back big time in the past six-eight months and it looks like the next big category for us. We are banking on that heavily,” Sadhwani said.
Source: Livemint
Kitex Garments Ltd., a part of the Anna-Kitex group of companies, will set up its fourth 100% export-oriented infant wear production unit either in Andhra Pradesh or Karnataka, said a top executive. “We have drawn up Rs. 500 crore expansion plan for which we need 50 acres,” said Sabu M. Jacob, CMD, Kitex Garments. “One portion of expansion will take place in Kochi and the balance will come up either in Andhra Pradesh or Karnataka.” Though initial reports suggested that Kitex was all set to locate its manufacturing unit in Hassan, Karnataka, Mr. Jacob said the firm was yet decide as the Andhra Pradesh administration was making huge offers by way of tax benefits, free land and cheaper power. “We have two goals,” he said. The first, Rs. 2,000 crore revenue and one million garment pieces by 2020, had been frozen, he said. The second is for 2025, which, he said, was yet to be finalised.
‘Feasibility study’
The firm has commissioned KPMG to do a feasibility study for the goals and the timelines. As to the imminent expansion, “the costs will be met partly through internal resources and borrowings. Civil work will begin during 2018 and the commercial run by April 2019,” he said. According to him, Kitex produces 6.5 lakh pieces of finished garments per day, targeted at just-borns to babies up to the age of 24 months. It exports about 95% of infant wear to the U.S. and the rest to Europe. Kitex also does contract manufacturing for private labels such as Mothercare, Babies R Us, Gerber, Jockey and Carter. “We are the third-largest manufacturer of infant garments as we manage the entire gamut of operations under one roof from production and fabric weaving to processing to garment manufacturing to shipping, whereas the first two, both Chinese firms, have operations in different places and they also outsource some of it,” he said. Last year, the group posted revenues of Rs. 1,300 crore, of which garments accounted for Rs. 750 crore. Of a headcount of 15,000 people in the group, 9,600 are with Kitex Garments. He said the proposed unit would provide direct employment to 10,000 people more. Kitex Garments recently opened an office in the U.S. and acquired a licensed brand called ‘Lamaze’. Besides, it has also established its own brand 'Little Star' in that market. “We have set up a design studio in the U.S. to improve our strategic edge in the market there,” he said.
Source: The Hindu
Even as denim fabric production is increasing in the country, a decline in capacity utilisation is said to be hurting the industry. The installed denim fabric production has increased to 1,500 million metres, from 800 million metres in 2012 and another 150 million metres of capacity is in the pipeline, according to the Denim Manufacturers’ Association. The annual domestic demand is roughly 800 million metres and exports are about 200 million metres.
Price correction
Sources said that the industry had seen a price correction of 20% in the last two years. Further, capacity utilisation had dropped to 60%-65%. Some of the new companies are facing financial problems and risk turning into non-performing assets. The government should also give a fillip to exports. Though denim fabric production is by large-scale, organised industries, denim garments are made mostly by small-scale units. With relaxation in labour laws and industry-friendly policies, more organised industries would be getting into garment production in the next five years, the sources added. In exports, China, Bangladesh and Pakistan are the countries that Indian manufacturers would have to compete with for both denim fabric and garments. Though garment production is more viable in Bangladesh, there is scope to improve denim fabric exports. Post GST, the denim industry has temporarily closed down 30% to 40% capacity and if the present situation continues, there could be more production cuts, said Sharad Jaipuria, chairman of the association.
Source: The Hindu
Textiles is among the sectors identified by Technology Information Forecasting and Assessment Council (TIFAC) to bring down emission levels by using better technology. Gautam Goswami, who heads the TIFAC Technology Vision 2035, told The Hinduthat a meeting was held in Coimbatore recently in this regard. “We met about 50 people and 40 % of them were from the industry. SITRA is an active participant in this project. Tirupur cluster is another important area. We are looking at how to go for textile processing with lesser water and more automation,” he said. Mr. Goswami explained that as part of the Paris agreement on climate change, India has to reduce emissions by 30 % to 35 %. TIFAC is preparing a report on the technologies required, indigenous technologies available, what needs to be borrowed, and ways to use the green climate fund. The report is expected to be finalised in a year.
Sectors identified
“We have identified 10 sectors, including industrial processing, transport, agriculture, water, waste, and renewable energy. In industrial processing, major manufacturing industries such as steel, cement, textiles, leather and fabrication are covered,” he said. In textiles, we have identified about 30 areas and have asked the industry to prioritise (technology prioritisation techniques) these. The meeting held here was part of this effort. G. Thilagavathi, professor and head of textile technology at PSG College of Technology, said the Centres of Excellence of the department will organise more meetings with textile industry here to get their views on the technologies available and needed in different segments of the textile value chain and submit a report to TIFAC.
Source: The Hindu
A fashion show will be held in Mysuru on Saturday to introduce the latest designs in U.S. apparel to the city and also expose Mysuru’s unique silk fabrics including handlooms to the foreign fashion designers. The Mysuru Fashion Utsav to be held at Jayachamaraja Wadiyar Golf Club on Saturday evening will be put up by Kaushal Vishu Kumar, a fashion enthusiast from Mysuru, who has roped in fashion designers as well as models from the U.S. Models like Justin, Kenya, Alex and Marina will walk the ramp showcasing designs from the U.S. as well as Mysuru silks and handlooms. International fashion designers, Clavon Leonard from New York, Baccio from Miami and Catherine from New Jersey, who will be presenting their designs, will also be closely studying Mysuru silk fabrics and handloom products. “The objective of the fashion show is to educate to the foreign fashion designers the apparel and clothing unique to Mysuru. A host of garment houses from Mysuru engaged in dealing silk apparels and handlooms will participate in the show,” said Mr. Kaushal. “This show is the first of its kind being held in Mysuru. It not only brings international fashion designers and models to Mysuru, but also creating opportunities for local business for fabric sourcing,” he said. The utsav will also help meet the aspirations of the new generation to be more fashionable, said Mr. Kaushal.
Source: The Hindu
The Gramin Hastkala Vikas Samiti managed National Silk Expo 2017 is back with artisans from all over India exhibiting ethnic weaves in traditional pure silks and cottons as a start to the wedding and winter season. The five-day exhibition that ends on December 19, has textiles designed by more than 100 weavers selling traditional silks from Banaras, Gadwal, Dharmavaram, Jamdanis, Jamawars and Sambalpuris. It also has dress materials, fashion jewelry and home furnishing from every region in India. States like Rajasthan, Andhra Pradesh, Karnataka, Bihar, Odisha, Chhattisgarh, Madhya Pradesh, Gujarat, Jammu and Kashmir and West Bengal are displaying items worth Rs 1.5 lakh per stall. The exhibition has products ranging from Rs 500 to Rs 20, 000. Jayesh Kumar Gupta, organizer of the Expo, said “The sole objective of this exhibition is to promote and encourage weavers and expand the market of the handloom industry. We have conducted over 150 exhibitions across 25 cities in India till date. The fabrics are unique and we display distinctive products through such exhibitions”. Gramin Hastkala Vikas Samiti is founded by a group of artisans, designers, social activists, academics and environmentalists. The outfit attempts to promote
traditional weavers by encouraging them to be contemporary and economically relevant. The Expo is ongoing at the Panjim Convention Centre, Mala.
Source: The Navhind Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1331.26 |
USD/Ton |
0% |
12/17/2017 |
|
VSF |
2148.18 |
USD/Ton |
0% |
12/17/2017 |
|
ASF |
2435.61 |
USD/Ton |
0% |
12/17/2017 |
|
Polyester POY |
1301.01 |
USD/Ton |
0% |
12/17/2017 |
|
Nylon FDY |
3388.67 |
USD/Ton |
0% |
12/17/2017 |
|
40D Spandex |
5748.64 |
USD/Ton |
0% |
12/17/2017 |
|
Polyester DTY |
2571.76 |
USD/Ton |
0% |
12/17/2017 |
|
Nylon POY |
3585.34 |
USD/Ton |
-1.25% |
12/17/2017 |
|
Acrylic Top 3D |
1603.57 |
USD/Ton |
0% |
12/17/2017 |
|
Polyester FDY |
3169.32 |
USD/Ton |
0% |
12/17/2017 |
|
Nylon DTY |
1546.84 |
USD/Ton |
-0.24% |
12/17/2017 |
|
Viscose Long Filament |
5718.38 |
USD/Ton |
0% |
12/17/2017 |
|
30S Spun Rayon Yarn |
2828.94 |
USD/Ton |
0% |
12/17/2017 |
|
32S Polyester Yarn |
2027.15 |
USD/Ton |
-0.15% |
12/17/2017 |
|
45S T/C Yarn |
2889.45 |
USD/Ton |
0% |
12/17/2017 |
|
40S Rayon Yarn |
2496.12 |
USD/Ton |
0% |
12/17/2017 |
|
T/R Yarn 65/35 32S |
2420.48 |
USD/Ton |
0% |
12/17/2017 |
|
45S Polyester Yarn |
2980.22 |
USD/Ton |
0% |
12/17/2017 |
|
T/C Yarn 65/35 32S |
2178.43 |
USD/Ton |
0% |
12/17/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
12/17/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
12/17/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
12/17/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
12/17/2017 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
-0.42% |
12/17/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15128 USD dtd. 17/12/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Despite facing difficulties, the garment and textile sector is expected to export products worth US$31 billion this year, a year-on-year increase of 10.2%, and the outlook is bright for next year too, the Vietnam Textile and Apparel Association (VITAS) has said. Exports of garment and textile hit US$31 billion, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking newsSpeaking at a press briefing in HCM City to review the sector’s performance this year and draw up strategies for next year, Vu Duc Giang, the association chairman, said exports fell in the fourth quarter of last year and the first quarter of this year due to the impact of the US’s withdrawal from TPP. Faced with the situation, textile firms have quickly overhauled their production systems, focused on advantageous products and developed others to meet market demand, and sought new markets, he said. They have also adopted the latest technologies to produce quality products more efficiently, he said. The association has stepped up co-operation with foreign organisations to organise trade promotions and training and shared its experience in developing smart production models, he said. Thanks to all this exports have picked up sharply since the second quarter, he said. “This year we faced great competitive pressure from Bangladesh, Myanmar and Sri Lanka, with many buyers shifting their orders to these countries at the beginning of the year. “But from the end of the second quarter they shifted their orders back to Vietnam because Vietnam makes quality products and it is able to fulfil orders with short lead time.” Exports in the last two months of the year are expected to be worth US$5.27 billion, and full year exports, US$31 billion, with the US, the EU, Japan, and South Korea being the biggest buyers, he said. Shipments to other markets like China, Russia and Cambodia have also increased sharply, he said. Next year exports could reach US$33.5-34 billion, he said. Many companies have export orders for until the end of the second quarter next year, he said. Nguyen Thi Tuyet Mai, VITAS deputy secretary general, said China currently buys only 3% of Vietnam’s exports, but is potentially a huge market due to its population. Vietnam started to export textile and garments to China this year and the shipments are expected to increase significantly next year, she said. Giang said the association would call on its members to embrace more new technologies to strengthen their competiveness, adopt lean management models and solicit local and foreign investment in segments like fabric, which Vietnam still imports from other countries. It also plans to chalk out strategies to develop the fashion and designer garment segments and solicit development of linkages in the value chain to add more value to garment and textile products, he said.
Source : Vietnam Net
China's economy has held steady in the first 11 months of 2017, on track to reach this year's growth target and creating room for policy makers to step up efforts on risk control, poverty relief and pollution next year. Data released Thursday showed fixed-asset investment (FAI) climbed 7.2 percent for January-November period, down from 7.3 percent in the first 10 months. The pace of growth has declined for eight consecutive months. Investment in property development rose 7.5 percent from a year earlier, edging down from 7.8 percent in the first 10 months, according to the National Bureau of Statistics (NBS). As the government maintains property purchasing curbs to contain speculation, housing sales measured by floor area recorded a slower growth of 7.9 percent in the first 11 months. Infrastructure investment, which accounts for more than 20 percent of the total FAI, surged 20.1 percent for January-November period year on year, the pace of growth accelerating from 19.6 percent for January-October.
Industrial output also softened due to tighter environmental rules, rising 6.1 percent last month, down from October's 6.2 percent increase. Lifted by the Singles' Day (Nov 11) online shopping promotion, retail sales grew 10.2 percent in November, up from 10 percent the previous month. Sales at Alibaba, China's largest e-commerce platform, hit a record high of 168.3 billion yuan ($25.5 billion) on Nov 11. "Consumption will stay robust on the back of higher incomes and is expected to stay a pillar for economic growth next year," said Li Huiyong, an analyst at Shenwan Hongyuan Securities. Thursday's data confirmed the trend of stable and sound economic growth, as conveyed by previous statistics, including the purchasing managers' index, foreign trade and new loans. "The country's economy has continued steady and sound development, and will maintain the trend in 2018," NBS spokesperson Mao Shengyong said. The country's GDP grew 6.9 percent in the first nine months, above the government's target of around 6.5 percent for the year. Wen Bin, a researcher with China Minsheng Bank, expects the country's GDP growth to be 6.8 percent this year. Major international institutions and investment banks, including the IMF and the World Bank, both raised their forecasts for China's 2017 growth. Analysts said the steady economic growth will give policy makers more leeway to control risks, reduce poverty and tackle pollution, which the central authorities have called "the three tough battles" for 2018.Tighter rules on polluting factories might weigh on production, while higher borrowing costs amid enhanced financial regulation and deleveraging efforts could also have an impact on economic activity. UBS economist Wang Tao expects more of the impact from the ongoing clean air campaign to come in December and the first quarter of 2018, which along with a softening of infrastructure investment amid tighter local government financing rules and other supply-side structure reforms, should dampen GDP growth to 6.6 percent in the fourth quarter and 6.5 percent in the first quarter of 2018. Earlier in the day, both the country's money market rates and the central bank's open market operation rates increased, hours after the U.S. interest rate hike.The central bank's open market operation rates were 5 basis points higher, after the U.S. Federal Reserve raised the benchmark interest rate by 25 basis points, the third increase in 2017.In the money market, the one-month Shanghai Interbank Offered Rate, a benchmark, rose 2.94 basis points to 4.5534 percent, the highest level since June 26. The benchmark Shanghai Composite Index edged down 0.32 percent to 3,292.44 Thursday. A document released last week after a meeting of the Political Bureau of the Communist Party of China Central Committee, which offers a glimpse into the 2018 economic work, prioritized high-quality development, which it said was "the fundamental requirement for determining the development path, making economic policies and conducting macro-economic regulation for the present and in the period to come." With current growth still robust, Wang Tao expects macro economic policy to stay unchanged in the next few months with no additional tightening policies.
Source: China Daily.
The Bangladesh Apparel Exchange (BAE) will organise the first ever Bangladesh Fashionology Summit in Dhaka on February 12 to bridge the gap between the present and the future of the textile and fashion industry. Global brands, garment makers, technology companies, fabric producers and software service providers will participate in the day-long event. BAE wants to bring together inspiring and innovative thinkers and companies from across the globe to initiate the much-needed conversation around technology, digitalisation and innovation in the country’s apparel and fashion industry, Bangladesh media reports quoted BAE founder-CEO Mostafiz Uddin as saying. The event will also discuss automation, robotics, cobots for apparel industry to latest radio frequency identification controlled digital shop-floor control systems, virtual photorealistic simulation for apparel prototyping and product development to cyber security.
Source : Fibre2fashion
Cotton USA, which promotes US cotton fibre and manufactured cotton products, recently helped US spinning mills to market US manufactured cotton yarns and fabrics to the Egyptian and Moroccan textile firms from November 10 to 15, 2017. Cotton Council International (CCI), is the export promotion arm of the National Cotton Council of America (NCC). Four US mills travelled to Egypt to attend the second Destination Africa Sourcing Fair, which was held on November 11 and 12, 2017 in Cairo. Following that trade show, three companies continued on to Casablanca, Morocco, to meet textile and apparel association and private companies sourcing yarns. In Cairo, the group was briefed by the US Embassy Agricultural Counsellor on the Egyptian political and economic situation, and by a representative of the Egyptian industry on the Egyptian market and its demand for yarns and fabrics and the role of the QIZ (Qualified Industrial Zones). Cotton Council International (CCI) gave a presentation on the situation across key African companies, highlighting potential for cotton production, demand for cotton fibre, and the capacity of the textile and garment sectors. There were strong networking opportunities with exhibitors at the Destination Africa Trade Show, which were primarily fabric and garment companies from Egypt, as well as opportunities to learn more from both US and European brands on their views of the region and US cotton. Yarn companies reported potential for limited volume sales in the Egyptian market for knit fabric manufacturing but larger potential for sales for towel and bed linen weaving, which may increase with further education on US manufactured yarn quality (OE, Vortex, and Airjet) and more one-on-one visits. In Morocco, Cotton USA and the US spinners’ delegation first met the Moroccan Textile and Apparel Manufacturers Association (AMITH) in Casablanca. The Free Trade Agreement (FTA) between the US and Morocco was the focus of the local industry. Since the beginning of 2016, due to Tariff Preference Level (TPL) requirements, Morocco had to use either US or Moroccan originated yarn and fabrics. This was one of the reasons for interest in US yarns and fabrics. During one-on-one meetings, Moroccan companies, which are focused primarily on sales to the Spanish and French markets, mentioned that they specify US cotton for white and light colours for lack of contamination and higher quality.
Source : Fibre2fashion
The Turkish Suteks Group, which acquired the Dutch Braez brand two years ago, is preparing to bring the clothing retailer to Turkey, according to Nur Ger, the founder of the textile company. Ger, who belongs to a family well-rooted in the business, is the owner of Braez, which has 250 stores abroad, together with other Turksh brands. Suteks had produced stock for the Dutch retailer for 15 years before the acquisition, Ger told daily Hürriyet. “A key to our success is sharing revenues with our employees via an income-sharing-system that has been in place for 20 years,” she said. The company mainly focuses on exports to Europe and the U.S., and Ger said it has managed to prevent any reduction of brand value despite an increasingly negative perception of Turkey abroad in recent years. “We have frequently invited our clients to visit Turkey. In line with our strong communications strategy, we told them our business environment has not changed. Nevertheless, we can see that many investors are waiting on structural changes before committing to long- and mid-term investments,” she said. Turkey needs to coordinate policies to achieve gender equality in business life, Ger stressed. On the strength of her gender equality advocacy work, Ger was appointed “Business Advocate of U.N. Women’s Empowerment Principles” in 2016. In 2015, Suteks signed a partnership agreement with U.N. Global Compac to advocate for gender equality. Established in 1986 in Istanbul, Suteks produces and exports high-end fashion.
Source : Daily News
Demand for better grades of lint from buyer likely to keep sellers on driving seats as import price has been escalated due to increase in dollar value. Buyers made deals for better and second grade of cotton on higher prices on account of depleting better grades of lint. Better and second grade of lint fetched price of Rs 6,925 per maund and Rs 6,875 per maund respectively. The leading ginning units slowed down supply of better grades in order to get premium prices for in next coming trading sessions sensing on increasing demand from buyers. Majority of mills and spinners bought better grades of cotton and also made forward deals for a month delivery period at around Rs 6,750 per maund and Rs 6,825 per maund respectively. Physical prices would remain firm on demand for all grades of cotton that would keep market’s sentiments in positive while bottom line prices likely to stand in firm frame. Private sector commercial exporters made deals at Rs 6,400 per maund to Rs 6,425 permaund. Raw grades of lint changed hands at Rs 5,975 per maund depending on trash level during trading session.More than 1,200 cotton bales changed hands while ex-gin price per maund remained firm at Rs 6,850 per maund. In Kerb market trading took place in a range of Rs 6,575 per maund to Rs 6,650 per maund. Active trading was recorded at the Karachi Cotton Exchange on Friday, while spot rates increased Rs100/maund. The spot rates increased to Rs6,950/maund (37.324kg) and Rs7,448/40kg. Ex-Karachi rates also rose to Rs7,095/maund and Rs7,603/40kg after an addition of Rs145 and Rs155 as upcountry expenses, respectively. A total of 27 transactions were recorded of around 32,000 bales at a price of Rs6,400 to Rs7,500/maund. Notable deals were recorded from Daharki, Saleh Pat, Rohri, Khanpur Maher, Khairpur, Kot Sabzal, Khanpur, Liaquatpur, Rahimyar Khan, Shujabad, Bahawalpur, Ahmedpur East, Yazman Mandi, Chistian and Mianwali.
Source: YarnsandFibers
ZIMBABWE’s cotton exports rebounded sharply last year, buoyed by the Presidential Inputs Scheme, which saw production of the crop increasing by more than 150 percent. Cotton used to be one of the country’s largest foreign currency earners before production slumped due to viability challenges resulting from inadequate funding and poor prices. The Cotton Company of Zimbabwe, which is administering the three-year Presidential Inputs Scheme said foreign exchange receipts from lint rose 344 percent to $20 million from $4,5 million realised in the previous year. National cotton output increased to 72 000 tonnes, up from 28 000 tonnes produced this year, according to the Agriculture and Marketing Authority. Production of the “white gold” slumped to about 28 000 tonnes last year, the lowest since 1992. Last year, Cottco produced 75 percent of the total output with 155 000 farmers having participated. “We generated about $20 million from lint exports and we are looking forward to another better season,” Cottco managing director Mr Pious Manamike told The Herald Business last week. Zimbabwe is on a drive to boost exports through diversification and the cotton is among key commodities with high potential of generating the much needed foreign exchange. Some export incentives have been put in place by the Government, through the Reserve Bank of Zimbabwe to encourage production of goods that can be exported. Meanwhile, Mr Manamike said the 2017/18 season had progressed well in terms of inputs distribution. “The season underway will be bigger than last season. The inputs package covers 400 000ha with each farmer getting a package for one hectare,” said Mr Manamike. This year’s package is made up of 8 000 tonnes of seed, 40 000 tonnes of basal fertiliser and 20 000 tonnes of top dressing. The first tranche of inputs being planting seed and Compound L fertilisers have been disbursed to 90 percent of the targeted 400 000 farmers. Top dressing fertiliser has been delivered to the distribution points and is awaiting disbursement. Disbursements would commence once crop establishment has been validated. “Crop establishment is ongoing as the respective catchment areas start receiving meaningful rainfall. All things being equal, our cotton output will grow,” said Mr Manamike. The first consignment of conventional chemicals required during the early stages of the cotton plant have been received and dispatched to the distribution points, he added. Some farmers who spoke to The Herald Business during recent visits to Sanyati, Gokwe and Chiredzi expressed satisfaction with the progress on inputs distribution, saying they were looking forward to a much better season. “We received all critical inputs on time and we have managed to plant. The programme is moving on well and we are hoping for a much better season,” said Bernard Masara of Gokwe. Mr Solomon Mutasa of Sanyati said while some farmers were yet to plant because their areas had not yet received the rains, most of them had received inputs. “We are only for the rains, but we have received most of the inputs that we need at this point of time,” he said. A farmer in Pathway, Mr Noah said the programme had managed to lure back many farmers who had abandoned the crop due to exploitative credit schemes by private companies. In the Lowveld, farmers applauded the Government for the programme, saying it had improved livelihoods of many villagers. “Cottco has played its part (in terms of timely distribution of inputs) and we are very happy. “It is now up to us to deliver and we are just hoping we will receive good rains as we did last season,” said Tapera Chakwesha of Magumire village in Chiredzi.
Source: The Herald
Cotton prices blew up to a new contract high Friday as March futures prices topped 76 cents per pound. The commodity is being chased higher by investors watching the weak U.S. dollar (which makes U.S. cotton less expensive to rest of the world) and a developing problem with bollworms that are eating the crop in India, another major exporter. Our American cotton crop survived the three hurricanes and flooding fairly well but now could face threats from drought spreading into Texas. World demand continues strong, and the rally in the U.S. stock market continues to support expectations of demand for the fiber. One factor that could keep a lid on prices is the large stockpile China has accumulated during the past couple of years.
— Walt and Alex Breitinger are commodity futures brokers with Paragon Investments in Silver Lake, Kansas. This is not a solicitation of any order to buy or sell any market.
Source: Longview News Journal
Gulf African Bank Managing Director Abdalla Abdulkhalik (second left) and KNCCI chairman, Nairobi Chapter, Richard Ngatia (centre) exchange an MoU after the signing ceremony. The bank will support SMEs owned by women and the youth in Nairobi. In Summary Kenyan firms will export fruits, fish, coffee, leather, curios, textile and artifacts through deal partnered by the Chamber of Commerce A partnership between Kenya and the US promises to see over 2,0000 small businesses in Nairobi, Mombasa and Vihiga counties venture into the expansive American market by December next year. According to an MoU, Kenyan SMEs look forward to exporting fruits, fish, coffee, leather products, curios, textile and artifacts. The expected entry of Kenyan enterprises into the US market is the culmination of a partnership between the Kenya National Chamber of Commerce and Industry (KNCCI) and the Centre of International Private Enterprise (CIPE), an American-based organisation affiliated to the US Chamber of Commerce. The deal will see the KNCCI chapters of Nairobi, Mombasa and Vihiga improve their governance, financial resources and service to members through training, technical assistance and small grants to enable them produce quality products. “The Nairobi chamber will capitalise on this partnership to foster its brand and enhance services to members. Already, the Nairobi chamber has signed an MoU with the Nairobi County Government to develop ways of easing doing business, with specific focus on being the voice of small businesses in Nairobi,” said the chairman of the KNCCI Nairobi Chapter, Mr Richard Ngatia. “The selected chambers were put through a rigorous selection process. Ten counties applied for the partnership support. In this phase, we shall be working with three county chambers, and increase the number in the next phase,” said KNCCI county chamber coordinator, Mr Patrick Nyangweso. According to the Office of United States Trade Representative website, Kenya is the 85th largest goods trading partner with the US, with a total of $1.5 billion worth of products exchanged between the two countries in 2015. Products imported from the US during the period included aircraft, machinery, cereals and electrical machinery. Kenya, on the other hand exported woven apparel, knit apparel, coffee, tea, edible fruits and macadamia nuts, totalling $565 million during the same period. “Kenya and the US are very close allies economically. However, inter country trade has been more favourable to the US since Kenyan markets do not understand the US market. This partnership is set to open opportunities for American-Kenya trade,” according to the CIPE Regional Director Africa Lars Benson. Vihiga and Mombasa County chambers will also use the partnership to grow their membership services and enhance policy development to support businesses in their respective counties. More county chambers will be brought on board in the 2019/2020 financial year. At the same time, a leading Sharia compliant bank has offered to support businesses owned by women and the youth by offering unsecured loans of up to Sh20 million. Under a Memorandum of Understanding (MoU) signed between the Gulf African Bank (GAB) and the Nairobi chapter of the KNCCI, the financial institution will support SMEs owned by women and the youth in Nairobi. The lender will offer unsecured against Local Purchase Orders (LPOs) for those with prior performance history and up to Sh3 million for starters registered under KNCCI. “The SME sector is a key focus area for us. As such, we look for like-minded partners like KNCCI with a core mandate of growing businesses; seeking to link businesses to economic resources, and offering training opportunities to bridge skill gaps. At GAB, we are proud to announce that, through our intensive youth and women banking programme, we take care of these through our strategic pillars — educate, empower and protect. Partnering with KNNCI will definitely expand this programme, said the bank’s managing director, Abdalla Abdulkhalik, during the signing of the MoU. Speaking at the function, Mr Ngatia said the partnership would be critical to growing the SME sector in Kenya. “SMEs have a history of giving financial institutions a wide berth, but through such a strategic partnership, they will access the much needed financing to propel their businesses,” he said. The partnership will see the bank and KNCCI establish a programme of collaboration in areas such as training, providing financing opportunities to SMEs as well as skills and knowledge transfer to women and the youth.
Source: Daily Nation
JK Group is set to showcase Kiian Digital’s products developed for the interior textile industry, with a particular focus on the new Digistar Bravo range of disperse dye inks for direct printing at the international trade fair for textile and garment manufacturing Heimtextil 2018. The firm said that these inks, which are compatible with Kyocera printheads, provide high quality and runnability in industrial applications, environmental friendliness and outstanding general fastness. JK Group marketing specialist Marco Girola said that the ability to transition from volume production to customized manufacturing is a key challenge even for the interior textiles market. Digital textile printing with Digistar Bravo supports this. The dyestuffs selected for each colour, in particular the extremely deep intensity and shades of blacks and spot colours, allow printers to freely reproduce leading-edge colour palettes and achieve superior fastness. An endless variation of prints can be produced in a cost-effective way. Xeikon will bring its Wall Decoration Suite for the digital manufacturing of wall decoration applications to the show. This end-to-end workflow comprises of a digital press, "eco-friendly" toner, finishing and support for a wide range of substrates. There are a number of use cases that require shorter runs of wall decoration that cannot be profitably produced using conventional printing technologies, said Dimitri Van Gaever, Xeikon business development manager for the Graphic Arts Segment. This includes short-run printing for end-of-life collections, start-up collections, sample books and customised or ultra-short-run wall coverings such as photo murals for homes or businesses. Our Wall Decoration Suite addresses all of these, and most importantly it does so with no compromise in quality and a focus on profitability. All Xeikon Wall Decoration configurations include a jumbo roll unwinder and a specially developed wallpaper rewinder with slitting and waste removal to deliver perfectly finished wallpaper rolls, in one go. An optional varnishing module is also available. Mimaki will showcase a range of its direct-to-textile and sublimation transfer printers at the show, as well as displaying a wide range of printed textiles. One of the major focuses on the stand will be its Tx300P series of textile printers, which use two different types of textile inks at the same time. This dual ink capacity allows simultaneous printing on cotton with textile pigment ink and printing on polyester with sublimation ink. Mimaki Europe general manager of sales Ronald van den Broek said that Heimtextil is an important show for Mimaki. They are especially excited this year to be speaking with attendees about not only entry-level and mid-market textile printers, but also their Mimaki Textile Pro Series for higher volume applications. They aim to inspire visitors to their stand. But in all honesty, they are more inspired by the visitors than they are by them. This is a very creative group, and they are looking forward to sharing ideas with them that will inspire both of them as they move into the future of digital textile printing. Other print industry names set to exhibit at Heimtextil 2018 include Epson, HP, Mutoh, Sun Chemical, Veika and MS Printing Solutions. Heimtextil 2018 which will take place from 9-12 January at Messe Frankfurt is expected to attract printers from across the globe looking to move into or expand their presence in the textile printing and interior decor markets.
Source: YarnsandFibers
