The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 24 MAY, 2018

NATIONAL

INTERNATIONAL

Indian textile industry exports grew 5.37% in 2017

The Indian textiles & clothing (T&C) industry registered a 5.37 per cent export growth during 2017 as against the global export growth of 3.94 per cent, despite facing challenges like demonetisation and GST. Textiles exports (yarns, fabrics, made-ups) increased by 7.82 per cent and garment exports increased by 2.82 per cent in 2017 as compared to 2016. The Indian T&C exports increased from $35.5 billion in 2016 to $37.4 billion in 2017, as per the Southern India Mills’ Association (SIMA). India remained as the world’s second largest T&C exporter accounting 4.95 per cent global share, while China, the largest exporter accounted 34.2 per cent share during 2017 and 36.7 per cent during 2015. Countries like Germany, Vietnam, Spain and India are capturing the export space vacated by China. The increase in exports by Germany was 14.65 per cent, Vietnam was 10.67 per cent, Spain was 12.1 per cent and India was 5.37 per cent during 2017. During the year 2017, India was the largest cotton yarn exporting country registering 25 per cent global market share and yarn export increased by 7.21 per cent during this year when compared to 2016. However, Vietnam that had 11.93 per cent global cotton yarn trade during 2015 could increase its global share to 18.13 per cent in 2017 and registered 23.93 per cent growth during this year as China has shifted its major volume of yarn imports from India to Vietnam. Vietnam cotton yarn attracts zero duty while Indian yarn attracts 3.5 per cent duty in China, said SIMA in a press release. Vietnam does not produce any cotton and it imports large volume of cotton from India and exports yarn to China. The Indian spinning sector’s long pending demand of extending the MEIS benefit for cotton yarn export is yet to be considered. If considered, this would enable the Indian spinning segment to have a level playing field and utilise the surplus spinning capacity and also convert the 60 to 70 lakh bales of raw cotton being exported into value added yarn and export and thereby create new jobs for several thousands of people and increase forex earnings. Recently, the government has extended MEIS benefits for all textiles and clothing exports beyond June 30, 2018, except cotton yarn. The stability and advantage in the homegrown cotton prices during 2016-17 and 2017-18 cotton seasons have helped the industry to mitigate the challenges, said P Nataraj, chairman, SIMA. He also said that cotton yarn, fabrics, made-ups and handloom product exports have increased by 18 per cent during April 2018 when compared to April 2017 with an increase of $884 million and manmade textiles has registered 4.35 per cent growth rate while there is a significant drop of 21.4 per cent in the exports of readymade garments of all textiles. He has opined that the delay in releasing the export benefits like RoSL, refund of GST accumulated credits, TUF subsidies and also the delay in announcing the enhanced duty drawback rates and RoSL have caused financial crunch for the whole value chain especially the garment sector. The yarn market has gained momentum in the recent times and the unsold yarn stock level is one of the lowest in the recent years. Taking advantage of increased fabric demand, the yarn prices have increased to a certain extent during mid of May 2018 when compared to the previous month. The demand for coarse and medium counts especially open-end yarn both in the domestic market and export market has increased considerably and several mills have got advance booking for few months, stated Nataraj. Early refund and clearing of government dues would strengthen financial position of the exports and all other textile manufacturing units to revive from the financial crisis and capture the emerging market opportunities, concluded the SIMA chief. (KD)

Source: Fibre2fashion

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Indian textile markets firming up: SIMA

Traders of substandard textiles may have to redirect their businesses as the Trade Ministry launches a major clamp down starting September 1st 2018. From September, producers and importers of textiles would have to affix a stamp on their products. This is to avoid seizure by an anti-piracy taskforce put together by the Trade Ministry and the Industrial and Commercial Workers’ Union (ICU). The new directive also follows a meeting between the Trade Ministry and the ICU on Wednesday, May 23, 2018, to discuss ways of saving the local textiles industry from collapse. It equally forms part of efforts to curb the importation and smuggling of fake and cheap textiles into the country. Addressing the media after the meeting, Trade Minister, Alan Kyerematen said failure to affix the stamp will warrant severe sanctions. “Apart from making sure that government earns the revenue, it will also be necessary that the government regulates the trade in this sector particularly in the markets and retail centre…every textile will have tax stamp to be issued by the Finance Ministry. Once this is done, it is easier to identify the pirated goods in the sector,” he stated. The four textiles manufacturing companies operating in the country currently including Volta Star and GTP, have had to lay off workers due to high operational cost and their inability to compete favorably in the market. The textile workers have also protested against the unfair competition especially from the pirated textiles. Meanwhile, local textile producers may have to contend with competition from imported ones until they are able to fully meet the demand for textiles. Local textiles producers are able to meet only a quarter of the demand. Of the 120 million yards of fabric needed annually, local producers are able to supply only 30million yards.

Source: Money Control

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India, Oman explore a wider maritime partnership

India and Oman are exploring greater cooperation in the areas of maritime domain, energy security and the food sector as the two old partners seek to expand their partnership. These were some of the key sectors on the agenda for the recent visit of the Oman India Joint Business Council to India. A group of about 30 young business leaders from Oman, who are part of the Oman India Joint Business Council, also called on Prime Minister Narendra Modi. They shared their perspectives on the long shared history and maritime links between the two countries. The Council was visiting to follow up on PM Modi's February trip to Muscat. During the interaction, the prime minister highlighted the scope for cooperation in Energy Security and Food Security between the two countries. He also conveyed his greetings to the Sultan of Oman, and greetings on the occasion of the beginning of the Holy Month of Ramzan. The Indian Navy will now be able to use the facilities at Duqm port in Oman following the signing of a pact between the two countries, during Prime Minister Narendra Modi’s visit, that will give India a foothold in its extended neighbourhood. "Oman is currently developing Duqm port along with a special economic zone as a regional economic hub. India has shown interest in participating in the Duqm port complex. This will give India greater access to West Asia where it has stepped up strategic and economic engagements,” Oman’s ambassador to India, Hamed Saif Al-Rawahi, had told ET ahead of PM Modi’s visit. “There are the booming markets of the Indian subcontinent and East Africa that also fall within Duqm’s convenient reach. Most of the ports on the west coast of India and east coast of Africa suffer perennial congestion problems, thereby opening up opportunities for Duqm as a transhipment centre catering to these markets,” he had said.

Oman is India’s oldest defence partner in West Asia.

India's main exports to Oman are mineral fuels, mineral oils and products of their distillation; boilers, machinery and mechanical appliances; articles of iron or steel; electrical machinery and equipment, textiles and garments, chemicals, tea, coffee, spices, cereals and meat products and seafood. The main imports from Oman include fertilizers; mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes; aluminum and articles thereof; organic chemicals; salt; sulphur; earths and stone; plastering materials, lime and cement. Investment flows, both ways, have also been robust, as reflected in numerous joint ventures (JVs), established both in India and Oman with estimated total investment of around US$ 7.5 billion. Indian companies have invested in Oman in sectors like iron and steel, cement, fertilizers, textile, cables, chemicals, automotive, etc. especially in Sohar and Salalah. Oman India Fertilizer Company in Sur is a USD 969 million India-Oman joint venture in Oman between IFFCO and KRIBHCO of India and Oman Oil Company (OOC) for manufacturing of fertilizers. Major Indian investments in Sohar include Larsen & Toubro Modular Fabrication Yard L.L.C, Larsen & Toubro Heavy Engineering L.L.C, Jindal Shadeed Iron & Steel L.L.C, Indsil Ferrochrome, Metkore Alloys & Industries. In Salalah, Indian investments are in manufacturing projects like TVS Chennai’s Dunes Oman LLC (automotive), GC Textile Corporation & Division (textile), Oswal Group’s Saltic FZCO (Chemicals), Hind Aluminium (Cables), Kailash Group’s guar processing unit, Indo-Oman  unit, Indo-Oman Apparel, Nagarjuna Fertilizer plant etc. In Duqm Special Economic Zone also, there is a significant Indian presence, including Sebacic Oman a US$ 1.2 billion project for the largest Sebacic acid plant in Middle-East. India-Oman Joint Investment Fund (OIJIF), a JV between State Bank of India and State General Reserve Fund (SGRF) of Oman, a special purpose vehicle to invest in India, has been operational and the initial corpus of US$ 100 million has been fully utilized. OIJIF has raised another $ 220 million for the second tranche which is ready for investments.

Source: The Economic Times

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Grasim to invest Rs13, 000 crore in textile, cement business

Mumbai: Aditya Birla Group firm Grasim Industries will invest over Rs13,000 crore in its textile and cement businesses over the next 24-36 months, as the company looks to increase capacity and modernise production, a senior official of the group said on Wednesday.On a standalone basis, the total capex for Grasim Industries’ textile business stands at Rs6,427 crore, which is to be utilised by the company till financial year 2021, Aditya Birla Group’s chief financial officer Sushil Agarwal said. “The board of directors (of the company) today also approved an additional Rs1,000 crore investment into the chemical business, taking Grasim Industries’ standalone capex plan (for its textile business) to Rs7,427 crore (till FY2021),” Agarwal said. Grasim Industries, which also includes the group’s cement business, UltraTech, will invest Rs5,900 crore on capex to modernise its existing cement plants and carry out environmental upgradation and ramp up capacity of assets it acquired from Jaiprakash Associates. On a consolidated basis, Grasim Industries will invest more than Rs13,327 crore in capex into its textile and cement businesses till financial year 2021.“Cement plants belonging to Jaiprakash Associates were running at 15-20% capacity when we acquired them in June last year,” Agarwal said, adding that the Kumar Mangalam Birla-led company has been able to turn around the assets and run them at 75% capacity in less than a year. “On average, Indian cement plants run at 75% capacity. However, UltraTech plants run at over 85% capacity,” Agarwal said. “The aim is to run Jaiprakash Associates’ cement plant at over 85% capacity in future,” he said. Grasim Industries plans to fund almost the capex from its cash flows, but it could look to raise debt if the circumstances require the company to do so. “Grasim Industries, having generated Rs3,500 crore as EBITDA during FY18, has surplus cash on its balance sheet. Our balance sheet also allows us an option to raise up to Rs12,000 crore in debt to grow, in case of a short-term mismatch,” Agarwal said, adding that the priority of the company would be to fund its capital expenditure from its cash flows. Grasim Industries on Wednesday reported a consolidated net profit of Rs853.62 crore for the quarter ended March 2018. Revenue rose 47.8 % at Rs4,605.55 crore during the same period. The company is expected to focus on its viscose staple fibre (VSF) business to register growth and expand its market in India. “Viscose is eating out of other fiber markets. Our domestic fiber business has grown by 22% (annually) during the March 2018 quarter,” said Grasim’s managing director Dilip Gaur, adding that the bulk of the growth in the textile business is expected to come from the company’s VSF business in the future. Meanwhile, the merger of Idea Cellular, the telecom arm of the Aditya Birla Group, with the Indian arm of global telecom major Vodafone Plc, is expected to be completed soon. “The Idea-Vodafone merger is on track and should happen soon though it is very difficult to put a date on it as the final approval is pending with the department of telecommunications,” said Sushil Agarwal, adding that he is hopeful that the consumption in the country would pick up over the next couple of years.

Source: Live Mint

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Now, foreign ships can move commodities on local routes

Mumbai : Foreign-flagged ships will be allowed to transport agriculture, horticulture, fisheries and animal husbandry commodities between Indian ports without a licence, the Shipping Ministry said in an order issued on Tuesday in a second round of cabotage relaxation. On Monday, the Ministry had eased cabotage rules by allowing foreign-flagged container ships to carry export-import (Exim) containers for transshipment and empty containers on local routes without a licence.

Local route access

Only Indian registered ships are allowed to ply on local routes for carrying cargo, according to India’s cabotage law. Foreign ships can operate along the coast only when Indian ships are not available, after taking a licence from the Director-General of Shipping, according to the rule that was designed to protect local ship owners. The cabotage relaxation granted to foreign flagged ships for carrying agriculture, horticulture, fisheries and animal husbandry commodities specified in the Indian Trade Classification (ITC), Harmonised System (HS) of the Director-General of Foreign Trade, Union Ministry of Commerce and Industry, is conditional on such commodities contributing to at least 50 per cent of the total cargo on board the ship, PK Sharma, Under Secretary in the Shipping Ministry, said in the May 22 order reviewed by BusinessLine.

Commodities

These commodities are meat and edible meat offal, fish and crustaceans, molluscs and other aquatic invertebrates, dairy produce, bird’s eggs, natural honey, edible products of animal origin (not elsewhere included), vegetables and certain roots and tubers-edible, fruits and nuts- edible, peel of citrus fruits or melons, coffee, tea, mate and spices, cereals, products of the milling industry, malt, starch, inulin, wheat gluten, oil seeds and oleaginous fruits, miscellaneous grains, seeds and fruit, industrial or medicinal plants, straw and fodder, vegetable plaiting materials (not elsewhere specified or included), animal or vegetable fats and oils and their cleavage products, wool prior to yarn formation, cotton, prior to yarn/thread formation, vegetable textile fibres such as flax, hemp and jute. Water-borne transportation modes, including coastal shipping, being comparatively cheaper modes of transport would enable farmers to access a larger market profitably, widen the range of goods which can be marketed, and lengthen the distances over which domestic trade can be conducted, according to the ministry. The national perspective plan of Sagarmala programme estimates a potential of more than 9 million tonnes a year for coastal movement of food grains and processed food.

Source: Business Line

Crude oil: Inflation worry makes a case for tax cut

Escalating geopolitical tensions, triggered primarily by the threat of US sanctions on Venezuela and Iran that can potentially crimp supplies in an already tightening market, have propelled crude markets higher to test $80 a barrel for Brent, near three-year highs. The emerging situation points to the possibility of a further rise in oil prices. Venezuela is already going through a political and currency crisis that has caused oil production to drop to a decade low of about 1.4 million barrels a day. The US sanctions are sure to further curb the country’s oil output. Without doubt, falling production in Venezuela has contributed to tightening of the global crude oil market. Despite availability of spare capacity elsewhere, other producers have not so far ramped up production. Even as the market began to digest the news, the US has hardened its stand against Iran, raising the risk of supply outages from one more important source. The US has threatened Iran with ‘strongest sanctions in history’. It appears that in the latest threat to Iran, the US may not have taken Europe and China into confidence. As a result, oil supplies from Iran may find buying support from large importers. It is observed that Iran is leaning on the European Union to make euro-denominated purchases of Iranian oil as a way to avoid US sanctions. However, it would be only a matter of time before the US will start to put intense pressure on European companies that do business with Iran. So, the situation is nebulous and fraught with possibilities. No wonder, speculative capital has quickly moved into the market, exacerbating the price action triggered by geopolitical concerns. The one possibility of relief from falling supplies is if the OPEC decides to ramp up production. A meeting of the oil cartel scheduled next month will be watched with great interest. While the supply side risks disruptions, the demand for oil is robust on the back of strong economic growth. The positive relationship between global economic growth and oil consumption is of course well recognised. Indeed, oil is known as a growth-commodity. What will be the impact if oil prices continue to remain at the current elevated levels or even rise further? Given the tightening market fundamentals, if the current level of prices continues for a length of time, say a quarter, or rise further, it will start to impact demand. Consumption growth will begin to slow. It can potentially trigger inflation in emerging markets such as India that are substantially dependent on oil imports to meet domestic fuel needs. As a universal intermediate, oil has a role in almost every economic activity and oil prices impact inflation. India is currently suffering a double whammy – rising oil prices and depreciating rupee. If this potent combination continues for a few months, the days of benign inflation will be well behind us. Growth will be at risk. That argues for a reduction in the onerous taxes on downstream products of crude including petroleum and diesel. The sooner the government does it the better, politically. When crude prices were $30 a barrel two years ago, New Delhi did not allow the consumers to benefit from low international rates with the argument that oil revenue was needed to fund welfare programs. In retrospect it appears to have been a naïve decision to generate revenue from a volatile commodity such as crude oil. Consumers sacrificed the benefit when prices were low but are now forced to shell out more when prices are rising. Politically this can prove to be disastrous.

Source: Business Line

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Rupee turbulence sharpens, plunges 38 paise to 68.42 a dollar

The rupee today plummeted by a massive 38 paise to hit a near 18-month low of 68.42 against the US dollar following relentless capital outflows amid concerns over macro conditions and surging crude oil prices. This is the lowest closing for the Indian currency since November 29, 2016, when it had ended at 68.65 a dollar. Apprehensions remained on the fiscal front amid rising global crude prices that threaten to further raise India's import bill. Also, domestic forex market sentiment succumbed to bouts of pressure on revival of fresh global trade war fears after the US President Donald Trump tempered optimism over the progress made in the recent US-China trade talks. Currency traders turned extremely cautious about possibility that the adverse US trade and monetary policy will have a substantial impact on the Indian economy. Minutes of the US Fed May meeting, due later today, will be closely scrutinised to assess how many more times the US central bank will raise interest rates in 2018. The rapid surge in global crude oil prices has already had an adverse impact on India's import bill and can lead to a disbalance of the country's fiscal arithmetic. A massive selloffs in domestic equities which tumbled to multi-month lows further added to the rupee woes. The beleaguered rupee had staged a mild recovery yesterday. In the meantime, global crude prices edged lower as the market took a breather on expectations that oil cartel OPEC may raise supplies in June, although geopolitical risks kept a floor under the market. The Brent crude futures, an international benchmark, was trading lower at USD 79.16 a barrel in early Asian trade. Reversing a brief recovery trend, the rupee opened lower at 68.15 from Tuesday's close of 68.04 at the Interbank Foreign Exchange (forex) market. The embattled domestic currency kept sliding in the face of heavy dollar demand and touched a fresh intra-day low of 68.46 in later afternoon deals before concluding at 68.42, revealing a sharp loss of 38 paise, or 0.56 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 68.2139 and for the euro at 80.2400. Meanwhile, the yield on the benchmark 10-year government bond maturing in 2028 shot up to 7.85 per cent. Globally, the dollar edged higher versus a basket of currencies, with investors awaiting the minutes of the Federal Reserve's last policy meeting for hints on the pace of further US monetary tightening. The dollar index, which measures the greenback's value against a basket of six major currencies was higher at 93.95. In the cross currency trade, the home currency bounced back against the pound sterling to settle at 91.14 per pound from 91.51 and also recovered against the euro to finish at 80.09 as compared to 80.34 yesterday. However, it dropped further sharply against the Japanese yen to end at 62.35 per 100 yens from 61.34 earlier. Elsewhere, the euro and sterling were near five-month lows after disappointing economic data. The euro was near a five-month low after private sector growth in the euro zone fell to its slowest pace in 18 months in May. In forward market today, premium for dollar moved up due to mild paying pressure from corporates. The benchmark six-month forward premium payable in September inched up to 93.50-95.50 paise from 93-95 paise and the far-forward February 2019 contract edged up to 230-232 paise from 228-230 paise previously.

Source: Business Standard

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Global Textile Raw Material Price 23.05.2018

 

Item

Price

Unit

Fluctuation

Date

PSF

1409.14

USD/Ton

0%

5/23/2018

VSF

2207.86

USD/Ton

0%

5/23/2018

ASF

3044.25

USD/Ton

0%

5/23/2018

Polyester POY

1427.97

USD/Ton

-0.33%

5/23/2018

Nylon FDY

3428.70

USD/Ton

0.23%

5/23/2018

40D Spandex

5570.66

USD/Ton

0%

5/23/2018

Nylon POY

3138.40

USD/Ton

0%

5/23/2018

Acrylic Top 3D

1726.12

USD/Ton

-0.45%

5/23/2018

Polyester FDY

3609.16

USD/Ton

0%

5/23/2018

Nylon DTY

5931.58

USD/Ton

0%

5/23/2018

Viscose Long Filament

1698.66

USD/Ton

-0.23%

5/23/2018

Polyester DTY

3122.71

USD/Ton

0%

5/23/2018

Nylon DTY

2965.79

USD/Ton

0.53%

5/23/2018

32S Polyester Yarn

2267.49

USD/Ton

0.35%

5/23/2018

45S T/C Yarn

3028.56

USD/Ton

0.52%

5/23/2018

40S Rayon Yarn

2683.33

USD/Ton

0%

5/23/2018

T/R Yarn 65/35 32S

2369.49

USD/Ton

0.67%

5/23/2018

45S Polyester Yarn

2573.49

USD/Ton

0.61%

5/23/2018

T/C Yarn 65/35 32S

3122.71

USD/Ton

0%

5/23/2018

10S Denim Fabric

1.46

USD/Meter

0.11%

5/23/2018

32S Twill Fabric

0.90

USD/Meter

0%

5/23/2018

40S Combed Poplin

1.25

USD/Meter

0%

5/23/2018

30S Rayon Fabric

0.70

USD/Meter

0.45%

5/23/2018

45S T/C Fabric

0.74

USD/Meter

0%

5/23/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15692 USD dtd. 23/5/2018). 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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Pakistan : Textile exports surge 8.13 pc in 10 months

ISLAMABAD (APP) - The exports in textile and clothing group recorded an increase of 8.13 percent during first 10 months of current fiscal year (July-April) 2017-18 as compared to same period of last year. The textile group’s exports from the country jumped to 11.13 billion during July-April (2017-18) against the exports worth of $10.3 billion during July-January (2016-17), according to the latest data of Pakistan Bureau of Statistics (PBS). The products that contributed in positive growth in external trade included raw cotton, the exports of which grew by 31.97 percent by going up from $42.866 million last year to $56.57 million during the current fiscal year. Similarly, knitwear increased from $1.9 billion to $2.2 billion, showing growth of 14.5 percent while the exports of yarn (other than cotton yarn) increased from $19.812 million to $26.488 million, an increase of 33.7 percent. During the period under review, bedwear exports from the country increased by 4.77 percent, from $1.77 billion to $1.8 billion while the towels’ exports increased by 0.52 percent from $664.3 million to $667.775 million. The export of ready made garments increased by 11.96 percent by growing from $1.8 billion to $2.12 billion while the exports of art, silk and synthetic textile increased by 83.09 percent, from $138.723 million to $253.98 million. During the period under review, the exports of made up articles (excluding towels and bedwear) also increased by 7.29 percent, from $532.224 million to $571.037 million. The export of cotton cloth also recorded an increase of 1.12 per cent as it increased to $1.82 billion in July-April 2017-18 from $1.8 billion in same period of past year, while cotton yarn recorded an increase of 7.2 percent to $1.04 billion to $1.117 billion. Meanwhile, the textile products that witnessed negative growth in trade included cotton carded or combed, the exports of which declined by 97.8 percent, from $0.235 million to $5000 while the exports of tents, canvas and tarpulin decreased by 39.72 percent from $119 million to $72 million, the PBS data revealed. On yearly basis textile exports also surged by 12.07 per cent in April 2018 compared to the exports a year ago. During April 2018, the textile exports recorded $1.148 billion compared to the exports worth of $1.02 billion in April 2017. On month-on-month basis, textile exports, however witnessed a decline of 4.49 percent as the exports during March 2018 were recorded at $1.202 billion.

Source: Dunya News

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Agreements for $62 million signed during Kazakh-Uzbek business forum

Eight agreements for $62 million were signed during the Kazakh-Uzbek business forum on May 22 in Shymkent. The forum participants discussed joint projects, export and import of products, cooperation with the purpose to access markets of other countries. The signed documents include memorandums between administration of South Kazakhstan region and Uzbekistan’s Alliance Textile on investment into textile industry of the region, between the Ontustik special economic zone and Kaztechinspeks on rehabilitation of textile enterprise. The administration of South Kazakhstan region and Uzbekistan’s Dentafille Plus signed a memo on construction of a medical supplies plant, local media report.

Source: AKI Press

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Lenzing to expand capacities for Tencel Luxe filament yarn

The Lenzing Group is set to expand its capacities for Tencel Luxe filament yarn. The company will invest up to € 30 million in a further pilot line at the Lenzing site. Basic engineering for construction of the new facility has already been initiated. The Lenzing Group is a global company that produces high-quality fibres from renewable raw material wood.  The new capacities will enable Lenzing to more effectively fulfil the needs of customers for Tencel Luxe filament yarn, than in the past. At the same time, Lenzing will press ahead with technical planning for a large-scale commercial line at the Lenzing site. This strong level of demand is further evidence of the Lenzing Group’s innovative strength. The yarn is opening up new markets for the company in the eco-couture segment, thus contributing to the successful implementation of the sCore TEN strategy. Robert van de Kerkhof, chief commercial officer of the Lenzing Group said, “Thanks to Tencel Luxe, Lenzing is currently positioning itself in the premium luxury market and is embedding the issue of sustainability there in combination with superior aesthetics. The fine filament yarn is comparable to natural silk due to its airy feeling on the skin and the matte finish. It is perfectly suited for very fine fabrics made exclusively from this yarn and as a blending partner with silk, cashmere and wool.” Stefan Doboczky, chief executive officer and chairman of the management board of the Lenzing Group said, “On the occasion of the launch of Tencel Luxe filaments, the luxury brands already realised what opportunities they would have by using this yarn made of the renewable raw material wood. For this reason, demand is already so high that we have decided to take an intermediate step to expand capacities before building a large commercial production plant. The decision to construct a new line will serve as the basis for generating a three-fold increase in capacity compared to the previous volume. The additional capacity will be available to customers at the end of next year. The Lenzing site was selected because research and technological know-how in plant construction are connected in a special way, which will in turn enable us to further develop this special product.”

Source: Fibre2Fashion

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Global cotton consumption to reach record in 2018-19: USDA

In China, cotton consumption is forecast to expand 4 per cent and reach 41.5 million bales in 2018-19, the largest since 2010-11, as investment in the textile industry continues and mills have access to local supplies from the national reserve. China’s mill use in 2018-19 may be further supported by a slower pace of yarn imports compared with recent years. Similarly, India’s consumption in 2018-19 is expected to grow nearly 4 per cent to 25.2 million bales, a record if realised; the global demand for cotton textile and apparel products has supported the recent growth seen in India. In Pakistan, cotton mill use is forecast at 10.5 million bales in 2018-19, slightly above a year earlier and the largest in 4 years, the report said. Cotton mill use in Bangladesh is forecast to reach 7.8 million bales in 2018-19, up 500,000 bales or 7 per cent over 2017-18 as consumption hits new records annually. Tremendous growth has also been noted in Vietnam, where 2018-19 mill use is expected to expand 12 per cent to a record 7.4 million bales, up 800,000 bales over the previous season. Likewise, Turkey’s consumption is projected 200,000 bales or 3 per cent higher in 2018-19 to a record 7.4 million bales, USDA said.

Source: Fibre2fashion

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Ghana : Gov’t issues three months ultimatum to illicit textile retailers

Government has issued a three-month ultimatum to illicit textile retailers to evacuate all pirated textile materials from the markets or face the wrath of the textile task force. This follows a crunch meeting between the Ministry of Trade and Industry, Industrial and Commercial Workers Union and Textile Manufacturers Workers on Thursday. The parties agreed that the Ministry of Finance begins implementation of the tax stamp policy on textile materials latest by September this year. Addressing journalists in a joint press conference after the meeting, Minister of Trade and Industry, Alan Kyeremanteng tasked the Finance Ministry to begin engagement with stakeholders in the textile industry by 1st June for the introduction of the tax stamp policy. Mr Kyeremanteng said, "The Ministry of Trade and Industry working in collaboration with the Finance Minister and the Industrial and Commercial Workers Union has agreed to introduce tax stamps in the regulation of trade in textiles in Ghana. We have agreed among ourselves that beginning June, the Ministry of Finance will begin with an engagement with all industry players on the introduction of this tax stamps. The combined production of three or four textile companies cannot exceed the demand for our country so the government is not interested in banning the importation of textiles but we want to regulate it properly," he said. Mr Kyeremanteng said, “Every piece of cloth will have a tax Stamp from the ministry of finance and clearly, this will help us to monitor those selling pirated or counterfeit textile materials in the market.” Some other measures agreed by the parties to end the influx of pirated textiles into the country also includes the imposition of import restriction on textile materials and among others. According to the Trade Ministry, there are about 120 million yards per annum demand for textile material in the country, a situation the Minister believes will improve in the coming years due to the crave for African wear by many Ghanaians. The Ministry has vowed to deal with any importer who brings in a pirated textile material after September 1. Meanwhile, Mr Kyeremanteng has promised to use the public procurement process to ensure that uniforms for state institutions and students in the basic schools are printed by the local manufacturers. According to him, this will help boost the capacity of the manufacturing companies to employ more people.

Source: Joy Business

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Growth in Textile Sector at 123rd Canton Fair Signals Rising Opportunities for Industry

GUANGZHOU, China, May 23, 2018 /PRNewswire/ -- The 123rd China Import and Export Fair (Canton Fair) has come to an end with Chinese textile & garment products reaching a total turnover of US$1.42 billion, a 4.1 percent year-on-year increase and accounting for 4.7 percent of the total volume of transactions at the event.

"Our data shows that Chinese textile and garment exports are recovering at a very healthy pace," said Maggie Pu, Deputy Director General of the Foreign Affairs Office at Canton Fair. "The latest statistical data from the General Administration of Customs shows that the accumulated exports of Chinese textile and garment products grew at a rate of 4.23 percent year-on-year to reach US$78.932 billion in the first four months of 2018, with US$36.372 billion of that coming in the textile sector which achieved year-on-year growth of 11.37 percent."

Signs of Turnaround with more environmental and quality requirements

"Many textile & garment companies that attended this session of the Canton Fair attribute the recovery and growth of the sector to a comprehensive upgrading of the industry. They have developed new environmentally-friendly and high-quality textile fabrics, demonstrated technical prowess, and improved their support services to meet the demands of the international market," Pu said.Fuzhou Shangfei Clothing Co., Ltd., an example of an attendee that has made great strides in product innovation, demonstrated their new biodegradable and recyclable coat fabric at this year's Canton Fair. This fabric won the ISPO Award in the outdoor segment and has been well-received in the European market.

Increased Competitiveness Supports Market Transition

The garment and textile sector's growth has fueled a maturing of companies in the industry, and this is reflected in those that came to the Canton Fair. Some of the now-common capabilities of the vendors in attendance include: According to Gao Song, President of Jiangsu Sainty, the company brought their clothes and tailored products to Canton Fair, which reflect the company's high-end manufacturing capability. The event has also been a vital platform for the company's research and service capabilities, as well as a contributor to the company's growth. Huang Haitao, Chief of Office of Jiangsu Soho, believes that Canton Fair, working as an important channel to communicate with global suppliers, can help them understand industry trend and differentiations among products, get to associate with valuable partners, and convert competing relationship to partnership through service segmentation.

About Canton Fair

The China Import and Export Fair ("Canton Fair"), is held biannually in Guangzhou every spring and fall. Established in 1957, the fair is now a comprehensive exhibition with the longest history, highest level, largest scale and largest number of products as well as the broadest distribution of buyer origins and the highest business turnover in China.

Source: PR NEWS

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Garment products dominate across textile businesses: FESPA

Garment products dominate across all textile businesses, with sports apparel, textiles for garments and fast fashion topping the growth applications leader board, according to the FESPA 2018 Print Census. Digital adoption for textile is slower than in other segments and production is still dominated by analogue processes across all textile-related segments.  The 2018 Print Census was developed to arrive at a more detailed picture of the growing textile segment. Respondents include screen print businesses with a focus on textile applications, dedicated textile producers and direct-to-garment businesses.

Among printers focused on textile, 56 per cent have made digital investments, and 19 per cent plan to do so in the next two years, aiming to reap the benefits of reduced time to market, customised creative collections, prototyping, and a positive impact on environmental footprint by reducing water and energy consumption.  Production speed is an investment priority for 69 per cent of textile respondents, and 55 per cent want the ability to print directly onto untreated materials. These investments are motivated by brand owner demand for time-sensitive production that delivers supply chain improvements such as waste reduction, optimises response to seasonal peaks and enables local delivery. Screen and textile printers expect digital’s contribution to textile printing revenues to grow by 12 per cent in the next two years.  About 83 per cent of respondents stated that they are optimistic for the future of their business, as per the FESPA report. Close to 72 per cent reported increasing demand for fast turnaround, 61 per cent saw growing requirement for short runs and 59 per cent observed rising expectations of just-in-time delivery (JIT). In the face of volume growth, increased capacity is now a key investment priority. About 54 per cent of respondents cited this as their main motivation for capital spend. Cost reduction is a factor for 53 per cent, while diversification into new markets and product offerings remains a focus of investment for 53 per cent of those surveyed. The research also reveals increased investment focus in areas impacting customer satisfaction and consistency. Responses show that environmental investments are heavily influenced by customer expectations regarding sustainable manufacturing and materials. Close to 76 per cent said that customer demand for environmentally responsible products is shaping business strategy, with more than one in five stating that it is a major influence. Roughly 32 per cent of those surveyed responded by using energy-efficient or environmentally certified equipment to satisfy client demand. “Reviewing the 2018 Print Census findings, we’re delighted to again see such a buoyant global community of print businesses enjoying sustained growth and responding by expanding capacity, as well as differentiating themselves with new products and services. The findings display continued commitment among PSPs to understanding and meeting the evolving expectations of customers. Businesses are pursuing customer-centric development strategies, underpinned with planned technology and training investments.” Over 1,405 respondents were surveyed, representing a 12 per cent increase over the last Print Census published in May 2015. Respondents were from 102 countries, giving a significantly broader geographical reach than the 2015 research (+59%), with data collected throughout 2017 at FESPA events and from association members in Europe, Eurasia, Mexico, Brazil, Thailand and South Africa. (KD)

Source:Fibre2Fashion

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What's trending in the fashion industry?

The global consumer spending on fashion crossed US$1.5 trillion in 2015. India’s fashion retail market is itself set to grow to US$115 billion by 2026. However, Indian fashion and textile brands need to warm up to the emergence of a new connected consumer, well synced with the latest in global apparel and fashion trends, if they are to capture their due share of this growth. In our recent research across the global textile value chain, we found five key trends shaping the future of global fashion and apparel industry. Remarkably, these trends apply as much to the Indian consumer as they do to an American or a British. Our data shows that fast fashion is exploding in influence; as shoppers in India and elsewhere around the world shift to value-for-money fashion, aligned with the latest global trends. People no longer consider apparels as a durable item, to be shopped seasonally; instead, they are now chasing latest trends and hunting for bargains. Clothes are seen as disposable and modern consumer’s closets which can be full of many impractical and infrequently worn items.

Emergence of fast fashion

Apparel brands are forced to embrace what we are calling ‘a new design paradigm’ to create collections faster and at lower Research and Development (R&D) costs. The traditional design process with a three-six months time frame was designed for seasonal collections. It has now given way to a ‘curation over creation’ strategy for monthly collections with a shorter time frame of two months. As a result, players across the textile value chain must reduce lead times.

Rise of fit customer and wearable fashion

The rise of the ‘fit’ customer is another megatrend fueling the demand in activewear and sportswear. Worldwide, there is a cultural shift towards sports including running as part of a growing emphasis on fitness, especially among the urban population. Technology is getting integrated as part of wearables. There are smart clothing items in the market with embedded health sensors and medical monitors. Outside of apparel too, fitness wearables that sync to smartphones have gone mainstream.

Viable eco-friendly products

The third trend is visible in how progressive apparel companies are addressing the latent consumer demand for environment-friendly clothes. US-based Patagonia is an early adopter of recycled materials and organic cotton usage in its apparel. While the Denali jacket from The North Face is made with recycled yarn, recovered from fabric scraps and recycled bottles, which uses less water for dying. From a composite value chain perspective, downstream companies like Bolt Threads have developed bio-synthetic fibers that harness natural proteins; as an alternative to petroleum-based fabrics like polyester or nylon. Patagonia is, in fact, a key user of these alternatives, eco-friendly fabrics.

Preference to product personalisation

Fourth, product personalisation is going mainstream rapidly, creating whole new revenue streams and possibilities for agile brands. Thursday Finest offers custom-tailored merino wool socks that are made on demand using 3D knitting machines to a customer’s specifications: size, shape, and colors. US-based MTailor has embraced smartphone-based personalisation for suits, shirts, and jeans – customers provide measurements and place the order on phone, and get the products shipped via mail. Bombay Shirt Company in India has embraced a similar model. Further, several mainstream jeans brands have started offered personalised fits. Fulfillment of personalised fashion requires brands to re-engineer their entire value chain, use cutting-edge technology for collaboration and communications and forge new types of vendor relationships to ensure express deliveries; for the customer does not like to wait.

Diversifying product segments

The fifth trend is specific to India and to women wear as a category. Women and kids wear categories are growing faster with a 13 percent and 17 percent CAGR respectively between FY 2010-2015 than menswear at 11 percent. The per capita apparel spending is also highest for kids, followed by women and men. Further, within womenswear, western and Indian ethnic segments are growing faster, with 21 percent and 17 percent projected CAGR between FY 2015-2020 compared to saree at 6 percent CAGR. As saree moves to an occasional wear category, we believe brands with single product focus will be severely impacted. Indeed, companies like Garden Vareli have already diversified their product portfolio to include non-saree ethnic and western wear. Globally too, apparel brands have sought to diversify products across customer groups to mitigate single-product risks. Ralph Lauren, for example, today has multiple product lines for women, men, kids and even home furnishing.

Embracing digital technology

Finally, three is a clear emergence of e-commerce as a popular channel for fashion and apparel buying a recent A.T. Kearney-Google study found that 84 percent of respondents claimed to have bought apparel online in the past three months; compared to 79 percent who bought electronics and 52 percent who bought groceries. The onus on apparel brands is clear. They must collaborate with not just downstream players, but even upstream players to innovate and develop products. For example, Levi’s collaborated with Google to launch a Commuter jacket targeted at millennial urban cyclists that use conductive yarn and offers touch-based interactivity with a smartphone – allowing users to accept or decline calls, access music or navigation by gestures right on the jacket. Nike on the other hand innovated with fabric with fibers that open up to increase breathability when sweating and close when the wearer is cooling down. A brand like Uniqlo has, in fact, carved a unique differentiated positioning by using technology innovations: their Heattech innerwear for winters is 100x warmer than regular cotton. More importantly, India’s fashion and textile industry need to recognize that the modern Indian consumer is no different from her counterparts in the west. Local brands and manufacturers, who can become distinctly homegrown leaders, will be crucial for enhancing India’s garments industry competitiveness on the global stage. To do so, they must focus on product innovation and development, invest in brand building and customer engagement, create flexibility in manufacturing and supply chain and finally, demonstrate saviness in embracing digital technologies. Trend-spotting, in this case, is a lucrative business indeed.

Source: Forbesindia

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