MARKET WATCH 12 FEB, 2020

NATIONAL

INTERNATIONAL

Govt has taken specific steps to boost exports, says FM Sitharaman

The minister also said that to enable handicraft industry to effectively harness e-commerce for exports, mass enrolment of artisans across India will be carried out in collaboration with the textiles ministry. The government has taken several steps, including tax refund scheme and enhanced credit to exporters, to boost outbound shipments, Finance Minister Nirmala Sitharaman said on Tuesday. Replying to a debate on the Union Budget, Sitharaman mentioned six specific steps taken for improving the country’s exports. She said that Remission of Duties or Taxes on Export Product (RoDTEP) scheme will replace the existing Merchandise from India Scheme (MEIS), which is considered as non-compliant to global trade rules. The minister said textiles and all other sectors, which currently enjoy incentives up to 2 per cent over MEIS, will transit to RoDTEP. “In effect, RoDTEP will more than adequately incentivise exporters than the existing schemes all put together,” Sitharaman said, adding that now the concerns raised over withdrawal of MEIS is addressed. “I am making it plain that RoDTEP, which is now coming in, will more than adequately compensate and incentivise exporters than all the existing schemes put together,” she added. Under the Foreign Trade Policy, MEIS was introduced in 2015. This incentivises merchandise/goods exports of over 8,000 items and it was the biggest scheme of its kind. Exporters get duty credits at fixed rates of 2 per cent, 3 per cent, and 5 per cent, depending upon the product and target country. The finance minister also said that in order to boost credit to export sectors, the RBI has enhanced the sanctioned limit to the eligible under priority lending norms. “The limit has been raised from Rs 25 crore to Rs 40 crore per borrower. Furthermore, the existing criterion of units having a turnover of up to Rs 100 crore has been totally removed. So, it is applicable to anybody who wants to approach and take this priority sector lending,” she said. The government has also announced Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premium for small exporters. She said this scheme will expand the scope of export credit and it will offer high insurance cover. “This will enable reduction in overerall cost of export credit, including interest rates speciality to the MSMEs,” the minister said. Further, Sitharaman said that the government has approved a sugar export policy for evacuation of surplus stocks during the sugar season 2019-20. “This shall involve providing lump sum export subsidy of Rs 10,448 crore per tonne to sugar mills. The total estimated expenditure is about Rs 6,268 crore that will be incurred for this purpose,” she said. The minister also said that to enable handicraft industry to effectively harness e-commerce for exports, mass enrolment of artisans across India will be carried out in collaboration with the textiles ministry. She informed that the government has also amended SEZ law under which trusts are allowed to set up units in special economic zones. The country’s exports contracted for a fifth month in a row by 1.8 per cent in December 2019 to USD 27.36 billion. During April-December 2019-20, exports slipped 1.96 per cent to USD 239.29 billion, imports declined 8.9 per cent to USD 357.39 billion, leaving a trade deficit of USD 118.10 billion.

Source: Financial Express

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Gujarat weavers oppose planned ADD on nylon yarn

While anti-dumping duty (ADD) on purified terephthalic acid (PTA), a key raw material for yarn production, was abolished recently by the Indian government, power loom weavers in Gujarat are upset with the Directorate General of Trade Remedies (DGTR), which has issued a disclosure statement on the anti-dumping investigation on the import of nylon filament. The DGTR has invited objections from concerned parties for fixing the duty on nylon filament yarn imported from China, Korea, Taiwan and Thailand, according to a report in a top English-language daily. Nylon yarn consumption per annum is pegged at 1.50 lakh tonnes and that it is mostly used in wrap and knitting of fabrics. Anti-dumping duty on such yarn will allow yarn spinners to hike yarn prices in the domestic market. China and other countries are manufacturing new yarns to meet the growing demand. Imposing anti-dumping duty on such yarns keeps power loom weavers away from getting quality yarn, which ultimately leads to rise in import of fabrics and garments in India, according to the weavers. Power loom industry leader Mayur Golwala said anti-dumping duty on nylon yarn will not offer any direct benefit to weavers, who were expecting the prices to come down by ₹8 per kilogram.

Source: Fibre2Fashion

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SGCCI demands textile machinery park in Surat

The Southern Gujarat Chamber of Commerce and Industry (SGCCI) recently submitted a representation to the Indian textile ministry for setting up of a textile machinery park in Surat for promoting indigenous manufacturing and reducing dependence on China, Japan, South Korea and Taiwan for such machinery. The delegation was led by SGCCI president Ketan Desai. Representatives from the textile industry discussed the issue with the ministry in New Delhi. Textile machinery manufacturers in Surat and south Gujarat are capable of matching the standards of the machine manufacturers abroad, Desai told a leading English-language daily. According to him, about 7,500 embroidery machines and more than 3,000 water-jet and air-jet machines are imported by the city every year. Former SGCCI president Hetal Mehta said a detailed report on the import of textile machinery will be prepared and submitted to the ministry for further action. Along with the machinery park, the chamber has also demanded that indigenous manufacturers be offered facilities for research and development.

Source: Fibre2Fashion

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Economy not in trouble; green shoots visible: FM Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said the economy is not in trouble and green shoots are visible with the country moving towards a USD 5 trillion economy. Listing initiatives taken by the government, she said, increasing Foreign Direct Investment (FDI), rise in factory output and over Rs 1 lakh crore GST collection in the past three months are indications of green shoots in the economy. "There are seven important indicators which show that there are green shoots in the economy...economy is not in trouble," she said while replying to a debate on the Union Budget in Lok Sabha. Referring to visible indicators of green shoots, the Finance Minister said the forex reserve is at an all time high and the stock market is upbeat. "Global sentiment is in favour of India. Foreign investors continue to show confidence in India and that is why the country has attracted a net FDI of USD 24.4 billion in AprilNovember 2019-20 as against USD 21.2 billion in the same period the previous year," she said. Net Foreign Portfolio Investment (FPI) in April-November 2019-20 was positive at USD 12.6 billion as against USD 8.7 billion in the same period last fiscal. She further said the gross GST (Goods and Services Tax) revenue collected in January 2020 grew at 12 per cent while in November 2019, it was 6 per cent. "So there is a steady growth and therefore negative growth, which it showed in September and October, has been corrected and we are on a positive growth trajectory and this will obviously bring in greater and newer investments to the economy and it will also reduce the business cost," she added. There are seven green shoots based on which the economy now very clearly moving forward, she added. The Finance Minister said the government's focus is on four engines of growth which include private investment, private consumption, public investment and exports. With regard to public investment, she said, the government in December announced a National Infrastructure Pipeline. It envisages investment of Rs 103 lakh crore for infrastructure development across the country in the next four years (till 2024-25), she said. To boost consumption, the government has increased the Minimum Support Price of all mandated Rabi and Kharif crops for 2019-20. The Minister also took a dig at Congress leader P Chidambaram while referring to the fiscal deficit numbers during the UPA regime. The fiscal deficit was higher "when the economy was managed by competent doctors," she quipped. Chidambaram on Monday said in the Rajya Sabha that the "economy was perilously close to collapse and was being attended by incompetent doctors." Sitharaman in Budget raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent pegged earlier for 2019 -20 due to revenue shortage. The government has used 'escape clause' under the Fiscal Responsibility and Budget Management (FRBM) Act which provides it leeway for relaxation of fiscal deficit roadmap during time of stress. Replying to the opposition charge of the government overshooting fiscal deficit target prescribed in Fiscal Responsibility and Budget Management (FRBM) Act, she said the Narendra Modi government has always respected FRBM Act every year and kept the discipline of FRBM Act. Referring to various initiatives to boost consumption, she said government has increased Minimum Support Price, introduced pension scheme for traders, lowered GST rates abolished Dividend Distribution Tax and corporate tax.

Source: Economic Times

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Post-RCEP Retreat: India likely to sign clutch of FTAs in FY21

In a move that could disprove the perception that India’s trade policy has lately tilted towards protectionism, the government has stepped up efforts to forge “balanced” bilateral free trade agreements (FTAs) with some of its major and potentially growing trading partners. In a move that could disprove the perception that India’s trade policy has lately tilted towards protectionism, the government has stepped up efforts to forge “balanced” bilateral free trade agreements (FTAs) with some of its major and potentially growing trading partners. New Delhi is planning to launch or fast-track bilateral talks with countries, including South Africa, Australia and Mexico, to firm up FTAs, senior government officials told FE. Talks with the EU will be revived too and a limited trade deal with the US is expected to be clinched this month when President Donald Trump visits India; a broader deal with the world’s largest economy could be hammered out later. Besides, with Brexit now over, formal talks with the UK for a trade agreement could be launched soon. India’s refusal to join the 16-nation Regional Comprehensive Economic Partnership (RCEP), the recent spikes in import duties on a host of items, and the rhetoric of some senior government functionaries raised doubts that the country may have become more circumspect, if not protectionist, when it comes to trading with other countries. According to the sources, as the appellate body of the World Trade Organization (WTO) remains dysfunctional and chances of its early return to RCEP talks appear remote, India, an ardent advocate of the multilateral trading system, would use “balanced” bilateral FTAs to deepen its economic engagement with select countries. Australian trade minister Simon Birmingham will likely visit India later this month and meet commerce and industry minister Piyush Goyal to boost talks for an FTA, which is at an advanced stage of negotiations and could be clinched in the next 6-9 months, according to one of the sources. Similarly, India will speed up talks with European Free Trade Association members — Switzerland, Norway, Iceland and Liechtenstein — for a separate trade pact in parallel to its discussions with the EU. However, sticking to its stance, New Delhi aims to ensure “enhanced trade and better trade balance” through these agreements, in contrast with earlier FTAs that “worsened India’s trade deficit”, according to one of the sources. It’s also seeking to rework its existing FTAs with Asean, Japan, Malaysia and South Korea to trim its trade deficit with these nations. Importantly, the Economic Survey for 2019-20 has pointed out that generally FTAs have been beneficial for India. Between 1993 and 2018, India’s exports of manufactured products grew at an annual average of 13.4% and such imports grew 12.7%. In comparison, its overall goods exports grew at an average of 10.9% and imports 8.6% during this period. Already, on the sidelines of the World Economic Forum summit in Davos last month, Goyal held bilateral meetings with EU trade commissioner Phil Hogan, Mexico’s secretary of economy Graciela Márquez Colín, South African trade minister Ebrahim Patel and Japan’s state minister of economy, trade and industry Makihara Hideki to boost prospects of bilateral trade through enhanced cooperation. India’s tactical shift from multilateralism to bilateral engagements comes at a time of heightened uncertainties in global trade, as countries world-over increasingly resort to protectionism to help local industries. This has manifest in a trade war between the US and China that is still not over despite a temporary thaw, and the WTO’s dispute appellate system has collapsed, as the Trump administration has blocked the appointment of judges to it. India, too, has proposed to raise imposed duties on a host of products — including shoes, toys, wooden furniture, kitchenware, appliances and certain food items — which will only increase its average import duty from the already-elevated level of 17.1%. Although some other countries, including China, Japan and South Korea, boast of lower tariffs than India, they have erected massive non-tariff barriers to discourage imports that they deem non-essential. The country’s merchandise exports have remained in the negative zone, having contracted for a fifth straight month through December, as external headwinds, on top of subdued domestic manufacturing, continue to hurt. Exports have barely risen in recent years. In real term, the share of exports of goods and services in the country’s GDP shrank from 25.2% in FY14 to just 20.8% in FY19. In the current fiscal, it’s all set to drop even further. Already, India had pulled out of the RCEP talks in Bangkok on November 4 last year on ground that its key issues–including extra safeguard mechanism to curb irrational spike in imports, mainly from China, and tougher rules on the origin of imported products — were not addressed adequately. Even without RCEP, India’s merchandise trade deficit with China stood at $53.6 billion in FY19, or nearly a third of its total deficit, even without factoring in the deficit with Beijing-proxy Hong Kong. Its deficit with potential RCEP members (including China) was as much as $105 billion in FY19.

Source: Financial Express

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India out of US’ developing nations list for trade benefits

Ahead of President Donald Trump’s visit on February 24-25, the US on Monday removed India from its list of developing countries that are exempt from investigations into whether they harm American industry with unfairly subsidised exports. The United States Trade Representative (USTR) eliminated a host of countries including Brazil, Indonesia, Hong Kong, South Africa and Argentina from getting special preferences under the methodology for countervailing duty (CVD) investigations, stating that the previous guidance that dated back to 1998 “is now obsolete”. The US removed India from the list on account of it being a G-20 member and having a share of 0.5% or more of world trade. The move has cast a shadow on India being able to restore preferential benefits under the Generalised System of Preference (GSP) as part of its trade talks with the US, as only developing countries are eligible for it. “For purposes of US CVD law, the USTR therefore considers countries with a share of 0.5% or more of world trade to be developed countries,” the USTR said in a federal notice. India’s share in global exports was 1.67% in 2018. In global imports, it was 2.57%.In July last year, Trump directed his administration to change rules to prevent “self-declared developing countries from availing themselves of flexibilities” in global trade, saying that nearly two-thirds of World Trade Organization members had been able to avail themselves of special treatment and take on weaker commitments by designating themselves as developing countries.

Source: Economic Times

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Industry 4.0: Pune can be epicentre of fourth industrial revolution

Henkel Adhesives Technologies India is running a global pilot at its brand new adhesive manufacturing facility in Pune – a smart factory – for implementing fourth industrial revolution (Industry 4.0). Bajaj Auto and Bharat Forge are investing heavily in specific areas of Industry 4.0 relevant to their industry. GE manufacturing plant in Chakan has become a model for Industry 4.0. Henkel Adhesives Technologies India is running a global pilot at its brand new adhesive manufacturing facility in Pune – a smart factory – for implementing fourth industrial revolution (Industry 4.0). Bajaj Auto and Bharat Forge are investing heavily in specific areas of Industry 4.0 relevant to their industry. GE manufacturing plant in Chakan has become a model for Industry 4.0. Pune has the potential to become the epicentre of Industry 4.0 adoption and be a provider not for Indian market but also for global markets with its vibrant manufacturing industry, IT and engineering services industry, premier research institutes, start-up hub and enabling organizations and programmes, said the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) and QLEAP Academy report on Industry 4.0. The city has a perfect amalgam to lead in the fourth industrial revolution and become a major hub in India. It also has a place for start-ups which are coming out with solutions to address problem areas of the manufacturing sector, the report added. Pune is one of the hubs created by the department of heavy industries for Smart Automated Manufacturing and Rapid Transformation Hub. The Centre for Industry 4.0 Lab in Pune is working developing capabilities and educate on smart manufacturing technologies. Their lab is slated to come up at Savitribai Phule Pune University. The Software Technology Parks of India, Pune, has launched MOTION – an automotive centre of excellence in autonomous, connected, electric and shared mobility. All the dots are getting connected. The report suggests that there is opportunity to build digital twin, a virtual copy of the physical world of every component, manufacturing plant, products, processes and environment of the industry. The city can build on the capabilities of data science, analytics and IT and be a hub for cognitive systems, build Industry 4.0 talent factory, create entrepreneurs in 3D computer simulations, rapid prototyping, IoT, 3D printing, AR, cybersecurity, cloud and robotics. According to the report, large manufacturing companies in Pune are readying to use sensors, IoT, data analytics, AI and other technologies the MSMEs are yet to join this transformation. The MCCIA conducted a study of 10 MSMEs to check their preparedness for Industry 4.0 and found that while they were using industrial automation solutions but have not reached the Industry 4.0 compliant smart factory standards. Maharashtra has set a target of achieving 13% growth in manufacturing, attract investments worth `10 lakh crore and create 40 lakh jobs by 2023-24 and Pune could play a role in boosting manufacturing by leading the Industry 4.0 transformation.

Source: Financial Express

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India Inc's foreign investment jumps 40% to USD 2.10 bn in January

Investments by Indian firms in foreign countries in January 2020 rose by nearly 40 per cent to USD 2.10 billion on a yearly basis, according to data by the Reserve Bank. Indian companies had invested USD 1.47 billion in their overseas ventures in the same month a year ago. Compared monthly, January investments were higher than USD 1.99 billion in December 2019, showed the RBI data on 'Outward Foreign Direct Investment (OFDI)'. Of the total capital invested by the India Inc in January this year, USD 793.82 million was in the form of equity capital, USD 368.55 came in as debt capital, while the rest USD 890.75 million was through the issuance of guarantee. Among the major investors were Bharti Airtel LtdNSE -0.82 % which pumped in USD 247.5 million in its wholly owned subsidiary (WoS) in Mauritius; Serum Institute of India USD 226.07 million in a WoS in the Netherlands and Allcargo Logistics USD 88.08 million in a wholly owned unit in Belgium.

Source: Economic Times

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Coronavirus and Indo-China trade

China is India’s second biggest trade partner behind the United States, supplying some critical inputs and absorbing some of the country’s agricultural exports. There could be a shortage of critical inputs should coronavirus cause more disruption in China and its economy slows. ET looks at the trade between the two nations.

Source: Economic Times

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Coronavirus outbreak could disrupt supply chains in mid-term: Ind-Ra

India Ratings and Research (Ind-Ra) on Tuesday said coronavirus outbreak could disrupt supply chains and impact credits in the medium term. The ratings agency, however, said supply chains of Indian companies are unlikely to be materially affected in the near term if the outbreak remains contained in Hubei province. On the other hand, if it spreads over the next three to four months, sectors like pharmaceuticals, textiles and automobiles could face supply disruptions for critical raw materials, Ind-Ra said in a statement. "In case the virus is transmitted over the next three to four months, the extent of supply chain disruptions globally could be higher than that during the 2003 SARS outbreak," it said. The quantum of impact on sectors would be contingent on the nature of business activity and the nature of linkages the rest of the world has with mainland China, Ind-Ra added. Specific to Indian companies, the agency said it does "not expect the novel coronavirus (2019-nCoV) outbreak to materially affect Indian corporates'' supply chains in the near term, provided it remains contained in the Hubei province".Stating that several Indian industries have a significant direct dependence on supplies from China, Ind-Ra said pharmaceuticals, fertilisers, textiles and automobiles are among the sectors that could be affected. "Some of these products (imported from China) such as antibiotics, activated pharmaceutical ingredients (APIs) and fertilizers are critical commodities and any disruption in the supply over the long term could have far-reaching economic consequences for India," it said. It further said, "Textiles and automobiles could also face supply disruptions for critical raw materials. All this put together could further worsen the recovery in industrial production over the near to medium term. Nonetheless, such a disruption is not Ind-Ra''s base case scenario." On the possible impact on global supply chain, the ratings agency said China accounted for nearly 11 per cent of the global imports and 13 per cent of global exports in 2018. "It also serves as an import supplier of various raw materials and intermediate goods. Thus, the supply chains for various global and Indian industries are linked to China," it said. Ind-Ra further said, "In a situation wherein the outbreak continues for over two quarters, the impact on China''s industrial activity could be substantial - both due to a fall in labour availability and consumption demand." The agency also said although global response to the coronavirus outbreak has been more aggressive than the 2003 SARS outbreak, it is difficult to quantify the exact impact on Indian corporates, given the significant differences between the two outbreaks – both in scale and severity. "Today, the integration between China and rest of the world is significantly higher, the pace of information dissemination is faster and the containment efforts are more coordinated and aggressive, than at the time of the SARS outbreak," it said. Since 2003, China has gained a dominant role in supply chains of various industries including pharmaceuticals, auto, electronic products and textiles, it added.

Source: Outlook India

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Coronavirus adds risk to India’s nascent recovery: Krishnamurthy Subramanian

A nascent recovery in India’s economy faces “unknown” risks from the coronavirus outbreak, according to a top government adviser. “There are some green shoots, but I would be cautiously optimistic,” Krishnamurthy Subramanian, the chief economic adviser said in an interview in New Delhi on Monday. “There are known unknowns and unknown unknowns. It’s hard to model unknown unknowns.“ The virus epidemic is seen curbing growth in China and the global economy, which will weigh on India’s outlook at a time when the government is forecasting a rebound. Asia’s third-largest economy will likely expand at 6%-6.5% in the year beginning April, an improvement from an estimated 5% this year, Subramanian wrote in a report last month. The virus “creates some uncertainty, especially in China,” Subramanian said Monday, adding that it’s difficult to quantify the impact of the epidemic.

Bottomed-Out

Recent purchasing managers surveys for manufacturing and services as well as industrial output data indicated some recovery in India after six straight quarters of decelerating growth. That optimism was tempered by a central bank survey that showed worsening consumer sentiment. “It’s quite likely that we might have bottomed out,” Subramanian said. “I would wait for it to develop in a trend as sometimes these indicators can be volatile.” The Reserve Bank of India last week left interest rates unchanged amid high inflation, while adopting unconventional policy tools to lower borrowing costs.

No Tours

The central bank also flagged risks to tourist arrivals and global trade from the spread of coronavirus, which has already claimed more than 1,000 lives around the world. The spread of the coronavirus will cost the world economy more than $280 billion in the first three months of the year, putting an end to a 43-quarter global growth streak, according to Capital Economics Ltd.“I would watch the coronavirus situation,” Subramanian said.  “If you go by SARS episode that’s something you can draw lessons from. India wasn’t impacted that much. That’s what I would expect.”

Source: Economic Times

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Tax authorities detect 634 cases of fraud GST refund claim by exporters worth Rs 1,912 crore

Central tax authorities have detected 634 cases of fraudulent goods and services tax (GST) refund claim by exporters amounting Rs 1,912 crore between July 2017 and January 2020, Anurag Thakur, minister of state for finance said in Rajya Sabha Tuesday. Of the total amount, Rs 238.97 crore had been recovered by the Central GST authorities from the entities which claimed the fraudulent refunds, and 35 people have been arrested by the CGST authorities, he added. Responding to a question on the ways that the government is rectifying the shortfall in GST cess collections of Rs 63,250 crore for FY 2019-20, Thakur said that the government had released over Rs 81,000 crore as compensation cess between April and September 2019. “GST compensation cess collection has shown upward trend since October, 2019,” Thakur said in his reply in Rajya Sabha. In January 2020, Rs 8,637 crore was released to states, up from Rs 8331 in December 2019. In November 2019, Rs 7727 was released and in October Rs 7607 was released. In a response to a separate question, Thakur said that the government has undertaken several measures and regulations to curb fraudulent GST claims, including stringent risk parameters-based checks driven by rigorous data analytics and Artificial Intelligence (AI) tools. The minister added that a standard operating procedure had been prescribed for exporters to mitigate the risk of wrongful refund claims of Integrated Goods and Services Tax (IGST), while tax officers, not below the rank of Assistant Commissioner, had been empowered to block input tax credit available in the electronic credit ledger of a taxpayer if credit taken as ineligible or has been availed fraudulently. “Based on the valuable feedback and suggestions received from multiple stakeholders including state governments, the GST Council makes recommendations and necessary action is taken by the government,” Thakur added. To another question, Thakur said that the central government had notified creation of State and Area Benches of GST Appellate Tribunal for various states and UTs that had given proposals.

Source: Economic Times

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Global Textile Raw Material Price 11-02-2020

Item

Price

Unit

Fluctuation

Date

PSF

973.08

USD/Ton

-2.72%

2/11/2020

VSF

1359.45

USD/Ton

0%

2/11/2020

ASF

2010.56

USD/Ton

0%

2/11/2020

Polyester    POY

1026.03

USD/Ton

0%

2/11/2020

Nylon    FDY

2218.05

USD/Ton

0%

2/11/2020

40D    Spandex

4106.97

USD/Ton

0%

2/11/2020

Nylon    POY

5366.25

USD/Ton

0%

2/11/2020

Acrylic    Top 3D

1262.86

USD/Ton

-1.40%

2/11/2020

Polyester    FDY

2053.49

USD/Ton

0%

2/11/2020

Nylon    DTY

2260.98

USD/Ton

0%

2/11/2020

Viscose    Long Filament

1148.38

USD/Ton

-2.73%

2/11/2020

Polyester    DTY

2454.17

USD/Ton

0%

2/11/2020

30S    Spun Rayon Yarn

1996.25

USD/Ton

0%

2/11/2020

32S    Polyester Yarn

1624.19

USD/Ton

0%

2/11/2020

45S    T/C Yarn

2404.08

USD/Ton

0%

2/11/2020

40S    Rayon Yarn

2160.81

USD/Ton

0%

2/11/2020

T/R    Yarn 65/35 32S

1931.85

USD/Ton

0%

2/11/2020

45S    Polyester Yarn

1774.44

USD/Ton

0%

2/11/2020

T/C    Yarn 65/35 32S

2203.74

USD/Ton

0%

2/11/2020

10S    Denim Fabric

1.27

USD/Meter

0%

2/11/2020

32S    Twill Fabric

0.69

USD/Meter

0%

2/11/2020

40S    Combed Poplin

0.97

USD/Meter

0%

2/11/2020

30S    Rayon Fabric

0.53

USD/Meter

0%

2/11/2020

45S    T/C Fabric

0.67

USD/Meter

0%

2/11/2020

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.14310 SD dtd. 11/02/2020). 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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Cambodia PM says country 'will not bow down' a day before EU trade decision

Cambodian Prime Minister Hun Sen was defiant on Tuesday, a day before the European Union is to decide whether to end the country’s special trade preferences over human rights concerns, saying the nation “will not bow down” to foreign demands. Cambodia benefits from the EU’s “Everything But Arms” (EBA) trade program, which allows the world’s least-developed countries to export most goods to the European Union free of duties. The European Union has threatened to suspend the trade preferences over a crackdown on the opposition, NGOs and the media by Hun Sen, who has ruled the country of 16 million for more than 35 years. A document posted on European Parliament’s website suggests that any EBA withdrawal from Cambodia would be partial, saying “some products” would be covered and rice was not included. The official announcement is due on Wednesday. In a speech on Tuesday, Hun Sen said he wouldn’t bow to respond to EU’s demands. “Therefore, we call on the Cambodian people to stand up to protect Cambodia’s independence, sovereignty and peace. Let’s not bow down to anyone, we must work hard to live,” Hun Sen said. “We want to be friends and partners with all countries around the world but if they do not understand us and want to force us, we don’t agree,” Hun Sen said. The garment industry is Cambodia’s largest employer, generating $7 billion for the economy each year. Exports to EU markets were worth $5.4 billion in 2018, according to official data. Clothing company H&M Group said withdrawal of the EBA for Cambodian-made garments would not cause it to stop sourcing from Cambodia but it would hurt production there. “We will continue to produce in Cambodia, but a lack of adequate initiatives developing the Cambodian textile industry, and a withdrawal of the EBA privileges, will have a negative impact on our production in the country,” H&M press officer Ulrika Isaksson said in an email. Self-exiled Cambodian opposition figure Sam Rainsy said on Tuesday that Hun Sen should have complied with the EU’s demands, aimed at restoring fundamental freedoms in Cambodia. “Even a partial suspension of the EBA scheme is a sad development because it will still affect Cambodian workers’ jobs and our country’s economy at least to a certain degree and because such a development could have been avoided,” Sam Rainsy told Reuters in an email.

Source: Reuters

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Parliament to approve EU-Vietnam trade deal despite human rights “concerns”

The European Parliament is set to approve on Wednesday (12 February) a trade agreement with Vietnam, despite some MEPs and NGOs seeking to postpone their consent until the human rights situation improves in the country. The agreement, concluded after six years of negotiations, would be the most ambitious deal signed with a developing nation. It will eliminate 99% of the tariffs over a seven-year period and will reduce other non-tariff barriers for cars wines and spirits. It will also protect Europe’s geographical indications on products including Champagne, Rioja and Parmigiano. “The deal will give a boost to the prosperity both of the EU and Vietnam, and represents a great opportunity for European exporters and investors”, said Parliament’s rapporteur, Belgian conservative Geert Bourgeois. Vietnam is known for its textile and technology exports, especially smartphones. Samsung represents around 20% of the goods the country sends overseas. But human rights organizations and some political groups were calling to postpone the approval until the country improves further its human rights and labour conditions. During the debate held in the plenary of Tuesday, political groups including the EPP, Socialists, the liberal Renew Europe group and conservatives spoke in favour of giving their consent to their agreement, while the Identity and Democracy, the Greens and the Left-GUE were against. Following the Parliament’s blessing, the agreement must be approved by the Council. The investment protection agreement must also be ratified by the 27 member states. Speaking before the plenary, Trade commissioner, Phil Hogan, said that “the benefits of the agreement are many” and described the commitments taken by Vietnam to progress on some of the outstanding issues as “encouraging”. He recalled that, thanks to EU pressure, the country has ratified six out of eight International Labour Organization conventions, and the remaining two will be adopted by 2023. In addition, he said that child labour has been significantly reduced.

Human rights

But human rights continued to be “certainly an area of concern”, Hogan said. He said, however, that “failure to ratify the deal will leave us with fewer options to pursue the reform agenda in Vietnam”. A majority of MEPs spoke in favour of using the tools provided by the new framework to improve the human rights and labour conditions on the ground. For example, as part of the agreement, Vietnam will set up an advisory board with the participation of civil society organisations to monitor the implementation of the deal and raise concerns in those fields. The chair of the Parliament’s International Trade Committee, Bernd Lange, argued that the change in the country would come by getting closer. “We have to try via dialogue to bring an improvement of the situation for the people in Vietnam” he added. Speaking to reporters before the debate, Lange warned that failing to approve the deal at this stage could benefit the conservative wing of the Communist Party in the country against the reforms, ahead of their major party Congress next year. But some MEPs recalled that their consent would come amid a worsening human rights situation in the country and criticised its poor environmental credentials. “We have to note that the Green Deal and human rights are about not to be respected by this house”, said Green MEP, Saskia Bricmont. Emmanuel Maurel, member of the United Left/GUE, also disagreed with the optimism expressed by some of his colleagues and the Commission about the positive impact of the agreement as it would affect European workers “in the most vulnerable sectors”, like textiles. He added that “you are either extremely naïf or extremely hypocritical on human rights”. A group of 28 NGOs sent a letter to MEPs on 4 February requesting a postponement of their consent “until the Vietnamese government agrees to meet concrete and verifiable benchmarks to protect labour rights and human rights.” According to Human Rights Watch, “Vietnam did little to improve its abysmal human rights record in 2019,” and continues to restrict all basic civil and political rights and prohibits.

Source: Euractiv

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UK: Textiles giant Coats takes over Carolina yarn firm

Paisley-founded group adds Pharr High Performance Yarns to global portfolio. An industrial thread manufacturer that traces its roots back to the Clark and Coats textile mills in Paisley has completed the takeover of an American engineering yarn producer. Coats Group, which is headquartered in Uxbridge and listed on the FTSE250 index, announced its acquisition of North Carolina-based Pharr High Performance Yarns for $37 million (£29 million) in November. The deal has now received regulatory clearance. Pharr will add $110 million (£85 million) to Coats’ turnover and about $5 million (£4 million) to its pre-tax profits. The American company, which was founded in 1939 and employs 350 people, specialises in materials that protect firefighters, military personnel and industrial workers against heat and flames. Coats said it would fund the takeover using its cash reserves and existing borrowing facilities. Speaking when the deal was unveiled Rajiv Sharma – Coats’ chief executive – said: “Pharr HP expands our existing manufacturing capabilities and widens our innovation offering to drive further penetration into the personal protection market. “With Pharr HP we are acquiring deep expertise in technical yarn solutions helping us to create ever lighter, stronger and more comfortable yarns for the most extreme environments, protecting many of those who protect us. We will draw upon our strong track record of successfully integrating and growing bolt-on acquisitions, including Gotex and Patrick Yarn Mill, which form an integral part of our performance materials business.” The Clark and Coats families were pioneers of Paisley’s mechanised textile mills in the late 18th and early 19th centuries. Coats listed on the London stock market in 1890 and merged with the Clark firm in 1896; by 1912, the combined company was the third-largest listed company in the world, with its market capitalisation only topped by US Steel and Standard Oil. Guinness Peat Group bought Coats and took it private in 2003, shifting its manufacturing bases from the west to the east. The business returned to the London Stock Exchange in 2015, with its listing fuelling its current spate of acquisitions, which has seen its headcount rise to 18,000 workers spread across 50 countries and its turnover increase to $1.4 billion (£1.1 billion).

Source: Insider UK

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IFC launches web portal to monitor resource usage in RMG sector

The International Finance Corporation on Tuesday launched a web tool named PaCT Portal to calculate resource consumption in the country’s readymade garments industry. The initiative comes as the IFC-led Partnership for Cleaner Textile (PaCT II) enters its third year with eight partners working together to reduce the environmental impacts of the activities of the exportoriented sector, said a press release. The portal was launched at the PaCT annual meet held in Dhaka where panel discussions focused on issues including low-carbon opportunities in the textile industry. The panelists also highlighted how emerging consumer behaviour and choices are now shaping the global apparel market, the release said. Supported by Denmark, Australia, and the Netherlands, PaCT’s multi-stakeholder partnership has already helped the industry to save 25 billion litres of water and 2.5 million megawatt hours of energy annually. Launched in 2018, PaCT II works with 132 factories to adopt state-of-the-art efficiency solutions and reduce water, energy, and chemical use to meet global standards. Five textile brands – VF Corp, PUMA, Levi Strauss & Co, TESCO, and GAP Inc – have partnered with the PaCT programme while the Bangladesh Garment Manufacturers and Exporters Association is the implementing partner. The IFC release said that the data-driven monitoring software would provide realtime analytics for readymade garment factories, helping them in their efforts to improve use of resources, such as water and energy. ‘Through programmes like PaCT, we hope to contribute towards improving sector competitiveness by promoting resource efficiency through innovative ways and evolving with global trends,’ IFC country manager Wendy Werner said. Nishat Chowdhury, programme manager for PaCT, said that this monitoring tool would work as an analytical information exchange platform to help with users’ decision-making regarding water and energy consumption. It can play a big role in leading the industry towards sustainability and achieve results that are right for the industry, the planet and our future generation, she said. In a video message, BGMEA president Rubana Huq said that the industry had saved a huge amount of water and energy through the collaborative partnership with PaCT. ‘We would like to think and shape tomorrow for the better and we can only do that by being the best of partners in the days to come,’ she said.

Source: New Age Business

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Lenzing’s new Tencel fiber made with chlorine-free bleaching process

Strengthening its sustainability commitment, Lenzing Group has introduced Tencel Modal fibers with Eco Pure technology. Positioned as the most environmentally responsible option among Modal fibers, The Tencel Modal with Eco Pure uses a chlorine-free bleaching process in the pulp and fibers, which also results in a softer fiber than those produced from the conventional process. The Eco Pure process also features an eco-responsible production process guided by the EU Ecolabel, which is rewarded to products and services that meet high environmental standards throughout their lifecycle. “The ongoing innovation of cellulosic fiber technologies and eco-responsible production processes has witnessed more sustainable fiber alternatives across the textile value chain,” said Florian Heubrandner, VP of global business management textiles at Lenzing. “This introduction of Eco Pure technology for Tencel Modal fibers is providing brands and consumers with great comfort and more responsible environmental options. With sustainability in our DNA, we will continue to review customers’ feedback to develop and produce high-quality fibers that suit their needs and preferences. “In 2020,” Heubrandner added, “one of our main goals and a core business strategy will be to continue production of high-quality fibers that strive to set higher standards for industry sustainability and comfort.” The Tencel Modal fibers with Eco Pure are designed for use as bedding, undergarments, loungewear and more. They are produced in Austria from beechwood that is sourced from sustainably managed forests in Central and Eastern Europe.

Source: Home Textiles Today

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