The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 FEB, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-02-10

 

Item

Price

Unit

Fluctuation

Date

PSF

1168.09

USD/Ton

0%

2/10/2015

VSF

1832.55

USD/Ton

0%

2/10/2015

ASF

2595.30

USD/Ton

0%

2/10/2015

Polyester POY

1198.14

USD/Ton

0.34%

2/10/2015

Nylon FDY

2956.77

USD/Ton

0%

2/10/2015

40D Spandex

7473.16

USD/Ton

0%

2/10/2015

Nylon DTY

3249.20

USD/Ton

0%

2/10/2015

Viscose Long Filament

5718.59

USD/Ton

0%

2/10/2015

Polyester DTY

1454.02

USD/Ton

0%

2/10/2015

Nylon POY

2680.59

USD/Ton

0%

2/10/2015

Acrylic Top 3D

2745.57

USD/Ton

0%

2/10/2015

Polyester FDY

1405.28

USD/Ton

0%

2/10/2015

30S Spun Rayon Yarn

2534.38

USD/Ton

0%

2/10/2015

32S Polyester Yarn

1860.17

USD/Ton

0%

2/10/2015

45S T/C Yarn

2875.54

USD/Ton

0%

2/10/2015

45S Polyester Yarn

2014.50

USD/Ton

0%

2/10/2015

T/C Yarn 65/35 32S

2485.64

USD/Ton

0%

2/10/2015

40S Rayon Yarn

2696.84

USD/Ton

0%

2/10/2015

T/R Yarn 65/35 32S

2599.36

USD/Ton

0%

2/10/2015

10S Denim Fabric

1.58

USD/Meter

0%

2/10/2015

32S Twill Fabric

0.99

USD/Meter

0%

2/10/2015

40S Combed Poplin

1.35

USD/Meter

0%

2/10/2015

30S Rayon Fabric

0.72

USD/Meter

0%

2/10/2015

45S T/C Fabric

0.79

USD/Meter

0%

2/10/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1US$=0.16246 CNY dtd. 10/02/2015)

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

 

Cotton Corporation could incur steep losses at current prices

State-run Cotton Corporation of India (CCI) is set to suffer its steepest loss in at least six years from sales in the current season, highlighting the plight of an industry that is battling bulging stockpiles and waning demand from top buyer China. The CCI started selling from its stockpiles last month to make room in its warehouses for the ongoing bumper harvest but managed to find buyers for less than half of what it auctioned. It has procured about 6.5 million bales this season from farmers at prices five-sic per cent above current market rates, making the fibre uncompetitive amid world prices that are languishing near five-year lows.

"Based on the current price we may see a loss of Rs 20-25 billion ($322-$403 million) under the support price in operation this year as the response to the sale is very sluggish in the absence of Chinese demand," CCI Chairman and Managing Director B K Mishra said. That would be the biggest loss since at least 2008/09, a government official said. However, this loss will not show up on CCI's books as it will be reimbursed by the government. "I am hoping for some stability in prices by March on less supply," Mishra added, referring to the month when new season arrivals dwindle.

Of the 35,000 bales auctioned since January 27 until last Thursday, CCI has found buyers for only 17,000 bales. But despite the dismal response, the agency cannot afford to lower prices as it has already spent about $2 billion in buying cotton from distressed farmers, Mishra added. A second government source said, including this week, CCI has auctioned 60,000 bales and sold around 29,000 bales.

India is expected to be the world's top cotton producer in the season to September 2015, with a likely output of 40 million bales. China used to buy almost 60 per cent of India's cotton until last year but it has now cut imports to support its farmers. This will bring down India's exports to six-eight million bales this crop year, from 11.8 million bales a year ago, Mishra said.

India's domestic cotton demand is expected to rise about three per cent to 31.1 million bales this crop year. However, Indian firms are delaying purchases on hopes prices will drop further. "Mills do not have that much financial flows to buy on a long-term basis, on an average they are just keeping the stock for just one-two months," said D K Nair, secretary general, Confederation of Indian Textile Industry.

SOURCE: The Business Standard

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Central Silk Board opens silkworm storage plant in Mysore

Textiles minister inaugurating cold storage plantThe Central Silk Board of India has opened a newly built, state-of-the-art, high capacity silkworm egg cold storage plant in Mysore. It was inaugurated by the Union Textiles Minister Santosh Kumar Gangwar. The new plant was necessitated due to increasing seed production targets of National Silkworm Seed Organisation (NSSO) and the leading role southern India has to assume in the coming years in this area.

Up to 1.0 crore disease free layings (dfls) can be comfortably preserved in the plant. In effect, with this plant, the total storage capacity of the Mysore facility would go up to 1.5 crore dfls, the ministry of texties said in a press release. The size of the cold rooms has been specially designed to suit the requirements of the sericulture industry and to utilize the space effectively for preserving hibernated bivoltine silkworm seed under different schedules, ranging from 4 to 10 months.

The new cold storage plant runs on a Direct Expansion (DX) air-conditioned system, is constructed with pre-fabricated double skinned insulated panel, and is highly energy efficient. The plant is equipped with Programmable Logic Controller (PLC) based data logger system for automatic monitoring of temperature and humidity inside the cold rooms with alarms. All control panel boards are microprocessor-based, connected with the data logger.

Cold Storage Plants are indispensable in silkworm egg production system, principally to enable uninterrupted and continuous supply of basic and commercial silkworm seed. The silkworm eggs are preserved in these cold storage plants for short term or long term (up to 10 months) to regulate seed supply, matching the demand.

SOURCE: Fibre2fashion

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57 SEZ developers seek government nod to surrender approvals

Even as the government is considering ways to revive investment in special economic zones (SEZ), 57 developers, including DLF, JSW Aluminium, Parsvnath and Delhi Metro Rail, have sought the government’s nod to surrender their approvals. The applications of these 57 developers for cancellation of the formal approvals granted to them will now be taken up by the inter-ministerial Board of Approval (BOA), chaired by commerce secretary Rajeev Kher, on February 20.

Of the 57 applications, 35 are from IT/ITeS sector, but others include engineering, multi-services, biotechnology, textile, medical devices/pharma, free trade warehousing zones, aluminium, and gems and jewellery. Twenty proposals are from Andhra Pradesh, eight are from Maharashtra, six each from Madhya Pradesh and Uttar Pradesh, and five from Gujarat. “In (these) cases, formal approval has been granted by the department of commerce. However, since there is no significant progress made by the developer/co-developer, the concerned DC has proposed for cancellation of formal approval granted to the developer,” the agenda note of the BoA meeting said. More than 50 developers have surrendered SEZ projects earlier.

SEZs have been struggling since an 18.5% minimum alternate tax (MAT) on SEZ developers and units and dividend distribution tax (DDT) on developers were imposed in the FY12 Budget by then finance minister Pranab Mukherjee as the revenue department in the UPA government had begun to see SEZs as a drain on the exchequer. The finance ministry is currently considering proposals for removal/reduction of MAT and DDT on SEZs to revive investor interest. Earlier, the finance ministry had in a study pegged the revenue loss at Rs 1.76 lakh crore from tax holidays granted to SEZs between 2004-10. The CAG had recently found that the revenue foregone on account of SEZs between 2006-07 and 2012-13 was worth Rs 83,105 crore.

The government has approved 524 SEZ proposals of which only 196 SEZs are functional. Exports from SEZs in 2013-14 was Rs 4.9 lakh crore, up 4.2% over 2012-13. Total employment in SEZs as on September 2014-end was 13.5 lakh, while total investment in SEZs as on June 2014-end is Rs 3.01 lakh cr. Regarding the application of Navi Mumbai SEZ Pvt (Kalamboli, Maharashtra) for an IT/ITES SEZ, the agenda note said, “the developer has informed they are not interested in implementation of SEZ. Accordingly, the development commissioner has recommended for cancellation of formal approval.” On the plea of JSW Aluminum (Vizianagaram district, Andhra Pradesh) for an aluminum sector SEZ, the note said: “The project is held up due to pending signing of agreement for supply of bauxite and environmental clearance for mining of the ore. These hurdles are yet to be cleared. Accordingly, DC has recommended cancellation of formal approval.”

SOURCE: The Financial Express

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Global crude oil price of Indian Basket was US$ 55.90 per bbl on 09.02.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 55.90 per barrel (bbl) on 09.02.2015. This was higher than the price of US$ 55.62 per bbl on previous publishing day of 06.02.2015.

In rupee terms, the price of Indian Basket increased to Rs 3473.63 per bbl on 09.02.2015 as compared to Rs 3433.98 per bbl on 06.02.2015. Rupee closed weaker at Rs 62.14 per US$ on 09.02.2015 as against Rs 61.74 per US$ on 06.02.2015.

The table below gives details in this regard:

Particulars

Unit

Price on Feb 09, 2015

(Previous trading day i.e. 06.02.2015)

Pricing Fortnight for 01.02.2015

(Jan 14 to Jan 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

55.90              (55.62)

45.32

(Rs/bbl

3473.63           (3433.98)

2796.24

Exchange Rate

(Rs/$)

62.14               (61.74)

61.70

MJPS/Rk/Daily Crude oil price- 10.02.2015 

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Indian Rupee Falls for Second Day as Oil Importers Buy Dollars

India’s rupee fell for the second day as traders said crude oil importers stepped up dollar purchases to pay bills. The rupee fell 0.1 percent to close at 62.2050 a dollar Tuesday, Feb. 10, in Mumbai, according to prices from local banks compiled by Bloomberg. It slumped 0.8 percent Monday and touched 62.2150, the weakest level since Jan. 14. “There was dollar demand from oil importers which weighed on the rupee,” said Hari Chandramgethen, Mumbai-based head of forex trading at South Indian Bank Ltd. The dollar’s strength on the back of improving U.S. data also contributed to the rupee’s weakness, he said.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, gained 0.2 percent Tuesday after a report showed American employers beat hiring estimates in January, capping the biggest three-month gain in 17 years. The odds of an increase in U.S. borrowing costs as early as June rose after the report, reducing the allure of emerging-market assets.

The yield on the government bonds due July 2024 was little changed at 7.73 percent, prices from the central bank’s trading system show. The S&P BSE Sensex, India’s benchmark stock gauge, gained 0.5 percent, snapping a seven-day losing streak. Three-month offshore non-deliverable rupee forwards fell 0.1 percent to 63.08 a dollar, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.

SOURCE: The Bloomberg

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India’s 2015/16 budget to assume growth of 8-plus pct

Revisions to India’s economic output data mean that Finance Minister Arun Jaitley’s upcoming budget should assume that the economy will grow by at least 8 percent in the 2015/16 fiscal year, a government source told Reuters on Tuesday. India has changed the way it measures economic activity to conform with international standards, resulting in huge upward revisions to growth figures but a small downward adjustment to the size of Asia’s third-largest economy. “In the budget, we would have to set GDP growth of at least 8 percent for next financial year as the manufacturing sector has shown a good performance,” said the source, who has direct knowledge of budget planning.

A downward revision in nominal gross domestic product in the current fiscal year to March 31 would, however, require spending cuts of around 91 billion rupees ($1.5 billion) to hit Jaitley’s fiscal deficit target of 4.1 percent of GDP, the source added. The new GDP series, calculated based on market prices, has confused economists who say it poorly reflects other indicators that suggest India’s economy is in a weak recovery – and not the fastest-growing large economy in the world.

Reserve Bank of India Governor Raghuram Rajan has gone on the record to say he does not understand the new numbers. Finance ministry officials are now rushing to plug the new numbers into the annual spending plan that Jaitley will unveil on Feb. 28, with the economy now expected to grow by 7.4 percent in the fiscal year that is now coming to a close. The RBI had forecast growth of around 5.5 percent this year. “Everyone is happy that India’s GDP growth has picked up, but we are worried over slower growth in tax collections,” said the source, who requested anonymity as he was not authorised to speak on the record.

With limited scope for boosting tax revenues, Jaitley should step up the pace of sales of state assets and curb spending to hit the government’s deficit reduction target in the coming fiscal year. “We will have to speed up the sale of shares in cash-rich oil companies that could help the government meet the fiscal deficit target of 3.6 percent (of GDP) in 2015/16,” the source said. Prime Minister Narendra Modi’s government has postponed the proposed sales of stakes in oil companies Oil and Natural Gas Corporation Ltd (ONGC) and Indian Oil Corporation Ltd in recent months, as global oil prices have slipped.

SOURCE: The Financial Express

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Fundamentals of economy must be improved to attract FDI: Rajeev Kher

Efforts to increase foreign direct investments (FDI) and improve ease of doing business can boost manufacturing only if fundamental aspects of economic development such as infrastructure availability, cost of capital and land acquisition are addressed, Commerce Secretary Rajeev Kher said.“The first layer of issue that needs to be addressed remains consistent and should be addressed as soon as possible. That is what the government is taking as a challenge,” Kher said speaking at a CII conference on expanding India’s share in the world trade and the role of manufacturing sector in it on Tuesday.

The Commerce Secretary said the revival of manufacturing can’t be pegged to the growth in exports. He said the prospects of domestic manufacturing have to be connected with the prospects of domestic consumption. “This would logically spur the country’s capacity to connect to the world,” he said. Commenting on the country’s intellectual property rights (IPR) policy, Kher said while he was not recommending a review, he believed that a differentiated regime could be brought in sectors which facilitate manufacturing at the upper-end.

On the foreign trade policy which will be announced after the Union Budget, Kher said the government was trying to create the right eco-system to foster trade. “There is a need for change in mindset. The mental bloc about tariffs has to change. While tariffs do play a role, it is only a part of trade policy,” he said. Dwelling on the issue of improving fundamentals, Kher said until India resolves basic factors such as land acquisition; cost of capital, infrastructure and labour productivity, manufacturing can’t improve. Attracting FDI and improving ease of doing business are only details that come later.

He pointed out that over the last few months; the manufacturing sector had shown erratic behaviour. He said the sector needed some stability and hoped that the slew of infrastructure development initiatives undertaken would give a boost to the sector.

SOURCE: The Hindu Business Line

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Chambers sign pact to boost trade with Lanka

The Indian Merchants’ Chamber and the National Chamber of Commerce of Sri Lanka have signed a memorandum of understanding to promote bilateral trade and investments in both the countries.

A business delegation representing different segments including spices, herbal product, dry fruit, aerosol products, cosmetic chemicals, engineering and fabrication and IT/ITES visited Sri Lanka to explore various opportunities. The delegation was led by Bhaskar Shah, Vice-Chairman of Spices Board of India, and RK Jain, Chairman, IMC, Navi Mumbai.

In the first seven months of this fiscal, Indian exports to Sri Lanka grew 14 per cent to $3.71 billion while imports were at $327 million, up seven per cent.

SOURCE: The Hindu Business Line

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Lenzing expands A100 fibre range

The Grimsby, UK, Tencel plant specialises in the A100, and speaking at Première Vision, Paris, Robert van de Kerkhof, chief commercial officer, Lenzing, explained that more than €1 million had been invested in modifying technology at the Grimsby plant.

Conventional A100 is mainly used or all fibre types for high end fashion, but the new micro version of A100 is said to be most appropriate for wool, silk and synthetics for sportswear and knit fashion. Dieter Eichinger, vice president, apparel development, said: "The trend now is that people want to have a fabric that better fits their shape, which are also finer and more lightweight. The A100 micro fibre fulfils the needs these properties, which is one of its biggest advantages."

"A very interesting characteristic of the A100 new version is that the colour can be very intense, eapecially with black fibres. There is quite a significant difference in longevity between it and regular fibres,” he added. Spinners in Slovenia, Austria and Italy have sampled the A100 micro fibre.

SOURCE: Eco Textile

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US organic cotton acreage at 20-year high

A survey of organic cotton growers by the Organic Trade Association (OTA) suggests more acres of organic cotton were planted in the US in 2014 than since 1995. The OTA gathered data from 62 organic cotton growers in Arizona, California, New Mexico, Texas and North Carolina who, between them, are believed to represent all the states with growers of organic cotton in the United States in 2013. Respondents reported a 14 per cent increase in organic cotton acres planted in 2014 – from 15,973 in 2013 to 18,234, representing the largest planted organic cotton acreage in the US since 1995.

The OTA's research suggest that a core group of experienced, knowledgeable organic cotton growers will increasingly account for organic cotton production moving forwards as factors such as a limited supply of labour, the increasing difficulty of weed control, the lack of commercial availability of organic cotton seed, and the growing dominance of GM seeds make the organic cotton market an increasingly tough nut to crack.

SOURCE: Eco Textile

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Cambodia-Garment Export Growth Slows Markedly in 2014

Cambodia’s garment exports rose some 4 percent year-on-year in 2014 to $5.75 billion, far less than the 20 percent jump in garment exports the previous year, but defying the most pessimistic predictions those exports might actually shrink. The slowdown in one of the country’s main economic drivers may have a significant impact on overall growth. The industry employs some 600,000 workers, accounts for 80 percent of Cambodia’s total exports and contributes a third of gross domestic product.

 The new figures, from the Commerce Ministry’s import-export inspection department, did not break down the exports by destination. However, most of the garments Cambodia ships abroad are bound for the U.S. and Europe. Quarterly export figures started out strong last year but gradually slowed as the impact of falling orders from international brands began to hit the factories. Many buyers started reducing their orders in 2014 following a record number of garment worker strikes over wages, benefits and alleged labor abuses the previous year. The unrest came to a head in December 2013 when the Labor Ministry rejected unions’ minimum wage demands and reached a bloody end the next month after military police shot into a crowd of protesting workers, killing at least five.

 Commerce Minister Sun Chanthol declined to comment on the new figures because he had not yet seen them. He referred questions to ministry spokesman Ken Rotha, who could not be reached. The Garment Manufacturers Association in Cambodia (GMAC) had predicted total exports would shrink in 2014. GMAC Secretary-General Ken Loo declined to comment on the latest figures from the import-export department, preferring to wait for year-end numbers from another department at the Commerce Ministry, which he expected in the coming days. However, Mr. Loo did say that he expected even worse figures this year. “I think in 2015 we’re going to see negative growth. The question is how much,” he said. While many factories have already reacted to the falling orders by cutting down on overtime shifts, Mr. Loo said a wave of factory closures and staff layoffs was likely to hit the sector by May. And while the number of strikes fell by more than a quarter in 2014 by GMAC’s own calculations, Mr. Loo said buyers were not likely to take much comfort from the decrease as it was only a climb-down from a record year. A 28-percent hike in the sector’s monthly minimum wage also took effect in January. We still see wildcat strikes, we still see violent demonstrations, we still need to see more enforcement of the law,” Mr. Loo said. Unions say that many of the strikes the factories deem illegal do comply with the Labor Law. They accuse many employers in turn of firing their representatives for legitimate union activity and of colluding with the government to block their applications for local branches.

Source: Cambodia Daily.

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Huge potential of RMG sector was put on view at the Dhaka International Textile and Garment Machinery Exhibition 2015

The 12th Dhaka International Textile and Garment Machinery Exhibition (DTG2015), four day exhibition which opened up last week with nearly 900 different exhibitors from 32 countries to market a wide state-of-the-art-textile and garment machineries and parts. The DTF 2015 demonstrated the huge potential of Bangladesh’s RMG sector. The size of the fair and the international interest it attracts shows the increasing reach and value attached to the RMG industry in Bangladesh. RMG industry is the country’s largest source of export earnings and leading industrial employer, it is vital for Bangladesh to see continuing interest in investing in new machinery and production techniques.

Investment is key to helping it build on its base as the world’s 2nd largest exporter of garments, by moving up the value chain. Bangladesh needs to encourage more such investment to sustain a virtuous cycle of re-investment in improvements to help the RMG sector achieve its target of $50bn of exports by 2021.  Currently, the textile mills produce around 85% of raw materials used by knitwear factories, and 40% of that used by woven garment factories. Over a third of the $16bn worth of fabrics and yarns currently used by the RMG sector needs to be imported.

By improving backward linkages further can both reduce foreign exchange pressures and boost productivity rates for factories introducing finished products. The RMG industry needs to keep modernizing to maintain growth and increase its ability to grow income and support jobs. The DTG 2015 by organized by Bangladesh Textile Mills Association with the ultimate aim to offer an ideal platform to demonstrate new products and exploit business opportunities

SOURCE: Yarns&Fibers

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US, India headed for a trade war: Foreign Policy

The growing "chumminess" between India and the US may soon give way to a trade war as simmering disputes between them retake centre stage, Foreign Policy magazine has suggested.  President Barack Obama's India visit last month and Indian Prime Minister Narendra Modi's visit to Washington last September "suggested a growing camaraderie between the nations," it said in a commentary Monday.  "But look past the veneer of chumminess, and you'll see that the era of good feelings is likely to be short-lived, as simmering disputes between Washington and New Delhi retake their place at centre stage," it said.  "Among the most important are likely to be their vastly differing trade priorities, as each competes for a piece of the world market and plays a high-stakes game to ensure that its businesses and workers get a larger share of the pie," Foreign Policy said.

Among the key sticking points is a trade disagreement over India's domestic procurement requirements for solar cells and modules and their positions on intellectual property protection (IPP).  While "large, deep-pocketed American pharmaceutical companies with powerful lobbies in Washington want India to strengthen its regulatory regime," Foreign Policy said Indian generics manufacturers "fear that they will lose much of their business if India adopts US-style patent protection."  The IPP issue resides at the heart of the proposed Trans Pacific Partnership (TPP), a free trade agreement among 12 nations in the Asia Pacific accounting for 40 percent of world gross domestic product and one-third of world trade.  Both China and India are currently outside the TPP.

Intellectual property regulations would be at the core of the TPP's potential negative impacts on India, Foreign Policy said.  "The TPP also includes a host of stringent labour and environment standards that India - and, for that matter, most emerging economies - would fail to meet," it said.  "There's no indication that the Modi government has any plans to cave on these standards, the adoption of which would seriously erode India's competitiveness, anymore than it has shown any inclination to cave on climate change - yet another area where India and the United States remain at logger heads," Foreign Policy said ."It's very hard to see how the new-found friendship between Obama and Modi can resolve these tensions," it said.

SOURCE: The Economic Times

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