The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 13 FEB, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-02-12

 

Item

Price

Unit

Fluctuation

Date

PSF

1168.16

USD/Ton

0%

2/12/2015

VSF

1832.66

USD/Ton

0%

2/12/2015

ASF

2595.46

USD/Ton

0%

2/12/2015

Polyester POY

1198.22

USD/Ton

0%

2/12/2015

Nylon FDY

2956.95

USD/Ton

0%

2/12/2015

40D Spandex

7473.62

USD/Ton

0%

2/12/2015

Nylon DTY

5718.94

USD/Ton

0%

2/12/2015

Viscose Long Filament

1454.11

USD/Ton

0%

2/12/2015

Polyester DTY

2680.76

USD/Ton

0%

2/12/2015

Nylon POY

2745.74

USD/Ton

0%

2/12/2015

Acrylic Top 3D

1405.37

USD/Ton

0%

2/12/2015

Polyester FDY

3200.66

USD/Ton

0%

2/12/2015

30S Spun Rayon Yarn

2534.53

USD/Ton

0%

2/12/2015

32S Polyester Yarn

1860.28

USD/Ton

0%

2/12/2015

45S T/C Yarn

2875.72

USD/Ton

0%

2/12/2015

45S Polyester Yarn

2697.00

USD/Ton

0%

2/12/2015

T/C Yarn 65/35 32S

2599.52

USD/Ton

0%

2/12/2015

40S Rayon Yarn

2014.63

USD/Ton

0%

2/12/2015

T/R Yarn 65/35 32S

2485.79

USD/Ton

0%

2/12/2015

10S Denim Fabric

1.58

USD/Meter

0%

2/12/2015

32S Twill Fabric

0.99

USD/Meter

0%

2/12/2015

40S Combed Poplin

1.35

USD/Meter

0%

2/12/2015

30S Rayon Fabric

0.72

USD/Meter

0%

2/12/2015

45S T/C Fabric

0.79

USD/Meter

0%

2/12/2015

SOURCE: Global Textiles

Note: The above prices are Chinese Price (1 US$=6.13988 CNY dtd. 12/02/2015)

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

 

Vardhman Textiles Q3FY15 net plunges 59.5%

Driven by higher depreciation and amortization expense, net profit at North Indian textile major, Vardhman Textiles Ltd plunged 59.5 per cent year on year in third fiscal quarter ended December 31, 2014. For the third quarter of fiscal 2015, Vardhman reported net profit of Rs 70.95 crore as against Rs 175.24 crore in the third quarter of fiscal 2014, down a massive 59.5 per cent. At the same time, net sales for the reporting quarter grew under 1 per cent at Rs 1,429.11 crore from Rs 1,415.98 crore in corresponding quarter of previous fiscal year.

Total expenses at the textile major drove up 16.42 per cent from a year ago quarter to Rs 1,346.84 crore, driven by 71.5 per cent year on year surge in depreciation and amortisation expense. Cost of materials consumed also rose 11.95 per cent to Rs 726.79 crore for the quarter under review compared to Rs 649.17 crore in the same quarter of last fiscal year. Profit before finance cost & exceptional items also fell steeply by 56 per cent to Rs 120.52 crore as against Rs 274.37 crore in the prior fiscal year third quarter.

Vardhman said its profit before tax reached Rs 96.45 crore in the third quarter of fiscal 2015 from Rs 243.24 crore in the corresponding quarter of fiscal 2014. Tax expense for the reporting quarter also rose by a massive 62.5 per cent to Rs 25.50 crore compared to Rs 68 crore in the earlier fiscal year third quarter. In production of various products, Vardhman reported production of yarn stood at 49,132 ton in the third quarter of fiscal 2015 as against 42,801 tons in same quarter of last fiscal year.

Similarly, grey fabric output expanded to 43.9 million metres from 38.5 million metres and it processed fabrics totaling to 30.5 million metres compared to 28.3 million metres in the prior year third quarter. The promoters holding in the company stood at 61.85 per cent, while institutions and non-institutions held 22.18 per cent and 15.97 per cent, respectively.

SOURCE: Yarns&Fibers

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REER window: Re must fall to give exports a boost

The rupee must depreciate 11% for India’s exports to be competitive globally if one goes by the real effective exchange rate (REER). But economists disagree, and so does the RBI. REER shows that in January the currency was overvalued by 11.46% against a basket of 36 currencies. The rupee was trading on an average around 61.50/$ in January. REER is the measure of the competitiveness of a country’s currency relative to currencies of trading partners and adjusted to the impact of inflation. The rupee’s strength is calculated based on a basket of six major currencies and also 36 currencies by the RBI.

Economists, however, believe that for a net-importing country like India, a certain level of overvaluation is needed. Also, REER tends to amplify overvaluation when adjusted to trade weighted retail inflation differentials. “If we use CPI, we should be adjusting REER by productivity also,” said Abheek Barua, consultant with ICRIER. One of the popular productivity measure is per-capita income.In the post-policy press meet on February 2, RBI governor Raghuram Rajan noted that adjusted to productivity, the appreciation of the rupee is moderate than that shown by the REER. The RBI changed the inflation index used in REER to consumer price index from the wholesale price index in 2014. “The way to look at REER is just to look at the trend and whether we are depreciating or appreciating. Just looking at the level is misleading,” said Saugata Bhattacharya, chief economist at Axis Bank.

Barua said that adjusted for productivity, the rupee is currently fairly valued. “There are models used by IMF. If we see, we can find that the 60-61/$ level is fairly valued,” said Barua. This explains the RBI’s attempts to keep the rupee in a 61-63/$ band for more than six months now. The central bank has bought as well as sold dollars to keep the currency stable. But largely, the RBI has been a net buyer owing to the big rush of inflows into bonds. Given that the trend in REER has been showing a stronger rupee vis-a-vis other currencies, it is no surprise the RBI has aggressively bought dollars and is likely to keep doing so. While any appreciation is unlikely, the rupee could be let to depreciate moderately, perhaps until the REER shows a reading of 103 or 104.

SOURCE: The Financial Express

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GST ‘will lower production costs’

The roll out of the Goods and Services Tax regime in 2016 will bring down manufacturing costs, besides re-defining logistics in India, say industry and trade leaders. They feel GST will remove the cascading effect of taxes from the cost of production, which could reduce overall manufacturing costs by 10-15 per cent. Although there are still some apprehensions issues to be sorted out, the Centre is keen on pushing ahead with this major tax reform, which was proposed in 2007 when an initiative was taken to examine the feasibility of replacing the current multiple taxes by a single tax structure.

Stakeholders’ meet

Trade body Assocham on Thursday organised a meeting with stakeholders to clear some of these apprehensions and highlight the benefits that GST will provide. The existing complex and multi-layered indirect tax structure has fragmented the Indian market into different state markets by tax barriers. While excise duty is levied on domestic manufacture of goods at different slab rates, sale of goods attracts state VAT. In addition to these, there are multiple other levies such as entry tax, entertainment tax, property tax, profession tax and luxury tax.

Nihal Kothari, Chairman of the National Council on Indirect Taxes, Assocham, said the existing tax structure posed various problems, such as cascading effect on cost of products and services, different tax treatment for manufacturing and services, higher cost of compliance and uncertainty due to frequent changes in tax laws. “In this context, replacement of this complex tax system with a rational GST is imperative for India’s growth and competitiveness,” he said. Although there is a broad consensus on the basic GST structure, some States still fear possible loss of revenue during the initial changeover. The trade body expects India’s growth to increase by 1.5 to 2 per cent on GST roll out.

SOURCE: The Hindu Business Line

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Industrial production growth slows to 1.7 pct in Dec

Industrial production growth rate slowed to 1.7 per cent in December last year on sequential basis mainly due to a contraction in the mining and quarrying sector. The growth in factory output, as measured by the Index of Industrial Production (IIP), in the month under review was, however, higher as compared to December, 2013 when it expanded by 0.1 per cent. The November IIP has been revised upwards to 3.9 per cent from 3.8 per cent.

For the April-December period of 2014-15, IIP is 2.1 per cent as against 0.1 per cent in same period of the last fiscal. As per government data released today, manufacturing output, which constitutes over 75 per cent to the index, grew by 2.1 per cent in December compared to a dip of 1.1 per cent in the same month a year ago. For April-December period, the sector saw an output growth of 1.2 per cent, compared to a contraction 0.4 per cent in the year-ago period.

Output in the mining sector contracted by 3.2 per cent in December, compared to a growth of 2.6 per cent in the same month last year. During the April-December period, the output has grown by 1.7 per cent compared to a contraction of 1.5 per cent year-on-year. The production of capital goods, a barometer of demand, grew by 4.1 per cent in December as against a contraction of 2.5 per cent in same month of last year.

During the April-December period, capital goods output grew by 4.8 per cent as against a dip of 0.4 per cent. Thirteen out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of December 2014 year-on-year.

SOURCE: The Financial Express

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Make in India to be led by Make in Maharashtra said CM Fadnavis

In the first 100 days of the new government in Maharashtra led by the 44-year old chief minister Devendra Fadnavis, there has been no discernible change in the industrial sector in the state meeting the eye. But behind the curtains, a lot of ground works, preparatory works, studies, interactions with various stakeholders and systems understanding has been accomplished.

Speaking at the 4th Annual Conference organised by FICCI themed “Progressive Maharashtra 2015 today, the chief minister enumerated list of actions on the way to improve the state’s image as the most attractive industrial destination in the country. In a pulsating address to the gathering he stated that the government was readying Right to Service Act similar to the Right to Information and Right to Education Acts. To begin with the government has directed all the offices in the state dealing with the public to prepare a list of all the services being given by them to the public, the time period for delivering those services and the procedure followed. The government has already launched a website “Aaple Sarkar” which connects all the ministries and departments at the state levels. This will be further connected to district and taluka level administrative offices in near future.

Fadnavis further added that all the land records still continuing from the British raj system will be digitised soon. Under land reforms, the state is preparing policy under which agricultural land can be used for genuine industrial purpose without any procedural bottlenecks. Recently the state government has amended the river zone restrictions to support industrial development provided water pollution is prevented.

On labour laws, Fadnavis said that the government was working on labour law reforms and revisiting the “No Exit” policy to make in simpler and also take care of adequate compensation to workers losing employment under any circumstances. He also observed that more than 50% of population in the state is under 25 years of age. And it is the responsibility of the government to provide all sources of livelihood for these youths. While employment is expanding in the informal sector in Maharashtra, the chief ministry reiterated the government’s endeavour that such expansion should happen in organised sector, through industrialisation and services sector.

The chief minister was also optimistic on development of infrastructure in the state. He stated that all major infrastructure initiatives are put on fast track. Citing example of the proposed 72 km of underground metro project, he said that the project has been cleared and added that the bidding process for the new Navi Mumbai International Airport has been fast tracked and the first flight will take off as early as 2019. The coastal road project proposed to decongest traffic and allow swift movement of vehicles will be cleared in three months. The Trans-harbour project connecting Navi Mumbai to Sewree is ready to take off since all the permissions are in place. Now it has to only obtain the clearances of union environment ministry.

For Mumbai, Fadnavis said that the government is taking all steps to decongest the BKC complex built by the MMRDA. He also proposed that five more BKCs will be created in the city. The state is also working on making Mumbai the Global Financial Hub, the inspiration the minister has drawn from his recent visit to Davos, he said. Development Plans are being drawn to create a logistic hub in Bhiwandi area near Mumbai covering an area of 2,200 hectares of land. This will connect all the 4,000 plus godowns in the area to cater to Mumbai’s needs.

On sector specific policies, Fadnavis said that the government was working on new IT policy, new Retail policy and a new Tourism policy with an aim to enhance value addition in the state and create employment opportunities all along. Before Fadnavis, the state industries minister, Subhash Desai while addressing the conference stated that the new government has pruned the long list of obtaining approvals to set up units in the state to just 25, with an aim to do business in Maharashtra. He also said that the government in discussion with the Railways to provide rail-connectivity to Dighi and Jaitapur ports to the Konkan Railways in order to boost the port sector in the state. The new government’s objective of ‘Make in Maharashtra’ is to lead the mantra of ‘Make in India’ by example and make Maharashtra the preferred destination for industries and services sector.

SOURCE: Yarns&Fibers

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Global crude oil price of Indian Basket was US$ 55.19 per bbl on 12.02.2015

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$ 55.19 per barrel (bbl) on 12.02.2015. This was higher than the price of US$ 54.83 per bbl on previous publishing day of 11.02.2015.

In rupee terms, the price of Indian Basket increased to Rs 3445.51 per bbl on 12.02.2015 as compared to Rs 3407.68 per bbl on 11.02.2015. Rupee closed weaker at Rs 62.43 per US$ on 12.02.2015 as against Rs 62.15 per US$ on 11.02.2015.

 The table below gives details in this regard:

Particulars

Unit

Price on Feb 12, 2015 (Previous trading day i.e. 11.02.2015)

Pricing Fortnight for 01.02.2015 (Jan 14 to Jan 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

55.19              (54.83)

45.32

(Rs/bbl

3445.51           (3407.68)

2796.24

Exchange Rate

(Rs/$)

62.43               (62.15)

61.70

 

MJPS/Rk/Daily Crude oil price- 13.02.2015     

SOURCE: PIB

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India, Israel FTA not likely to be signed soon

The free trade agreement (FTA) between India and Israel might not be signed anytime soon. Amit Lang, director-general of Israel’s Ministry of Economy, told Business Standard: “As I understand they (Indian government) are a little bit afraid of FTA as a whole because of the industry and the impact on the local industry. But Israel is not a big market player globally, it is not Europe and it is not the US. FTA with Israel can only do good. We should not look at each other as competitors but each others’ complementaries.”

The West Asian nation is planning to expand its footprint in water management, pharmaceuticals and biotechnology. Lang said India and Israel are toying with the idea of completing the talks one step at a time — FTA on goods will be signed, followed by an agreement on trade in services and investment.

“India mentioned that the FTA should be more comprehensive and not just about trade in goods…. But I am not sure whether it will be concluded as a whole. It may be concluded in steps. We have so far had seven to eight rounds, which is normal when you negotiate a FTA, especially when India does not have a lot of FTAs. But Israel has much more FTAs and that, too, with big nations like the US, EU, Canada and others,” he added.

During the visit of Israel’s economic minister, Naftali Bennett, both sides had agreed to increase bilateral trade to $10 billion from around $5 billion now. Lang said as a result, both sides are trying to identify common areas of interest. “We explained to each other what the obstacles are to the free trade agreement. The Indian side explained to us what is holding back the negotiations.… We concluded that we will try to move forward. I don’t know eventually if we will get to a full-scale agreement but there are things that we want to proceed with in areas of mutual interest.”

Israel, he said, can introduce to the Indian market efficient use of technology in water management and agriculture. Israel is also keen on entering cyber security and life sciences. “We would like to enlarge our areas of cooperation and go beyond defence. India faces a big challenge today in terms of water. Be it the Ganga river or any other river (cleaning), India needs technology. We know it well because we in Israel have faced worse water scarcity and we have overcome that in the last decade.” Indian and Israeli companies are looking at joint ventures in water technology. Lang, who is heading a delegation of 10 leading Israeli firms, also held discussions with some leading Indian companies.

Some of the leading Israeli companies interested in the water management technology space are Mekorot, Baran Group, ARI, Amiad, Aqwise and Arad Group. Some of the states where Israel is focusing are Haryana, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh and Punjab.

SOURCE: The Business Standard

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Pakistan textile industry cannot celebrate announcement of textile policy with energy issue unaddressed

With the new textile policy 2014-19 being announced, according to All Pakistan Textile Mills Association chairman S M Tanveer taking the textile exports to $26 billion in next five years would remain a dream in case the energy supply remained situation dismal, particularly in Punjab and hence the proposal to make availability of electricity at 8 cents per unit for feasibility of textile industry in Pakistan has been put forward.

Punjab-based textile industry are unable to compete with mills in other provinces, as the Punjab-based textile industry, which is 70 percent of the total in country, is operating at a cost differential of $1 billion compared with other provinces. Affordability has become a real issue today hence it will be difficult to compete with regional competitors. It would be a miracle to sustain the present level of $13 billion under the prevalent energy supply situation.

S M Tanveer said that the industry cannot celebrate announcement of textile policy that speaks about uninterrupted energy supply but the irony of situation can be judged from the fact that the SNGPL suspended gas supply on the same day. He wondered how the SNGPL ensured gas supply to the Punjab-based textile industry during peak winter, as it has withdrawn gas supply when demand for space heating has come to an end. Already, SNGPL restricted gas supply to four and half hours a day against the PM directive of eight hours a day gas supply during last sixty days. He said that he was unable to understand why the government was not serious in sustainable growth of textile industry, particularly in Punjab. The value added industry has secured substantial export orders from the Heimtextile exhibition but they have no idea whether to meet the deadlines under given circumstances.

On the other hand, he said that India has started dumping fine count yarn to Pakistani market, threatening the viability of some 30 mills producing fine count cotton yarn. India has been extending rebates and other facilities to its industry for extenuating the impact of GSP plus to Pakistan. According to him, the industry was not clear about its costing due to the prevalent uncertainty. On top of that, the government has imposed regulatory duty on furnace oil with drop in its price internationally. Not only this, the government has also imposed duty on import of furnace-based engines to make situation more difficult for industry. The government should decide whether it was serious in continuation of textile industry in Pakistan and inform once and for all instead of switching on and switching off supplies time and again. It must seriously dealing with energy issues.

SOURCE: Yarns&Fibers

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Pakistan cotton market witnessed upward prices trends

Cotton price in Pakistan market maintained upward journey on Wednesday, influenced with the recent international trend. Brokers said that deals were made at higher rates by up to Rs150 to Rs200 per maund as the world cotton markets moved higher influencing the domestic trading. Buyers rushed to replenish their stocks at higher level, cotton prices rose above the psychological barrier of Rs5,000 per maund because of rise in the dollar’s value against the rupee which has improved export parity of textile goods.

Sustained buying from spinners and exporters pushed lint prices higher on the cotton market. Floor brokers said that improved export parity following depreciation in the rupee’s value against the dollar induced buying from leading spinners. The underlying sentiment, however, was firm and buyers generally looked optimistic about the revival of the economy. The official spot rate extended overnight gains picking up Rs 50 to Rs 4,950. In the ready session, over 20,000 bales of cotton changed hands between Rs 4650 and Rs 5275.

The seed cotton rate in Sindh at Rs 1800 and Rs 2350, in the Punjab prices were higher by Rs 200 to Rs 2200 and Rs 2600. Some leading exporters and mills played an active role in recent rise in the demand, cotton analyst, Naseem Usman said. Fall in fine quality stock, inducing buyers to make forward buying, rumours of cut in US cotton production in future, weakening rupee and recent rise in oil prices, played very important role in surge of local prices.

Other experts said that value-added sector is demanding not to impose 15 percent duty on import of Indian cotton yarn. They also said that to avoid any irregularity during the procurement process, TCP has principally decided to release all payments directly into the ginners and sellers' accounts. India is expecting higher-than-expected 40 million bales of cotton during the current year.

The following deals were reported: 400 bales of cotton from Rohro at Rs 4750, same figure from Vehari at Rs 4650, 800 bales from Fort Abbas at Rs 4775-4885, 400 bales from Yazman Mandi at Rs 4835, same figure from Bahawalpur at Rs 4850, 1000 bales from Haroonabad at Rs 4900-5000, same number from Bahawalpur at Rs 5000, 1400 bales from Khanewal at the same rate, 400 bales from Kabbirwala at the same rate, 1485 bales from Mianwali at Rs 5000-5200, 400 bales from Lodhran at Rs 5100, 2000 bales from Jalalpur at the same rate, 1000 Liaquatpur at the same rate, 6000 bales from Rahim Yar Khan at Rs 5150-5200, 1600 bales from Dera Ghazi Khan at Rs 5200 and 1600 bales from Jahanian at Rs 5275.

SOURCE: Yarns&Fibers

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China’s textile & apparel exports fall sharply in Jan ‘15

The value of exports of textiles and apparel made by China in January 2015 fell sharply, according to the China Chamber of Commerce for Import and Export of Textile and Apparel. In January 2015, China’s total textile and clothing exports were valued at 156.34 billion yuan, registering a decline of 10.6 per cent year-on-year. Of this, textile exports fell 7.6 per cent to 59.48 billion yuan, while apparel exports dropped 12.4 per cent to 96.86 billion yuan.

 Last year, China’s total textiles and garment exports stood at 1.83 trillion yuan, showing an increase of 4.06 per cent year-on-year, which was lower than the 4.9 per cent growth recorded for all Chinese exports. The Chinese textile and apparel industry is facing increased competition from other countries at a time when costs are continuing to rise. So, the outlook for 2015 is not very optimistic for Chinese textile and clothing exports, according to industry analysts.

SOURCE: Fibre2fashion

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PX & PTA prices decline in Far East Asian markets

Paraxylene (PX) prices declined in Asian markets. PX prices went down in SE Asia, where they ranged between US$ 815 and 820 per ton. In the FE Asian market, PX prices went down to US$ 800 per ton. Prices of PX imported from the Taiwanese market were stable in a range of US$ 825 to 830 per ton.

PTA prices plunged in Asia. SE Asian market witnessed a decrease in PTA prices, which ranged between US$ 605 and 610 per ton. In the FE Asian market, PTA prices went down to US$ 585 per ton. Prices of PTA imported from the Taiwanese market were stable in a range of US$ 585 to 590 per ton. In the Chinese domestic market, PTA prices decreased to a range of RMB 4410 to 4460 per ton.

Ethylene prices remained unaffected in Asian markets. In the SE Asian market, Ethylene prices were stable ranging between US$ 885 and 890 per ton. In the FE Asian market, Ethylene prices were stable at US$ 865 per ton. In the US market, Ethylene prices were stable ranging between 35.50 and 36.00 cents per pound. Ethylene prices went up in the European international as well as in domestic markets to US$ 825 per ton and € 730 per ton, respectively. MEG prices remained unchanged in Asia. In SE Asia, MEG prices were stable at US$ 795 per ton. In the Chinese international market, MEG prices were stable ranging between US$ 785 and 790 per ton. In the Chinese domestic market, MEG prices increased to a range of RMB 6020 to 6070 per ton.

In SE Asia, prices of BG PET Chips declined ranging between US$ 905 and 945 per ton, and some deals were concluded in the range of US$ 915 to 955 per ton. In the FE Asian market, selling offers went down in the range of US$ 925 to 965 per ton, while talked prices hovered in the range of US$ 935 to 975 per ton. In the Chinese market, BG PET Chips’ prices plunged ranging between RMB 6750 and 6800 per ton. In the Korean market, prices of FG PET Chips declined in the range between US$ 815 and 845 per ton. In the Indian market, FOB based prices hovered in the range of US$ 825 to 855 per ton. In the Chinese market, FG PET Chips’ prices were stable ranging between RMB 6350 and 6400 per ton.

 PSF prices remained unaffected in Asia. In the FE Asian market, PSF prices were stable at US$ 1030 per ton. In the SE Asian market, PSF selling prices were stable at US$ 930 per ton. In the Chinese domestic market, PSF prices were stable ranging between RMB 7250 and 7275 per ton. In the Chinese domestic market, prices of Polyester POY, DTY and FDY were stable at RMB 7450 per ton, RMB 9100 per ton and RMB 7450 per ton, respectively. In the export market, offers for POY, DTY and FDY were stable at US$ 970 per ton, US$ 1195 per ton and US$ 955 per ton, respectively.

SOURCE: Fibre2fashion

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China offers strong home textiles market: Messe Frankfurt

“Intertextile Shanghai Home Textiles, to be held from August 26–28, 2015 will be held at a time when exciting opportunities exist in China for overseas suppliers,” say the organisers, Messe Frankfurt. This year, Asia’s largest home textiles event will relocate to the National Exhibition and Convention Center (Shanghai), the world’s largest fairground and will be take place on around 160,000 sq metres area.

According to Messe Frankfurt, recent economic data coming out of China highlights exciting opportunities for overseas suppliers. “Despite slower growth overall in the Chinese economy, the domestic housing market is still relatively strong in most cities across China,” Wendy Wen, senior general manager explains. She adds, “Not only are new building projects keeping home textile import figures strong, but also home renovation projects which are becoming an increasingly important sector of the market.”

The China Home Textile Association (CHTA) calculated that home textile imports into China reached US $2.5 billion between January and October 2014. “A large proportion of these imports were in premium bedding products and upholstery fabrics for the high-end market,” CHTA informs. In a further boost for the industry, the value of home renovation projects is forecast to exceed $48 billion annually, with annual growth of around 30 per cent.

Textile products typically account for around 25 per cent of the total cost of home renovation projects in China. Wendy Wen further adds, “A gradual change is occurring too where buyers are attaching more importance to quality, style and trends, and less to cost which can only benefit mid-range and high-end suppliers.”

According to Messe Frankfurt, following the Chinese market’s continuing demand for premium European products, this year’s Exquisite Europe is already attracting strong interest from exhibitors. In 2014, 103 suppliers from 16 European countries took part, with many reporting strong interest in their products. Some of the industry’s leading editors brought premium brands to last year’s fair, looking to take advantage of the increasing interest in high-end design products in China.

“Editors such as JAB, Designers Guild and LaCanTouch have already confirmed their participation in the 2015 fair,” the organisers inform. No longer just a fair focused on fabrics and bedding, Intertextile Shanghai Home Textiles has placed increased importance on the entire spectrum of home textile products, including design services. Last year’s wallcoverings zone was well-attended by buyers, with Clarke & Clarke, Brentano and Desima just some of the big brands that took part as exhibitors. Carpets& rugs is also another product category increasing in prominence at the fair as handmade carpet manufacturers from Pakistan and India reported strong enquiries from buyers in 2014.

SOURCE: Fibre2fashion

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China rejects US subsidy accusation

China's commerce ministry said Thursday that its demonstration bases for exporters comply with WTO rules, rejecting an accusation by the US that China uses the bases to unfairly subsidize certain exports. China has consistently followed WTO rules, and policies in the country's demonstration bases for exporters are in line with the rules, the Ministry of Commerce (MOFCOM) said in a statement posted on its website Thursday.

In a case filed with the WTO Wednesday, the US government said China allows subsidies for smaller exporters at nearly 200 demonstration bases throughout the country, and it has requested consultations with China on the issue at the WTO, the Wall Street Journal (WSJ) reported Thursday. "The subsidy program, benefiting seven industries ranging from textiles to seafood, gives Chinese companies a small but crucial advantage in exports, contrary to the rules of the World Trade Organization," a US official was quoted by the WSJ as saying. While it is difficult to quantify the subsidies involved, China apparently provided around $1 billion over three years in discounted or free services to companies in the demonstration bases, the WSJ reported, citing US officials.

China set up a first batch of 59 demonstration bases in 2011 to accelerate the upgrading of its foreign trade. At the bases, clusters of closely related businesses are gathered together. But there are no unfair subsidies, either from China's central government or local governments, to enterprises in the demonstration bases, and the US accusation is ill-founded, a local commercial official working at a demonstration base in North China's Shanxi Province told the Global Times on Thursday, requesting anonymity.

The purpose of establishing the bases was to create concentrations of export firms focused on one particular industry, not to offer subsidies to them, the Shanxi official said. Export firms in the demonstration bases can benefit by sharing marketing channels and information with each other. These benefits have nothing to do with subsidies, or government-backed discounted or free services, Bai Ming, a research fellow with the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Thursday.

As they are unfamiliar with the actual situation in China, US officials erroneously believe the Chinese government "unfairly" subsidizes exports by industries such as agriculture, Bai said. "The agriculture industry enjoys less government support in China than in some developed countries, including the US, where there is wide application of government subsidies," Bai noted. The US complaint comes after the country saw a large trade deficit in its foreign trade with China in January.

According to data from the General Administration of Customs, China exported goods worth $35.3 billion to the US in January, while the US exported goods worth $13.8 billion to China, resulting in a $21.5 billion trade deficit. Launching the subsidy case against China is "evidence that President Obama ... will be unflinching in standing up for the rights of American workers," Mike Froman, the US trade representative, was quoted by the Financial Times as saying on Wednesday.

The move also came at a time when the Obama administration is seeking congressional support for a free trade agreement known as the Trans-Pacific Partnership. Media reports have suggested that the administration is hoping to get more support by taking a tough stance on protecting US labor rights. As the total volume of bilateral trade between China and the US has grown, it's normal to see a corresponding increase in trade friction between the two countries, but China has accumulated enough experience in recent years to be able to resolve trade disputes, He Weiwen, co-director of the China-US-EU Study Center under the China Association of International Trade, told the Global Times on Thursday.

Reuters reported Wednesday that there are 24 disputes being examined by the WTO involving the US and China, 15 of them brought by the US. China should actively respond to the criticism from the US and cooperate with the WTO to resolve trade disputes, He said.

SOURCE: The Global Times

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Bangladesh-Nepal Expo 2015 begins in Kathmandu

Bangladesh-Nepal Expo 2015 kicked off on Wednesday with the aim of providing a platform for the business communities of the two countries to foster business linkages. Minister for Commerce and Supply Sunil Bahadur Thapa inaugurating the expo said that it would strengthen bilateral relations between the two countries. This expo is an opportunities to enhance trade between the countries as they share many common cultures. The government is in the process of creating a new trade agreement to facilitate product and service trade in both the countries.

The expo is jointly organised by WREN, Networking Business Globally and the Bangladeshi Embassy in Kathmandu. The expo with 125 stalls is showcasing handicrafts, textiles, readymade garment, boutiques, pharmaceuticals, herbal products, information technology, education institutions, frozen sea foods, confectionery, beverages, ceramic products and cosmetics from Bangladesh and Nepal.

Bangladeshi Ambassador to Nepal Mashfee Binte Shams said that the expo would be able to explore new areas of trade for economic welfare. The displays of diversified products from Bangladesh would help Nepal’s business community to learn about the wide variety products they can source economically from Bangladesh. The expo will provide opportunity for entrepreneurs to strengthen business linkages with each other. Many Bangladeshi exhibitors are offering their products at discounted rates during the expo . T-shirts from Rs 300, shirts from Rs 500 to Rs 1,500, sweatshirts from Rs 600 to Rs 1,500 and jeans starting at Rs 800 are some of the clothes on offer.

The Royal Tiger Bangladesh-Nepal Friendship Concert 2015 will also be held on February 15 on the sidelines of the expo . Bollywood singer James (Faruq Mahfuz Anam) and singers Arif, Kona, Reshmi and Shokh from Bangladesh and Nepali artists like Uglyz, Ciney Gurung, Tattava Band, Sabin Rai and Rap Connect will also be performing at the concert. The Bangladeshi Embassy is partnering with Synthesis and WREN Networking, Bangladesh to hold the event. Moods Media & Events of Nepal and eMakers of Bangladesh are the organisers of the event. Tickets for the concert are priced at Rs 500 and Rs 1,000. The fair will run for five days at Bhrikuti Mandap Exhibition Hall in Kathmandu. The organizer has fixed the entry fee at Rs 25 per person.

SOURCE: Yarns&Fibers

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