The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 18 March, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-03-17

Item

Price

Unit

Fluctuation

PSF

1158.34

USD/Ton

-0.97%

VSF

1847.17

USD/Ton

0%

ASF

2436.90

USD/Ton

0%

Polyester POY

1185.96

USD/Ton

0%

Nylon FDY

2973.02

USD/Ton

0.55%

40D Spandex

6904.55

USD/Ton

0%

Nylon DTY

2761.82

USD/Ton

1.19%

Viscose Long Filament

1470.26

USD/Ton

0%

Polyester DTY

5726.72

USD/Ton

0%

Nylon POY

2583.11

USD/Ton

0%

Acrylic Top 3D

3281.69

USD/Ton

0.50%

Polyester FDY

1405.28

USD/Ton

0%

30S Spun Rayon Yarn

2566.87

USD/Ton

0%

32S Polyester Yarn

1868.29

USD/Ton

-0.86%

45S T/C Yarn

2875.54

USD/Ton

0%

45S Polyester Yarn

2599.36

USD/Ton

0%

T/C Yarn 65/35 32S

2696.84

USD/Ton

0%

40S Rayon Yarn

2485.64

USD/Ton

0%

T/R Yarn 65/35 32S

2030.75

USD/Ton

0%

10S Denim Fabric

1.14

USD/Meter

0%

32S Twill Fabric

0.99

USD/Meter

0%

40S Combed Poplin

1.35

USD/Meter

0%

30S Rayon Fabric

0.76

USD/Meter

0%

45S T/C Fabric

0.79

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16246 USD dtd. 17/03/2015)

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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Surat increases export by 200pc of MMF fabrics to Pakistan

Surat, the country's biggest manufacturer of man-made fabric has increase its export of (MMF) fabrics to Pakistan by 200 percent since 2011-12, a welcome development considering the hassled relations between the two countries. According to Synthetic and Rayon Textile Export Promotion Council (SRTEPC), total export from India to Pakistan from April 2014 to January 2015 witnessed 20 percent increase at Rs 2,400 crore compared to the same period in previous year . The fabric export to Pakistan is predicted to touch Rs 3,000 crore by the end of this financial year.

Mostly Muslims and Sindhi and Punjabi Hindus, exported dress materials, saris, fabrics worth Rs 1,300 crore to Karachi, Peshawar and Lahore via Mumbai, Delhi, Dubai and Bangladesh from April 2014 to January 2015-an increase of 30 percent over previous year as per Surti traders. While the export of fabric to the USA and UAE has remained unchanged at $500 million and $400 million per annum respectively, to Pakistan it has witnessed a phenomenal growth from $169 million in 2012-13 to $400 million in 2014-15. Interestingly, 60 percent of it was exported from country's biggest man-made fibre industry in Surat.

SRTEPC assistant director Tejal Mewar said that after the USA and UAE, Pakistan is an important destination for MMF export from India. As Surat happens to be the largest MMF hub, the export of fabrics has witnessed a tremendous growth here over the last few years. Four years ago, the export to Pakistan was just below $100 million, but now it is likely to cross $450 million by March 2015. The direct export from Surat to Pakistan would be in the range of Rs 400 to Rs 500 crore per annum. A huge quantity of Surti fabric is exported via Dubai and Bangladesh. However, there is no record available with the council for such exports.

Pakistan's textile industry is cotton based. Thus, it depends heavily on China and India for MMF imports. Surti fabrics are in huge demand in Pakistan as they are used for value-addition in burqas, sherwanis, suits, salwars etc, according to Devkishan Manghani, chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry. Export of MMF fabric increased after trade was allowed from Wagha border in October 2013. Still Pakistan has kept around 78 textile items, mostly manufactured in Surat, in the negative list, Official sources said.

SOURCE: Yarns&Fibers

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India-Yarn price falls on sluggish demand amid unrest

A file photo shows visitors looking at spools of yarn at a textile fair in Dhaka. In the face of sluggish export orders of knit products the price of local yarn fell by 15 per cent over the last two months as international buyers are not feeling comfortable to visit Bangladesh due to political instability, industry people said. In the face of sluggish export orders of knit products the price of local yarn fell by 15 per cent over the last two months as international buyers are not feeling comfortable to visit Bangladesh due to political instability, industry people said.

Slow demand due to political turmoil and fall of cotton price on the international market are the two prime reasons for the price fall of yarn, said its manufacturers. According to the spinners, the price of yarn decreased to $2.80 a kg from $3.25 a kg over the last two months. Knitwear makers, who are the main users of yarn, however, said that they were not getting any advantage of the decreased yarn price as the export orders declined by 20-25 per cent during the period due to the political turmoil.

 ‘The price of yarn fell by 12-15 per cent over last two months due to the sluggish demand for the item as export orders have been decreased,’ Bangladesh Textile Mills Association vice-president Abdullah-al Mahmud told New Age on Monday. Traditionally the price of yarn decreases a bit during the February-April period every year as the price of cotton on the international market fall in the time due to New Year vacation in China that spans for over 30 days, he said. Besides the international factor, yarn sector is going to sit on a stockpile due to some internal problems, Abdullah said.

 Due to the price fall of yarn, its manufacturers are incurring loss as they had to buy cotton at higher prices three to four months back, he said.  Former Bangladesh Knitwear Manufacturers and Exporters Association vice-president Mohammed Hatem said apparel makers were not getting any advantage of price fall in yarn as the texport orders decreased by 30 per cent over the last one and a half months due to political unrest. ‘The buyers are not feeling comfortable to visit Bangladesh and now prefer our competitor countries to Bangladesh in placing orders. So there is no question of getting benefit from the lower price of yarn as we are losing our orders,’ he said. On the other hand, the major destination of the country’s knit products is Europe but the EU countries are now suffering from economic meltdown, Hatem said. He said that EU buyers were now bargaining for cutting product prices due to the depreciation of their currency euro.

SOURCE: Fibre2fashion

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Tirupur Exporters' Association seeks PM Modi's intervention to expedite FTA with European Union

Tirupur Exporters' Association today said Prime Minister Narendra Modi should ask the Commerce Ministry to expedite negotiation to implement the Free Trade Agreement (FTA) with the European Union. It suggested that a discussion along this line may be initiated during the PM's visit next month to EU. In a letter to Prime Minister, a copy of which was released to the press, TEA president A Shaktivel said 'Make in India' vision is apparently fulfilled by the ready-made garment (RMG) sector as it uses minimal inputs from imported items. The entire production takes place in India and provides employment to lakhs of people, mainly women workers and semi-literate people, hailing from rural areas.

The sector has exported RMG worth USD 15 billion in 2013-14, of which USD 6.22 billion of garment was destined to EU and still has the potential to enhance exports to EU once a level playing field was provided to the sector, he said. Stating that the sector is happy over a huge improvement in business relations over a period of time with European buyers and repeat orders had become the norm for most garment units, Shaktivel said export units had also elevated their strength to fulfill customers' stringent quality requirements. "Being compliance oriented units, we are confident that we can edge over our competing countries and increase our market share significantly once FTA is implemented," he said. Fifty five per cent of the total exports from Tirupur, worth about USD 1.6 billion, is shipped to EU, he added.

The EU market plays a crucial role in garment exports and enhancement of exports to EU would directly help create more employment in the domestic market, mainly for women and semi-literate workers from rural areas, after fulfilling the 'Make in India' vision, Shaktivel said. Moreover, it is right time to have FTA with EU as major competing countries like China and Bangladesh are undergoing problems, he added.

SOURCE: The Economic Times

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Aditya Birla fabric unit set Rs 1,000 cr revenue target from its linen business in 2 yrs

Aditya Birla Nuvo unit, Jaya Shree Textile a leading linen fabric maker has set a target to achieve Rs 1,000 crore revenue from its linen, yarn and fabric business in next two years. It also plans to expand the number of exclusive stores to 200 in next three years. Aditya Birla Group Business Head - Domestic Textiles, Overseas Spinning & Acrylic Fibre Thomas Varghese said that they are aiming to have a revenue of Rs 1,000 crore in next two financial year. The company is also planning to now add stores across the region with a more balanced growth.

Varghese said that Linen Club has become more youth oriented by adding more colours, design and trends and informal fabric. Moreover, it is also pushing its recently launched range of readymade shirts under the brand name of "Linen Club Studio", targeting the youths. They have priced it aspirationally starting from Rs 2,500- Rs 3,000 onwards. Right now it is only available at exclusive brand outlets but soon it would also be sold through multi brand outlets. About the investment by Linen Club while expanding its network, Varghese said that most of the upcoming stores would be based on the franchise model.

The company has recently opened a new exclusive brand outlet in Bangalore and has plans to add two more stores by the end of this month, taking the total count to 116 by March end. Currently, company's revenue stands in the range of Rs 700-750 crore. It has presence mostly in South India, although its stores are located in 90 cities across 17 states.

SOURCE: Yarns&Fibers

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Apparel exports may touch $16.5 billion in 2014-15

Lack of adequate sops and overall dull market, apparel exports may miss the earlier target of $ 17.25 billion in the country. According to industry sources, as against the target of $17.25 billion, apparel exports worth $16.50-16.75 billion are being anticipated. "The target may be missed due to several factors such as lack of adequate sops as well as international market conditions. For instance, the European market has not been so bullish as far as apparel exports from India are concerned," said an Apparel Export Promotion Council (AEPC) official on condition of anonymity.

In the month of February alone, the industry saw an 8 per cent growth as against the expected 12-15 per cent growth. This is also because exporters reduced capacity to take orders amidst zero interest subvention and other export oriented incentives. "Europe forms about 48 per cent of India's apparel exports. The industry has been demanding an FTA with Europe in this regard. Moreover, the industry has also demanded interest subvention but which wasn't announced in the recent budget as well," said A Sakthivel, president of Tirupur Exporters Association.

According to industry experts, as against an inflation of 6-7 per cent in India, inflation in Europe is much lesser. This makes apparel exports unviable since raw material costs in India are rising faster than the finished goods prices in Europe. If and when passed, the FTA will place Indian garment exporters to par with their Bangladeshi counterparts who export apparel duty free to European nations. What's more, the council is projecting further decline in apparel exports growth in the first quarter of next fiscal. "Unless the government meets some of the demands of the industry, the growth may further decline in the coming quarters," the AEPC official stated.

Buoyed by the previous year's growth and China off-loading its export orders, AEPC had targeted a robust 13-15 per cent growth rate for the second consecutive year i.e. 2014-15. Indian apparel exports were able to post a healthy growth rate of 15.5 per cent at $14.9 billion in 2013-14 as against $12.9 billion in 2012-13, thanks to revived demands from the US and European markets. At 13-15 per cent, Indian apparel exports were expected to touch $17.25 billion for the year 2014-15. Globally, on one hand, while China - which, at 36 per cent global share is the largest apparel exporter - is being forced to off-load export orders due to high manufacturing costs and labour shortage, Bangladesh is also facing safety and compliance issues.

SOURCE: The Business Standard

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India, Kyrgyzstan sign MoU on textile sector cooperation

Turdubaev and Gangwar (R) signing MoU/c: PIBThe government of India and the Central Asian Republic of Kyrgyzstan have signed a memorandum of understanding (MoU) on cooperation in the textiles sector. The MoU seeks to strengthen bilateral cooperation in three fields: textiles and clothing, silk and sericulture, and fashion.

 The MoU aims at increasing cooperation in development of trade, economic and investment relations; techno-commercial collaboration, and joint trade missions; stimulation of investment cooperation, such as joint ventures, industrial cooperation, marketing, leasing and management; mutual assistance in R&D, technical collaboration in product development and manufacturing, testing and certification; and mutual assistance in skill development, training and retraining of personnel, carrying out of joint scientific, industrial and other meetings and exchanges.

 The MoU also envisages cooperation in export promotion; facilitating of participation of business delegations, exhibitors and buyers of each other in the trade exhibitions, buyers sellers meets, business forums; and mutual assistance in organising visits of technical experts, specialists and scientists. The MoU was signed by India’s textiles minister Santosh Kumar Gangwar and the visiting Kyrgyzstan’s minister of energy and industry Kubanychbek Turdubaev in New Delhi. The two countries also agreed to set up a Joint Working Group (JWG) to explore details of cooperation within the scope of the MoU and the steps required to facilitate bilateral trade and investment. The JWG will be co-chaired by an official of appropriate level from the Ministry of Energy and Industry of the Kyrgyz Republic and the Indian Ministry of Textiles. Gangwar assured the visiting Kyrgyz minister of India’s cooperation in strengthening the relationship between the two countries.Textiles currently account for 50 per cent of India’s total exports to Kyrgyzstan. Turdubaev hoped that the share of textiles in India’s export basket will increase, and the trade volume between the two countries will increase to US$ 2.5 billion.

SOURCE: Fibre2fashion

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Indian Rupee gains 3 paise against US dollar

The Indian rupee strengthened by three paise to 62.67 against the US dollar at the Interbank Foreign Exchange in early trade today on sustained selling of the Greenback by exporters. Besides, early gains in domestic equity markets and the dollar’s weakness against other major currencies overseas also helped the rupee to log gains, forex dealers said.

The rupee had closed 11 paise higher against the American currency to 62.70 yesterday amid a good show by stocks and on selling of dollars by banks and exporters. Meanwhile, the benchmark BSE Sensex rose by 70.59 points, or 0.24 per cent, to 28,806.97 in early trade today.

SOURCE: The Financial Express

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Global crude oil price of Indian Basket was US$ 51.42 per bbl on 17.03.2015

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$ 51.42 per barrel (bbl) on 17.03.2015. This was lower than the price of US$ 52.11 per bbl on previous publishing day of 16.03.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3223.52 per bbl on 17.03.2015 as compared to Rs 3273.55 per bbl on 16.03.2015. Rupee closed stronger at Rs 62.69 per US$ on 17.03.2015 as against Rs 62.82 per US$ on 16.03.2015.

 The table below gives details in this regard:

Particulars

Unit

Price on March 17, 2015 (Previous trading day i.e. 16.03.2015)

Pricing Fortnight for 16.03.2015

(Feb 26 to Mar 11, 2015)

Crude Oil (Indian Basket)

($/bbl)

51.42              (52.11)

58.21

(Rs/bbl

3223.52          (3273.55)

3618.92

Exchange Rate

(Rs/$)

62.69               (62.82)

62.17

 

SOURCE: PIB

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Indian firms ‘vulnerable to strong dollar’

International Monetary Fund Managing Director Christine Lagarde on Tuesday cautioned that Indian companies which borrowed heavily in foreign currency are vulnerable to a strong dollar. Addressing bankers and economists at the Reserve Bank of India headquarters, the IMF chief also flagged the possible risks of financial market and capital flow volatility as US interest rates begin to rise.

Pointing out that the debt of the Indian corporate sector has risen rapidly, nearly doubling in the last five years to about $120 billion, Lagarde observed that the appreciation of the dollar is putting pressure on balance sheets of banks, firms, and households that borrow in dollars but have assets or earnings in other currencies. With the world approaching the point where, for the first time since 2006, the US will start normalising its monetary policy by raising short term interest rates later this year, the IMF chief said even if this process is well managed, the likely volatility in financial markets could give rise to potential stability risks.

“Between 2009 and the end of 2012, emerging markets received about $4.5 trillion gross capital inflows, (roughly half of global flows), with India receiving about $470 billion. As a consequence, bond and equity prices rallied, and currencies strengthened…”

Policy reversal

“The danger is that vulnerabilities that build up during a period of very accommodative monetary policy can unwind suddenly when such policy is reversed, creating substantial market volatility,” she said.

Spill-over effect

The world already got a taste of spill-over from unconventional monetary policies during the “taper tantrum” episode in May and June of 2013, when most emerging market economies suffered indiscriminate capital outflows. India was also affected. “I am afraid this may not be a one-off episode. This is so, because the timing of interest rate lift-off and the pace of subsequent rate increases can still surprise markets. “…As economic conditions improve in at least some advanced economies, portfolio rebalancing out of emerging market economies can be expected, and some volatility cannot be ruled out. Emerging markets need to prepare in advance to deal with this uncertainty,” the IMF chief added.

Meanwhile, India is shining brightly among emerging markets, she said.No doubt India has seen a windfall gain from a sharp drop in oil prices – as have other oil importing countries. More importantly, however, India is reaping the benefits of good policies and policy announcements. Pointing out that global growth is still fragile and uneven, Lagarde said despite a boost to global growth from a decline in oil prices; IMF now expects the world economy to grow by about 3.5 per cent this year, picking up modestly next year to 3.7 per cent. In emerging markets and developing countries, IMF has projected the growth to pick up from less than 4.5 per cent this year to a little more next year, she said.

SOURCE: The Hindu Business Line

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AGOA need to be extended as it is of mutual benefit to SA and US

Agoa was passed by the US Congress in May 2000 to facilitate trade between sub-Saharan African countries and the US. It was intended to assist African countries to improve their export performance, enhance economic development and reduce poverty. It provides duty-free access to the US market for 6 400 products from about 40 countries. During the week of March 2 to 6, South African delegation were in the US to make the case for the African Growth and Opportunity Act (Agoa) to be extended by a further 15 years.

Most African countries have not been as successful, while some African countries have been able to use this preference to attract foreign investment and increase their production and exports of mainly clothing and textiles. However, Africa is poised to become the next global platform for the exports of clothing and textiles. South Africa is vital to the emerging regional value chains from which African countries can build their industrial development and exports.

In agriculture, South African farmers and agro-processing companies offer significant investment and expertise to other African countries to produce high quality agriculture products and meet the stringent health standards in the US and other developed country markets. South Africa’s continued inclusion in Agoa would be of benefit to all of sub-Saharan Africa. African ambassadors that we met in Washington provided their full support for our continued inclusion in Agoa.

While there are some perceptions in the US that South Africa is more developed and should be graduated out of Agoa, the reality is that almost half of South Africa’s population live below the poverty line, and more than 25 percent are unemployed. While in Washington, the delegation did not detect any significant opposition to South Africa’s continued inclusion in Agoa. Senators Chris Coons and Johnny Isakson have been the main champions of Agoa since its inception in 2000. The discussion with both senators last week was warm and friendly. They urged the delegate to make progress on finding the “sweet-spot” of compromise between their industry and South African. There are of course continuous US-South Africa discussions that are reviewed annually by the two governments at the annual Trade and Investment Forum. The many bilateral trade issues that both South Africa and the US have on their regular agenda should not become gateways for the implementation or suspension of Agoa benefits.

Agoa is of mutual benefit for the US and South Africa. A US study undertaken by the Brookings Institute found that Agoa has created 100 000 jobs in the US and a local study has found that 62 000 jobs were created in South Africa. Without South Africa, Agoa would be significantly diminished and its value to Africa much reduced. Agoa has created goodwill, not only in South Africa but also in sub-Saharan Africa, and is an excellent platform for the future of US-Africa relations. Ambassador Faizel Ismail is South Africa’s Special Envoy on Agoa. Extending Agoa by a further 15 years will provide the much needed certainty and incentives for US and other investors to remain and expand their investments in Africa.

SOURCE: Yarns&Fibers

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Material production big challenge for Vietnamese business to access benefits from TPP

The material source for Vietnam garment and textile industry is mainly imported. According to Vietnam Textile and Apparel Association (Vitas) around 60-70 percent of material is imported and 80 percent of businesses in this industry are doing outwork, resulting in low added value. TPP will benefit those using materials made in their countries or in TPP member nations. Local businesses are short of capital to invest in this field, making them unlikely to enjoy tax incentives from Trans-Pacific Partnership (TPP) agreement which is expected to be signed this year.

Materials are a survival factor of the garment and textile industry which all Vietnamese businesses know but capital shortage has kept them from developing production, according to Chairman of Saigon Garment Company Le Quang. Director General of Gia Dinh Textile and Garment Corporation Le Dong Trieu said that garment and textile materials are largely imported from China, Japan and South Korea. This has become a big challenge for Vietnamese businesses to access benefits from TPP.

A few millions of U.S. dollar is enough to build a large scale garment plant while a fiber weaving machine needs the same amount. With the current financial condition of most companies, they cannot take risks to invest in a material production plant. Besides, material production has also faced with stricter environmental regulations. Since 2003, Ho Chi Minh City has limited licensing weaving and dying projects. They have been listed as one of 17 fields polluting the environment. Some plants cannot exist because they fail to meet waste water standards.

On the other hand, most of the plants had been established before the city set up industrial and export processing zones. As a result they are now located in residential areas and forced to remove because of the increasing population. At present, only Vietnam National Textile And Garment Group (Vinatex) is able to build material production plants. Three fibre plants have been put into service and four others are under construction.

Chairman of Saigon Garment Company Le Quang Hung, however, said that even when all these plants come into operation, they can also supply materials for Vinatex subsidiaries. Foreign firms have rushed to construct material plants in Vietnam to wait in front for tax incentives from TPP, said Mr. Vo Tri Thanh, deputy head of the Central Institute for Economic Management. Chinese garment and textile giant Jiangsu Julun Textiles Group have built a US$68 million self-contained plant which can produce fibre, weave and dye. Forever Glorious of Taiwanese Sheico Group has spent US$50 million on a weaving-dyeing-garment production chain. According to Mr. Thanh, the Government should have policies assisting businesses to develop material production so that they can take advantage of TPP. In fact, it has become necessary to plan a garment and textile material zone with clear environmental regulations.

SOURCE: Yarns&Fibers

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Brent crude oil slides to $53/barrel on supply glut

Brent crude oil prices lost ground on Tuesday, trading at their lowest level since early February, as concerns over a growing supply glut mounted. Analysts said rising US crude oil stocks, an increase in Libyan oil production and the chance of an agreement between Iran and the West that could ease sanctions on the oil producer and boost its exports are all pulling prices lower. "The focus is on the bearish side," said Bjarne Schieldrop, chief commodities analyst with SEB in Oslow. "When people look at the market now, they are looking at the possibility of an Iran resolution." Brent, which rose to a session high of $54.38, was trading at $53.11, down 33 cents, by 1016 GMT. The April contract that expired in the previous session closed down $1.23 after hitting $52.50 earlier on Monday, its lowest since February 2. US crude, or West Texas Intermediate (WTI), was at $43.11 a barrel, down 77 cents and slightly above six-year lows of $42.85 marked on Monday.

Though fighting between rival governments has complicated Libya's oil production, an industry source said it has now risen to 489,000 barrels per day after the restart of the El-Feel and Wafa oilfields. Further weekly data on US crude inventories is due later on Tuesday from industry group the American Petroleum Institute (API), and some traders expect the gap between Brent and WTI to widen further. While the US rig count dropped to 1,125 last week from 1,809 rigs a year ago, past cycles have shown there is "often a lag between when drilling stops and when oil supply stops growing", Morgan Stanley said in a note. "We expect WTI to remain under pressure, as inventories swell further as the seasonal maintenance period begins. We expect this to remain the case in the short term," ANZ bank said.

A Reuters poll showed a likely build in US crude inventories for a tenth week to a new record high. Some see the possibility for markets to stabilise or even rise, with Vitol Chief Executive Ian Taylor telling a conference on Tuesday that oil markets would "come into balance" by the second half of the year. However the potential of a nuclear deal that could end sanctions against Iran, allowing Tehran to send more of its oil into the market, also dragged on oil markets. "If sanctions were to be lifted, up to 1 million barrels per day of additional oil could reach the market from Iran in the second half of the year, making it more difficult for prices to recover," Commerzbank said in a note on Tuesday.

SOURCE: The Business Standard

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Emerging markets must prepare for U.S. rate hike: IMF’s Christine Lagarde

Emerging markets must prepare for the impact of a rise in U.S. interest rates which could surprise in both its timing and pace, the head of the International Monetary Fund said in India on Tuesday. In a speech in Mumbai, Managing Director Christine Lagarde warned the so-called “taper tantrum” that slammed emerging markets in 2013 could be repeated. At that time, then-Fed Chair Ben Bernanke sent investors running when he talked about conditions that might cause the Fed to reduce its $85 billion-a-month in bond purchases aimed at stimulating the economy.

“The danger is that vulnerabilities that build up during a period of very accomodative monetary policy can unwind suddenly when such policy is reversed, creating substantial market volatility,” Lagarde said in prepared remarks. “We already got a taste of it during the taper tantrum … I am afraid this may not be a one-off episode.” Lagarde said advanced economies could help reduce the risk of market volatility by communicating policy intentions clearly. But she added that emerging markets that had tackled economic vulnerabilities had fared better when shockwaves hit in 2013. “In particular, higher GDP growth, stronger external current account positions, lower inflation and more liquid financial markets helped dampen market volatility,” said Lagarde, adding a more resilient financial services sector would help. India, Lagarde said, is pursuing reforms that are “timely, but will also need to be pursued with the utmost speed”.

Speaking at the Reserve Bank of India, Christine Lagarde said central banks should also stand ready to act, with both liquidity support and targeted foreign exchange interventions. India has cut rates twice in out-of-cycle moves this year. In a statement published alongside its last cut, the RBI said the possible spillover of volatility from international financial markets was “a significant risk”.

SOURCE: The Financial Express

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Slow trading activity seen owing to tight supply of quality lint:Pakistan

Thin business activity was seen as mills and spinners were disappointed owing to tight supply of best quality lint which boosted the rates as the result they were unable to make deals on the cotton market on Monday, dealers said. The official spot rate was unchanged at Rs 5000, dealers said. In the ready session, over 4,000 bales of cotton changed hands between Rs 4625 and Rs 5275, they said. The prices of seed cotton in Sindh were at Rs 1900 and Rs 2350 and in Punjab rates were at Rs 2000 and Rs 2650, they said.

According to cotton experts, Naseem Usman, falling trend in the world oil prices and firmness of dollar may help improving the demand by the importing countries. The ginners who have not enough unsold stock were trying to increase rates ahead of the Pakistan Cotton Ginners Association (PCGA) fortnightly arrivals figure. But some spinners were equally cautious to enter into fresh deals due to developing economic scenario in the world market.

The following deals were reported to have changed hands on ready counter: 800 bales from station Bahawalpur at Rs4,625 to Rs4,640, 600 bales from Khanewal at Rs4,700 to Rs5257, 800 bales from Vehari at Rs4,700 to Rs5,250, 600 bales from Maroot done at Rs4625, 400 bales from Fort Abbas at Rs5050, 400 bales from Hasilpur at Rs5,075 and 600 bales from Sadiqabad at Rs5200 to Rs5,275. On global front, the world commodity markets, including cotton, once again came under pressure as petroleum prices have fallen back and the weakening of Euro currency against US dollar has also disturbed exports to the European Union market.

SOURCE: Yarns&Fibers

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Australian Textile printing industry likely to double every two years

With textile printing industry expected to double every two years. Fabric company Materialised a family owned Australian business based South of Sydney is bringing its printing operations back to Australia from Asia, using three Roland DG wide format printers. Owner Gary Price said that the company has had digital printers for more than five years, but only used them to print samples to show customers, and then outsourced to rotogravure printers in Asia until a year ago. The south-western Sydney-based company produces custom-printed fabric for customers in Australia, New Zealand and Southeast Asia, especially for hotels, hospitals, and nursing homes.

At the beginning of last year it installed three Roland DG XF-640 dye sublimation printers and now prints 25 percent of work in-house, and Price said that all work will be inhouse in the next five years. In the past year or so they decided to accelerate transition from rotogravure to digital, and that has gained momentum. They like the idea of applying the same design to a whole raft of base cloths for different functions so they can print just as easily on waterproof upholstery as they can on a shear flimsy drapery or a tablecloth.

According to Digital print operator Carla Yeung, Materialised can now print 200m every 22 hours on the new Roland DG XF-640, compared to 50m a day with its three old Roland DG XJ-740s. Sometimes they have one or two day deadlines so being able to print that fast is really good for us. It prints fast and dries quickly. After a thorough look at the market, Price stuck with Roland DG because it was familiar and he had good experience with the previous machines.

SOURCE: Yarns&Fibers

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Banana stem and pineapple leaves put to use for making textile

Eco-textile company Offset Warehouse recognizes the banana’s potential and currently partners with an NGO in Nepal to ensure banana fabric production supports the artisan sector by relying on local skills, and that workers are paid fairly and operate in safe conditions. Offset Warehouse’s founder Charlie Ross said that the material is perfect for jackets, skirts and trousers. The fabric is claimed to be nearly carbon neutral and its soft texture has been likened to hemp and bamboo. Carmen Hijosa, founder of Ananas Anam frustrated by the heavy use of chemicals in the leather tanning process, as developed Piñatex as an alternative to it and petroleum-based textiles.

The greatest thing about Piñatex is probably that it’s made of leaf fibres … a byproduct of the pineapple harvest, said Jaume Granja, a member of the Ananas Anam team, referring to the fact leaves are usually left to rot in the ground. The leaves do not need any additional land, water or fertilisers to grow. Making the material also brings benefits to the farming communities. The industrial process used to create Piñatex produces biomass, which can be converted into a fertiliser that farmers can spread into their soil to grow the next pineapple harvest. The material, which has similar appearance to canvas, is also biodegradable; Hijosa and her colleagues are working on a way to ensure that the coating is sustainable and toxic-free. In 2012, the Philippine Textile Research Institute concluded that banana plantations in the Philippines alone can generate over 300,000 tonnes of fibre as it would only take 37kg of stems to produce a kilogram of fibre. Around a billion tonnes of banana plant stems are wasted each year despite indication from research institution.

SOURCE: Yarns&Fibers

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