The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 25 March, 2015

NATIONAL

INTERNATIONAL

Textile Raw Material Price 2015-03-24

Item

Price

Unit

Fluctuation

PSF

1141.86

USD/Ton

0%

VSF

1856.95

USD/Ton

0.09%

ASF

2443.35

USD/Ton

0%

Polyester POY

1164.66

USD/Ton

1.42%

Nylon FDY

2980.89

USD/Ton

0%

40D Spandex

6922.83

USD/Ton

0%

Nylon DTY

1376.42

USD/Ton

0%

Viscose Long Filament

3290.38

USD/Ton

0%

Polyester DTY

5741.87

USD/Ton

0%

Nylon POY

1441.58

USD/Ton

0%

Acrylic Top 3D

2801.71

USD/Ton

0%

Polyester FDY

2589.95

USD/Ton

0%

30S Spun Rayon Yarn

2573.66

USD/Ton

0%

32S Polyester Yarn

1856.95

USD/Ton

0%

45S T/C Yarn

2883.15

USD/Ton

0%

45S Polyester Yarn

2003.55

USD/Ton

0%

T/C Yarn 65/35 32S

2475.93

USD/Ton

0%

40S Rayon Yarn

2703.97

USD/Ton

0%

T/R Yarn 65/35 32S

2606.24

USD/Ton

0%

10S Denim Fabric

1.14

USD/Meter

0%

32S Twill Fabric

1.00

USD/Meter

0%

40S Combed Poplin

1.35

USD/Meter

0%

30S Rayon Fabric

0.77

USD/Meter

0%

45S T/C Fabric

0.79

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16289 USD dtd. 24/03/2015)

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

Back to top

Textile industry to miss $45-bn export target for this fiscal

India’s overall textile and garment exports will likely rise by around 4-5% this fiscal and fall short of the official target of $45 billion, thanks to a massive slowdown in Chinese demand for cotton and yarn, trade and industry sources said on Tuesday. The overall textile and garment exports, which also include those of jute, coir and handicrafts, are expected to reach $41 billion in 2014-15, compared with $39.3 billion a year before, mainly on higher shipments of garments, said the executives. However, the official target would be missed, as China, which usually accounts for over 70% of India’s cotton and 40% of yarn supplies, has cut down on its purchases. Consequently, exports of raw cotton, including waste, and cotton yarn in the April-December period dropped 36% and 12%, respectively, from a year before. Exports of textile products rose only 2.2% between April and December from a year earlier.

Despite the recognition of the textile sector’s role in the ‘Make in India’ concept as well as in jobs creation, with the Ajay Shankar-led panel envisaging annual outbound shipments worth $300 billion by 2024-25, a lack of adequate focus and proper planning in boosting exports have also taken a toll, they added. Importantly, the government is yet to come up with the textile vision document, which was to be based on the recommendations of the Ajay Shankar panel, even eight months after the report was first submitted to the textile ministry.

According to the provisional data, textile and garment exports, excluding jute, coir and handicrafts, touched $25.72 billion during the April-December period, up 4.7% from a year before. Handicraft exports had hit $3.9 billion in the last fiscal, recording growth of 18% year-on-year, but industry executives said the growth would be as much as 5-7% in the outward supplies of these items in the current fiscal. The jute and coir exports, although not so significant in the overall basket, are expected to grow in the 10-15% range

“Speculations are rife that the Chinese govenrment has stipulated that on the purchase of every bale of cotton from overseas, a mill there has to buy four bales from domestic sources, which has dragged down imports. It has also been offloading cotton from its reserves. Moreover, the Chinese economy is also going through a slowdown, affecting demand,” said DK Nair, secretary general of the Confederation of Indian Textile Industry. According to Virender Uppal, chairman of the Apparel Export Promotion Council, garment exports grew 13.4% during the April-February period to $15.26 billion from a year earlier. This means the export growth slowed since Janaury after recording a 16% rise until December this fiscal. Subdued textile export demand has reflected in the industrial production data as well. According to the index of industrial production data, the textile segment grew just 2.1% from April to January this year from a year before.

SOURCE: The Financial Express

Back to top

Textiles Technical Training Institute set to commence in Coimbatore

The Textiles Technical Training Institute (TTTI), set up jointly by the Southern India Mills’ Association (SIMA) and PSG institutions, exclusively for training fitters and electricians at Nilambur, Coimbatore, is all set to commence on 25 March, 2015. The textile industry has been facing acute shortage of labour and more so the technicians, both mechanical maintenance, electrical and electronics maintenance, said SIMA chairman T Rajkumar in a press release. He said the textile projects particularly weaving and spinning have become highly capital intensive and therefore, SIMA had set up the institute jointly with the premier institution - PSG College of Technology to meet the urgent needs.

 Lakshmi Machine Works donated the entire range of plant and machinery for the pilot mill located at Nilambur. Rajkumar said all the leading textile machinery, spares and accessories manufacturers and service providers have come forward to share their technical expertise and train the technicians to meet the needs of the individual mills and maintain the machinery properly. TTTI would offer short, medium and long term programmes, and to start with it plans to offer three to five days technical training programme for fitters. The first batch of the four-day programme for the spinning preparatory fitters commencing on 25 March, 2015 would cover all the machines, accessories and equipments.

 Rajkumar said faculty from PSG College of Technology and professionals from Lakshmi Machine Works, VETAL, Lakshmi Card Clothing, Habasit Iakoka, Textech, Voltas, SKF and ATE would train the technicians. He urged the textile mills to make use of all the services provided by TTTI and upgrade the skills of their technicians, which is the need of the hour to remain competitive.

SOURCE: Fibre2fashion

Back to top

All India raw cotton arrivals touch 3cr bales – ICF Report

“All India kappas (raw cotton) arrivals have touched approximately 3 crore bales and CCI cotton procurement has crossed approximately 80 lakhs bales till now,” informs the fortnightly report of Indian Cotton Federation. It adds that as per market reports, there may be a drop in the quantity of the Indian cotton crop below 4 crore bales which was predicted earlier. The untimely rains may be helpful to the standing crop as cotton quality may improve and the hailstorm in Madhya Pradesh and parts of Maharashtra has affected standing cotton crops.

Farmers are in double mind with regards to the selection of which cash crop to be taken up for next season as per reports of an all India farmers group. The report also informs that CCI’s huge stock will have to tackle quality aspects due to storage and timely use. In Punjab, Haryana and Rajasthan, kappas arrivals are almost coming to a close as there has been a drastic fall in daily kappas arrivals in this region. J-34 R/G prices vary from Rs 3415 per maund spot in Rajasthan to Rs 3425 per maund spot in Haryana and Rs 3495 per maund spot in Punjab.

In Gujarat, kappas arrivals are still maintaining between 30,000 to 40,000 bales per day and the price for good quality 28.5 mm cotton is Rs 31,800 spot per candy, while V-797 R/G is quoted at Rs 23,500 spot per candy. Good quality Bunny of 30 mm in Vidharba region is priced at Rs 32,500 spot per candy in Maharashtra, while 29 mm cotton is being sold at Rs 31,600 spot per candy; however, hailstorms have disturbed standing crop.

Kappas arrivals in Madhya Pradesh have dropped drastically as the cotton season is nearing to an end. Good quality 29 mm Bunny is quoted at Rs 32,500 spot per candy, 34 mm Dch-32 is priced at Rs 41,500 spot per candy and the hailstorm has disturbed the standing crop here also. As per market sources, approximately 80 lakh bales have arrived till now in Andhra Pradesh. Good quality 31 mm MCU-5 in Guntur is priced at Rs 34,700 spot per candy. In Warangal, 30 mm Bunny is quoted at Rs 33,500 spot per candy, while 29 mm Bunny in Adilabad is offered at Rs 32,500 spot per candy. Arrivals have dropped drastically in most parts of Karnataka and as the season is nearing its end, quality too is dropping drastically. Good quality 29 mm Bunny cotton is priced at Rs 32,500 spot per candy, while good quality DCH-32 of 35 mm is priced at Rs 46,000 spot per candy.

Jayadhar cotton is arriving in small pockets near Gadag and the recent hailstorm has not been favourable to the standing cotton plants and crop of Jayadhar is expected to be around 20,000 bales. In Tamil Nadu, good quality 30 mm RCH cotton is priced at Rs 34,500 spot per candy in areas surrounding Theni and Kovilpatti and 35 mm DCH-32 in areas surrounding Madapally is quoted at Rs 45,500 spot per candy.

SOURCE: Fibre2fashion

Back to top

India will grow at 7.8% in FY16 & 8.2% in FY17, surpass China, says ADB

Indian economy will grow 7.8% in FY16 to lead Asia’s growth as China slows down, before accelerating further to 8.2% in FY17, said Asian Development Bank on Tuesday. In its Asian Development Outlook, ADB said progress in the government’s structural reform agenda and improved external demand will help the economy expand from 7.4% in FY15. The government’s estimate for FY15 growth is 7.4% and for FY16, it is 8-8.5%.

The ADB projection that India would grow faster than China, comes two weeks after the International Monetary Fund made a similar forecast. IMF projects India’s economy to grow 7.2% in FY15, lower than the government and ADB’s projection of 7.4%, before accelerating to 7.5% in FY16. The Fund projects China’s growth to slow to 6.8% in 2015 from 7.4% in 2014.

ADB expects the retail inflation to decline to 5% in FY16 and 5.5% in FY17 as global oil prices firm up and improved economic prospects lift demand. A benign inflation outlook would help monetary policy support growth, it added.

SOURCE: The Financial Express

Back to top

Global crude oil price of Indian Basket was US$ 53.66 per bbl on 24.03.2015

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$ 53.66 per barrel (bbl) on 24.03.2015. This was higher than the price of US$ 52.83 per bbl on previous publishing day of 23.03.2015.

In rupee terms, the price of Indian Basket increased to Rs 3337.65 per bbl on 24.03.2015 as compared to Rs 3290.78 per bbl on 23.03.2015. Rupee closed stronger at Rs 62.20 per US$ on 24.03.2015 as against Rs 62.29 per US$ on 23.03.2015.

 The table below gives details in this regard:

 

Particulars

Unit

Price on March 24, 2015                                               (Previous trading day i.e. 23.03.2015)

Pricing Fortnight for 16.03.2015 (Feb 26 to Mar 11, 2015)

Crude Oil (Indian Basket)

($/bbl)

53.66   (52.83)

58.21

(Rs/bbl

3337.65  (3290.78)

3618.92

Exchange Rate

(Rs/$)

62.20  (62.29)

62.17

 RC/Rk/Daily Crude oil price- 25.03.2015      

SOURCE: PIB

Back to top

Pakistan is in the process of offering India NDMA: WTO report

Pakistan is in the process of granting the Non-Discriminatory Market Access (NDMA) status to India, said a WTO report.  The step would help in boosting bilateral trade between the countries.  "Pakistan is in the process of offering India NDMA. Under NDMA Pakistan is expected to reduce its sensitive lists to 100 tariff lines," the Trade Policy Review report of the WTO said. NDMA is a nomenclature chosen by Pakistan to avoid political ramifications at home of giving India MFN (Most Favoured Nation) status.  India granted the MFN status to Pakistan in 1996 but Pakistan is yet to reciprocate to that. Grant of status to India would help in further boosting trade between the countries.  Pakistan is postponing grant of NDMA status due to lack of consensus at home.

In 2012, Pakistan had committed itself to give the MFN status but missed its own deadline of December 31, 2012 owing to domestic opposition.  The neighbouring country has to abolish the negative list of 1,209 tradable items. Abolition of the negative list items that cannot be imported from India would mean grant of NDMA status to India.  The bilateral trade between the countries stood at $2.7 billion in 2013-14.  India's main exports to Pakistan include sugar, man-made filaments and chemicals, while its imports comprise mineral fuels, among others.

SOURCE: The Economic Times

Back to top

China to expand ties with India, eyes new areas

India and China have agreed to build on the momentum provided by the Chinese President Xi Jinping’s visit to India in September last year to further expand bilateral relations in areas such as railways, smart cities, vocational education, skill development, clean and renewable energy and in the manufacturing sector. This was agreed to after the 18th round of talks between the Special Representatives of India and China on the Boundary Question. Ajit Doval, National Security Advisor, and Yang Jiechi, State Councillor, led the discussions which were held here yesterday, the Ministry of External Affairs said in a statement. This was the first round of Special Representatives’ talks after the Narendra Modi-led government assumed office.

Both sides agreed that growing linkages between Indian states and Chinese provinces through the sister-city and sister-province mechanism plays an important role in deepening bilateral ties. The two Special Representatives emphasised the importance of high-level exchanges for strengthening bilateral ties. The talks were held ahead of Modi’s visit to China. The dates for the visit have not yet been announced although Xi had extended an invitation to the Indian Prime Minister to visit China during his visit here. India and China also exchanged views on regional and global issues of mutual interest and agreed to enhance their consultations on counter-terrorism, maritime security, climate change, reform of the United Nation and civil nuclear energy cooperation, the statement adds.

SOURCE: The Hindu Business Line

Back to top

Bangladesh plans to raise textile export to $50b by 2021

President of Bangladesh Textile Mills Association, Tapan Chowdhury, said in a statement that Bangladesh has planned to raise its ready-made garments and textile exports to $50 billion by 2021. Bangladesh, the world’s second largest cotton importer, has invited buyers and sellers to a two-day global summit from next Friday to help support its textile and clothing exports. The sector accounted for $24 billion of Bangladesh’s $25 billion of goods exports in the fiscal year to end-June 2014. Bangladesh has to import more than 90 percent or 5.5 million bales of cotton annually.

SOURCE: Customs Today

 

Pakistan textile exports up by 0.47pc

Country’s textile exports increased by 0.47 per cent during the first eight months of current fiscal year against the exports of same period of last year. The overall textile exports during July-February (2014-15) were recorded at $ 9.179 billion against the exports of $ 9.136 billion during July-February (2013-14), according to Pakistan Bureau of Statistics (PBS). The textile products that witnessed increase in trade included yarn other than cotton yarn export of which increased by 14.42 percent, by going up from $ 25.854 million last year to $ 29.581 million this year.

Exports of knitwear also increased by 9.48 percent from $ 1.482 billion last year to $ 1.622 billion this year while the exports of towels increased by 3.22 percent from $ 494.32 million to $ 510.229 million. According to PBS data, cotton carded or combed during the period under review increased by 3.35 percent to $ 6.177 million from $ 5.977 million during last year. Similarly, the exports of tents, canvas and tarpaulin also surged by 89.74 percent from $ 52.237 million during July-February 2013-14 to $ 99.114 million during July-February 2014-15, whereas the exports of readymade garments increased by 10.54 percent from $ 1.252 billion to $ 1.384 billion. The products that witnessed negative growth in exports included raw cotton exports of which declined by 14.56 percent, from $ 163.093 million to $ 139.341 million. The exports of cotton yarn decreased from $ 1.394 billion to $ 1.327 billion, showing a decrease of 4.76 per cent while exports of cotton cloth decreased from $ 1.879 billion to $ 1.647 billion, showing decrease of 12.35 percent.

SOURCE: Pakistan Today

Back to top

 

Philippine textile sector getting back on track: Experts

Considered a sunset industry, the Philippine textile sector is getting back on its feet, concluded stakeholders of the Philippine textile industry at a recent seminar. The conference ‘TELA. Philippine Textiles: the Future, Today.’ organised by Department of Science and Technology’s (DOST’s) Philippine Textile Research Institute (PTRI) served as a platform for exchange of ideas and insights on innovations in the textile, garment, and fashion industry.

Advocates and enthusiasts from various sectors of the government, academia, private institutions, and social enterprises deliberated on where the Philippine industry is headed now, given that there has been a decline in local textile manufacturing in the past decades. The use of indigenous materials such as natural fibres and dyes continues to be a promising area for the Philippine textile industry, which is also expected to receive a boost from smart textiles and eco-friendly textiles, speakers said. Further, there have been recent breakthroughs in functional textiles and nonwoven composites that extend to automotive, architectural, and construction applications. These recent advancements will act as catalysts to growth and global competitiveness.

 In his keynote address at the conference, Mario G Montejo, secretary DOST, said, Philippine textile industry is poised to accept the challenges that Asean economic integration will bring. Citing a 2012 HSBC report on Global Economics, PTRI director Celia B Elumba said Philippines is set to become the world’s sixteenth largest economy. With its demographics, the country is seen as one of those who will play a significant role in powering global growth over the next four decades, she said. Elumba said PTRI seeks to generate more employment opportunities in the textile and garment sector. She enjoined everyone to work on what is immediately possible: “to strengthen what is already available, to upscale, increase capacity and provide capability.”  She also wanted to focus on the integration of the supply and value chain by importing fewer raw materials and consequently shifting to the production of high-value products, mentions PTRI in the post-event summary on its website.

In addition to indigenous natural fibre blends and natural dyes, PTRI is continuing to expand its research and development activities towards more environment-friendly processing of bamboo and recycling of PET water bottles. Amidst challenges that need to be addressed such as high cost of electricity, taxation rates, trade barriers, and importation policies, the textile industry in Philippines is gaining strength.

SOURCE: Fibre2fashion

Back to top

 

SITA project to boost Indo African business and investment on selected sectors

The World Trade Organization and the United Nations mandated the International Trade Centre (ITC) to design and implement a five years projects called Supporting Indian Trade and Investment for Africa (SITA) to improve competitiveness of five east African countries through linkages with Indian companies. The $20 million India-East Africa trade and investment improving projects, aims to boost business between the two sides on selected sectors. The project targets growth in priority sectors such as cotton, textiles and apparel, coffee, beans and pulses, leather and business process outsourcing in Uganda, Kenya, Rwanda, Ethiopia, and Tanzania. Including companies and supporting institutions the projects involve around 150 participants.

The overall goal is to equip east African businesses to produce high-quality products for export that meet the demands of the Indian market and beyond. Increased exports and diversification of these goods and services will be fueled by the sharing of Indian knowledge, skills and technology, according to Mr. Ashish Shah, Director Division of Country Programmes, and ITC. The projects envisage helping the east African countries to better utilize the duty-free export privileges, which was enacted in 2008 by Indian government to help the least developing countries, according to ITC. Funded by the United Kingdom's Department for International Development (DFID), SITA's projects also aim to help east African countries to take full advantage of India's Duty Free Tariff Preference scheme, which eliminates most tariff barriers on imports into the Indian market from specific developing countries.

According to Ms. Tamar Bello, Head, Global Partnerships Team, DFID India, SITA has special focus on India's Foreign Direct Investment (FDI) in Africa. Out of the 31 least developing countries that are beneficiary of India's free of duty export scheme, 21 are in Africa. Though India's import from the 31 countries has grown from $3.3 billion during the first years of the scheme to $5.8 in recent year, most of the least developing countries are not utilizing it well, according to the statistics from the Indian government. Out of the five east African countries that are beneficiary from SITA projects, Kenya is not beneficiary of India's free duty export scheme because it doesn't belong to the least developed countries category. While Tanzania and Ethiopia are improving their performance while Rwanda and Uganda are not yet fully utilizing the duty free export opportunity of India.

According to the report presented by the Indian government at the launching of SITA, low level of utilization of the scheme, lack of awareness about the scheme by Indian private sector are mentioned as among the reasons for the least developed countries of Africa not to fully utilize the Indian duty free export scheme. Among other, SITA is expected to result in new business and investment deals between the companies of India and the five east African nations. Started in 2014 ITC's program has passed through several rounds of discussions between representatives of the business community, government and international organizations.

According to Prava Kumar, head International Trade Policy, government of India is fully committed to make this scheme successful. African LDCs must take good use of this scheme. To better utilize such duty free schemes, which African businesses are reluctant to effectively utilize, Indian government is now advising its companies to consider relocating their manufacturing in Africa. Such measures will also help Indian businesses to access third country market like the European Union and the United States, such as Everything But Arms (EBA), Economic Partnership Agreements (EPA) and African Growth Opportunity Act (AGOA), which also provide duty free export opportunities for Africa.

In the global trade where every country competes to sell, duty free export scheme providers to least developing countries are often criticized for focusing on import of raw materials and commodities of least developed countries, which the importers later process and pack in their countries. High standards, quality controls and certification requirements of duty free export scheme providers for least developed countries are also mentioned as a challenge of developing world such as African businesses to penetrate these market with value added products, which ultimately push them to export raw.

The project also includes assisting small and medium-sized enterprises in developing and transition economies to become more competitive in global markets. It also aims contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the Millennium Development Goals. The Confederation of Indian Industry (CII) is the implementation partner for the project in India. India is well-positioned as a partner to improve the productive and export capacities of African partner countries. India's expertise can be leveraged to build trade capacities in African partner countries through the sharing of knowledge, technology and lessons learnt.

SOURCE: Yarns&Fibers

Back to top

 

Euro zone and US manufacturing expand, China struggles

Euro zone businesses ramped up activity in March as the European Central Bank started printing money to spur economic growth, while a slowdown among Chinese factories fueled expectations of more monetary stimulus. US manufacturing growth also edged up despite a stronger US dollar and the threat of an interest rate rise from the Federal Reserve later this year. Growth in the US manufacturing sector edged up to a five- month high in March, according to Markit. The preliminary US Manufacturing Purchasing Managers' Index rose to 55.3, its highest since October, when the final PMI was 55.9.

The Eurozone Composite Flash Purchasing Managers' Index (PMI) from data vendor Markit, based on surveys of thousands of companies and seen as a good growth indicator, jumped to a near- four-year high of 54.1 from February's 53.3. The surveys pointed to first-quarter euro zone economic growth of 0.3 per cent, Markit said, matching the previous three months' but shy of the 0.4 per cent median forecast in a Reuters poll taken earlier this month.

The ECB began its quantitative easing programme to buy bonds worth more than a trillion euros in March. A sub-index measuring euro zone prices jumped to an eight-month high of 49.0. But it has spent three years below the break-even level of 50, suggesting inflation will not return any time soon. Oil prices have tumbled over the past nine months and inflation rates across the world have followed suit. European shares and the euro edged up on the data suggesting the euro zone economy was gaining momentum, but the slowdown in China kept oil and commodities-linked assets under pressure. The US dollar recovered from recent losses, while Wall Street stocks edged higher.

China's flash HSBC/Markit PMI dipped to an 11-month low of 49.2 in March, below the 50 level that separates growth from contraction. "The deteriorating PMI confirmed that downside risks to China's 2015 growth have started to materialise. We expect an accelerated monetary easing cycle and somewhat loosening of the fiscal stance," said Jian Chang at Barclays. Some analysts expected China's first-quarter economic growth to slip below the government's new full-year target of 7.0 per cent, widely seen as the level needed to keep employment steady.

China's economic slowdown is stabilising, with employment and services among the bright spots, Vice-Premier Zhang Gaoli said on Sunday. The country's leaders have said they would be willing to tolerate somewhat slower growth as long as the labour market remained resilient. But the latest PMI employment sub-index contracted for a 17th straight month, hitting its lowest since the depths of the global financial crisis.

US manufacturing growth at 5-month high

Growth in the US manufacturing sector edged up to a five- month high in March, according to Markit. The preliminary US Manufacturing Purchasing Managers' Index rose to 55.3, its highest since October, when the final PMI was 55.9. "Manufacturing regained further momentum from the slowdown seen at the turn of the year, with output, new orders and employment growth all accelerating in March," said Chris Williamson, Markit's chief economist. The flash reading of the index measuring new orders also rose in March to the highest since October, coming in at 56.4, compared with February's final reading of 55.8. Employment growth also rose in March from February, Markit said.

SOURCE: The Business Standard

Back to top

Last week propylene prices up in Europe & steady in US

Propylene prices rose in Europe in the last week ended March 20 from lift in buying interest but stayed stable in the US market. In Europe, average prices grew by 15 €/ton or 1.72 per cent and were quoted at 885 €/ton last week, as compared to its previous week. In US, due to dull buying sentiments, average prices remained stable and were assessed at 40 cents/pound last week as against its previous week.

SOURCE: Fibre2fashion

Back to top