Textile Raw Material Price 2015-04-27
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1324.03 |
USD/Ton |
0% |
|
VSF |
2031.81 |
USD/Ton |
0% |
|
ASF |
2451.90 |
USD/Ton |
0% |
|
Polyester POY |
1430.28 |
USD/Ton |
0% |
|
Nylon FDY |
3073.05 |
USD/Ton |
0% |
|
40D Spandex |
6571.09 |
USD/Ton |
0% |
|
Nylon DTY |
3383.62 |
USD/Ton |
0% |
|
Viscose Long Filament |
5884.56 |
USD/Ton |
0.28% |
|
Polyester DTY |
1667.29 |
USD/Ton |
0% |
|
Nylon POY |
2909.59 |
USD/Ton |
0.56% |
|
Acrylic Top 3D |
2599.01 |
USD/Ton |
0% |
|
Polyester FDY |
1626.43 |
USD/Ton |
0.51% |
|
30S Spun Rayon Yarn |
2680.74 |
USD/Ton |
0.61% |
|
32S Polyester Yarn |
2059.60 |
USD/Ton |
0.80% |
|
45S T/C Yarn |
2991.32 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2190.36 |
USD/Ton |
1.52% |
|
T/C Yarn 65/35 32S |
2566.32 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2827.86 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2713.44 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
1.00 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.36 |
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 = 0.16346 USD dtd. 27/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The domestic petrochemical industry is in the process of investing over $25 bn to meet the surging demand, besides to overcome the broad problems of infrastructure, power, water availability and others the Govt initiative of PCPIRs will greatly motivate the companies to invest them, ASSOCHAM said. Growing at a compounded annual growth rate (CAGR) of about 14 per cent, petrochemicals industry in India is likely to reach $100 billion by 2020 from the current size of about $40 billion, according to a recent study by apex industry body ASSOCHAM. “Petrochemicals currently contribute about 30 per cent to India's $120 billion worth chemical industry which is likely to grow at a CAGR of 11 per cent over next few years and touch $250 billion by 2020,” noted the study titled ‘Indian Petrochemical Industry: An overview,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “Petrochemicals sector is one of the fastest growing segments with a growth rate of 13 per cent which is more than twice of growth of India's gross domestic product (GDP) and also the global growth rate in petrochemical space which is stagnant at 6 per cent,” noted the study prepared by the Energy Division of ASSOCHAM.
“Huge investments made in the petrochemical space bode well for the growth of this segment, besides there is a steadfast growth in the production activity of the main petrochemicals,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber’s study. “"Polymers, which is the dominant part of Indian petrochemical industry is growing at a superb pace, with the middle class household boosting the consumption and also annually contributes over Rs. 8,000 crores by way of taxes and duties to the national exchequer” said Mr Rawat. “India stands a good chance in providing a lucrative market to the world as the general trend in the global petrochemicals market has shifted to the Middle-East and Asia from the West,” he added. “Encouragement for investment has been another significant growth factor for the petrochemical industry as the capacity of different products is in production, segmentation, and consumption trend of each of the products and so the economies of scale play a very important role in the profit making mechanism of this industry, thereby determining scope of each of the competitors in industry,” further said Mr Rawat.
“The domestic petrochemical industry is in the process of investing over $25 billion to meet the surging demand, besides to overcome the broad problems of infrastructure, power, water availability and others the Government initiative of PCPIRs will greatly motivate the companies to invest them,” highlighted the ASSOCHAM study. Securing feedstock, right product mix, mergers and acquisitions (M&As) opportunities are currently key imperatives for petrochemical industry in India, besides there are lucrative opportunities in segments like specialty chemicals, specialty polymers, for catering to huge emerging domestic demand as also as a manufacturing hub - such initiatives are imperative for realise the growth potential of Indian petrochemicals industry, further noted the study. Lion's share for making “Make in India” campaign a success has to be come from Petrochemicals sector, it added. This industry is divided into few basic petrochemicals including olefins, ethane, propane, aromatic compounds such as benzene, toluene, intermediate petrochemicals, end products, polymers, synthetic fibers, and synthetic rubber, noted the ASSOCHAM study.
Compared to US and China, India’s per-capita consumption of polymers (PO + PVC) is still in nascent stage, however, opportunity to reach out to a large population and sustain the current economic growth would drive India’s polymer consumption. India consumes about 5.2 kilograms per capita of polymers as compared to China’s per capita consumption of 30 kilograms. India’s consumption of polymers is about 6.2 million tons, which is only around 3 per cent of the global consumption of 200 million tons. While globally, the contribution of petrochemicals to the chemicals sector is about 40 per cent while in India, this sector accounts for only 25-30 per cent of the chemicals industry.
SOURCE: ASSOCHAM
The Tirupur Exporters Association (TEA) has asked the Tamil Nadu government to include the Technology Upgradation Fund Scheme (TUFS) in the state’s textile policy. It said the state textile policy should provide 5 per cent interest subsidy or 10 per cent capital subsidy for modernization or expansion of garment units as like Gujarat Textile Policy 2012, Maharasthra Textile Policy (2011 – 2017) and Madhya Pradesh special package for textile industry which provides 5 per cent and 7 per cent interest subsidy respectively. The request for TUFS was part of a 10-point wish list by the TEA. Given that Tirupur’s share of total exports from Tamil Nadu in 2013-14 was 11%, the TEA also wants the government to set up a Tamil Nadu Textile Board for a focused approach for development of textile industry in the state. It also wants a separate state export policy for the promotion of textiles export. Tirupur is a major hub of knitwear exports in India with a share of about 44 per cent of total knitwear exports from India.
TEA’s wish list also seeks a 25 per cent subsidy common effluent treatment plant (CETP) and also individual effluent treatment plant (IETP). The Association wants government incentives for setting up of technical textiles units in Tamil Nadu. The TEA also seeks improved infrastructure in the form of uninterrupted power supply and a separate dedicated power station in Tirupur for the benefit of the knitwear sector. It also pointed out the road conditions need to be improved to allow export goods to reach ports in time. The Association also wants the minimum wages for labour employed with knitwear garment sector to be fixed based on the recommendation of the minimum wages committee constituted by the labour department. For the benefit of women workers, the TEA wants the government to set up working women’s hostels in Tirupur as well as labour quarters. (SH)
SOURCE: Fibre2fashion
The Government is likely to take up the Constitution Amendment Bill for the Goods and Services Tax in the Lok Sabha only on Wednesday, in what is being seen as an attempt to buy time and get support from the Opposition Congress party. By then, the entire Budget process is expected to get over in the Lower House. The Bill, introduced in December last year and moved for further action on April 24 this year, was listed for consideration and passage in the Lok Sabha on Monday. Instead, the House focused on demands for grants as sought by the Opposition.
Preliminary list
The preliminary list of business for April 28, as placed on the website of the Lok Sabha till 8 p.m., did not mention the Bill. The Lok Sabha is currently debating and voting on demands for grants for various ministries. After this, it is scheduled to take up the Finance Bill for consideration and passage on Wednesday. This would mean that the House will be able to debate and vote on the Bill only on Thursday. The Business Advisory Committee has already granted four hours’ time for the same. When the Bill was moved on April 24, the Opposition had raised procedural issues and wanted to know why it was suddenly listed in a “hush-hush” manner on a day when financial business was on. Also they wanted to know why it was not being sent to the Standing Committee since it was a Constitutional amendment Bill with new clauses. Although the Speaker ruled out referring the Bill to a Standing Committee, she did say that the government could consider taking the Bill after demands for grants are ‘guillotined’ on April 28.
Though the government will not have any problem in getting the Bill passed in the Lok Sabha, it needs support from the Congress and other political parties in the Rajya Sabha to get it passed. The government is also in talks with the AIADMK, Trinamool Congress and Biju Janata Dal for support. In fact, the AIADMK-led government in Tamil Nadu has made it clear that the current proposal of the government to introduce a Constitutional Amendment Bill on GST and then to evolve a consensus on various aspects of GST through the GST Council, especially on the actual tax rates and tax bands, is not acceptable.
SOURCE: The Hindu Business Line
India Ratings, a Fitch group company, projected the country’s economic growth at 7.7 per cent this financial year. The Union Budget assumes 8.5 per cent growth for 2015-16. The Reserve Bank of India’s estimate is 7.8 per cent. And, 7.5 per cent is what was pegged by both the International Monetary Fund and the World Bank. The government’s Economic Survey said growth in 2014-15 would be in the range of 8.1-8.5 per cent. While the growth would be boosted by higher domestic consumption, demand abroad will remain lacklustre, India Ratings said. It projects industrial growth to be 6.5 per cent in 2015-16 against 5.9 per cent in FY15. “Although external demand still looks fragile, domestic demand will gather momentum in view of lower inflation. Soft commodity prices, in combination with a policy/regulatory push and decline in interest cost, are likely to drive industrial recovery in FY16,” India Ratings said.
A sustained government focus on ‘Make in India’ and on improving the ease of doing business could be another positive for industrial recovery, it said, albeit in the medium to long run.“Successful auction of the coal mines cancelled by the Supreme Court in FY15 has brightened the mining sector outlook. (We) expect all three broad sectors — mining, manufacturing and electricity — to contribute to industrial growth,” the rating agency said. However, it expects growth in services to reduce to 9.9 per cent from 10.6 per cent earlier. Financing, insurance, real estate and business services might grow at 11.2 per cent, lower than FY15’s 13.7 per cent. Assuming the monsoon to be normal, it expects agricultural growth to be 2.1 per cent, against 1.1 per cent expected in 2014-15.
SOURCE: The Business Standard
A Japanese delegation led by Minister for Economy, Trade and Industry Yoichi Miyazawa and comprising top executives of companies such as Suzuki, Toyota, Honda, Toshiba, Hitachi Tsumitomo, Mitsui and Mitsubishi are set to meet Prime Minister Narendra Modi this week to present a paper on doubling that country's di rect investment in India. This is the first such mission to seek an audience with Modi, after both nations made an announcement last September to double Japa nese business enterprises as well as investment in India in five years, government sources told ET. The paper that the group of more than 20 Japanese business honchos is set to present will highlight their business plans in India, the sources said. Some of these business men had met the PM separately over the past year.
As of January, 1,209 Japanese companies were registered in India, including 137 which were added to the list since 2013. Foreign direct investment from Japan was $1.224 billion during January-September 2014. Japanese FDI has mainly been in the automobile, electrical equipment, telecommunications, chemical and pharmaceutical sectors. Ever since he took over in last May, Modi has been working on improving India's partnership with government has Japan. The government has created a cell, called 'Japan Plus', which includes a Japanese official from Japan's Ministry for Economy, Trade and Industry and works under the aegis of the PMO to facilitate Japanese investments in India.
During Modi's trip to Japan last year, his Japanese counterpart, Shinzo Abe, had promised $33.8 billion of public and private investment and financing from Japan in areas such as transportation, smart cities, rejuvenation of rivers, manufacturing, clean energy, skill development, water security, food processing and agro industry, cold chain, and rural development. Japan has been extending loan and grant assistance to India since 1958 and is one of the largest donors to India.
This Japanese business mission that also includes a few banking honchos is significant as it comes ahead of Modi's China trip where too he is expected to pitch for higher investments from the neighbouring country. A highlight of the business mission will be a dialogue involving Commerce Minister Nirmala Sitharaman and various Indian states where Japan has big investments. These states include Rajasthan, Haryana, Gujarat, Maharashtra and Andhra Pradesh. According to diplomatic sources, Japan is interested in setting up 10 industrial parks here. Miyazawa would also pitch for recruiting Indian computer engineers for companies in Japan to meet rising demand there. Japan currently has 30,000 IT engineers and would like to double that figure by 2020.
SOURCE: The Economic Times
Maharashtra Chief Minister Devendra Fadnavis has arrived here on a three-day visit to Israel to explore possibilities of collaboration in various fields including agriculture and crisis management, where it has an expertise, and to attract investments in the state. During his tour, his first as a chief minister, Fadnavis will also be a keynote speaker at a symposium on Indo-Israel collaboration for 'Make in Maharashtra', to attract investment opportunities in the state. He arrived here late yesterday.
The chief minister will participate in Agritech Israel 2015, the 19th International Agricultural Technology Exhibition, one of the world's most important exhibitions in the field of agricultural technologies. The exhibition will be held here from April 28 to April 30. He will also explore possibilities of collaboration with the Tel Aviv Municipality, focusing on emergency preparations and crisis management technologies, and with cancer hospitals. Fadnavis will hold meetings with heads of leading IT companies and firms, specialising in drip irrigation and will be visiting research institutes too. During his trip, he will also be meeting Israeli Agriculture Minister Yair Shamir, senior officials from various ministries, including MATIMOP, the nodal government agency for research and development cooperation.
India is participating in a big way in the popular exhibition that has attracted global attention because of its display of sophisticated agricultural technology with Meghalaya Chief Minister Mukul Sangma also expected to arrive here tomorrow with his delegation. Among other states, Punjab, Kerala, Tamil Nadu, Karnataka and Mizoram are also likely to be represented through officials and farmers, who are likely to gain from direct access to various technologies in use.
Israel has been a success story in the field of agriculture with the growth in agro-technology getting a big boost through remarkable cooperation between farmers, researchers and agriculture-related industries. The cooperative efforts led to breakthrough achievements in all branches of agriculture here and have fostered a market-oriented agri-business that exports its agro-technology solutions all over the world. The country has drawn global attention for its remarkable progress in innovating unique technologies in the field of irrigation, greenhouses, dairy farming, seeds, poultry farming, fertilisers and plant protection that has revolutionised the agriculture sector. India and Israel have already been cooperating in a big way in the field of agriculture realising quite early the complementarity existing between the two countries in the field. Some Israeli companies have set up research and development centres, manufacturing plants, and opened subsidiaries in India. The discussions between Indian participants at the Agritech is also likely to focus on technologies related to minimising post-harvest wastage and water management technologies.
SOURCE: The Economic Times
Foreign direct investment (FDI) in India jumped about 63 per cent to USD 3.28 billion (about Rs 20,820 crore) in February, 2015. In February last year, the country had received FDI of USD 2.01 billion. During the April-February period of 2014-15, the foreign fund inflows have grown by 39 per cent, year-on-year, to USD 28.81 billion, according to the data of Department of Industrial Policy and Promotion (DIPP). The inflows were at USD 20.76 billion during the same period a year ago. Amongst the top 10 sectors, services received the maximum FDI of USD 2.88 billion in the 11-month period of 2014-15, followed by telecommunication (USD 2.85 billion), automobiles (USD 2.42 billion), computer software and hardware (USD 2.04 billion) and pharmaceuticals (USD 1.30 billion).
During the period, India received the maximum FDI from Mauritius (USD 8.44 billion), followed by Singapore (USD 6.42 billion), the Netherlands (USD 3.29 billion), Japan (USD 1.72 billion) and the US (USD 1.69 billion). In 2013-14, FDI stood at USD 24.29 billion as against USD 22.42 billion a year earlier. Healthy inflow of foreign investments into the country helped India's balance of payments (BoP) situation. India is estimated to require around USD 1 trillion investment over five years to overhaul its infrastructure sector, including ports, airports and highways to boost growth.
SOURCE: The Economic Times
Foreign institutional investors are set to break an 11-month streak of net inflows into the Indian debt market. They have turned net sellers in April for the first time since April 2014, the last time they had been net sellers in debt. According to depository data, net outflows till April 27 have been Rs 817 crore. FII outflows come in the wake of recent tax notices demanding tax at 20 per cent on interest income, as opposed to five per cent without minimum alternate tax (MAT). A large-scale outflow is not a best-case scenario, according to Maneesh Dangi, co-chief investment officer at Birla Sun Life Asset Management Company. “Given the way currency has behaved, inflows have paused and there has been a small correction in yields... We are not envisaging any great outflow and a May 2013-like event remains a low-probability scenario.”
Foreign portfolio investors (FPIs) had emerged net sellers by Rs 80,185 crore in the six months after May 2013 on account of factors including a depreciating rupee. The rupee depreciated to 63.77 against the dollar on Monday. “This is another bolt from the blue for us. The withholding tax reduction from 20 per cent to five per cent in May 2013 was meant to encourage investment in government securities at that time and that was why many of us came in. It looks like that five per cent might not apply and MAT might,” said one foreign investor in a concall with government officials last week. “The Finance Bill will be passed in Parliament, which is when this prospective action on MAT will become law… This matter... is under consideration right now but will be resolved before it is passed… If we have a decision on that sooner, we will announce it,” said minister of state for finance Jayant Sinha in the same call.
The equity segment has a slightly different story. Foreign portfolio investors have been net buyers by Rs 15,594 crore so far in April. However, a single day’s inflows accounted for the bulk of the total investment. Foreign investors were net buyers by Rs 16,357.75 crore on April 22, the day of a large bulk deal in Sun Pharma. Without this deal, FPIs would have been net sellers in equity, too. “Even before this whole MAT issue started, India was looking overbought. The MAT issue and the way it has been handled… people are nervous and looking to take some money out,” said Andrew Holland, CEO, Ambit Investment Advisors.
According to him, India remains attractive to foreign investors. They would watch triggers including legislation over land acquisition, goods and services tax, and whether the government steps up spending to help a pick-up in growth. Others, too, agree. Standard Chartered Securities in its Equity Strategy report issued at the beginning of the month said the market was finding it difficult to pinpoint when earnings and policy execution would meet expectations. Global factors too have been playing spoilsport. “The pullback is also due to the apprehension that a likely pickup in execution could coincide with the US Fed raising its interest rates. These concerns are likely misplaced as the initial phase of the US Fed raising rates has historically been associated with high growth phase of the Indian economy. A pickup in capex is likely in the second half of 2015,” said the report authored by director and chief investment strategist Mitesh Dalal; investment strategist Ashish Mittal; senior investment strategist Siddhali Desai; and associate strategist Sachit Damani. They recommended investors take advantage of the correction continue to invest in a phased manner.
SOURCE: The Business Standard
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$ 62.67 per barrel (bbl) on 27.04.2015. This was higher than the price of US$ 62.61 per bbl on previous publishing day of 24.04.2015. In rupee terms, the price of Indian Basket increased to Rs 3986.44 per bbl on 27.04.2015 as compared to Rs 3969.47 per bbl on 24.04.2015. Rupee closed weaker at Rs 63.61 per US$ on 27.04.2015 as against Rs 63.40 per US$ on 24.04.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 27, 2015 (Previous trading day i.e. 24.04.2015) |
Pricing Fortnight for 16.04.2015 (March 28 to April 10, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
62.67 (62.61) |
54.92 |
|
(Rs/bbl |
3986.44 (3969.47) |
3425.91 |
|
|
Exchange Rate |
(Rs/$) |
63.61 (63.40) |
62.38 |
SOURCE: PIB
The Bangladesh ministry of finance has advised the Chief Accounts Officer of the Finance Division on Thursday to release the funds in favour of the central bank to hand over the cash incentives to the exporters for a period from April 2015 to July 2015. This will be the last and fourth tranche of cash incentives amounting to Tk 13.75 billion for major exporters for the current fiscal year by the government. The local exporters have been advised to seek the cash by applying to the Bangladesh Bank through respective banks. They will receive the instalment of the cash incentives against their exports during the period. The sectors enjoying the benefits includes apparel-manufacturing industries. The small and medium garment factories will get an additional 5.0 per cent subsidy, while 2.0 per cent will be provided for new products and new market expansion except the USA, Canada and the EU.
The export-oriented textiles sector will get 5.0 per cent alternative cash incentives instead of customs bond and duty-drawback facility. While, exporters of finished jute goods and products of light-engineering sector will get 10.0 per cent. Of the Tk 13.75 billion, the jute and jute-product sub-sector will get Tk 2.875 billion in the fourth instalment while the other sectors will receive the rest (Tk 10.875 billion). As per the circular, the government will take legal actions against the exporters who, after examining export documents, would be found enjoying extra cash incentives from banks. The extra funds will be taken back from the exporters within a short time through legal process. Earlier, Bangladesh Bank (BB) demanded an additional amount of Tk 26 billion mainly to pay out the instalment of cash incentives as well as arrears for current fiscal (2014-15) to the major exporters. At present, about 14 export sectors are receiving the cash bonus on exports.
SOURCE: Yarns&Fibers
The garment industry that transformed the economy and lives of millions of people has itself been transformed. Success stories are always full of sweet and sour events since achievements do not come on a silver platter. What could be a better example of this than our garment industry? The industry that emerged as a small non-traditional sector in export in the late 1970s has now become crucial to our economy as the main source of export earnings and employment generation. Beginning its journey with only 130 workers and export earnings of $12,000, it is now a $25-billion sector that employs around 4.4 million people, 80 percent of whom are women.
Now we are the second largest apparel exporting country in the world and the sector has been contributing to the economy with export earnings, employment generation, women empowerment and poverty alleviation for the last 35 years. Was the sector's journey rosy? The answer is a simple no. It has faced a number of challenges, including child labour issues, multi-fibre arrangement phase-out, and global recession. We have dealt with these challenges and been able to sustain growth. However, the biggest challenge for the industry emerged after the tragic building collapse in 2013. Many thought the incident would mark the end of the sector's journey. But what we have seen is a new beginning. The industry that transformed the economy and lives of millions of people has itself been transformed.
The collapse of the Rana Plaza building was a wake-up call for us -- a call to turn around and build a safe and sustainable industry. We can proudly say that as a nation, we have once again proved that we can face any challenge, be it natural or manmade. Given the size of our apparel industry, ensuring worker safety in the garment factories was a daunting task for us but we took up the challenge and it is heartening to see that significant progress has been made in the areas of safety, including fire, and electrical and structural safety, in the garment factories.
For the first time in the history of the global garment industry, all stakeholders have realised that ensuring safety and wellbeing of the workers is a shared responsibility and this feeling has inspired governments, brands, buyers, suppliers, entrepreneurs, and workers to work hand-in-hand. This is probably the only instance in the world where brands and buyers who compete with each other have come together to make an industry safe and sustainable. European brands and buyers formed the Accord on Fire and Building Safety while the North American ones initiated the Alliance for Bangladesh Worker Safety. The National Tripartite Action Plan for Building and Fire Safety was adopted by the government as well. Till now, 2,643 factories have been inspected by three initiatives -- 1,261 by Accord, 647 by Alliance and 735 factories by National Action Plan.
What is more encouraging is that only around 1.25 percent of the inspected factories were found vulnerable and closed down immediately. All the inspection reports of the factories are available at the Fair Factory Clearinghouse (FFC) database, which is accessible by all the buyers, making our progress ever more transparent and credible. Moreover, factories are implementing corrective action plans provided by Accord and Alliance. The government has taken a number of steps to augment the safety initiatives. The Directorate of Inspection for Factories and Establishments has been upgraded to the status of a department. The government has recruited 200 inspectors, made the import of safety equipment duty-free and launched a safety hotline for workers.
Bangladesh Garment Manufacturers and Exporters Association also took a number of steps to supplement workplace safety efforts by forming a team of 35 fire trainers in December 2013. This team trained 83,678 workers and staff members in 2,386 factories. BGMEA runs a "crash programme" on fire safety and so far 20,188 personnel of 2,342 factories have been trained. We have also made significant progress in the areas of knowledge, awareness and rights issues. The Labour Law 2006 was amended within just 90 days of the building collapse, making the law more favourable towards ensuring worker rights. The dramatic progress in new trade union registration is a tangible result of this amendment. Until 2012, there were only 138 trade unions in the sector; from January 2013 till now, 304 new trade unions have been registered.
The minimum wage of the garment workers has also been increased by 219 percent over the past five years. The Better Work Programme has been launched by International Labour Organisation and International Finance Corporation. There goes an old adage that every cloud has a silver lining and it best relates to our garment industry. When all the inspections will be over and the factories complete their corrective action plans, the garment industry of Bangladesh can be regarded as the safest industry in the world.
SOURCE: The Global Textiles
The global technical textiles market is set to grow at a consumer annual growth rate (CAGR) of 3.71% from now until 2019, according to a report by TechNavio. The main driver of this growth is high demand for technical nonwoven applications. While the growth of geotextiles was identified as a new market trend. Technical nonwovens account for around 60% of the entire nonwoven market worldwide. That’s according to nonwoven producer Oerlikon Neumag who will focus on this technology at the upcoming ANEX / SINCE show in Shanghai, China (13-15 May).
A demand for thinner, lighter and more efficient materials fuels its spunbond technology which is said to reduce production costs by up to 20%. Oerlikon offers customers the complete process from spinning to roll goods for geotextiles, bitumen and underlayments, from a single source. Meanwhile, its optimised meltblown technology offers solutions in the production of nonwovens for filtration – another strong growth area. It is supplied as a stand-alone mono and bicomponent, or as a ‘plug & produce’ installation (retrofit) in already existing plants, said Oerlikon.
Emerging trend
A previous report by MarketsandMarkets tipped the fast emerging geotextiles market to reach $US6.3 billion by 2017. The main applications for geotextiles are the road industry, erosion control, waste management and pavement repair. The US is the major hub for geotextiles in North America. While, within Europe, most of the major market players are situated in countries such as the UK, Germany, Denmark, The Netherlands, and Italy. Asian manufacturers are primarily based in China and India. With respect to materials, polypropylene and polyester are the major segments within the geotextiles market. Nonwoven geotextiles are the most commonly used geotextile, as a result of their low cost and wide application scope. In 2013, their estimated consumption was placed at 1,561 mln sq ms.
SOURCE: WTIN
Brent crude reversed early losses to steady above $65 on Monday as signs that US shale output may have started to decline offset the effects of a strong dollar. The number of active US rigs drilling for oil has fallen for a record 20 weeks in a row to its lowest since 2010, according to data from oil services company Baker Hughes, fuelling expectations of a drop in US production. "We believe that the increase in US oil production will slow and that it could also decline in the short term," Germany's Commerzbank said in a note on Monday. Brent edged up 6 cents to $65.34 a barrel by 1328 GMT, having touched a low of $64.60 on dollar strength earlier in the session.
SOURCE: The Business Standard
Benzene prices rose in Europe & US in the last week ended April 24 due to improved downstream market sentiments. In Europe, average prices climbed by US$ 60/ton or 7.06 per cent and were quoted at US$ 910/ton in the last week, as compared to its previous week. In US, average prices expanded by 5 cents/gallon and were quoted at 285 cents/gallon in the last week, an increase of 1.79 per cent as against its previous week.
SOURCE: Fibre2fashion
TEXTILE factories in Bahrain fear they could lose millions of dollars in trade and thousands of jobs could go if a tariff agreement with the US is not renewed next year. It was included in the US-Bahrain Free Trade Agreement (FTA) and waived limits on how much yarn and fabric could be sourced from third parties before exporting products to the US. However, the clause expires on July 31 next year and US legislators have so far failed to secure approval to extend it. The Senate Finance Committee last week rejected an attempt by US Senator Bill Nelson and Congress members Gwen Graham and Jeff Miller to extend the Tariff Preference Level (TPL) until 2026.
Mr Nelson had sought to attach the extension to a larger trade bill called the African Growth and Opportunity Act (AGOA), which provides about 6,000 African products with preferential quota and duty-free access to the US market. The AGOA is due to expire in September and the Obama administration is seeking a 15-year extension. Another bill seeking the TPL extension was introduced by Ms Graham and Mr Miller last month as a part of the Northwest Florida Jobs Certainty Act and referred to the Ways and Means Committee, but no hearing has been set. After the TPL expires, all trade under the Bahrain FTA must adhere to the "yarn forward" rule of origin, limiting allowances for the use of yarn and fabric from third parties. The rule was suspended for the first 10 years of the FTA, which took effect in August 2006. This allowed companies like Bahrain's MRS Fashions, West Point Bahrain, Ambattur Clothing International and Noble Garments Factory to use raw materials imported from countries that are not signatories to the FTA and then export products to the US duty-free.
In the post-TPL regime, the four Bahrain-based textile exporters, which together ship an estimated $200 million worth of goods to the US every year, will no longer be able to export to the US duty-free - unless they can prove all constituent parts "from the yarn to the fabric to the thread" are made either in the US or Bahrain. MRS, Ambattur and Noble, all apparel manufacturers, and West Point Bahrain, a home furnishing manufacturer, together employ around 6,200 people. Apparel and textiles contribute 27pc of total exports from Bahrain to the US and investment in the sector is believed to be in excess of $250m. An industry representative told the GDN on condition of anonymity that the companies would be forced to leave Bahrain if the tax-exempt status was not extended, since it would make their business "completely uncompetitive". "We will be unable to match the prices set by factories in India, China, Vietnam and Bangladesh because the labour costs in Bahrain are too high," he said.
He added companies had been raising the issue with the American Chamber of Commerce Bahrain (AmCham Bahrain) and government agencies for more than a year. If the tariff agreement is not extended two of them have already set up manufacturing in Jordan and another firm has an operation in Oman, which would be scaled up. Oman and Jordan have similar FTAs with the US, but as they came into force much later than Bahrain's (January 2009 for Oman and January 2010 for Jordan) they have more time to secure extensions to TPLs. Omani authorities have already started lobbying to get the extension with more than three years remaining and are confident of getting it, claimed the industry representative. Besides job and trade losses, failure to get the TPL extended could also result in "Made in Bahrain" labels on garments disappearing from US stores. The TPL expiry also has implications for the US. West Point Bahrain is a subsidiary of US textile manufacturer West Point Home, which operates a plant in Chipley, Florida.
The Bahrain unit produces yarn that is shipped duty-free to the Chipley plant employing about 250 workers, who make comforters, quilts and other home furnishings. West Point Home has said it may have to close the plant if it is forced to pay higher tariffs for raw materials imported from Bahrain. AmCham Bahrain president Qays Zu'bi told the GDN that the organisation would increase pressure to extend the tariff agreement. However, the US Embassy in Bahrain could not be reached for comment. The GDN reported last week that the Cabinet approved amendments to the FTA, which will result in new articles involving the country of origin of products, in a bid to add more services and products to the agreement.
SOURCE: The Gulf Daily News
