Textile Raw Material Price 2015-04-28
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1323.38 |
USD/Ton |
0% |
|
VSF |
2034.08 |
USD/Ton |
0.16% |
|
ASF |
2450.70 |
USD/Ton |
0% |
|
Polyester POY |
1425.49 |
USD/Ton |
-0.29% |
|
Nylon FDY |
3071.54 |
USD/Ton |
0% |
|
40D Spandex |
6567.88 |
USD/Ton |
0% |
|
Nylon DTY |
2597.74 |
USD/Ton |
0% |
|
Viscose Long Filament |
1625.63 |
USD/Ton |
0% |
|
Polyester DTY |
3381.97 |
USD/Ton |
0% |
|
Nylon POY |
5881.68 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1666.48 |
USD/Ton |
0% |
|
Polyester FDY |
2908.16 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2679.43 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2074.93 |
USD/Ton |
0.79% |
|
45S T/C Yarn |
2989.85 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2205.63 |
USD/Ton |
0.75% |
|
T/C Yarn 65/35 32S |
2565.07 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2842.81 |
USD/Ton |
0.58% |
|
T/R Yarn 65/35 32S |
2712.11 |
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 |
0.78 |
USD/Meter |
0.42% |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16338 USD dtd. 28/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Textiles Ministry has demanded sops for the yarn and fabric sectors, which it says were ignored in the five-year Foreign Trade Policy announced early this month. It has also made a case for inclusion of garments in the interest subvention scheme being finalised by the Commerce Ministry to help the sector compete with Vietnam, Sri Lanka and Bangladesh, which get favourable access to developed markets. “Officials from the Textiles Ministry have already held preliminary discussions on the matter with officials in the Commerce Ministry and the Directorate General of Foreign Trade. We have forwarded all the complaints that we had received from the industry. The Secretaries from the two ministries are also in touch,” an official told BusinessLine .
Flawed incentives
Man-made fibre yarn as well as woven and knitted fabrics, in addition to garments, have been extended a 2 per cent incentive (in the form of fully transferable duty scrips) in the EU, the US, Canada and Japan. However, sops in these markets do not help yarn and fabric producers as they export very little to these markets. The Merchandise Export Incentive Scheme (MEIS), however, ignores markets such as China, Bangladesh, Sri Lanka, Turkey, Vietnam and South Korea, which are major destinations for yarn and fabric from India. “By excluding key markets, the policy has virtually ignored fabric and yarn producers, who also need support in the shrinking world market,” the official said.
The Textiles Ministry is also trying to persuade the Commerce Ministry to include garments and other sectors in the new interest subvention scheme being finalised by it. Under the scheme, exporters from select sectors will get credit at a 3 per cent subsidy for the next three years. “The garments sector is facing a tough time competing with smaller economies such as Vietnam, Sri Lanka and Bangladesh, which get preferable access into the EU and US markets. Interest-rate subvention will give it some relief,” the official said. The textile sector is the largest employment generating sector in the country, especially for low-skilled workers, and needs to be supported, he added.
SOURCE: The Hindu Business Line
India recently announced its foreign trade policy for the next five years (2015-2020). A five-year foreign trade policy structurally represents a medium-term economic plan aiming to achieve key goals. The macroeconomic goal is to increase India’s share in world merchandise and services exports from 2% at present to 3.5%. Translated in numbers, the increase would imply doubling exports from just under $500 billion to close to $1 trillion over a five-year period with annual average increases of roughly 20%. Around 65% of India’s current export earnings are from merchandise exports, while the rest is from services. It is not clear whether the total increase proposed by the policy assumes this current ratio to be maintained over time. If it does then it entails annual increases of around $65 billion and $35 billion respectively in merchandise and service exports from their baseline levels.
An annual increase of 20% in merchandise and service exports from India is a tall order given that during 2005-2013 these exports experienced average growth rates of 15% and 14%, respectively. Indian exports would have to expand beyond their skins for achieving the kind of growth rates the policy expects them to. Trade is a two-way traffic. Indian exports are imports for other countries. Exports are not taken by importing countries as favours or acts of charity. They are imported either as necessities or because they come at cheaper prices and better quality than same products at home.
India is not a global producer of necessities. It does not have ample resources of oil, gas, minerals and nuclear material for feeding the rest of the world. Nor does it have as broad a manufacturing base producing as cheap and varied items as China. Its exports can crack the world market only if they are efficient, say, for example, from cheap production, or from unique features, like design or other specific attributes like environment-friendly features. The problem is that it is not only Indian producers that are aiming to secure efficiency-based comparative advantages. Most of the rest of the world is. And India does not appear to be doing too well in this regard.
Consider India’s export strongholds. As far as textiles are concerned, India no longer has the advantage in garments. Vietnam, Bangladesh, Cambodia and Nepal, just to mention the neighbouring countries, cut, stitch and sew fabric faster and cheaper than India. India’s only major hope in textiles now is as supplier of raw cotton. But that would imply it getting confined to the upstream and lower end of the textile value chain. Almost similar implications are for leather products where the production advantages in leather uppers and footwear are increasingly shifting to other country producers with India left back looking only at raw hides.
Yellow gold has lost its lustre all over the world. Except the Chinese and Indians, the rest of the world, particularly the West, is not fascinated by jewellery made of yellow gold. Diamonds, yes: India is still the largest diamond-processing centre in the world. But poor business conditions are driving out processors to other facilities like the Gemopolis export zone in Bangkok. Moreover, processors can’t perform their art unless they get the diamonds. What the Indian gem processing industry doesn’t seem to realise is that world over, consumers are veering towards less pure, processed industrial diamonds for use as fashion and replaceable jewellery. This is where Indian diamond processors are yet to get a handle on global tastes and preferences. Automobiles are another sector where great hopes are pinned on. Connection of automobile value chain locations—both at the lower and upper ends—through various regional agreements can cut off India from major final demand and intermediate markets. With major automobile lead firms from Japan, Korea, US and Germany getting neatly tucked into mega-regional agreements like the TPP (Trans-Pacific Partnership) and the Transatlantic Trade and Investment Partnership (TTIP), investments in component and design facilities in value chains will be confined within these agreements. It would hardly be surprising if Honda, Hyundai, Toyota and the rest of the auto majors increasingly begin relocating facilities in TPP members like Mexico, Malaysia, Peru and Vietnam for taking advantages of lower tariffs, common standards and uniform investment rules.
The game is already lost on business process outsourcing and IT-enabled services. Ireland, the Philippines and even Bangladesh, are speaking better English and working longer for providing outsourcing services. While the non-English speaking world is desperately learning English to stay relevant, India is learning it lesser and does not mind giving up its BPO advantages. In services like nursing and basic education, India is unable to match the certification requirements of most countries. There is little hope of these service providers travelling far and wide for boosting India’s service exports. Given its image as an unsafe destination and lack of budget travel facilities, ‘Incredible India’ might not be able to lure tourists despite visa-on-arrivals. The foreign trade policy pitches for increasing exports by connecting it to the objectives and vision of the Make-in-India initiative. But is Make-in-India aimed for Indians, or the rest of the world? Indian consumers might be denied access to imports and forced to buy substandard products. The rest of the world cannot be. The foreign trade policy appears to have overlooked some of the obvious downsides in taking India to the rest of the world.
SOURCE: The Financial Express
With rising bad loans becoming a concern for the textile industry, Texpreneuers Forum has commissioned a study to identify the factors that ail the textile sector. The forum has engaged Credit Rating Information Services of India Limited (CRISIL) for the purpose and the interim report is expected to be ready within a week.
“The interim report of the study will be handed over shortly to the Union Government to reiterate the demands of the textile sector here for getting various incentives including the coverage of interest subvention scheme for yarn and fabrics exports too apart from the garments, says Prabhu Damodaran, secretary of the forum. As part of the study, balance sheets of nearly 200 units, especially those in the spinning sector, that face financial trouble for the last few financial years will be studied apart from analysing the impact of ‘cotton economy’ on the financial status of various segments of textile production chain. “Many textile units fell into debt mainly because of the losses incurred due to the cotton price fluctuations a few years back from which the firms could not make a complete recovery,” textile entrepreneurs pointed out.
SOURCE: The Hindu
An ambitious project to improve profitability and competitiveness of textile units in Tirupur knitwear cluster has taken off with the formation of five mini-clusters of units and availing of Government funds to implement some of the progressive industrial practices followed in Japan. T. R. Vijayakumar, coordinator of Tirupur Thozhil Pathukappu Kuzhu, which is facilitating the implementation of the project, told The Hindu that each mini-cluster had 10 homogeneous units involved in identical activities of the garment production processes. “Four of the mini-clusters formed comprise garment production units and the remaining cluster has textile printing units,” he said adding that a few more mini-clusters comprising knitting units would soon be constituted. Each of the clusters now had signed a Memorandum of Understanding with the Quality Council of India and MSME Ministry to get the employees of the units trained for lean manufacturing practices that were followed in industrial units in Japan. “The mini-clusters have the privilege to select the trainers from among the approved list of people published by the Quality Council of India for such purposes,” said Mr. Vijayakumar.
Of the total cost for training needy on how to reduce wastages and improve the manufacturing skills, 80 per cent would be borne by the Union MSME Ministry subjected to a ceiling of Rs. 29 lakh. The training would be spread over 18 months. “Once the training cycle is over, the profitability of the units involved in the scheme will go up considerably through minimisation of material wastes and reducing the unwanted procedures in the manufacturing process,” Mr. Vijayakumar pointed out.
SOURCE: The Hindu
With an aim to bring a global investor outlook to Andhra Pradesh to make it the best business destination, Chief Minister N Chandrababu Naidu will launch the government’s Industry Mission tomorrow in Vizag. This massive event will also witness the unveiling of the state’s Industrial Policy and Sector Policies apart from the launch of a single-desk portal (that grants clearances for industrial projects within 21 days). Given that recent surveys estimate India’s growth rate will surpass global superpowers like the US, the Industry Mission of AP will contribute to ‘Make in India’ initiative which will give a major thrust to the national as well as state’s economy, a CMO official said today.
The State Government will sign 46 MoUs with 46 companies from India as from countries like Japan, UAE, Canada, etc, attracting total investment worth Rs 35,745 crore. These MoUs will include investments in sectors from petrochemicals to energy, infrastructure, electronics and manufacturing, food processing, textile, automobiles, and others, thereby generating 72,210 new jobs in the state. As part of the MoUs signed, 48 units will be set up in the state, spanning across various districts. Among these, one company will set up three units. Seventeen companies will be investing in Chittoor district among others.
SOURCE: The Indian Express
India-US bilateral trade crossed the $100-billion mark in 2014 and the US is keen to work with India towards achieving an ambitious $500 billion, US Ambassador to India Richard Verma has said. The country, however, needs to resolve issues related to land acquisition and foreign direct investment if it wants to attract foreign investments in its proposed smart cities, the Ambassador said on Tuesday, speaking at an event organised by the American Chamber of Commerce.
The glitches
“We do not have clarity on financing for the many projects that need to be done. Land acquisition, foreign direct investment and other questions still remain unresolved. “The expectation of large amounts of private sector finance, either domestic or foreign, will be a challenge. These concerns mean many projects may not be commercially viable at the outset,” he said.
Investment pact
Verma was, however, upbeat on the possibility of a bilateral investment treaty between the two countries which, he said, would bolster investment confidence. “Our teams met at the end of March to discuss India’s draft model text. India has already signed on to high standard investment protections with other strategic partners, such as Japan in 2010, so we know it is possible and doable,” he said. On the issue of growing bilateral trade, the US Ambassador said that if the two countries could achieve the goal of $500 billion in the next several years, the bilateral economic relationship would be 25 times larger than it was just 15 years back.
Amitabh Kant, Secretary, Department of Industrial Policy and Promotion, said that the $500-billion target was achievable if India continued to move on a high-growth trajectory and managed to attract investments from US-based companies. “We are prepared to do all the handholding required to help American companies create wealth for themselves and India,” he said. Verma said that the involvement of the US Commerce Secretary and India’s Commerce Minister in a newly reconstituted Strategic and Commercial Dialogue was being formalised and the first meeting was expected in Washington in the “summer’’.
SOURCE: The Hindu Business Line
The World Bank said on Tuesday that India’s economy seemed to have turned the corner, with outlook improving significantly. It, however, projected the economy to expand by 7.5 per cent during the current financial year, much lower than the Budget assumption of 8.5 per cent. In its ‘India Development Update’, the World Bank pegged India’s economic growth rate at 7.9 per cent for the next financial year (FY17) and eight per cent for FY18, which are not up to the expectations of the government, but higher than the International Monetary Fund’s (IMF) projections. While the IMF projected India’s economic growth to be 7.8 per cent even in 2020-21, according to the World Bank, there will be much faster growth. The Bank warned against domestic risks — weak banking sector due to bad debts and a slowdown in credit growth, stuck-up projects, over-leveraged corporate sector, etc. Besides, there are external challenges which might come in the form of reversal of declining oil prices, normalisation of monetary policy in the US and weak global trade growth. With India’s economy mostly domestic-driven, internal risks far outweighed external risks, the Bank said. The Bank assessed that India’s economy grew 7.2 per cent for FY15, lower than the official advance estimate of 7.4 per cent.
The World Bank’s projections for India’s growth for FY16 was not only quite lower than the Budget assumption, but also the Reserve Bank of India (RBI)’s expectation of 7.8 per cent. “Going forward, acceleration in real GDP growth would be driven largely by higher gross fixed capital formation, which is expected to grow at an average 11 per cent annually during FY16-FY18,” the report said. While Finance Minister Arun Jaitley said the new normal for economic growth should be 9-10 per cent for the government to set its eyes on, according to National Institution for Transforming India Aayog Vice-Chairman Arvind Panagariya, India’s economy might grow 8-10 per cent in the next 15 years. Giving the details of the report, Poonam Gupta, senior economist with the World Bank, said the economic growth spurts were comparable with what was seen in the mid-1990s and mid-2000s. Talking of domestic risks, the Bank highlighted the importance of persistent reforms. It said if implemented fully, reforms might improve the business environment and alleviate constraints to firm growth.
To a query on the assessment of the Narendra Modi government’s efforts to improve business climate, World Bank country director for India, Onno Ruhl, said: “I would describe the government’s work on ease of doing business as very strong.” He said the current situation offered an opportunity to further strengthen the business environment and enhance the quality of public spending. India stood 142 among 189 countries in the World Bank’s ranking in terms of ease of doing business. The Modi government aims to improve India’s position to 50 in two years. Gupta said India should explore alternative channels for long-term investment, while reviving the public-private-partnership model of financing to meet India’s yawning gap. “Simultaneous efforts to increase the tax-to-GDP ratios, through the timely implementation of GST (goods and services tax) as well as complementary measures to improve tax administration and compliance can generate additional fiscal space in the years ahead,” she said. Gupta added although the government and RBI had signed inflation targeting framework, the monetary transmission mechanism remained weak.
Cautioning against external risks, the World Bank said that even though the Federal Reserve board had continued to maintain its stance on monetary policy, the expectations were that it would start the tightening phase sometime soon. “India being one of the larger financial markets and a large recipient of capital flows, could be adversely affected by a re-balancing triggered by the tightening of the Fed’s monetary policy,” it said. While Gupta said she did not expect the Fed to raise rates at its meeting that would conclude on Wednesday, several countries and regions with strong trade, diaspora and investment links with India continue to face a soft growth patch, dampening the external outlook. Countries that figure most prominently among large destinations for Indian exports as well as its diaspora, such as the United Arab Emirates, Saudi Arabia, China and Europe, among others, face subdued growth prospects. “These could translate into some slowdown in remittances, and possibly in FDI (foreign direct investment) flows into India, while undermining the prospects for resurgence in exports growth,” the Bank said.
Warning further, the report said the current economic narrative described in the Economic Survey as India being in a “sweet spot”, characterised by decline in inflation, current account deficit, and fiscal restraint derives partly from the recent sharp decline in the international prices of oil, metals and food. “This narrative could alter if prices fail to stay low, reinforcing the imperative for the government to insulate the economy even more determinedly from the global price of oil,” it said. The Bank said this could be done by weaning the fiscal outcomes fully from oil prices by reducing the intensity of use of imported oil, while encouraging alternative sources of energy; by mulling the possibility of creating additional fiscal buffers by using petroleum taxation more actively; and by appropriating the current sweet spot moment to further rationalise the still high levels of subsidies on food and fertiliser.
SOURCE: The Business Standard
Gautam Ray, Chief Commissioner, Customs, Central Excise & Service Tax for West Bengal, Sikkim, Andaman & Nicobar, has said that the proposed goods and services tax regime could have multiple rates and might not be easy to administer. “Though the proposed GST Council would have the responsibility of harmonising the rates, the spread has to be narrowed down”, he said. The proposed additional levy claimed by States such as Maharashtra and Gujarat might also have a cascading effect.
SOURCE: The Hindu Business Line
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$ 61.86 per barrel (bbl) on 28.04.2015. This was lower than the price of US$ 62.67 per bbl on previous publishing day of 27.04.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3917.59 per bbl on 28.04.2015 as compared to Rs 3986.44 per bbl on 27.04.2015. Rupee closed stronger at Rs 63.33 per US$ on 28.04.2015 as against Rs 63.61 per US$ on 27.04.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 28, 2015 (Previous trading day i.e. 27.04.2015) |
Pricing Fortnight for 16.04.2015 (March 28 to April 10, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
61.86 (62.67) |
54.92 |
|
(Rs/bbl |
3917.59 (3986.44) |
3425.91 |
|
|
Exchange Rate |
(Rs/$) |
63.33 (63.61) |
62.38 |
SOURCE: PIB
US trade representatives have expressed some satisfaction about action taken by Bangladesh businesses and governmental officials following the Rana Plaza building collapse, which killed more than 1100 people, mostly garment workers, according to local press in Bangladesh. In June 2013, President Obama suspended Bangladesh’s Generalised System of Preferences (GSP) trade benefits due to worker rights and worker safety issues. At the time of the suspension, the Administration provided the Government of Bangladesh with a 16 point action plan which provides a basis for the President to consider the reinstatement of GSP trade benefits.
Following a meeting with Bangladesh Commerce Minister Tofail Ahmed, US Bangladesh ambassador Marcia Stephens Bloom Bernicat, said: “There has been progress and would continue to be progress that can recommend the restoration of Generalised System of Preference (GSP). United States Trade Representative (USTR) was very satisfied with the progress they have seen and looking for further progress,” the Dhaka Tribute reported.
Speaking at the time of the suspension, United States Trade Representative Michael Froman said: “Our GSP statute requires certain basic standards for worker rights and worker safety as a condition of eligibility. Over the past few years, the U.S. Government has worked closely with the government of Bangladesh to encourage the reforms needed to meet those basic standards. Despite our close engagement and our clear, repeated expressions of concern, the U.S. Government has not seen sufficient progress towards those reforms. “
SOURCE: The Ecotextile
The global technical textile market that was worth US$ 133.93 billion in 2012 is expected to reach up to US$160.38 billion by 2018. It also predicts that in terms of volume the global demand will grow at a temperate CAGR of 3.3% from 2012 to 2018 and reach 30.71 million tons by the end of 2018. TMR, a market research firm based in US, states in the report that the market for technical textile is geared up to experience a quantum rise in the demand for its products. This can be attributed to the increasing application base in various end user industries such as healthcare, agriculture, construction, clothing, sports, equipments, sportswear and packaging.
The report says that the technical textile market has ranked among the top 5 technology intensive markets given its greater potential in comparison to regular textiles The report contains a detailed analysis of how innovation through research and product development was instrumental in enhancing product properties and durability. It also includes the scope of expansion for nanotechnology and major drawbacks faced by the market that affected the end user industry pricing pattern. According to the report, the global market for technical textile is segmented into eleven distinct categories based on end user, which are Mobitech, Protech, Buildtech, Hometech, Packtech, Indutech, Clothtech, Meditech, Sportech and Agrotech. Additionally the market is segmented into eight sub divisions based on the manufacturing technology they employ. These include segments like thermoforming, three dimensional weaving, fabrics churned using the nanotechnology, three dimensional knitting, finishing treatments, heat-set synthetics, handmade elements and others. The market for technical textile is segmented further on the basis of geography which covers, North America, Asia Pacific, Europe and Rest of the World (RoW).
Asia Pacific has been the key player in the technical textile market for quite some time now and the region will continue to remain at the helm in forthcoming years as well. According to the facts published in the report Asia Pacific accounted for over 45% of the global technical textiles market in 2011. By 2018 the region is expected to surpass other regions by a considerable margin. As per the report Asia Pacific is all set to generate whopping revenue of about US$ 61.26 billion. Given the enhanced technological capabilities, steady rise in demand from various industrial pockets of end users and supportive structure from various governments, the technical textile industry is expected to have a huge market to cater to with Asia Pacific emerging as a clear leader. The details about key market players in the industry like Kimberly-Clark Corporation, Freudenberg & Co. KG, Ahlstrom Corporation, DuPont and many others are also included in the report. The report presents an in-depth analysis and research to help technical textile manufacturers, lawmakers, large retailers, and research and development agencies to take informed decisions pertaining to the manufacture, designing and marketing of technical textiles. It will also allow the manufacturers to determine growth strategies that will help them achieve competitive advantage.
SOURCE: The WhaTech
The exports of textiles and garments from Pakistan earned US$ 10.207 billion in the first nine months of fiscal year 2014-15 that began on July 1, 2014, according to the data released by the Pakistan Bureau of Statistics. However, the value of textile and apparel exports during the nine-month period was 1.57 per cent lower compared to exports of $9.136 billion in the corresponding period of previous fiscal. In July-March 2014-15, Pakistan’s knitwear exports grew by 7.54 per cent year-on-year to $1.791 billion, while exports of non-knit readymade garments were up by 8.51 per cent to $1.548 billion. Raw cotton exports fetched $142.031 million in the nine-month period, showing a drop of 21.94 per cent compared to exports of $181.956 million made during the corresponding period of previous fiscal. Likewise, cotton yarn exports fell by 7.48 per cent to $1.46 billion, as against exports of $1.578 billion made during the same period last fiscal.
Exports of cotton fabric dropped 12.62 per cent to $1.859 billion during the period under review, while bedwear exports declined by 2.4 per cent to $1.569 billion, the data showed. The increase in exports of garments along with a decline in exports of raw cotton, yarn and fabric, however, is a good sign for Pakistan’s value-added textile industry, as the country is exporting more finished goods compared to last fiscal. On the other hand, Pakistan’s import of synthetic fibre surged 25.1 per cent year-on-year to $391.594 million, whereas imports of synthetic and artificial silk yarn witnessed a growth of 8.39 per cent to register $492.231 million. This shows that textile enterprises have increased the use of synthetic fibre and yarn in recent months. Meanwhile, the value of textile machinery imports made by Pakistan during the period decreased by 21.22 per cent year-on-year to $336.097 million, which points at lower intent of entrepreneurs to invest in the industry. In 2013-14, Pakistan textiles and garment exports grew by 5.3 per cent year-on-year to US$ 13.738 billion, with knitwear and woven garment exports registering a growth of 10.53 per cent and 8.67 per cent, respectively.
SOURCE: Fibre2fashion
Pakistan has offered Iran to sign a free trade agreement (FTA), Pakistani Commerce Minister Khurram Dastgir Khan said in a statement. Meanwhile, Pakistani Ambassador to Tehran Noor Mohammad Jadmani has underlined his country's willingness to expand trade and economic cooperation with Iran.""Pakistan is seeking expansion of trade and economic relations with Iran,"" Jadmani said in a meeting with the managing director of Anzali Free Economic Zone Organization in Gilan province, Northern Iran. He underlined that Pakistan and Iran share many commonalities, and said that “Religious and cultural commonalities are the cause of broadening mutual cooperation with Iran.” The Pakistani ambassador pointed to his visit to Gilan province, and said, ""Anzali free trade zone plays an important role in economic development and we can use this capacity." Iran and Pakistan have exchanged delegations on a regular basis in the last several decades and the two Muslim neighboring nations are keen to expedite expansion of their bilateral ties, especially in the energy sector.
SOURCE: The Tehran times
The international textile sector has discovered Myanmar. Low wages, plentiful labour and an image problem in neighbouring Bangladesh after the 2013 Rana Plaza building collapse have all boosted the emerging country's chances. Yangon- Green collars piled to one side, white polo shirts to the other - the young woman handles them with practised ease, creating a precise seam with her humming sewing machine. The garment in making then goes to the next station, where her co-worker applies a strip of green tape to the short sleeves. A fan rotates the warm air where 400 women labour eight hours each weekday day - four on Saturday - in the Shweyi Zabe textile plant on the outskirts of Yangon. "One new factory opened every week in 2014," Khine Khine Nwe, the secretary of the Myanmar Garment Makers Association (MGMA), tells dpa. There are currently 200,000 workers in more than 300 factories. Neighbouring Bangladesh has around 4,000 textile factories. "In 10 years we want to have 3,000 factories," she says. The aim is to increase exports from the current US$1 billion a year 10 times over and to provide a million jobs. And investors are answering the call. Chinese, Taiwanese and South Korean companies are flooding into the country.
Shweyi Zabe’s boss Aye Aye Han complains that the competition is luring her workers away by offering a couple of dollars more. The country is benefiting from the waning star of neighbouring Bangladesh, where the collapse of the Rana Plaza textile factory with more than 1,000 fatalities two years ago drew attention to poor working conditions in garment factories. The timing is also good in the politics of Myanmar, which is opening up after decades under a closed military dictatorship. There is a sense of opportunity since a nominally civilian government came to power in 2011. Garment makers in Myanmar "are evidently in the starting blocks," says Thomas Ballweg of a German fashion association. "I see real potential." He notes that factories have apparently been well built, with only one or two floors - unlike Rana Plaza with its eight floors. The workrooms are clean and the supervisors open to ideas.
Christian Maag, who heads the German underwear company ESGE, with plants in Romania, Bulgaria, Greece and India, is helping Shweyi Zabeto modernize production in Myanmar. ESGE has provided software for production planning and assisted with computer programmes to help cutting to reduce fabric waste. "We raised our productivity 20 per cent in 2013," Aye Aye Han says. But there is a long way to go. Estimates put Myanmar productivity at half that of China, where production rates are high, but so are wages. The Verisk Maplecroft consultancy says labour costs are lower in Myanmar than anywhere else in the world. Clothing companies like Gap, H&M and Adidas are already producing here. "It’s a kind of development aid, but with a business motivation, "Maag says.”If things go well, we will place orders."
A trial run has proved reasonably successful, with scope for expansion, and Maag is convinced that "the textile sector has a future here. "Smart Myanmar, an EU project, is helping to build up a sustainable textile industry in Myanmar with the aim of secure jobs and good working conditions, along with conserving energy, recycling waste and cutting water consumption. The head of the project is Simone Lehmann of Sequa, an organisation of German industrial associations with the German GIZ development aidagency. "Our focus is on small and medium-sized enterprises," she says. "We are supporting 16 of the 80 factories with local management." Lars Droemer, sustainability manager at Swedish fashion company Lindex, is also optimistic on Myanmar. He praises the code of conduct agreed by the textile sector, which bans employing children younger than 15, guarantees a minimum wage, restricts working hours to a maximum of 60 hours a week and allows trade unions. "We are interested in Myanmar, because we were able to help set up the standards from the start," he says. Lindex operates according to the principal "People - Planet - Profit," in that order, he says.
Promoting local industry is part of the sustainability drive. "Foreign companies take down their factories (and relocate) when operations become cheaper somewhere else, but local employers do not," Droemer says. The smaller Myanmar companies have yet to master the full production chain. At present they sew and package, but the big clients want a complete service, from supplying fabric and thread to dealing with customs and loading for shipment. The MGMA is working in this direction. "We need textile weaving plants in Myanmar, and our companies need financing, duty-free imports of goods for re-export and we need more trained seamstresses," Aye Aye Han says. Ballweg is confident. "Myanmar is today where Bangladesh was 10 years ago," he says. "But things develop three times more quickly today."
SOURCE: The Nation Multimedia
Hong Kong's Chief Executive C Y Leung said he looked forward to the successful conclusion of negotiations on the proposed Hong Kong-Association of Southeast Asian Nations free trade agreement "in the coming year," during his speech to the ASEAN Leadership Forum in Kuala Lumpur on April 26. With the support of the Chinese Government, Hong Kong secured ASEAN's consent to commence formal negotiations for a Hong Kong-ASEAN FTA, which began in July last year. "The third round of negotiations concluded last month in Hong Kong," Leung reported. "All is progressing smoothly."
The FTA is expected to cover the elimination and/or reduction of tariffs and non-tariff barriers; preferential rules of origin; the liberalization of trade in services; and the liberalization, promotion, and protection of investment. It is also proposed that it would include a dispute settlement mechanism. ASEAN (whose ten member countries are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) is Hong Kong's second-largest goods trading partner and fourth largest service trading partner. Hong Kong is also ASEAN's eighth-largest trading partner in terms of goods. In 2014, the total value of merchandise trade between the two sides exceeded USD106bn, up 10 percent over the previous year.
ASEAN is also the sixth major source of inward direct investment into Hong Kong and the fifth major destination of outward direct investment from Hong Kong. "With the FTA in place," Leung added, "I'm confident that Hong Kong can supercharge its 'super-connector' role between Mainland China and ASEAN." He said that ASEAN businesses that "set up manufacturing operations in Hong Kong, produce goods that meet CEPA (Mainland and Hong Kong Closer Economic Partnership Arrangement) origin rules," can have their "products enter the Mainland tariff-free." Or, he said, companies can "simply partner with a Hong Kong company to take advantage of all that CEPA can offer to your products and services."
SOURCE: The Tax News
Trade between South Korea and Turkey rose a solid 6.2 percent in the second year after their free trade pact went into effect, government data showed Wednesday. Trade volume reached US$6.57 billion in the May 2014 through March 2015 period, compared with $6.19 billion tallied for the proceeding year, according to the data by the Korea Customs Service (KCS). It marks the second year in a row that two-way trade has increased between the two trading partners. In the first year after the free trade agreement (FTA) went into effect in May 2013, South Korea-Turkey trade soared 33 percent.
During the same two-year period, global trade contracted 1.3 percent. In the past year, South Korean exports to Turkey rose 7.4 percent to $5.97 billion from $5.55 billion, while imports fell 4.8 percent to $600 million from $630 million. Thanks to the FTA, exports of South Korea car parts and petrochemical materials surged 21.3 percent and 82.5 percent, respectively. Despite lower tariffs, auto exports fell for two consecutive years as South Korea's top automaker Hyundai Motor Co. rolled out more vehicles in Turkey. Inbound shipments dropped as a long-term oil product import agreement expired, the KCS said, adding that imports of products like car parts and clothing rose by double digits, excluding oil products. The KCS said 73.4 percent of all export companies took advantage of the lower tariff rates in the second year of the FTA implementation.
SOURCE: The Yonhap News Agency
The polyester chain witnessed another bout of price advances in the week ended 24 April, with polyester staple fibre and filament yarn prices zooming past or almost at par with its previous high seen in the last week of November 2014. This time prices the push came from the demand side rather than cost side. Also helping came from the rounds of maintenance shutdown in the upstream industry. Added to these factors was a couple of fire breakout at petrochemical plants in China that feed the polyester industry.
During the week, polyester fibre makers in China hiked prices up US cents 8 a kg reflecting the firming upstream PTA and MEG markets. However, buying sentiment stepped back from last week as traders and yarn makers were cautious in chasing after higher prices, brushing aside their modest short-coverings. Inventory at producers mounted up a bit, with average run rates of PSF plants at around 65%. In India, producers held stable offers amid limited enquiries as downstream have stocked up raw material while in Pakistan, prices were basically stable and transactions followed up marginally. Filament yarn producers also raised offers amid bullish sentiment as traders, holding cautious outlook, avoided purchasing in large volumes. In Jiangsu, PFY offers were largely up on back of tightening supply and steady demand. DTY prices were also hiked amid modest trading, and inventory at producers decreased a little. In India, POY prices were unchanged amid modest trading as producers were producing for their own use. In Pakistan, DTY prices were stable amid modest trading. Downstream buying was mainly on rigid demand.
1.4D direct-melt spun PSF prices jumped US cents 7-8 to US$1.31-1.34 a kg in Jiangsu and Zhejiang, while the same in Fujian was pegged in the range of US$1.31-1.33 a kg, up US cents 9 from last week recording highest increase among regions while Shandong saw prices rise US cents 4-6 to US$1.31-1.34 a kg. In Pakistan, prices in Karachi were steady at US$1.20-1.23 a kg while Indian PSF prices were down US cents 3 to US$1.25 a kg due to weak INR. In China, POY 75/72 was pegged at US$1.57-1.58 a kg in Shengze market, up US cents 13 from last week while 75/36 was up US cents 18 at US$1.62-1.63 a kg. In Indian POY 130/34 prices were at US$1.45-1.47 a kg, down US cents 2 due to weak INR.
In the upstream, Asian ethylene prices rose for the twelfth consecutive week led by South East Asia where spot supply was tighter compared with Northeast Asia. European ethylene prices too rose on tight supply due to some production issues combined with strong downstream demand. Paraxylene supplies continued to remain tight in Asian spot markets supporting prices to firm up again. MEG prices surged 8.7% in Asian markets on bullish futures and plants explosion in China. A blast at Sinopec Yangzi Petrochemical’s 300 kilo ton MEG unit tightened supply of MEG and ethylene oxide. European MEG prices also jumped following plant outage in Asia hitting a two and half year high. PTA prices jumped in Asia on bullish futures and by an explosion at Sinopec's Nanjing Yangzi Petrochemical olefins plant, which forced shutting down of 600,000 ton a year PTA facility at Jiangsu, Nanjing. With raw materials, PTA and MEG prices going strong and approaching month-end replenishment, polyester chip markets got strong cost support to raise prices.
In the same week, oil markets were diverged with European Brent hitting 4-1/2-month highs on continued fighting in Yemen while US crude fell on concerns of another upcoming stock build, though both benchmarks registered weekly gains. Meanwhile, softer US$ lent support to Brent and formed a floor beneath falling US crude prices. Worries that crude stockpiles in the US could hit a new record next week weighed on US crude, even as overall demand for oil and fuel products, especially gasoline, picked up ahead of the peak summer driving season. Brent settled at US$65.28 a barrel finishing up for a third straight week, gaining 3% on the week. US crude closed at US$57.15 rising for a sixth straight week, up 2.5% on the week.
SOURCE: Yarns&Fibers
Global sports brand Nike has come under fire for emailing its 44,000 staff to ask them to lobby for the Trans-Pacific Partnership – a pending global free trade agreement which many claim will make it easier for US companies to offshore jobs to low-wage countries which lack effective labour regulations. A leading labour rights NGO has claimed that Nike, whose suppliers employ more than 330,000 workers in Vietnam – one the most prominent TPP negotiating countries – is "the canary in the coal mine, pointing us to what unfettered 'free trade' looks like, and what the world will look like under the Trans-Pacific Partnership (TPP)."
Nike's Chief General Counsel Hilary Krane recently encouraged the company's employees to lobby for the TPP, telling them it would, "reduce duties on footwear and apparel among TPP countries, including Nike products manufactured in Vietnam for sale in the US" and adding that, "for Nike, rolling back these duties will allow us to grow in new markets, reinvest in innovation, and offset costs of doing business." However, the US-based Institute for Global Labour and Human Rights has claimed Nike is pursuing "even cheaper prices, and expanded access to Vietnamese workers with no legal rights, no voice and no way out."
In a recent briefing on the issue, Charles Kernaghan of the Institute for Global Labour and Human Rights claims: "It is common that Vietnamese workers have no legal rights. Nor has Vietnam ratified the United Nations Conventions on freedom of association and the right to organise. "If Nike had the guts and morals, Nike would demand that their products made in Vietnam be made by workers who are guaranteed their freedom of association, their right to organize and to collectively bargain."
US Congressman Chris Van Hollen recently suggested that by making it easier for US companies to offshore jobs to low-wage countries, the TPP would accelerate the "race to the bottom" spurred by other free trade agreements, such as the North American Free Trade Agreement (NAFTA), placing downward wage pressure on US wages while enabling further exploitation of foreign workers. He said: "TPP includes the same incentives and protections for off-shoring as NAFTA, such as special investor rights that eliminate many of the risks and costs associated with relocating jobs to low-wage countries." Many also claim that negotiations of the TPP have lacked transparency, with key, salient issues being negotiated behind closed doors. Vietnam is viewed by many as the default low-cost labour alternative to China, where wages are rising fast. However, independent labour unions are illegal in Vietnam and workers are paid less than half of their Chinese counterparts. The US has insisted the TPP includes enforceable labour standards, but their proposal argues that rather than require adherence to the ILO Conventions, which set binding international labour rights, the TPP should require countries to enforce the more ambiguous terms of the ILO's Declaration on Rights at Work.
SOURCE: The Ecotextile
