|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1304.57 |
RMB/Ton |
-0.87% |
|
VSF |
2043.50 |
RMB/Ton |
0.08% |
|
ASF |
2497.16 |
RMB/Ton |
0% |
|
Polyester POY |
1381.41 |
RMB/Ton |
-0.59% |
|
Nylon FDY |
3138.82 |
RMB/Ton |
0% |
|
40D Spandex |
6539.20 |
RMB/Ton |
0% |
|
Nylon DTY |
3384.04 |
RMB/Ton |
0% |
|
Viscose Long Filament |
5926.15 |
RMB/Ton |
0% |
|
Polyester DTY |
1651.15 |
RMB/Ton |
0% |
|
Nylon POY |
2942.64 |
RMB/Ton |
0% |
|
Acrylic Top 3D |
2692.52 |
RMB/Ton |
0% |
|
Polyester FDY |
1593.93 |
RMB/Ton |
-0.51% |
|
10S OE Cotton Yarn |
2076.20 |
RMB/Ton |
0% |
|
32S Cotton Carded Yarn |
3367.69 |
RMB/Ton |
0% |
|
40S Cotton Combed Yarn |
4168.74 |
RMB/Ton |
0% |
|
30S Spun Rayon Yarn |
2730.12 |
RMB/Ton |
0% |
|
32S Polyester Yarn |
2059.85 |
RMB/Ton |
0% |
|
45S T/C Yarn |
2991.68 |
RMB/Ton |
0% |
|
45S Polyester Yarn |
2206.98 |
RMB/Ton |
0% |
|
T/C Yarn 65/35 32S |
2566.64 |
RMB/Ton |
0% |
|
40S Rayon Yarn |
2893.60 |
RMB/Ton |
0% |
|
T/R Yarn 65/35 32S |
2762.81 |
RMB/Ton |
0% |
|
10S Denim Fabric |
1.14 |
RMB/Meter |
0% |
|
32S Twill Fabric |
1.00 |
RMB/Meter |
0% |
|
40S Combed Poplin |
1.36 |
RMB/Meter |
0% |
|
30S Rayon Fabric |
0.78 |
RMB/Meter |
0% |
|
45S T/C Fabric |
0.79 |
RMB/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16348 USD dtd. 13/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Sluggish global demand and declining competitiveness is expected to mean less of export in 2014-15 for the textile and clothing (T&C) sector. The dip, say industry sources, should be five per cent.On a stand-alone basis, though, apparel export is expected to show 10-13 per cent growth. However, this would be the lowest in recent years.From Union textiles ministry data, the Business Standard Research Bureau says the 10-month period of April 2014 to January 2015 saw T&C export grow almost four per cent, to $34 billion. Extrapolated, it would mean $41 bn for the year, growth of 3.8 per cent. In 2013-14, this rise was 12.4 per cent, to $39.3 bn.
In June 2014, Union textiles minister Santosh Gangwar had said sector exports in 2014-15 were expected to grow 25 per cent to $50 bn.Experts give several reasons for the subdued growth, also likely in 2015-16 if the current situation persists.“There are several export-related incentives the industry has been demanding from the government. It faces reduced competitiveness as compared to peers. For next year to be better, the government will have to take steps to incentivise textile and garment exports further,” said D K Nair, secretary general of the Confederation of Indian Textile Industry.
Almost the entire value chain, barring garments, is witnessing a lower trend in export growth. For instance, according to K Selvaraju of the South Indian Mills Association, as against an export capability of 140-160 million kg of cotton yarn, it is seeing 110-120 mn kg.However, garment exports will continue to grow at a little over 10 per cent, perhaps 10-13 per cent, said a senior official of the Apparel Export Promotion Council.
SOURCE: The Business Standard
The Commerce Secretary, Mr. Rajeev Kher, today informed that the Commerce Ministry was working out the details of interest subvention scheme which would be valid for 3 years for selected sectors. The scheme will be ready in a months’ time and will be announced thereafter, Mr. Kher said at the interactive session organized by Federation of Indian Exporters’ Organisation (FIEO), here. It may be noted here that an allocation of Rs. 1650 crore has been made for the scheme in the budget for 2015-16 and labour intensive sectors are likely to be brought under this scheme. The Indian textile and apparel sectors are the most labour intensive sectors of the economy and one is hopeful that these sectors will be accorded the advantage of the scheme, which provides credit to exporters at a subsidies rate by banks, which are later compensated by the government. Later, while interacting with media persons, Mr. Kher in response to this correspondent’s query of Indo-European FTA said that the textile and apparel industry will be beneficiary of this FTA.
There is a revival of interest for the FTA from the European side and Indian government is getting informal communications. Based on these these feelers, India will have an inter-ministerial meeting and accordingly the decision will be taken to renew the FTA discussions, he said. Earlier, Mr. R C Rahlan, President, FIEO, urged the Commerce Secretary to review the threshold limit for Status Holder Recognition. The Status Holder Recognition hardly gives any fiscal benefit, but loss of the same will send negative signal to foreign buyers and they may have lesser confidence in such companies, he pointed out.
SOURCE: The Tecoya Trend
Mr S C Ralhan, President, Federation of Indian Export Organisations (FIEO), while commenting on the export incentives being given to the exporters has said that the reduction of rates in Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) have hit the exporters badly. While we appreciate the move to take exporters away from subsidy but the timing of the move probably is not correct. FIEO Chief shared some important data on export incentives being given to the sector during the last 3 financial years in which India’s exports have been hovering at around 300-310 billion dollars.
|
S.No. |
Exports Promotional Schemes |
2012-13 (Rs Crore) |
2013-14 (Rs Crore) |
2014-15 (Rs Crore) (Estimated) |
|
1 |
Vishesh Krishi and Gram Udyog Yojana |
2382 |
2442 |
3311 |
|
2 |
Focus Market/Focus Product/ Market linked Focus Product Scheme |
6178 |
10182 |
12798 |
|
3 |
Interest Subvention |
1475 |
1435 |
1625 |
|
4 |
Market Access Initiative |
180 |
200 |
200 |
|
5 (i) |
Market Development Assistance (DOC) |
50 |
50 |
50 |
|
(ii) |
Market Development Assistance (MSME) |
10.5 |
9.15 |
11.81 |
|
6 |
TOTAL |
10,275.5 |
14,318.15 |
17,995.81 |
|
7 |
India’s Export |
16,34,319 |
19,05,011 |
18,97,026 |
|
8 |
Incentives as a % of Exports |
0.63% |
0.75% |
0.95% |
Exports Incentives
The incentives being given to exports sector as may be seen from the data given is less than 1 percent of the total exports, which is a miniscule amount added FIEO President. And therefore FIEO is of the view that there is an urgent need to review the benefits announced in the new Foreign Trade Policy to sustain the exports growth in such a situation when global economies are reeling under intense pressure except for few. FIEO Chief further reiterated it is important that the percentage of benefits being given should be increased and if not possible atleast the same may be restored at the same level as earlier.
SOURCE: FIEO
Trade deficit between India and China increased about 34 per cent to USD 48.43 billion in 2014-15 from USD 36.21 billion in the previous fiscal, Parliament was told today. India's concern on the rising deficit has been discussed with China at various fora, including the highest level of leadership of the two countries, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. The issue is also likely to figure during the visit of Prime Minister Narendra Modi this week to China. "In order to boost exports and address the widening trade deficit with China... the government has taken a number of initiatives to identify specific product lines with export potential, actively taking up issues relating to tariff and non-tariff barriers in bilateral meetings and institutional dialogues," she said.
According to provisional figures, in 2014-15, India's exports to China stood at USD 11.95 billion while imports were USD 60.39 billion. In a separate reply, she said India has consistently sought greater market access for India's exports to China, especially in fields like pharmaceuticals, agriculture bovine meat and IT services. In a separate reply, the minister said there are three land customs station on India-China border -- Gunji ( Uttarakhand), Sherathang/Nathu-La ( Sikkim) and Shipki-La/Namgia ( Himachal Pradesh).
SOURCE: The Economic Times
Prime Minister Narendra Modi has "no doubt" that his forthcoming visit to China will deepen bilateral ties and create a milestone for relations between developing countries in Asia and around the world. "I believe that my trip to China will not only deepen the China-India friendship, but also set a new milestone for the relations between developing countries in Asia as well as around the world. There is no doubt about it," Modi told China's state-run CCTV ahead of his visit from tomorrow. "The 21st century is the century of Asia, and a century where we can fight for freedom. China and India should join hands and cooperate closely to promote world peace and stability, which is what the times demand of us," he said. He said India and China have made great progress in bilateral relations in recent years and managed their differences with patience and maturity.
Besides making efforts to settle border disputes in peace, the two sides also reached agreement on various international and regional issues, he said. "The 21st century is the century of Asia, and a century when we can fight for freedom. China and India should join hands and cooperate closely to promote world peace and stability, which is what the times asks of us," Modi said. Modi will be arriving tomorrow in Chinese city of Xi'an, the provincial capital of Shaanxi and the home province of President Xi Jinping, where he will have informal interaction with Xi before coming to Beijing late in the evening. He is scheduled to hold talks with Premier Li Keqiang next day and go to Shanghai where he would address a business get-together, inaugurate the first Mahatma Gandhi chair at Fudan university and address Indian community.
SOURCE: The Economic Times
India and Tajikistan today agreed to enhance connectivity between them including through the International North South Transport Corridor (INSTC) and other regional transit arrangements to boost trade. During talks between External Affairs Minister Sushma Swaraj and her Tajik counterpart Aslov Sirojidin Muhridinovich, both leaders reviewed an entire gamut of bilateral relationship including cooperation in key areas of security, defence and trade. "With a view to facilitate greater trade and investment between India and Tajikistan, the two ministers agreed to work towards enhanced connectivity between the two countries including through the International North South Transport Corridor (INSTC) and other regional transit arrangements," the External Affairs Ministry said. Significantly, the Tajik minister had yesterday welcomed India's interest in becoming the fourth partner in Pakistan- Afghanistan-Tajikistan trade and transit agreement. His remarks came days within Prime Minister Narendra Modi had conveyed India's readiness to join the pact to Afghanistan President Ashraf Ghani during his recent visit here.
In the meeting, Swaraj reiterated India's commitment to cooperate closely with Tajikistan in the field of security and counter-terrorism to ensure greater regional stability. Tajikistan shares a 1,400-km-long porous border with Afghanistan and has immense geo-strategic significance for India which has been providing military assistance to it including supply of helicopters as part of counter-terrorism cooperation. India has also developed the Ayni airbase near the Tajik capital Dushanbe, which provided it a foothold in the Central Asian region. Besides bilateral issues, the two ministers also deliberated on regional and international issues of mutual interest. "The ministers undertook a comprehensive review of bilateral cooperation in political, defence, economic and cultural issues," the External Affairs Ministry said. It said the ministers signed a new programme of cooperation for 2015-2017 which envisages regular and structured consultations on a range of bilateral issues, including consular matters, training of Tajik diplomatic personnel in India and enhanced information and media exchanges as well as regional and multilateral issues. The visiting minister also held meetings with Defence Minister Manohar Parrikar and National Security Adviser Ajit Doval.
SOURCE: The Economic Times
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$ 65.70 per barrel (bbl) on 13.05.2015. This was higher than the price of US$ 64.00 per bbl on previous publishing day of 12.05.2015. In rupee terms, the price of Indian Basket increased to Rs 4217.28 per bbl on 13.05.2015 as compared to Rs 4108.80 per bbl on 12.05.2015. Rupee closed stronger at Rs 64.19 per US$ on 13.05.2015 as against Rs 64.20 per US$ on 12.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 13, 2015 (Previous trading day i.e. 12.05.2015) |
Pricing Fortnight for 01.05.2015 (April 11 to April 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
65.70 (64.00) |
60.30 |
|
(Rs/bbl |
4217.28 (4108.80) |
3789.86 |
|
|
Exchange Rate |
(Rs/$) |
64.19 (64.20) |
62.85 |
SOURCE: PIB
All Pakistan Textile Mills Association (APTMA) Chairman SM Tanveer has said that six percent import duty on import of polyester staple fiber (PSF) has ruined the textile industry as it has become uncompetitive when incidental charges are added to the import duty. He said the regional competitors were offering duty drawbacks besides rebate to their textile industries. Resultantly, he said, textile exports from Pakistan has become 18% more expensive against the regional competitors due to higher domestic Polyester Fibre price e.g. in China, the FOB price for PSF is 70.1 Yuan/kg (U.S $ 1.13/Kg.) whereas in Pakistan it is Rs.137/Kg. ($1.34 /Kg), this difference is further compounded by the higher cost of doing business.
Textile industry in Pakistan is becoming unviable in terms of export of yarn and fabric he said, the industry growth has become stagnant due to non-diversification since long. He further highlighted that the world dependence on Polyester is around 70% at present against merely 19% in Pakistan. This situation has made it difficult for local industry to find place in the world market. He said, unlike India, China, Bangladesh and other competitors there is also no duty drawback for industry in Pakistan, as a result, the import of PSF yarns into Pakistan has also started in huge quantities, so far during the first ten months of the current fiscal year over 38,000 Tons of Man Made Fibre yarn has been imported from Far East and India.
Chairman APTMA also lamented, that the duty and tax remission (DTRE) on exports regime in Pakistan is also very regressive and it has failed to help out the industry by and large due to long delays in approval and importer sometime loose the customer in the process.We need to make DTRE accessible to all manufacturers and exporters. We need to make sure the DTRE scheme make the system easy where MMF is imported by spinning units under DTRE. The fibre imported under DTRE travels through spinning, weaving, processing and exported by the value added sector of made ups and garments.
The protection to the PSF manufacturers, continuously since 1981 has become a constant irritant causing a loss of about Rs5 billion annually to the local textile industry and is inhibiting the product and market diversification of textile goods based on synthetic fibre. Chairman APTMA has urged the government to remove 6% duty on import of PSF. Further, he added that as no other MMF is produced in Pakistan like Viscose or Acrylic the duty on these raw materials should be reduced to zero. Any increase in the duty on PSF, in the forthcoming budget would be detrimental to the textile industry and will have serious repercussions, this will also negate the opportunity provided under GSP plus market access. He further stated that due to blanket protection provided to domestic producers of PSF, special fibres have also been burdened with import duty which is limiting the value added textile industry to produce speciality yarn and fabrics; this is further harming the export potential and growth of the industry.
SOURCE: The Daily Times
Vietnam's Da Nang City’s Investment Promotion Center though saw a sharp decline of 45 percent in foreign direct investment (FDI) capital in the first three months of the year still turned down two foreign invested projects capitalized at hundreds of millions of dollars on the grounds that they may cause environmental problems. Both of the projects were in the textile, dying and garment sector, including a $200 million project registered by an investor from Hong Kong and another registered by an investor from South Korea. Da Nang City has one of the most beautiful beaches in the planet, is focusing on developing a tourism industry and is targeting sustainable development. It has decided to attract only projects using high and clean technologies. Da Nang is not alone. Ba Ria-Vung Tau and Dong Nai also announced they are not encouraging projects in labor-intensive and polluting industries.
Even Hai Duong, a northern province does not have big advantages to attract investors yet has decided to stop licensing projects in six business fields, including dyeing and textiles. While admitting that local authorities have every reason to refuse dyeing and textile projects, some analysts have expressed their worries about the implementation of Vietnam’s plan on developing the textile & garment industry to take full advantage of the TPP (Trans Pacific Partnership) Agreement. HCM City, Binh Duong and Dong Nai provinces were the first three localities which stated that they would not encourage dyeing and textile investment projects, which may cause pollution to the local environment. However, a local newspaper quoting sources saying that the local authorities are now rethinking their decisions. Dong Nai provincial authorities have listed dyeing & textile as conditional business field, while the investment projects in the field will be licensed if investors can satisfy the requirements on waste treatment. Binh Duong will also consider licensing dyeing & textile projects because it has developed a large industrial zone with good infrastructure ready to receive investments.
In HCM City, according to Tran Viet Ha from the HCM City Industrial Zone (IZ) and Export Processing Zone Management Board (Hepza), the agency has instructed some IZs such as Dong Nam and Hiep Phuoc to receive key textile and garment projects. However, Ha emphasized that Hepza only accepts large-scale projects using modern technologies, not garment outsourcing. The city’s authorities predict that the global textile and garment market will grow rapidly. Meanwhile, the TPP trade agreement will bring opportunities to develop Vietnam’s textile and garment industry.
SOURCE: The CCF Group
United States led trade agreement Trans-Pacific Partnership (TPP) which involves twelve countries, is presently under negotiation. A key part of the proposed TPP is a rule known as “yarn forward” which would require that only fabric produced from yarn made by a TPP country would qualify for the trade agreement’s duty-free status. The rule is intended to ensure that the trade benefits of the TPP only apply to signatory countries rather than outside players such as China. However, the rule also likely to have major effects on signatory countries, such as Vietnam. Upon completion, the TPP trade area would comprise a region with US$28 trillion in economic output, making up around 39 percent of the world’s total output. If the TPP is successfully implemented, tariffs will be removed on almost US$2 trillion in goods and services exchanged between the signatory countries. Thus, Vietnam has much to gain from the implementation of the trade agreement, including drastically reduced tariffs in some of the world’s largest markets.
Yarn forward could have serious effects for countries like Vietnam which is currently a key global garment manufacturing location. Its factories often use Chinese-made fabrics in their products, and China is not a part of the TPP. In fact, around eighty-five percent of Vietnamese textile and garment companies outsource from foreign partners. So for Vietnam, to be eligible for TPP benefits such as lower tariffs in the US, it will have to develop its own local fabric industry or constrain itself to only importing fabric from another TPP country. Vietnam is currently working to have the “yarn forward” rule removed, or its implementation delayed, from the TPP. A number of other countries have also pledged their support to Vietnam. Other actions that Vietnam has taken show that it may be ready to acquiesce to yarn forward, and the country has so far expressed fairly consistent support for the trade agreement, since it will allow many of its other products market access to some of the world’s biggest economies. Therefore, it seems that the rule will not be a fatal roadblock to the TPP’s finalization. The US Trade Representative (USTR) has also stated that the US will not pull back from its demand for yarn forward.
A number of Vietnamese companies are already starting up, or expanding, their own fiber manufacturing operations in order to not be left behind when the TPP is finally implemented. Key companies include the Century Synthetic Fiber Corporation (CSFC), Thanh Cong Joint Stock Co (TCM), and the Vietnam Textile and Garment Corporation (Vinatex). Additionally, in a further bid to enhance the competitiveness of the country’s fiber manufacturing industry, Vietnam’s Ministry of Industry and Trade has proposed levying a two percent import tax on polyester staple fiber (PSF). Currently PSF imports are not subject to tax. While yarn forward may have some deleterious impacts upon Vietnam, US textile makers are keen for the rule to be implemented. This is because they believe that the rule will help to constrain China and Vietnam’s entrance into the US market. In turn, US textile makers also believe that the rule will make Vietnam more attractive to American textile industry investment.
This is not the first time that a “yarn forward” principle has been pushed by the United States. It was also used in the Central American Free Trade Agreement (CAFTA), which stated that the yarn, fabric, sewing thread, and the final garment itself must be made either in the United States or one of the six Caribbean or Central American countries party to the agreement. Manufacturers have found the yarn forward rule to be a strong tool in ensuring their competitiveness on the world market. The TPP has garnered strong support from many US manufacturers.
In their fight against yarn forward, countries like Vietnam have joined forces with retailors such as Walmart and Target in order to push for more flexibility in the rule. The USTR appears to be somewhat receptive to these voices and, in its most recent “summary of objectives”, it has included a “short supply” rule. This rule would allow raw materials “not commercially available in the United States or other TPP countries to be sourced from non-TPP countries and used in the production of apparel in the TPP region without losing duty preference.”
The USTR said that this flexibility will be limited, others have criticized the rule as once again opening the door to China. If Chinese goods are allowed into Vietnam and exported to the US, then China will be accruing the benefits of the TPP without having to give up anything itself. This problem can be seen in the rules of origin related to other goods, for example some have rules stating that up to 65 percent of the product can be manufactured outside of the country, but the product can still be deemed as having been made within that country. In reaction to this criticism, the USTR has strongly expressed its belief that the short supply rule will not allow countries to be able to launder their products through TPP nations. Meanwhile, businesses have start wisely planning for all eventualities and ensure to take best advantage of TPP trade agreement.
SOURCE: Yarns&Fibers
The three-way talks between Korea, Japan, and China for a free trade agreement (FTA) came to an end on May 13 with some progress, but without any expected significant breakthrough. The chief negotiators from the three countries held a round of negotiations in Seoul that began on the previous day in an effort to narrow down their different positions on the proposed trade deals. "We have made progress on some issues, but the talks moved slowly," said Korean Chief Negotiator Kim Hak-do, hinting the three countries have been unable to move the negotiations forward. It was known that the three countries just reconfirmed their different positions on the level of market opening in particular. The efforts to move the negotiations ahead was made by holding separate working-level talks to detail the trade issues while leaving sensitive and political decisions to chief negotiators. The next round of talks will be held in China in July.
The three countries had also negotiations for a separate regional FTA, known as the China-led Regional Comprehensive Economic Partnership (RCEP), which currently involves 13 other countries including all 10 members of the Association of Southeast Asian Nations. Meanwhile, Seoul and Beijing have concluded separate negotiations for a bilateral FTA, which is expected to be officially signed in the near future. Seoul and Tokyo have also held four rounds of talks for a bilateral FTA, but the talks have been suspended since the latest round in November 2004.
SOURCE: The Business Korea
South Korea will call on Central American nations this week to begin negotiations for a free trade agreement (FTA), the foreign ministry said Thursday. First Vice Foreign Minister Cho Tae-yong will deliver the call during a meeting with member nations of the Central American Integration System (SICA) in Guatemala City on Friday, the ministry said in a press release. SICA, which was launched in 1993 to promote political and economic integration in the region, is made up of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, Belize and the Dominican Republican. "Vice Minister Cho plans to announce the completion of domestic procedures needed to declare the start of negotiations for a South Korea-Central America FTA and ask the Central American nations to begin negotiations," the statement said.
South Korea has signed a total of 15 FTAs involving 52 countries. Its latest and probably most significant free trade pact was reached with China late last year. During the meeting, South Korea and the SICA nations also plan to discuss ways to deepen cooperation, especially in the areas of public safety, energy and infrastructure. A rise in crime in the region has raised concerns about the safety of some 250 South Korean businesses and 12,000 South Korean nationals living in Central America.
SOURCE: Yonhap News Agency
Production disruptions caused by fire at major PTA and MEG plants in China pushed up Asian raw material prices in April, triggering an immediate response in polyester chain. The surge was largely for margin protection rather than market fundamentals, but prices moved aggressively, rallying every day. It was also all over again, beginning with crude pricing with fire a spontaneous trigger. Crude oil prices rose week after week in April and gained US$3-6 on the month. The sharpest rise was witnessed in the week of 17 April when oil markets registered a straight five-week gain, which at 7.9 percent was the biggest since February 2011. Brent's 9.6 percent weekly gain was its biggest in more than five years as Middle East turmoil and signs of lower US production lifted prices. For April, US Futures averaged US$54.06 a barrel and Brent at US$59.44, both up 13% and 6% respectively, from March. Asian naphtha for April averaged US$551 a ton up US$21 from previous month. In Europe, naphtha market stabilized amid balanced supply, a potential uptick in demand from petrochemical end-users and an arbitrage to Asia that remained open from the Mediterranean throughout the month.
Tight supply continued to support Asian ethylene markets and prices jumped over US$200 a ton in April. The diverse movement between Northeast and Southeast continued amid unbalanced demand-supply situations. In US, ethylene spot climbed after upsets as Williams is yet to complete expansion restart in June. CFR SE Asia numbers were up 18% from March while European spot jumped 23 percent and 3 per cent in US. Paraxylene prices jumped amid strengthening upstream and downstream markets in April. US spot paraxylene continued to remain higher on Asian cue despite domestic supply was in excess and demand quiet. European paraxylene eased for the first time in the third week and eased further in the last week on higher freight. Asian paraxylene marker, the CFR China jumped 8% on the month while European paraxylene gained US$65 a ton FOB Rotterdam.
MEG prices surged in Asian markets in April due to bullish futures and plants explosion in China in the third week of the month higher by 8.7 percent week on week. However, prices slipped in the last week on aggressive selling after six consecutive weeks of increase. In US, MEG spot prices rose to a new 2015 high on improved demand. Asian MEG prices were up 12% in April while European prices climbed Euro 125 a ton FD NWE. MEG in US surged US$50 on the month. PTA prices jumped 13 per cent in Asian markets on bullish futures and pushed by an explosion at Sinopec's olefins plant which forced shutting down of 600,000 ton a year PTA facility in the third week. European PTA prices were assessed up on higher paraxylene contract price. Polyester chip prices surged on cost support in Asian markets and offers were up US$80 a ton while the same in US were up US$68 a ton. European chip markets maintain flat run on the month.
With cost support strengthening across regions, the polyester filament yarn and staple fibre markets reacted promptly. Prices kept climbing following a blast at plants in China while producers raised offers amid bullish sentiment. Meanwhile traders, holding cautious outlook, avoided chasing higher prices and large purchases. Downstream textile mills reduced buying as liquidity tightened with firming raw material cost. POY prices jumped US$160 a ton CFR Asian for 75D spec 70D POY was dearer by US$66 a ton. The lowest jump was seen in Europe, where 167 dtex POY price gained US$45 a ton. PSF markets saw bouts of price hikes as they mimicked firming cost. Buying sentiment stepped back in the last week of April as traders and yarn makers in Asia were cautious on the sidelines. Polyester staple was US$65 a ton costlier in Asia while they were up US$66 a ton in US and US$45 a ton in Europe.
SOURCE: Yarns&Fibers
A slowdown in Germany weighed on the euro zone in the first quarter, but the bloc's economy still grew at its fastest in almost two years as cheap food and fuel boosted spending and a central bank stimulus programme kicked in. GDP in the 19 countries sharing the euro rose 0.4 per cent quarter-on-quarter for a 1.0 per cent year-on-year rise - just below forecasts in a Reuters poll of economists. Overall, however, growth in Europe's largest, and traditionally export-led, economy Germany slowed more than expected as imports rose more sharply than sales abroad. That net drag from trade activity was replicated across the bloc as muted global growth curbed export growth despite a weaker euro, Archer said.
Germany's GDP grew 0.3 per cent on the quarter, down from 0.7 per cent in the previous three months and undershooting a consensus forecast of 0.5 per cent in a Reuters poll. The growth rate was half that of neighbouring France, the bloc's No.2 economy, which expanded by 0.6 per cent, its strongest rate in two years, boosted by a 0.8 per cent rise in consumer spending. Quarterly growth in the euro zone was the strongest since the second quarter of 2013 and marked a steady acceleration over the growth rates of 2014. The euro zone's third biggest economy Italy grew 0.3 per cent quarter on quarter, slightly more than expected thanks to a pick-up in domestic demand, fuelling hopes of a recovery this year after three years of recession.
SOURCE: The Business Standard
China's money supply grew at its slowest pace on record and investment growth sank to its lowest in nearly 15 years as April data showed the world's second-largest economy was still losing momentum despite a concentrated burst of policy easing. Wednesday's data added to concerns that Beijing's growth target of around 7 per cent for the year is already at risk, and reinforced views that authorities need to take bolder measures to head off job losses and debt defaults by local governments and companies. The central bank is expected to follow this week's interest rate cut with more stimulus in coming months, while the government may ramp up spending to try to energise the economy, which looks set for its worst year in 25 years.
The People's Bank of China (PBOC) has cut benchmark interest rates three times in the past six months, including a move early this week, on top of reductions in banks' reserve requirement ratio (RRR) and measures to shore up the ailing property market, which accounts for about 15 per cent of the economy. Kuijs has pencilled in at least one more interest rate cut in the third quarter, coupled with more quantitative measures.
Signs of deteriorating conditions abounded in the April data. Despite efforts to pump more money into the economy, money supply growth slowed to 10.1 per cent from a year earlier. Banks made 708 billion yuan ($114.11 billion) of new loans last month, about one-fifth less than expected, as slowing earnings growth and rising bad loans made lenders more cautious. Banking sources have told Reuters that some lenders are not passing on lower borrowing costs to customers, undermining official efforts to boost the economy. For their part, companies complain they are short of customers, not credit, and thinning profit margins are making it more difficult to pay off existing debt. In addition, a sizeable amount of the loans which are being made are believed to be for refinancing, not new activity.
Policy insiders told Reuters earlier this month that in addition to further monetary easing, the government may also ramp up state spending to shore up growth. "Such (credit) data makes it impossible for the government to find funding for the infrastructure projects it is planning," said Dariusz Kowalczyk, a senior economist at Credit Agricole in Hong Kong. "It is clear that more needs to be done in terms of monetary stimulus." Fixed-asset investment, a crucial driver of activity, rose 12 per cent in January-April from a year earlier, the slowest pace since December 2000, the National Bureau of Statistics said.
A breakdown of the figures showed slower growth in both government and private sector spending, and a sharp drop in the mining sector. Overall spending on new projects stalled. Property investment growth slowed to 6 per cent in January to April from a year earlier, easing from 8.5 per cent in the first quarter and the weakest level since 2009. New property starts fell by 17.3 per cent in January-April, hitting demand for everything from cement and steel to furniture and appliances. While home sales and prices may be bottoming out in big cities, analysts said high inventories of unsold houses are likely to prevent any meaningful recovery for some time. "The property sector remains the biggest drag on the economy," said Nie Wen, an economist at Hwabao Trust in Shanghai. "The chance of GDP growth bottoming out in the second quarter is small. We expect Q2 growth to be 6.7-6.8 per cent," he said, adding activity should start to stabilise in the second half.
The latest data also suggested China's vaunted consumers are showing signs of spending fatigue. Retail sales rose 10 per cent last month, missing expectations for a 10.5 per cent rise and easing from March. General Motors Co said on Tuesday it was cutting vehicle prices on 40 models in China after sales fell. That spells more bad news for the PBOC, as strength in domestic demand and the services sector have been helping to offset persistent weakness and job shedding in manufacturing. Other data last week showed weaker-than-expected exports, imports and inflation, highlighting that China's economy is under persistent pressure from softening demand at home and abroad. "Today's data do not reflect the impact of easing (in mid-April and May). However, it is clear that economic activity has continued to decelerate and policymakers are likely still behind the curve," HSBC economist Julia Wang said in a research note.
SOURCE: The Business Standard
