Textile Raw Material Price 2015-05-21
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1262.34 |
USD/Ton |
-0.06% |
|
VSF |
2042.63 |
USD/Ton |
0% |
|
ASF |
2496.09 |
USD/Ton |
0% |
|
Polyester POY |
1279.50 |
USD/Ton |
-1.51% |
|
Nylon FDY |
3137.47 |
USD/Ton |
0% |
|
40D Spandex |
6536.40 |
USD/Ton |
0% |
|
Nylon DTY |
3382.59 |
USD/Ton |
0% |
|
Viscose Long Filament |
5939.95 |
USD/Ton |
0.14% |
|
Polyester DTY |
1576.91 |
USD/Ton |
-1.03% |
|
Nylon POY |
2941.38 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2691.36 |
USD/Ton |
0% |
|
Polyester FDY |
1503.37 |
USD/Ton |
-1.08% |
|
30S Spun Rayon Yarn |
2728.95 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2042.63 |
USD/Ton |
-0.79% |
|
45S T/C Yarn |
2990.40 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2206.04 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2565.54 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2892.36 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2761.63 |
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% |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16341 USD dtd. 21/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The rupee is on a downward path since March against most major global currencies, as indicated by its real effective exchange rate (REER), which is good news for our exporters. The REER for a six-currency trade-based weight and a 36-currency one was at an all-time high in March. It came down in April and, say experts, dropped further in May. The rupee was the best performer among emerging market (EM) currencies in 2014. The REER for the six-currency and 36-currency trade-based weights was at 126.04 and 113.15, respectively, in March. This dropped to 125.24 and 111.70 in April. “The rupee has depreciated against many currencies. It might not emerge as the worst performer (among EM currencies) because the real interest rate is strongly positive. As long as it stays so, we have an anchor for the rupee. The current account scenario shows the external funding needs are low. That will also support the rupee,” said Anindya Banerjee, currency analyst, Kotak Securities.
On August 28, 2013, the rupee was at an all-time low of 68.85 to the dollar in intra-day trade; the REER for six-currency and 36-currency trade-based weights had dropped to 107.76 and 99.41, respectively. The REER for 36-currency trade-based weights had in fact fallen further in September 2013, to 99.26. Various steps by the government and the Reserve Bank of India (RBI) had helped it to recover from there. A gradual depreciation is seen as a positive trend. “There is a trade gap and we want our exports to pick up. A weak rupee will be good for exports. But, at the same time, if it depreciates considerably, there would be a pressure on capital outflow. RBI will be intervening to reduce the volatility. But, over a period of time, the rupee may depreciate,” said Ashutosh Khajuria, president (treasury), Federal Bank. According to currency experts, the government and the central bank also want a gradual depreciation, being beneficial for exports. On Thursday, the currency ended at 63.64 to the dollar, compared with Wednesday's close of 63.83. The dollar fell against major currencies after the US Federal Reserve's minutes of its April meeting revealed a rate rise in June was ‘unlikely’, due to concerns on economic growth.
SOURCE: The Business Standard
Inaugurating a textile park at Nandgaonpeth MIDC (industrial colony) near here today, Maharashtra Chief Minister Devendra Fadnavis said such parks would be established in eight other places in the state's cotton-belt. Industries minister Subhash Desai was also present on this occasion, among others. The Chief Minister lauded the industries department for providing the necessary infrastructure at Nandgaonpeth MIDC saying that "this model would prove to be the best in the country, worth emulating for other states". "On the lines of Nandgaonpeth, eight more textile parks would be set up at Yavatmal, Buldana, Jalgaon, Aurangabad, Jalna, Parbhani, Beed and Nanded," Fadnavis announced. Admitting that farmer suicides were reported mostly from the cotton-growing areas, he said his government gives special priority to providing irrigation facilities and setting up cotton processing units in these areas.
"Jalyukta Shivar Yojana is a part of this endeavour. It is essential to create decentralised water storages. It is necessary to complete well-digging works. Unless irrigation facilities are created, farmers' life will not improve," he said. The companies which want to set up units in textile parks would get all the permissions within a month's time, he assured. They would also get financial assistance. "Today, six manufacturing units have been given permission, paving way for employment to 3,702 people. In future, 25,000 youth will get jobs here," he said. Desai said on this occasion that textile policy of the state would be declared soon.
SOURCE: The Business Standard
From setting up greenfield smart cities to textile and furniture parks, the recent business delegation led by Gujarat chief minister Anandiben Patel to China saw memorandums of understanding (MoUs) being signed between the industrial extension bureau (iNDEXTb) and various companies in China and Hong Kong for over Rs 30000 crore. In all, 22 MoUs were signed across sectors like smart city, textiles, industrial parks, renewable energy, sustainable infrastructure development, affordable housing, pharmaceuticals, automotive, electrical engineering and logistics, wherein Chinese government agencies and business houses evinced interest of making investments in these areas in Gujarat. Among these, two major MoUs were signed by China Small and Medium Enterprise Investment Ltd. (CSMEI) envisaging co-operation and support for development of a smart city in Gujarat for USD 3 billion (Rs 19000 crore roughly) and for setting up an industrial park for USD 1.6 billion (Rs 10000 crore approximately). Moreover, the Gujarat delegation also held discussions for establishing institutional relationships between Confederation of India Industry (CII), the China Association of Small and Medium Enterprises (CASME), and China Council for Promotion of International Trade (CCPIT).
According to state government officials, the smart city is likely to come up on an area of 20 sq km. "It could either be on a greenfield basis or the Chinese counterpart could assist us in developing an existing city like Gandhinagar or Ahmedabad into a smart city," the official further stated. Moreover, on its part, the Gujarat delegation also urged its Chinese counterpart to explore possibilities of a furniture park in Gujarat. "One of the only two major timber importing ports is in Gujarat at Kandla. Also, Gujarat and India as whole import a huge amount of furniture from China. This gives us an opportunity to set up a Chinese furniture park in Gujarat which we have suggested our counterparts in China to explore," the official added. With the Gujarat delegation, Gujarat CM Anandiben Patel also visited the Qianhai Shenzhen - Hong Kong Modern Service Industry Cooperation Zone and held discussions for collaboration between the zone and the Gujarat International Finance Tech (GIFT) City for accelerating the development of the latter as India's first smart city. On a sister cities basis, Guangzhou expressed interest in assisting Ahmedabad in several areas of its administrative and infrastructure bottlenecks such as waste water management and road construction.
SOURCE: The Business Standard
The Gujarat government on Thursday said that a Chinese investment firm has signed a deal to set up a textile park near the industrial town of Sanand, which is around 25 Km from here. The MoU was signed between Gujarat government's Industrial Extension Bureau (iNDEXTb) and China Small and Medium Enterprise Investment Ltd (CSMEI), Arvind Agrawal, Additional Chief Secretary, Gujarat Industries and Mines department said at a press conference. Agrawal, who was a part of the delegation of Gujarat Chief Minister Anandiben Patel to China said that CSMEI is also interested to set up an Industrial Park in the state. "AS per the MoU signed between us and CSMEI, they are interested to set up a Textile Park near Sanand in the first phase. In the second phase, they will explore the opportunities to set up an Industrial Park in Gujarat. Both these parks are expected to fetch investment of Rs 10,000 crore," Agrawal said.
During the tour, various companies and entities of Gujarat and China have signed 22 MoUs worth Rs 30,000 crore, said Rajya Sabha MP and Group President(Corporate Affairs) of Reliance Industries Ltd. Parimal Nathwani. According to Agrawal, these 22 MoUs include the one for setting up Textile Park as well as Industrial Park worth Rs 10,000 crore and one more MoU signed with CSMEI to set up a Techno-Knowledge Park in Gujarat with an investment of Rs 19,000 crore. "During our China visit, we saw a high-end Education Park, which was truely a smart city. Thus, we have signed an MoU to set up such smart city here, which will be called as Techno-Knowledge Park. It will require atleast 20 sq km area. Thus, we will take a decision about the place where this park would be set up" he added. "Gujarat based entrepreneurs imports Chinese furniture in large quantity. At the same time, we also import wood in large quantity and it arrives at Kandla port. Thus, we proposed the Chinese firms to set up a Furniture Park at this port or at any other nearby city" said Agrawal. "In this park, Chinese firms can make furniture using that imported wood and directly sell these articles in Gujarat. This is not only practical but also profitable to both of us. We are awaiting their feedback on our proposal" said Agrawal.
SOURCE: The Business Standard
The bilateral trade between India and the US is expected to increase to USD 500 billion from the current USD 100 billion, US Ambassador to India Richard Verma said today. Verma said that India and the US are two big democratic nations and have agreed on pushing a "better agenda". The initiative is significant for the entire Asia, he said while addressing a function here. Answering questions on trade between the two countries, he said it is said to increase from USD 100 billion to USD 500 billion. The relationship between India and America has reached a new dimension after the two meetings between Prime Minister Narendra Modi and US President Barack Obama, he said The two countries have agreed on cooperation in various fields like nuclear, defence and security, space, science, health and trade, he said adding there are immense possibilities of cooperation between India and the US. The US administration, he said, is working on implementation of the agreements agreed between Modi and Obama. He further said America has given business visas to 10 lakh people which is 70 per cent of the visa issues in the entire world. He is in Punjab as part of America's outreach programme.
SOURCE: The Economic Times
The WTO completed 20 years this April, but there is little to celebrate as industrialised countries increasingly turn their backs on WTO multilateralism. The US launched the Trans-Pacific Partnership (TPP) in 2010 which has 12 states (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam) in the Asia-Pacific region participating in negotiations on comprehensive regional agreement in the fields of trade and investment. Although the negotiating texts are still secret, it is known that the TPP goes further than the WTO in all areas. More specifically, tariffs on industrial goods are to be reduced to zero, and services, especially financial services and investments, are to be liberalised. Investments, protected through controversial investor-state dispute settlement mechanisms, allow only the investor to take legal action, not the host country. It strengthens patent protection such that it would render access to generic drugs and seeds more difficult. The US is keen that India join the TPP but experts have warned India not to give in to US “pressure” as it will “damage” the access of medicines in developing nations, particularly its generic medicines industry. The accord covers nearly 40 per cent of global economic output and one-third of all world trade. Laetitia Rispel, a public health expert from South Africa, says: “India really restricts the number of patents that are granted and that is important in providing medicines to other developing countries. Just making medicines and not granting patents would make the pharmaceutical industry richer and with TPP that would be harmed.” In 2013, the US and the European Union opened a new front: negotiations on the Transatlantic Trade and Investment Partnership (TTIP). Because customs tariffs between the US and EU are already very low, the focus lies on harmonising various regulations.
European NGOs are vehemently opposed to the TTIP for fear that it will undermine social and environmental standards and consumer protection, all of which are much more effectively developed in the EU. The most controversial part of the agreement relates to investment protection. The aim of the US is for investment disputes to be settled by largely non-transparent arbitration bodies. Given the opposition from civil society and individual countries, the EU has launched an online consultation and suspended negotiations on this until the 100,000 responses received have been evaluated. Alongside these regional mega-agreements, work is also proceeding on plurilaterally thematic agreements. The leadership in these cases rests mostly with the industrialised countries. In 2012, some 50 countries, including the US, EU and Switzerland , launched negotiations on a comprehensive services agreement, the Trade in Services Agreement (TISA). TISA could deregulate whole swathes of the economy and open them up to privatisation.
All these agreements aim for the broadest possible privatisation, deregulation and liberalisation of the world economy. They may set new standards that will be applied to all countries — including those not even involved in the negotiations. These mega-agreements constitute a thinly veiled attack on China, India and South Africa, all countries that, in the WTO framework, oppose the liberalisation of trade in industrial goods, services, government procurement and investments, and are stubbornly insisting on more just global rules in agriculture. In short, trade flows are to be channelled in a new direction, to the disadvantage of the emerging countries in the South. Mexico's textile industry, which is bound by FTAs with both blocs, could be squashed between the European and the US industries if the TTIP is adopted. With the TTIP, the US would step up its citrus fruit exports to the EU, which currently imports from Egypt, Morocco and South Africa. Reduced exports from least developed countries would mean a 3 per cent contraction of their GDP. Major emerging countries are not taking part in these negotiations — at least for now. Should there be a breakthrough with TISA, industrialised countries could finally lose all interest in the WTO Doha Round. The emerging and developing countries would be robbed of their most powerful lever for negotiating better conditions in the agriculture sector.
SOURCE: The Hindu Business Line
Prime Minister Narendra Modi’s visit to South Korea saw the two sides upgrade their bilateral relationship to a ‘special strategic partnership.’ This is a significant development as it signals the rising importance that Delhi and Seoul accord each other in their defence and security planning and preparedness. India is the only country outside South Korea’s neighbourhood with whom Seoul maintains a security dialogue. Agreements signed during Modi’s visit will strengthen interaction between the National Security Councils and armed forces of the two countries. Bilateral naval cooperation, which is already growing – the two navies cooperate in anti-piracy operations near the Gulf of Aden – is expected to provide the backbone for the deepening defence ties, as the two countries share an interest in keeping the Indian Ocean’s shipping lanes safe. Besides, India is drawing on South Korea’s formidable naval ship-building expertise. Hyundai Heavy Industries and Hindustan Shipyard will jointly manufacture warships in India. Seoul has also pledged investment of $10 billion dollars in infrastructure projects such as smart cities, railways etc. It has also promised to support India’s membership in the Nuclear Suppliers’ Group.
South Korea was among the first countries to enter Indian markets when the Indian economy began liberalising in 1991. South Korean brands and products became popular here thereafter. However, the relationship failed to realise its full potential and after some initial enthusiasm, South Korean interest in investing in India waned for several reasons and trade has declined in recent years. India must ensure that Seoul’s enthusiasm to ‘Make in India’ that was evident during Modi’s visit does not fizzle out. The China factor figures in a big way in India-South Korean relations. In fact, Indian strategic analysts often push for more robust relations with Seoul as a way to counter China’s burgeoning ties with India’s neighbours. This is a narrow approach that India is unlikely to benefit from. Delhi must deepen ties with Seoul for the value that this bilateral bond brings India. After all, South Korea has technical and other expertise that can benefit India. India and South Korea must bond over Buddhism. It was from India that Buddhism travelled to South Korea over a millennium ago. This is a soft power resource that India must tap as it seeks to ‘act East’ more vigorously. A shared cultural heritage will improve people-to-people relations between the two countries and serve to enhance India’s image and influence there. Importantly, this will not ruffle feathers in Beijing as it is a resource that India can deploy vis-à-vis China as well.
SOURCE: The Deccan Herald
Birla Cellulose partnered with Control Union (CU), an international network of inspection operations and certifications with dedicated laboratories to organise ‘Vision Sustainability 2020’ seminar in Tirupur. “With environment pollution at its peak, the seminar held even more importance than before as it brought sustainability awareness across the entire textile value chain,” Birla Cellulose said in a press release. According to Birla Cellulose, the event gathered eminent speakers from the industry who spoke on challenges for sustainable means of textile processing, sustainable clothing and industrial growth. Birla Cellulose said it is taking the initiative and partnering Control Union to focus on every part of the textile value chain. Dr. Binay Kumar Chaudhary from Control Union shared details about CU’s certifications and inspection operations for a sustainable textile industry. He was followed by representatives from various companies who too shared the initiatives they have adopted to achieve sustainable means of production.
Rohan Batra who heads special projects at Birla Cellulose presented on ‘Heart of Sustainability and its Execution’ at Birla Cellulose. Batra highlighted the aspect of sustainability being given consideration even while designing the brand logo of Birla Cellulose. In explaining, he stated, “The circle signifies the cycle of nature & sustainability and floating leaves symbolise comfort and lightness.” “The leaves fall & grow all over again and they are a renewable resource of nature. Birla Cellulose is much like these leaves and our products are made from the same trees,” he too added. He spoke at length about sustainability, explaining the efforts at Birla Cellulose right from seeding to pulping, to processing and manufacturing. He shared details on the endeavours of the Pulp and Fibre business of the Aditya Birla Group and their vision to become the industry leader by 2017 for sustainable business practices. “Birla Cellulose’s leadership in creating awareness and best practices in sustainability has progressed with leading brands,” Batra informed.
Viscose is uniquely placed amongst the category of fibres as it is a manmade fibre and yet is natural being made from a natural and renewable resource like wood pulp coupled with engineered precision of manmade fibres. “It is one of the most sustainable in terms of raw material, life cycle assessments (LCA) and eco friendliness of the product.” Batra averred. He spoke about their responsible wood sourcing policy and explained how Birla Cellulose strictly adheres to all environment laws and regulations applied by respective countries for wood sources. “Our key raw material, wood pulp is sourced through a responsible wood sourcing policy which takes care of high conservation forest, bio diversity and more is planted than cut,” he observed.
SOURCE: Fibre2fashion
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$ 62.65 per barrel (bbl) on 20.05.2015. This was lower than the price of US$ 63.01 per bbl on previous publishing day of 19.05.2015.
In rupee terms, the price of Indian Basket decreased to Rs 4001.46 per bbl on 20.05.2015 as compared to Rs 4013.11 per bbl on 19.05.2015. Rupee closed weaker at Rs 63.87 per US$ on 20.05.2015 as against Rs 63.69 per US$ on 19.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 20, 2015 (Previous trading day i.e. 19.05.2015) |
Pricing Fortnight for 16.05.2015 (April 29 to May 13, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
62.65 (63.01) |
64.51 |
|
(Rs/bbl |
4001.46 (4013.11) |
4115.09 |
|
|
Exchange Rate |
(Rs/$) |
63.87 (63.69) |
63.79 |
SOURCE: PIB
The Trans-Pacific Partnership (TPP), a United States led trade agreement involving twelve countries, is currently under negotiation. A key part of the proposed format of the TPP is a rule known as “yarn forward”. In essence, “yarn forward” 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 has significant effects on signatory countries, such as Vietnam. Upon completion the TPP trade area will comprise a region with US$28 trillion in economic output, making up around 39 per cent 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 such as Vietnam. The country is currently a key global garment manufacturing location, however, its factories often use Chinese-made fabrics in their products, and China is not a part of the TPP. In fact, around 85 per cent of Vietnamese textile and garment companies have outsourcing contracts with foreign partners. What all this means is that, if Vietnam wants 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. However, 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.
In a sign that the country has felt which way the wind is blowing, 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 (VMIT) has proposed levying a 2 perc ent 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. During the North American Free Trade Agreement (NAFTA) negotiations in 1993 the rule was used as a way to protect US markets. 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 a clear sign of this support, the National Council of Textile Organizations is pushing Congress to allow the President to use fast track authority to approve the trade agreement. When this authority is given, Congress is restricted to a simple yes/no vote on the TPP and is not able to amend specific sections of the agreement. If fast track is granted, trade negotiations could be finished in a matter of months.
In their fight against yarn forward, countries such as Vietnam have joined forces with retailers 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.” While the USTR says 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 per cent 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. It would seem that only time can tell what the true effects of the TPP will be, but businesses would be wise to plan for all eventualities and ensure they are prepared to take advantage of such rules as yarn forward.
SOURCE: The Establishment Post
Ghana’s traditional fabric, known for its wide range of colorful prints, has made it to international fashion shows with celebrities like American pop singer Beyonce donning them. But back in Ghana the textile industry is struggling under the weight of cheap fake imitations imported to the West African country from China, Al Jazeera reported. Cheap copies of the Ghanaian fabric has flooded local markets making it difficult for local textile manufacturers, like Akosombo Textile in the capital Accra, to make a profit from their designs. “We have a situation where unidentified people take the brand logo of the local manufacturers, send it outside, print it and then they smuggle it into the country,” John Amoah, assistant brand protection manager at Akosombo Textiles, told DW. Customers who go seeking a bargain at the local open air markets are easily duped by the fake labels thinking they are buying original material at a cheaper price. Al Jazeera reported that local manufactures are now only able to produce a quarter of what they used to produce five year ago. The influx of cheap fakes has forced a number of local manufacturers out of business. “W don’t mind cheap textiles coming into Ghana and to the markets in West Africa. But we object very strongly when people are copying on our brands, putting stickers saying ‘made in Ghana’ when we know very well they are not. Also copying our designs, which is an investment we’ve made,” Steve Dutton of Akosombo Textiles told Al Jazeera.
SOURCE: The AFK Insider
With its budget of young civil servant, Nafiu Badaru admits he would struggle to buy chic outfits in Kano, the largest city in northern Nigeria, where there was no Chinese merchants and their merchandise cheap. "A piece of good quality fabric costs about 10 000 naira (47 euros), and it is too expensive for me," he told AFP. "With the same money, I can buy six pieces of Chinese good-tissue market, only 1. 500 naira (7 euros) the room, and I still have the same currency." The import of Chinese fabric is a boon to consumers who do not have deep pockets, as Mr. Badaru. But the merchants of this city which was long the Nigerian textile capital, this competition has disastrous effects. Because of the astronomical costs of the lack of infrastructure --the power cuts, in particular, which paralyzed the country several hours a day and forcing companies to invest in expensive générateurs-- and insecurity in the north Nigeria rocked by an Islamist insurgency, textile mills have closed one after the other. And local merchants are suffering directly from the drop in local production. This is the case of Fatuhu Gambo, who said they had not sold a single fabric for fifteen days in his market shop Kantin Kwari, the largest in West Africa. "The Chinese have put us offside, and we are left with huge debts and merchandise stacks" to sell, he loose.
In this market, a maze of colorful stalls where there are traders from Niger, Chad, Cameroon and even Mali, everybody complains about the new competition considered unfair. "The Chinese have taken control of the import and distribution of textiles in Kano. And now, they also put in retailing, depriving our working merchants," said Liti Kulkul, the leader of a union traders. The trouble began there about ten years, when the Nigeria, the most populous country in Africa, opened the international market. The World Trade Organization has given Chinese exporters free access to Nigerian textile market.
Nigerian law forbids foreigners to retail, but according to Kano merchants, the Chinese have circumvented this obstacle by recruiting Nigerians as managers. In May 2012, immigration officials have arrested and deported 45 Chinese citizens accused of practicing retail. This month, customs officers arrested four Chinese traders accused of having illegally enter the country in large quantities produced and placed in sealed 26 workshops containing goods for which customs duties were not paid. Hundreds of dyers demonstrated this month in Kano in protest against Chinese competition, which threatens some 30 000 jobs. These artisans, which dye indigo fabrics according expertise 500 years old, accuse the Chinese of copying their products and sell these imitations of poor quality much cheaper.
The Emir of Kano, Muhammadu Sanusi II, former governor of Nigeria's central bank, invited the Chinese ambassador on Monday to propose particular to encourage Chinese investors to establish factories in the country, which would have the advantage of creating jobs. "The excessive dependence" of this oil country "to foreign imports is damaging to the economy and the only way to stop this trend is to solve the problem in the manufacturing sector" Sanusi said after the meeting . But Sa'idu Adhama, a former textile industrialist, Nigerians do not weight compared to their Chinese competitors, especially because they have access to bank loans with low interest rates over the long term . "The Chinese have the right to be here, so we cannot ask them to go away, but you can regulate their trade," through quotas and better enforcement of the import laws including, said Mr. Adhama, who studied in China in the 70s. The country also needs investments in the energy sector, to enable factories to run on the long term, he added. Meanwhile, Mr. Badaru continue to buy cheaper Chinese products, whether tissue or appliances. "For me and for most people who have low incomes, the Chinese textile is an opportunity. It gives us the opportunity to be stylish with little money," he smiled.
SOURCE: The Jeune Afrique
Although the Chinese government has pledged to use internet technology to upgrade manufacturing industry, there is a huge gap between the desire of the authorities and reality in the textile industry, the China Daily said a quoting a report by the China national textile and apparel council. The council surveyed 103 textile and apparel enterprises in Jiangsu, Zhejiang, Hubei, Fujian and Guangdong provinces from January to March. The survey covered cloud computing, information security protection and intellectual property protection, said Liang Xiaohui, the main designer of the survey, and deputy chief economist of the China textile information center, a department of the council. "The three issues are central to the transformation of the Chinese textile industry, and they are interconnected," Liang said. The report found that only one enterprise out of 103 said it was well aware of the applications of the cloud computing.
Privately owned textile and apparel enterprises have a stronger desire to improve their production efficiency through cloud computing techniques than State-owned enterprises and foreign firms. But they are more sensitive to the huge initial investment required. "Private enterprises are very interested in introducing robots to their workshop, because of the mounting pressure from rising labor costs," said Qiao Yanjin, director of the information center. "The textile and apparel industry is already a leader in China in the field of transformation and sustainable development. Their difficulty shows the challenge facing the overall restructuring of China's manufacturing sector." The report found that 11 enterprises out of the 103 surveyed said they suffered from threats to information security, with files and data being stolen, and their systems invaded. These enterprises would like to use more reliable information technology to protect their information security.
More than 50 per cent of the sampled companies conduct international business. But most of them have few channels to know related industrial laws and rules in their market countries. IPR protection is another area that concerns enterprises. The report found that companies that pay special attention to information security show more concern about IPR. Among the enterprises saying they do not care about information security, 66.7 per cent do not have their own intellectual property rights.
SOURCE: Fibre2fashion
US and euro zone business growth slowed in May while China’s factory sector contracted again, reinforcing the need for major central banks to continue supporting economic growth. The US Federal Reserve is seen unlikely to tighten monetary policy in June since the world’s biggest economy barely grew at the start of the year. Growth in euro zone business activity also weakened in May, just two months after the European Central Bank launched a euro 1-trillion stimulus programme, and an absence of inflation pressures suggested Asian authorities could inject more stimulus if needed. “The May (Purchasing Managers’ Index) surveys were broadly disappointing although nothing terribly bad,” said Richard Kelly, head of global strategy at TD Securities. “There is no question the ECB is going to continue with quantitative easing up until September 2016. China is just starting the amount of additional liquidity and stimulus that will be needed to safely rebalance the economy,” he said. Growth in the US manufacturing sector slowed for a second straight month during May, with new orders rising at their slowest pace since January 2014, private data vendor Markit said on Thursday.
The preliminary US Manufacturing Purchasing Managers’ Index fell to 53.8 in May from the final April reading of 54.1, although the sector’s jobs growth picked up this month from April. Economists polled by Reuters had forecast the May reading would be 54.5. A figure above 50 indicates expansion in the sector. The index’s flash output component fell to 55 from the final April reading of 55.3, and was the lowest since December 2014. The flash reading of the index measuring new orders also weakened in May, to 54.2 from April’s final 55.3. “The weaker order book trend doesn’t appear to have affected hiring, at least not yet, with job creation picking up in May. However, unless production growth revives, there is a worry that payroll growth will slow as companies seek to boost productivity,” said Chris Williamson, Markit’s chief economist.
Euro zone business growth was weaker than expected this month but firms increased staffing levels at the fastest rate in four years, according to Markit. Any signs of growth, alongside the survey showing firms cut prices only marginally after reducing them for over three years, will cheer European Central Bank policymakers coming just two months after they launched a trillion-euro stimulus programme. “There will be a lot of people disappointed that we have an easing in growth for the second month but it needs to be put in context that it is a reasonable number,” said Markit’s Chris Williamson. “The broader picture is that the recovery remains on track — it’s doing rather well.” Markit’s Composite Flash Purchasing Managers’ Index for the euro zone, based on surveys of thousands of companies and seen as a good growth indicator, fell to 53.4 from 53.9, missing the 53.8 predicted by a Reuters poll. However, firms stepped up recruitment, with the employment sub-index at 52.3, its highest reading since May 2011. Demand from abroad for euro zone goods soared as customers took advantage of a weaker euro’s making the products cheaper. The manufacturing new export orders index jumped to a 13-month high of 53.0 from 52.3. Shares on major world markets hovered near all-time highs on Thursday. The MSCI World equity index was up as much as 1.4 per cent before trimming its gain to 0.4 per cent.
Chinese activity contracted for a third straight month as domestic and export orders shrank, adding to views Beijing will have to roll out its most aggressive stimulus measures since the global financial crisis to avert a sharper slowdown. The flash HSBC/Markit PMI for China fell to 49.1 in May, weaker than an expected 49.3 and marking the fifth contraction in activity in six months. “The subdued flash PMI print suggests there is no clear sign of near-term stabilisation in (China’s) economy. Risks to the outlook remain to the downside,” Barclays economist Shengzu Wang said. Beijing has already cut interest rates three times in six months and economists believe it will have to ease further as economic growth threatens to slow below the 7-per cent pace of the first quarter.
Analysts at Nomura saw China’s growth slowing to 6.6 per cent year-on-year in the second quarter, before edging up to 6.8 per cent in the second half of the year. However, Japanese manufacturing activity rebounded modestly in May as output and new orders picked up, suggesting a much-needed improvement in demand at home and abroad. The Markit/JMMA flash Japan Manufacturing Purchasing Managers Index rose to a seasonally adjusted 50.9 in May from a final 49.9 in April. The index rose above the 50 threshold that separates contraction from expansion for the first time in two months. Other data showed Japan’s economy expanded in January-March at the fastest pace in a year. But much of that growth came from inventories as goods piled up on factory floors, and private consumption, housing investment and exports all rose, though at a feeble pace. Still, subdued input and output prices suggested inflation remained stubbornly low, adding to expectations the Bank of Japan will expand its already massive monetary stimulus programme later this year.
SOURCE: The Business Standard
A study by German market intelligence firm GfK has found the situation for retail in crisis countries in Europe has improved. GfK has carried out a comprehensive analysis of the retail scene in 32 European countries. The study examined purchasing power, the retail share of the population's total expenditures, inflation, sales area productivity, changes in retail due to e-commerce, as well as a turnover prognosis for 2015, GfK said in a statement. A total of approximately 7.75 trillion euro was available to consumers in the EU-28 countries in 2014 for spending and saving. This corresponds to a per-capita purchasing power of 15,360 euro which is a nominal increase of approximately 2.5 per cent compared to 2013.
The study found that growth in online trade is placing increasing pressure on stationary retail throughout Europe. GfK has forecast only moderate nominal stationary retail growth of just 0.5 per cent in 2015 across the EU-28 countries. The retail share of private consumption fell again in 2014 among the EU-28 countries to 30.9 per cent (2013: 31.2 per cent; 2012: 31.4 per cent). This development was influenced by two key factors with conflicting effects: first, the fall of oil prices in mid-2014, which resulted in decreasing costs for energy and fuel; and second, the long-standing trend toward ever higher spending on accommodation, health and recreation. These expenses translate to less money available for retail consumption and ultimately supersede the short-term effect of falling oil prices.
Consumer prices climbed only moderately in 2014 (+0.6 per cent), and an inflation rate of just 0.2 per cent is forecast1d for 2015. For 2015, the European Commission even expects deflationary tendencies in some countries, with the greatest effects predicted in Spain and Switzerland at -1.0 percent apiece. The highest rates of inflation will again be in Turkey (+6.3 per cent) and Russia (+6.0 per cent). Due to the low inflation, real-value turnover for stationary retail is anticipated to remain stable in 2015.
The GfK reports said in many countries, sales area productivity has begun to increase again after delays to many projects occasioned by the financial crisis. GfK observed that sales area productivity is increasingly under pressure in Northern and Southern Europe, particularly in Germany, France and Great Britain. A major reason for this is the redirection of turnover to internet retail among many product lines. Although e-commerce has significant momentum in eastern Europe, the effects are not yet having a strong impact, because the absolute volumes being transacted over the internet are comparatively small.
SOURCE: Fibre2fashion
On the back of selling activity in the region coupled with lower upstream product prices and other polyester feedstock prices, Asian MEG prices drove down on Wednesday (May 20).
In India, prices were assessed at US$ 940/ton on Wednesday, lower by US$ 35/ton as compared to prices on Tuesday (May 19). In China, prices were quoted at US$ 935/ton, down by US$ 35/ton as against prices on Tuesday.
SOURCE: Fibre2fashion
European and US PX prices dropped on Wednesday (May 20) mainly from lower PX prices in Asia. In Europe, prices were spotted at US$ 800/ton, lower by US$ 10/ton as compared to prices on Tuesday (May 19). Prices fell in US as well and were assessed at US$ 850/ton on May 20, down by US$ 15/ton as against prices on May 19.
SOURCE: Fibre2fashion
Acrylonitrile (ACN) prices declined in US, while they remained stable in Europe in the current week. In US, export prices were assessed at US$ 1275/ton, lower by US$ 20/ton as compared to prices in the last week. In Europe, prices were spotted at US$ 1390/ton, stable against prices in the previous week.
SOURCE: Fibre2fashion
