Textile Raw Material Price 2015-05-31
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1249.02 |
USD/Ton |
-1.61% |
|
VSF |
2034.34 |
USD/Ton |
-0.16% |
|
ASF |
2493.95 |
USD/Ton |
0% |
|
Polyester POY |
1216.36 |
USD/Ton |
-1.97% |
|
Nylon FDY |
3134.78 |
USD/Ton |
0% |
|
40D Spandex |
6400.18 |
USD/Ton |
0% |
|
Nylon DTY |
3379.69 |
USD/Ton |
0% |
|
Viscose Long Filament |
5951.19 |
USD/Ton |
0% |
|
Polyester DTY |
1502.08 |
USD/Ton |
-1.60% |
|
Nylon POY |
2938.86 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2689.06 |
USD/Ton |
0% |
|
Polyester FDY |
1444.94 |
USD/Ton |
-2.21% |
|
30S Spun Rayon Yarn |
2726.61 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2024.55 |
USD/Ton |
0% |
|
45S T/C Yarn |
2987.84 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2204.15 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2547.01 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2889.88 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2759.26 |
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 |
0.78 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16327 USD dtd. 31/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile industry sources aver that “little bit of hand-holding and interventions on the part of the government could reignite the investment sentiments and propel growth momentum to a different level.” Listing the essential interventions, the Secretary of Texpreneurs Forum D Prabhu stressed the need for rationalising the MMF (man made fibre) duty structure, total dispensation of hank yarn obligation rule, relaxation in Cabotage law, encouraging spinning mills to tap the solar opportunity and increasing TUF (Technology Upgradation Fund) allocation among others. He pointed out that the Central excise and customs duty structure of the polyester and viscose fibre were counterproductive as Indian manufacturers are non-competitive in the rapidly growing MMF textile market. There is, therefore, a need to rationalise the duty structure of polyester and viscose fibre to enable the domestic industry access such fibres at international prices.
The hank yarn obligation, under which the spinning sector is mandated to produce 40 per cent of their total output as hanks against the normal production of cone yarns is outdated as most handloom weavers have either moved to powerlooms or autolooms. Persisting with this age-old rule when the demand for hanks has taken a hit is only leading to corruption, creating undue hardship to the spinning industry, Prabhu explained and sought that the percentage of obligation be reduced to 10 per cent. Cabotage Law, he said, makes it mandatory to use Indian ships for transporting cargo between ports along India’s coast. If this is relaxed and foreign vessels allowed to operate the cargo inside India, the savings per bale could be phenomenal, particularly because the spinning industry in Tamil Nadu sources its cotton requirement from upcountry markets. On solar energy, Prabhu said the State is facing considerable shortage of power and spinning units (which incidentally are one of the largest consumers of energy) do not have the wherewithal to invest in renewable energy devices.
SOURCE: The Hindu Business Line
The MSME and textile sector in West Bengal is set for a financial boost. Chief minister Mamata Banerjee has said that her government had initiated a plan to invest over Rs 26,000 crore for the development of MSME and textile sector. She also said that her government was formulating a separate textile policy for the state. Replying to a question in the state Assembly, Banerjee said that under the plan MSME projects would be set up in joint ventures or through PPP model creating employment opportunities for six lakh people in the state. The state government had earlier generated employment of 4.56 lakh people in the MSME sector in the last four years. With this initiative there would be a massive improvement in the MSME sector and definitely the units like handloom, hosiery, zari and many other units, she said. Banerjee said that in the last four years her government set up 180 MSME units covering many districts with an investment of Rs 55,740 crore.
Describing development as a continuing process, the chief minister said that the state government has established synergies and offered comprehensive package to the investors in the MSME and textile sector. With the setting up of new textile policy, the sector would also improve much faster. The state government is committed to promote MSMEs in the state by creating a sustainable financial ecosystem for the sector. Considering the rapid growth of MSMEs in the state, the MSME and textiles department has already launched a Rs 200-crore venture capital fund.
SOURCE: Fibre2fashion
The Indian economy is at initial stages of recovery, global brokerage firm Nomura has said. But it stuck its neck out, saying the GDP growth is expected to rise to 8 per cent this fiscal as against 7.3 per cent in 2014-15. According to Central Statistics Office (CSO) data released yesterday, the Indian economy grew at 7.3 per cent in 2014-15, up from 6.9 per cent a year ago, mainly due to improvement in the manufacturing sector. Talking about the GDP numbers, the Japanese brokerage house said one can paint both a bearish or bullish picture, but it’s in the “glass half-full camp”. “Despite the scepticism, we are optimistic and continue to believe that the Indian economy is at the initial stages of a business cycle recovery,” Nomura said in a research note, adding that lower inflation, easier financial conditions, policy efforts and rising profit margins are expected to back up a cyclical recovery. Pegging the GDP growth at 8 per cent this fiscal, Nomura said key risks to this assumption are a bad monsoon and weak global demand. On policy rates, the report said: “We expect RBI to cut the repo rate by 25 basis points to 7.25 per cent on June 2, in line with the consensus, followed by a pause until end-2016.” The central bank has lowered its policy rate twice so far outside the cycle in 2015, but kept it unchanged at its last review on April 7 due to fears of unseasonal rains impacting food prices.
SOURCE: The Financial Express
Beating its own financial target, the government has contained the fiscal deficit at 3.99 per cent of GDP in 2014-15 to Rs 5.01 lakh crore. According to national accounts data released by Central Statistics Office (CSO), the Gross Domestic Product at current prices is estimated at Rs 125.41 lakh crore in the last financial year ended March 31, 2015. Fiscal deficit, gap between government’s expenditure and revenue, at 3.99 per cent of GDP is lower than the downwardly revised estimate of 4.1 per cent provided in the government’s first full Budget announced in February. “As a result of prudent policies and commitment to fiscal consolidation, the fiscal deficit at the end of 2014-15, stands at Rs 5,01,880 crore which is 98 per cent of the projected figure in Revised Estimate for 2014-15,” the Finance Ministry had said in statement on May 17. The ministry had said that “fiscal deficit as a percentage of GDP is 4 per cent as against revised estimates of 4.1 per cent for 2014-15″, but the GDP data had not been released at that time. The fiscal deficit target was set at 4.1 per cent by the the UPA government, but Finance Minister Arun Jaitley had said he was taking it as a “challenge” to meet this ambitious and “daunting target” set up by his predecessor P Chidambaram. The government has set the fiscal deficit target for the current fiscal at 3.9 per cent of the GDP or Rs 5,55,649 lakh crore with the assumption that the size of the economy at current prices would be Rs 141.08 lakh crore in 2015-16.
As per the fiscal consolidation road map outlined in the Budget 2015-16, fiscal deficit is to be brought down to 3.9 per cent of GDP in the current fiscal, then to 3.5 per cent in 2016-17 and further to 3 per cent by 2017-18. The 3 per cent target would now be reached a year later than planned earlier. The lower fiscal deficit reduces the government’s expenditure on interest payment and unlocks funds for investments in social welfare programmes as well as infrastructure development.
SOURCE: The Financial Express
A major step was taken last week towards economic integration between Eurasian region and Southeast Asia that is significant for boosting India's trade in the region ahead of Prime Minister Narendra Modi's proposed visit to Russia and Central Asia this July. Southeast Asia's emerging economy Vietnam and the Eurasian Economic Union (EEU) on Friday signed a free trade agreement (FTA) that officials said would boost both bilateral and collective cooperation between the two sides. Incidentally, this comes days ahead of President Pranab Mukherjee's trip to Belarus this week. Belarus is a member of EEU and India and Belarus are expected to discuss India joining EEU during Mukherjee's trip, officials said. In May 2014, Presidents of Russia, Belarus, and Kazakhstan had signed an agreement to form the Eurasian Economic Union (EEU), which came into being on January 1, 2015.
The Vietnam-EEU FTA is expected to foster a stable and favorable legal framework for economic development of signatories. Economists have noted that the agreement stipulates liberalizing customs regulations. While tariff reductions and exemptions are mandated for listed commodities, each country can maintain customs protections for their most sensitive commodities. India would take a cue from Vietnam-EEU FTA in deciding to join to EEU, experts noted. This FTA became the first international document on creating a free trade zone between the EEU and a third party.
The EEU currently comprises Russia, Belarus, Kazakhstan and Armenia. Ratification procedures are currently under way for Kyrgyzstan to join the trade bloc. If India decides to join EEU, it will assist India to realize the untapped potential in trade between Delhi and countries of the region. India's trade with the region remain abysmally low notwithstanding strong political ties between the two entities. Besides Russia, Modi is also planning to visit all five Central Asian Republics in July including Kazakhstan and Kyrgyzstan. Russia has been pushing India to join EEU. Modi's visit is expected to focus on expanding economic partnership with the Eurasian and Central Asian region by harnessing markets and natural resources, government officials hinted. Over 40 countries and unions could partners of the Eurasian Economic Union (EEU) and negotiations are currently underway, according to Russian Prime Minister Dmitry Medvedev. According to the Russian PM, the agreement with Vietnam as a breakthrough decision as it was the first such treaty. Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko described the agreement as "A historic act." Officials in India hinted that India is closely studying the agreement to understand the benefits. The free trade zone will save exporters from the EEU about $40-60 million in the first year of its operations. Vietnamese companies, in turn, can expect savings of up to $5 million-$10 million a year. EEU-Vietnam FTA will enter into force 60 days after it is ratified in accordance with national legislation in all EEU member countries and Vietnam. Vietnam's Prime Minister Nguyen Tan Dung, who signed the document with EEU, has said that the FTA between Vietnam and the Eurasia Economic Union (EAEU) was a modern, comprehensive deal that has the required flexibility and opportunity of benefits. Vietnam and the EEU began negotiations for the FTA in 2013.
Meanwhile, Dung had separate bilateral meetings with all member states of EEU on the sidelines of the signing of FTA. In his meeting with Medvedev, the two leaders discussed the possibility of investments under the FTA. Russia also affirmed that his country advocates settling disputes by peaceful means on the basis of international law and the UN Convention on the Law of the Sea (UNCLOS) in the South China Sea region where China in recent weeks have stepped up its activities on the artificial islands and taken belligerent stand vis-a-vis USA. Dung also met Kazakhstan President Nursultan Nazarbayev and discussed cooperation in oil and gas sectors. Incidentally India is present in the oil and gas sectors of both Kazakhstan and Vietnam.
SOURCE: The Economic Times
The SBP’s export numbers for the month of April once again reflect what has already been said; textile exports continue to suffer amid low demand and depressed international cotton prices, higher production and labour costs, energy shortages, cut throat competition from regional competitors such as India, and a further lack of competitiveness on the back of an overvalued Rupee. For the month of April, textile exports slid six percent year-on-year and nine percent over the preceding month. Component-wise, raw cotton saw the largest dip of 73 percent year-on-year. However, cotton yarn stayed flat year-on-year, as did readymade garments. One major problem is that Pakistan’s textile value-added sector isn’t all that developed. Textile happens to be an industry with the longest production chain, with inherent potential for value addition at every stage (the Ministry of Textile said so itself in its Textile Policy 2014-2019). Articles of cotton form a near 81 percent of all textile exports. Of these, the value-added segment (knitwear, bed wear, and readymade garments) makes up around 60 percent, while the basic segment (raw cotton, cotton yarn, cotton cloth) makes up the rest. This division might not be conducive to growth; spinning and weaving keep on taking a beating. Since the basic textile sector is failing to compete, maybe it’s time to shift some of the eggs into the value-added basket. At the very least, the margins will be better.
SOURCE: The Business Recorder
Trade Ministers of 16 countries, including India, may meet in July in Kuala Lumpur to iron out issues related to the mega trade deal --Regional Comprehensive Economic Partnership agreement. The 16-member Regional Comprehensive Economic Partnership (RCEP) comprises 10 ASEAN members and their six free trade agreement (FTA) partners namely India, China, Japan, Korea, Australia and New Zealand. The 16 economies account for over a quarter of the world economy. RCEP negotiations were launched in Phnom Penh in November 2012. The countries would deliberate on issues pertaining to goods, services and investments, an official said. The meeting assumes significance as the pact is targeted to be concluded this year. The meeting would be held at the ministerial level, the official added. The mega trade deal aims to cover goods and services, investments, economic and technical cooperation, competition and intellectual property.
India is seeking a parallel movement of negotiations on goods and services. It is pressing for services agreement as the sector contributes over 50 per cent in the country's economic growth. Indian IT companies have strong presence across the globe. India had asked the members to focus on value addition in services, besides working towards to improving investment climate to spur trade and boost growth in the region. Besides this, India is also focusing on concluding the negotiations for the free trade agreements with Canada and Australia.
SOURCE: The Economic Times
Scott A Nathan, special representative, commercial and business affairs of the US Department of State, has expressed delight at the growth of companies under the African Growth and Opportunity Act (AGOA), according to media reports in Ghana. During a recent visit to DTRT Apparel, one of the textiles companies benefiting under AGOA initiative in Accra, he also urged the government to provide the enabling environment for joint venture businesses such as DTRT to thrive. Nathan visited the factory to familiarize with activities of the AGOA beneficiary and also to familiarize himself with current developments at the factory. Together with his team from the American Embassy in Accra, Nathan visited the various sections and departments of the factory to see firsthand, how the manufacturing of textiles for the US market was done. “I am very impressed. I enjoyed our conversation, and I very much enjoyed the tour and thought that it was very instructive to see what is being done here. This is a real accomplishment and I congratulate the team here at Dignity and the Ghanaians who work here. It is really a great thing to see the scale and also the opportunity to grow”, Nathan said at a press briefing later.
He stressed that though there were challenges facing the company, he believed they presented the opportunity for growth.“There are challenges but challenges and opportunities come together for growth. This is without question the sort of thing the US wants to support and has been supportive whether it’s through our West African trade hub which helps make some of the initial introductions through the ongoing roles in helping with grant application or resolving any sort of technical issues related to export that always come often. And AGOA is a critical part of the opportunity here. This is an example of what the US takes very seriously and is supportive of”, he said.
The US special representative explained that the efforts by the US to support companies grow was in the larger context of its commitment to Ghana which is a very important American partner. He said that the fact that Ghana was the largest recipient of USAID in West Africa was proof of what critical trading partner the country was to the US. AGOA is an initiative of the US government to provide market access to eligible sub-saharan African countries to enter the US market. AGOA provides trade preferences for quota and duty-free entry into the United States for certain goods, expanding the benefits under the generalized system of preferences (GSP) programme. (SH)
SOURCE: Fibre2fashion
Nafiu Badaru, a junior civil servant in northern Nigeria’s biggest city Kano, doesn’t make much money and it takes some cash to look good so he tends to buy made-in-China fabric. “A piece of high-quality brocade (cloth) costs around 10,000 naira ($50, 47 euros), which is way too expensive for me,” he told AFP. “With the same amount of money I can buy six pieces of cheap Chinese brocade which cost only 1,500 naira a piece and still keep some change.” The proliferation of Chinese-made textiles is a boon for consumers like Nafiu, with Kano and the wider north struggling with unemployment and economic constraints. But traders in the city — a centre of weaving and textile manufacturing dating back centuries — say such cheaper imports have been disastrous.
Factories have shut and trade in home-spun fabrics has dwindled, prompting calls for foreign investment within Nigeria rather than cheap, mass importation, as well as better regulation. Fatuhu Gambo’s business is one of many in dire straits. For the past two weeks he has not sold a single fabric in his shop in the Kantin Kwari textile market — the largest in West Africa. “The Chinese have effectively edged us out of business, leaving us with nothing but huge debts and heaps of goods in our shops,” he said. Talk in the market — a colourful rabbit’s warren of shops and stalls that draws traders from Nigeria, Niger, Chad, Cameroon to Mali and the Central African Republic — is of unfair competition. “The Chinese have taken over the importation and distribution of textiles in Kano and now they are into retail trading, which is putting our traders out of business,” said traders’ union head Liti Kulkul. The troubles began a decade ago when Chinese textile merchants started the massive importation of textiles to Nigeria after Africa’s most populous nation opened its doors to foreign trade.
The World Trade Organization deal gave the Chinese unfettered access to Nigeria’s textile market, although Nigerian laws prohibit foreigners from retail trading. Traders talk of locals being recruited to conduct business on behalf of the Chinese in return for a cut of the profits. There have been occasional crackdowns, like in May 2012, when immigration officials arrested and deported 45 Chinese nationals over retail trading after repeated complaints. Earlier this month, customs officials arrested four Chinese traders for smuggling mass-produced fabrics and sealed 26 warehouses containing goods on which import duties had not been paid.
Hundreds of textile dyers then staged street protests against what they view as a Chinese takeover of their trade that threatens to put 30,000 artisans out of business. The dyers, many of whom still use methods dating back more than 500 years, accused the Chinese of faking their products and selling inferior cloth at a fraction of the price. The situation is just one aspect of the struggle facing Nigeria’s crude-dependent economy, which has been hit hard by the slump in global oil prices since mid-2014. There is little domestic manufacturing to speak of, forcing goods from cars to foodstuffs to be imported. The local Muslim religious leader the Emir of Kano, Muhammadu Sanusi II, met China’s ambassador to Nigeria at his palace recently and called on Beijing to set up factories in the country. “Our over-reliance on foreign products is hurting our economy and the only way to stop this trend is to tackle the problems in the manufacturing sector,” said Sanusi, a former central bank governor.
Sa’idu Adhama, a former textile factory owner, said Nigerian traders cannot compete with their Chinese counterparts, who can get bank loans at single digit rates over a longer term. “The Chinese are here legally, so we can’t send them packing but we can regulate their trading,” said Adhama, who studied in China in the 1970s. That could include quotas, stricter enforcement of import regulations, duties and taxes as well as fuel subsidies to boost local manufacturing and help home-grown businesses, he added. Long-term investment in the power sector to stabilise the currently woeful electricity supply could also revive moribund factories, he said. In the meantime, the debate is immaterial to people like Badaru, with cheaper foreign imports satisfying demand for a growing consumer society, whether it is clothing or electronics. “For me and most low-income earners, Chinese textiles are a blessing. They give us the opportunity to appear neat and elegant Awith little money,” he said.
SOURCE: The Daily Times
The French association of textile machinery manufacturers - UCMTF – and the Russian textile association, Soyuzlegprom have signed a memorandum of understanding to strengthen the ties between the two industries on a long term basis, UCMTF said in a statement. The two sides will also organize joint activities, particularly on the occasion of exhibitions, forum, conferences and will develop modern forms of training for their employees, according to the MoU. The signing ceremony took place during Legpromforum 2015 in Moscow. Legpromforum is a major event grouping representatives of the government, heads of regions and public sector organizations, the scientific community and the Russian textile companies, with the objective to deliberate on the strategy for the development of the Russian light industry, particularly textiles, for the next decade. The MoU with the French side is particularly important as Russia has decided to modernize its textile industry to cut down imports. Russia can also benefit as France is the world’s sixth largest exporter of high-tech textile machinery for both traditional and technical textiles.
SOURCE: Fibre2fashion
Growth in China’s giant factory sector edged up to a six-month high in May but export demand shrank again, prompting companies to shed jobs and keeping alive worries about a protracted economic slowdown, a government survey showed on Monday. In a sign that China’s worst downturn in at least six years is hurting its services companies, too, a similar survey showed growth in that sector slipped to a low not seen in more than five years. Services have been one of the lone bright spots in the Chinese economy in the last year. The muted reports reinforced the view that authorities would have to roll out more stimulus in coming months, despite having cut interest rates three times in six months. “China’s economy still faces strong headwinds,” economists at ANZ Bank said in a note to clients. “If capital outflow continues at the pace of the first quarter, we expect the People’s Bank of China to cut the reserve requirement ratio by another 100 basis points, in addition to a further interest rate cut of at least 25 basis points.”
The official manufacturing Purchasing Managers’ Index (PMI) edged up to 50.2 from April’s 50.1, the National Bureau of Statistics (NBS) said on its website, in line with analysts’ forecast for a 50.2 reading. A reading above 50 points indicates growth on a monthly basis, while one below that points to contraction. The non-manufacturing PMI, on the other hand, slipped to 53.2, a trough not seen since December 2008 and compared with April’s 53.4, the NBS said. However, Zhang Liqun, an analyst at the China Federation of Logistics and Purchasing, which helps to compile the government PMI polls, argued that a rise in overall new orders in factories pointed to some steadying in market demand. “This shows stabilisation in economic growth,” Zhang said.
Bets on more aggressive easing
China’s economy has sputtered this year as a cooling housing market and slowing growth in exports, domestic investment and consumption knocked growth to a six-year low of 7 percent in the first three months of the year. In addition, a frothy Chinese stock market that has nearly doubled in the last 18 months is feeding concerns that easier credit policies are driving up share prices and fuelling speculation, drawing money away from real economic activity and further complicating policy making. While official surveys tend to centre on larger, state-owned firms, a private survey that focuses on small and mid-sized factories showed growth shrank for the third straight month as export orders fell at the sharpest rate in nearly two years. The final HSBC/Markit PMI stood at 49.2 in May, little changed from a preliminary reading of 49.1, and up a touch from April’s 48.9. “Five months into 2015, the economy sees little sign of a pickup,” HSBC said in a note on Monday, adding that an index created by the bank suggests that monetary conditions in China have tightened. “We forecast more aggressive policy easing, including a 50-basis-point reserve ratio cut in the coming weeks,” HSBC said.
As the economy cools, the country has fought persistent deflationary pressure, which has in turn kept real interest rates stubbornly high. Morgan Stanley said in a report this month that real interest rates in China are over 3 percent, well above real rates in Japan, Europe and the United States, where borrowing costs are negative. Given that China’s flurry of policy easing has yet to arrest its economic downturn, an economist at a state think-tank warned over the weekend that the world’s second-biggest economy is unlikely to rebound soon. Instead, he said growth would stabilize at a lower level and at best track a “L-shaped” trajectory. China’s economic growth is expected to slow to a quarter-century low of around 7 percent this year from 7.4 percent in 2014. As the first major indicator that is released each month, China’s official manufacturing PMI is closely watched by investors for clues about the health of the Chinese economy.
SOURCE: The Financial Express
