Textile Raw Material Price 2015-06-01
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1273.51 |
USD/Ton |
1.96% |
|
VSF |
2034.34 |
USD/Ton |
0% |
|
ASF |
2493.95 |
USD/Ton |
0% |
|
Polyester POY |
1232.69 |
USD/Ton |
1.34% |
|
Nylon FDY |
3134.78 |
USD/Ton |
0% |
|
40D Spandex |
6400.18 |
USD/Ton |
0% |
|
Nylon DTY |
2689.06 |
USD/Ton |
0% |
|
Viscose Long Filament |
1444.94 |
USD/Ton |
0% |
|
Polyester DTY |
3379.69 |
USD/Ton |
0% |
|
Nylon POY |
5951.19 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1502.08 |
USD/Ton |
0% |
|
Polyester FDY |
2938.86 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2726.61 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2008.22 |
USD/Ton |
-0.81% |
|
45S T/C Yarn |
2987.84 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2759.26 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2187.82 |
USD/Ton |
-0.74% |
|
40S Rayon Yarn |
2547.01 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2889.88 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
1.00 |
USD/Meter |
-0.33% |
|
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. 01/06/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile and clothing export from India rose a marginal 5.4 per cent in 2014-15, despite unfavourable government policies, complain companies in the sector. According to The Cotton Textiles Export Promotion Council (Texprocil), textile and clothing export was $41.4 bn in 2014-15 as against $39.3 bn in 2013-14. “We require a level playing field in terms of interest rates, timely release of incentives and policy support as our competitors enjoy. Through basic manufacturing, we are very much competitive. But, because of these other issues, we become uncompetitive,” said R K Dalmia, chairman, Texprocil. Export of cotton textiles and raw cotton touched $11,353 mn in 2014-15 as against $13,306 mn in 2013-14, a fall of 14.7 per cent. “Exports can do better this year if adequate and timely support is given by the government. They must include cotton textiles under the three per cent interest rate subvention scheme and release funds under the Technology Upgradation Fund . Also, recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme will have a direct bearing in improving India’s competitiveness in the short to medium term.”
In spite of repeated representations, exporters are yet to receive the two per cent additional duty credit scrips under the Market Linked Focus Product Scheme, announced in February 2014. The government has also curtailed individual benefits under the Incremental Export Incentivisation Scheme (2013-14) to a maximum of Rs 0.2 crore. Withdrawal of the Focus Market Scheme for cotton yarn has caused a steep decline in exports to non-conventional markets like Peru and Morocco. Delay in getting Duty Drawback amounts is another issue. “On addressing these issues, India would be able to achieve the year's target of $45 bn. Otherwise, this is difficult,” said Dalmia.
SOURCE: The Business Standard
The West Bengal government has made an ambitious plan to attract around Rs. 37,000 crore in the State through 10 textiles clusters or parks. Chief Minister Mamata Banerjee on Monday said these proposed projects were planned to fetch a total estimated investment of more than Rs. 37,000 crore, which includes setting up of parks. These will provide employment to 6 lakh people. According to estimates, the development expenditure of these projects will be about Rs. 9,159 crore and investment in more than 40 units could be Rs. 26,100 crore. The State will provide land for five units — one in Bankura, two in Kolkata, one in South 24 Parganas and one in Howrah district. The State expects Rs. 8,500 crore investments in the government-assisted Hosiery Park at Jagadishpur in Howrah for knitwear and readymade garments to be developed by West Bengal Hosiery Association at a cost of Rs. 3,100 crore. Regent Garment Park for knitwear and apparel industries, proposed to be developed by a private enterprise at Barasat in North 24 Parganas, is also projected to attract Rs. 8,500 crore in setting up units. Its development cost has been estimated at Rs. 2,900 crore. The State has offered land for another integrated textile park at Belur in Howrah in public-private partnership. This is estimated to cost Rs. 1,050 crore for development and may attract Rs. 3,000 crore worth of investments in power looms, readymade garments and textile processing units. At Ashok Nagar in North 24 Parganas, one such project will be developed at a cost of Rs. 600 crore. It is estimated to have an investment potential of Rs. 2,250 crore.
SOURCE: The Hindu Business Line
Manufacturing activities in May grew at the fastest pace in four months, showed the widely-tracked HSBC Purchasing Managers’ Index (PMI). Manufacturing PMI rose to 52.6 points in May from 51.3 in April. This was the highest PMI reading in 2015, but for January’s 52.9. A PMI reading above 50 shows expansion, while one below that indicates contraction. Gross domestic product (GDP) figures on Friday showed that manufacturing activity rose 7.1 per cent in 2014-15, against 5.3 per cent in 2013-14. The outlook for 2015-16 remained uncertain as April data showed moderation in manufacturing growth compared with March, and May showed high growth recovering somewhat. Manufacturers did not hire additional hands due to the uncertainty of continuing growth. A commentary associated with the PMI survey joined the chorus for a rate cut by the Reserve Bank of India on Tuesday, even as input inflation was higher in May. A look at manufacturing activities in other Asian countries indicated India witnessed the highest growth in May. China saw contraction for the third month in a row; South Korea witnessed the fastest rate of fall in manufacturing output since August 2013; Japan barely managed to come out of contraction.
The sharpest rise in manufacturing output was reported by producers of consumer goods. PMI data was not in sync with the Index of Industrial Production, which continued to show weakness in consumer goods, particularly durables. PMI also showed an increase in capital and intermediate goods’ production. The higher output was due to improved demand from domestic and foreign markets. The volume of new work received increased for the 19th successive month and at the quickest pace since January. This growth was led by capital goods’ producers. However, the PMI survey did not give a break up of rural and urban demand, making it difficult to gauge if rural distress had abated. Overseas demand also rose, though the rise moderated. This was mainly reflected in a reduction in foreign orders received by investment goods firms. Merchandise exports contracted for the fifth month in April, said the official figures. The contraction of economic activities in the US for the first quarter of 2015 would also impact India’s exports sector. Despite the uptick in growth, manufacturing employment was broadly unchanged in May. Over 99 per cent of the panelists reported unchanged staffing levels, on uncertain growth sustainability. Pollyanna De Lima, economist at Markit Economics, a compiler of PMI data, said, “The outlook for the sector is, however, clouded by a stagnant jobs market as firms remain uncertain about the sustainability of an upturn.”
Input price inflation quickened in May, but remained weaker than the series average. Manufacturers reported higher purchasing costs for chemicals, energy, metals and textiles. Following a reduction in the previous month, output prices were raised in May. That said, the latest increase in factory-gate prices was only slight. Any rise in charges mainly reflected increasing input costs. “Input cost inflation ticked higher and output prices were raised in May, but inflation rates are nonetheless weak in the context of historical data. This indicates that further rate cuts are still on the horizon,” De Lima said. RBI is widely expected to cut the policy rate by 0.25 points on Tuesday.
SOURCE: The Business Standard
Output in the eight key infrastructure industries declined in April for a second month in a row, by 0.4 per cent this time, posing a question over the recovery in manufacturing shown by the official gross domestic product (GDP) data. This rate of fall was the steepest in 18 months, since October 2013. The eight industries, termed the core sector, have about 38 per cent weight in the Index of Industrial Production (IIP). None of the sectors, except coal, showed remarkable growth. While five recorded a decline in output, the growth in steel was almost flat, only 0.6 per cent. The eight industries grew 5.7 per cent in April 2014 and fell 0.1 per cent in March 2015.Core sector industries and the IIP do not necessarily show one-to-one correspondence. For instance, IIP rose to a three-month high of 4.9 per cent in February, when core sector growth was only 1.4 per cent. In March, the eight industries contracted but IIP rose 2.1 per cent. For the IIP to rise, the remaining 62 per cent of the segment has to show quite remarkable growth. Besides, electricity production undergoes one more revision between core sector data and IIP, and there is a mismatch between steel data.
Experts said moderation in consumer price index (CPI) inflation would prompt the Reserve Bank of India to cut the policy rate on Tuesday but even that might not brighten the prospects for the core industries. CPI inflation for April eased to 4.86 per cent, the lowest in four months. “The moderation in CPI inflation suggests a high likelihood of a repo rate cut in the June policy review. However, monetary easing is unlikely to brighten the outlook for most core industries, the performance of which is afflicted by factors such as supply-side constraints and the lack of competitiveness with respect to imports,” said ICRA senior economist Aditi Nayar.
Electricity generation fell 1.1 per cent in April versus growth of 1.7 per cent in March, a sombre performance for a second month. This might impact growth of the industries. Coal, the only exceptional sector, rose 7.9 per cent in April after six per cent growth in March and a stupendous 11.6 per cent in February. Output of all other industries declined — natural gas by 3.6 per cent, refinery products by 2.9 per cent, crude oil by 2.7 per cent, cement by 2.4 per cent and fertiliser by 0.04 per cent. Official GDP figures issued last week showed manufacturing rose 7.1 per cent in 2014-15, against the advance estimate of 6.8 per cent, and 5.3 per cent in 2013-14. The core sector data for the first month of 2015-16 is quite disappointing. While the base effect does explain this movement, it nonetheless casts a semblance of a shadow on the expected growth this year," said CARE Ratings' chief economist, Madan Sabnavis, while also cautioning against interpreting a single month's data as an indication of things to come.
SOURCE: The Business Standard
The Maharashtra government is keen to ensure that upgradation of its port policy results in increase in coastal shipping of goods and opens gates for export-import trade. At present, 94 per cent of the cargo moves through roads and air, while only six per cent via water, Principal Secretary (Transport and Ports) Gautam Chaterjee told PTI. "Our endeavour is to ensure that of the 720 kms state coastline, there should be a port at every 100 km where big ships can dock," he added. Chaterjee further said: "The coming port policy of Maharashtra focuses on upgradation of the existing policy to make it comprehensive and fix gaps, if any." Maharashtra Maritime Board and JNPT will soon sign an MoU for developing a port at Wadhwan in Dahanu with 74 per cent equity of JNPT and 26 per cent of Maritime Board, he added. A place for establishing port has also been unidentified at Nandgaon in neighboring Palghar district. The government wants to build ports through private partnership. "We will identify the place and put up the facilities for private players who will develop the port," he said, adding that the new policy would come out in two months.
SOURCE: The Business Standard
The West Bengal government on Monday said that any agricultural or residential land could be converted for other purposes within a month in the State. Mutation of land for industrial units could also be done in three weeks. In an integrated initiative, the government has simplified much of the paper work and removed procedural delays for setting up businesses in the State. Through amendments of relevant laws and time-bound commitments for clearances, the State government said it was ready to usher in easy ways of doing business. Chief Minister Mamata Banerjee assured the business community that right from issuing trade licences to sanctioning building plans, every statutory permission will be delivered within the prescribed timeline of 15 to 30 days. Flanked by ministers and bureaucrats, the Chief Minister announced self-certification and self-attestation will be allowed in all transactions with the government henceforth. Around 400 relationship managers, newly appointed by industrial development wings, will facilitate businesses, she added. Among other measures was the exemption of pollution control certificates in case of a new electricity connection.
‘Positive message’
Reacting to the new initiatives, CII President Sumit Mazumdar said that the West Bengal government has already brought about transparency and efficiency by extending e-governance in many areas of interface with the business community. “These new set of measures would make things easier for setting up businesses in the State,” he added. “Chief Minister has sent out a very positive message for industry and business,” said Alok Roy, President of Bengal Chamber. As a commitment towards the right to services, the State will issue NOCs within 15 days for building plans under the West Bengal Town Country (Planning and Development) Act. “If it is not issued within 15 days, then it would considered as deemed to be approved,” said Amit Mitra, Finance Minister.
SOURCE: The Hindu Business Line
Chief Minister Naveen Patnaik directed officials to simplify regulatory mechanisms for doing business in state. CM Patnaik on Monday directed officials to accord top priority to simplify regulatory mechanisms to make Odisha one of the easiest places for doing business. Patnaik was chairing a meeting on ‘Ease of doing business’ at the Secretariat here. Patnaik directed all concerned departments to bring proposals in the next Cabinet, in case of any regulatory reform needs Cabinet approval. It was revealed in the meeting that the Water Resources, Home and Labour and ESI Departments and State Pollution Control Board (SPCB) have made significant improvements in developing e-biz, which have electronic mechanisms for clearances, payments, approvals etc. The meeting decided online payment of and return for entertainment tax would be implemented by June 30 while Commercial Tax department would issue approval certificates online in the form of digitally signed documents by June 30. Conducting of inspection as part of obtaining electric connection would be done away with June 30. The SPCB would introduce provision of online returns for various pollution related acts through a common application. The IPICOL would soon make notification to provide clear timelines for addressing investor grievances. A Central Inspection Agency would be set up soon which will be responsible for various inspections. It was revealed in the meeting that data at Sub-Registrar’s office and Land Record Offices have been digitised. The Municipality land records would be digitised and will be integrated into the data of the Sub-Registrar’s office and Land Record Offices. Revenue Minister Bijayshree Routray, Urban Development Minister Puspendra Singh Deo, Labour and ESI Minister Prafulla Mallick and Chief Secretary GC Pati among many senior Government officials were present.
SOURCE: The Orissa Diary
India and EU need to quickly resolve their differences and sign a mutually beneficial agreement There is renewed hope that India and the European Union (EU) are finally coming around to finalise a free trade agreement, negotiations for which started eight years ago in June 2007. A well negotiated agreement would provide further boost to trade and investment flows between the two regions. Some estimate that trade may double. The agreement will also enable India’s increased integration with the global economy. The EU, taken as single unit, is India’s largest trading partner but India is only the ninth largest trading partner of the EU. The EU is also one of the largest investors in India and the largest source of technology transfer to India. The negotiations that were stalled about two years ago due to deep differences between the two sides may restart as early as this month. Commerce and industry minister Nirmala Sitharaman is expected to meet her EU counterpart Cecila Malmstrom when she is Paris on June 2-3 for meeting of the OECD, the ambassador of European Union to India Joao Cravinho indicated recently. The two leaders are widely expected to discuss a roadmap for taking forward talks on the free trade agreement, formally known as broad-based trade and investment agreement (BTIA). India and the EU have held 15 rounds of talks so far, but differences persist on matters such as tariff on cars, wines and dairy products imported from the EU and liberalised visa regime for Indian professionals entering the EU region. As talks seem set to restart, a look where India-EU trade relations stand and issues that are holding up the talks.
Indo-EU Bilateral trade
India exported goods worth $49.3 billion in 2014-15 to EU and imported goods valued at $48.3 billion. Although exports to the EU fell 4.5 per cent in value, it was 15.9 per cent of the country’s exports for the year. The main items of export include petroleum products, textiles, apparels, footwear, gems and jewellery and machinery and transport. Imports too contracted in value in 2014-15, falling 3.2 per cent from the previous year. India’s imports from the EU accounts for 10.8 per cent of all goods imported and includes machinery, gems and jewellery, chemical products and transport equipment. India, in comparison, is a much smaller trade partner for the EU. Imports from India constitute just about 2.2 per cent of all imports by EU-28 (the 28 member countries) and exports to India 2.1 per cent. Trade between the two partners has been hovering around $100 billion for the past five years, with the best year being 2011-12, when it rose to about $110 billion. The terms of trade are currently marginally favourable to India.
What BTIA hopes to achieve
The negotiations between the two sides are wide ranging. The ultimate objective is to liberalise two-way trade in goods and services and flow of investments. This is to be achieved through improved market access for both sides and facilitating trade, reduction in tariffs on an agreed set of goods, lowering non-tariff barriers to trade which come in form of sanitary and phyto-sanitary measures and technical barriers to trade, strong protection of intellectual property and geographical indications, establishing binding dispute settlement mechanisms, allowing freer movement of professionals and mutual recognition of the qualifications. The implementation of the FTA is expected to bring down tariffs by 90 per cent over ten years.
When negotiations began, India had high tariffs in areas of interest to the EU and restrictions on foreign direct investment (FDI) in many sectors including insurance and trade. Now, India allows up to 49 per cent FDI in insurance and 100 per cent in wholesale trade and single brand retail. The policy, as it stands, also allows up to 51 per cent FDI in multi-brand retail trade, even though the Bharatiya Janata Party (BJP) is opposed to it on principle. The policy decision was made by the previous United Progressive Alliance (UPA). One would suspect that the BJP-led National Democratic Alliance (NDA) government has not reversed the UPA government’s decision to avoid creating more hiccups in its trade talks with the EU. Tariffs on some goods like wines and cars remain high, between 60 per cent and 100 per cent. For India, regulations and higher quality standards in the EU act as barrier to trade. Indian export consignments are rejected for failing to meet EU’s sanitary and phyto-sanitary standards, as happened in the case of Alphonso mangoes which were banned in May 2014 after fruit flies were reportedly found in a consignment. The ban was removed earlier this year. Indian service providers face problems relating to visas and work permits which restrict their mobility within the EU.
What India wants
India’s demand include data secure status for the country, liberalised visa norms for its professionals and market access in services and other sectors including pharmaceuticals, agricultural produce, chemicals, textiles, apparels and leather goods. There is optimism that textiles, apparels and leather goods may get improved access into the EU and that should help these industries to expand their operations. India is not among nations considered data secure and that hampers flow of sensitive data such as intellectual property or patient information under data protection laws in the EU. In the absence of data secure status, Indian companies and subcontracting parties have to meet the cumbersome requirements laid down under the EU directives on data protection and that increases their cost of operation. There are some double standards on the part of the EU in this, as India has amended the Information Technology Act, 2000 and issued new Information Technology Rules in 2011 which are in line with the safe harbour principles adopted by the United States, which has been accorded data secure status.
India has also sought access for its skilled professionals to temporarily reside and work in EU countries. Indian businesses would gain significantly in services if rules on movement of professionals are liberalised. The trouble is that the EU is not an integrated market for services and so work permits and visas are under individual members and this creates problems for intra-EU movement of professionals. For instance, a software consultant with a work permit in Germany cannot offer services in another, say, France. He will need work permit from French authorities too. Lack of harmonisation of qualifications and professional standards is another problem that restricts the ability of Indian professionals to access the EU markets.
What the EU wants
The EU wants India to liberalise its professional services sector, specifically accountancy and legal services. However the Institute of Chartered Accountants of India and Bar Council of India are vehemently opposed to such liberalisation as they fear they will be run over by the large accounting and law firms from overseas. The EU has also sought massive cuts in India’s tariff on automobiles and auto components. Fully assembled cars attract 60 per cent import duty which rises to 75 per cent for cars with f-o-b (free on board) value over $40,000 and engine capacity of 3,000 cc for petrol and 2500 cc for diesel. The EU sees this as over-protection, as the tariff on Indian cars imported into the EU is 6.5 per cent. The Indian industry however fears that a sharp cut in duties will lead to European made cars flooding the Indian market, threatening investments made in the country. Also, there are fears that auto-components will be imported into India at the concessional rate.
Additionally, the EU has sought deep cuts in tariff for wines and spirits. India currently levies import duty of 100-150 per cent on these. In addition, there are state taxes. Alcohol is a major source of revenue for states and they will not agree to cut taxes on this. After all, the have also managed to keep alcohol meant for human consumption outside the goods and service tax (GST). Strengthening of the intellectual property rights regime is another demand of the Europeans. The Indian laws do not allow ever-greening of patents or data exclusivity and that prevents them from bringing generic drugs and various chemicals into India. However, if India were to accede to the EU demand, the Indian pharmaceutical industry will not be able to sell cheaper copies of patented drugs without conducting extensive clinical trials of the drugs. At present, they can, using bio-availability or bio-equivalent data to prove that the copy works as effectively as the original drug.
Why the agreement is critical for India
India has higher stakes in getting the agreement in place than the EU. This is because the EU is partnering the United State for two mega regional trade agreements, which India is not a part of. The two mega-regionals are Trans Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (T-TIP). While T-TIP is an agreement between the United States and the EU, the TPP members include many countries from the Pacific Rim such as Vietnam, Malaysia, Chile and Peru. Once these mega regional agreements are finalised, Indian goods may face difficulties in accessing the European markets. However, with a separate bilateral trade agreement such as BTIA, Indian exports can hope to continue getting access. The mega regionals also encourage creation of global value chains whereby processes are split across countries to exploit each nation’s competitive edge and thus drive down costs while raising standards. India has an insignificant role in the value chains of European companies. The mega regionals can lead to investment diversion away from non-member countries to signatories. India could also do with greater flow of investment and technical cooperation from the EU for many of its development projects. Many European companies are known to have done pioneering work in setting up of smart cities. As India plans to develop 100 smart cities, their assistance would help in planning and execution of these projects. Likewise, many programmes planned by the government could benefit from cooperation from the EU-based companies.
SOURCE: The Swarajya Magazine
A FREE trade agreement (FTA) between Australia and India is expected to be completed by the end of this year, according to Senator Richard Colbeck, who says services, not primary production, will be the main beneficiary. In the wake of Australia finalising an FTA with China last November, producers and government officials immediately looked to the next trade partner which could unlock substantial benefits for Australia's agricultural industry. With India earmarked as the next big thing in trade relationships, Senator Colbeck said agricultural businesses needed to export their services, rather than commodities, to the Indian market. "It is a very different market to our traditional markets," he said. "That is one of the things that agricultural businesses need to consider when looking at those markets.”At the moment it is probably a service offering (market)." Senator Colbeck said an FTA with India would reduce the country's reliance on trade to China and Japan. "A lot of the discussion in Australia is about Australia being the food bowl of Asia," he said. "If we double our production by 2050 we will feed ourselves plus 1.3 per cent of all of Asia.
SOURCE: The Stock and land
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 61.84 per barrel (bbl) on 01.06.2015. This was higher than the price of US$ 60.89 per bbl on previous publishing day of 28.05.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3933.64 per bbl on 01.06.2015 as compared to Rs 3942.92 per bbl on 29.05.2015. Rupee closed stronger at Rs 63.61 per US$ on 01.06.2015 as against Rs 63.76 per US$ on 29.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 01, 2015 (Previous trading day i.e. 29.05.2015) |
Pricing Fortnight for 01.06.2015 (May 14 to May 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
* 61.84 (61.84) |
63.49 |
|
(Rs/bbl |
3933.64 (3942.92) |
4045.58 |
|
|
Exchange Rate |
(Rs/$) |
63.61 (63.76) |
63.72 |
* Since Oman & Dubai price are not available due to holiday in Singapore on 01.06.2015, the price of Indian Basket Crude oil cannot be derived. Therefore, price of Indian Basket as 29.05.2015 has been considered.
SOURCE: PIB
Manufacturing activity showed few signs of picking up across Europe, Asia or the Americas in May as demand stayed stubbornly weak, highlighting the need for central banks to continue supporting economic growth. The gloomy business surveys come a little less than three months after the European Central Bank embarked on a 1-trillion-euro stimulus programme, and will likely fuel expectations its counterpart in Beijing will have to roll out more aggressive policy measures. Euro zone factory growth was weaker than previously thought last month, while Chinese factory activity barely accelerated, and U.S. manufacturing activity growth slowed.
A measure of global manufacturing growth showed activity accelerated slightly last month but remained weak as firms around the world focused on existing orders. "Across the euro zone as a whole it is plodding along. We can probably do with a little bit more strength out of Germany and France," said Peter Dixon at Commerzbank. "We are going to have to live with rather slower growth in China. We have seen some modest monetary easing and I expect that will continue." The May final manufacturing purchasing manager's index (PMI) from private data vendor Markit for the euro zone was 52.2, below a preliminary reading of 52.3 and just ahead of April's 52.0. Worryingly for the ECB, the region's top two economies struggled. German factory growth slowed to a three-month low and French manufacturing activity, though improving, still contracted. But Spanish manufacturing grew at its fastest rate in over eight years and Italian factory output hit a four-year high. The Markit/CIPS manufacturing PMI for Britain, outside the common currency area, rose to 52.0 from a downwardly revised 51.8 in April, weaker than forecast. JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI), produced with Markit, nudged up to 51.2 in May from April's near two-year low of 51.0.
ASIAN DRAG
China's official manufacturing PMI edged up in May but a private survey focusing on small and mid-sized firms showed their activity contracted for a third straight month. Both indexes are hovering around 50, pointing to very subdued activity at best. And both showed a further contraction in export orders was prompting factories to shed workers. A separate survey showed growth in China's services industry, which had been the lone bright spot in the economy, cooled. "We believe risks to the outlook remain to the downside," analysts at Barclays wrote in a note. China's central bank has already cut interest rates three times in six months and is widely expected to ease policy further in coming months. "The economy sees little sign of a pick-up," HSBC economists said. "We forecast more aggressive policy easing, including a 50-basis-point reserve ratio cut in the coming weeks." The picture in neighbouring Japan appeared slightly better, with the Markit/JMMA final PMI reading at 50.9.
AMERICAS
Growth in the U.S. manufacturing sector slowed very slightly in May, as a deceleration in new orders offset an improvement in employment, according to Markit. The final U.S. Manufacturing PMI was 54.0 in May, little changed from 54.1 in April. "With manufacturers reporting the smallest rise in new orders since the start of last year, the survey provides further evidence that the strong dollar is hurting the economy," said Chris Williamson, chief economist at Markit. "While the economy still looks set to rebound from the decline seen in the first quarter, the extent of the second quarter recovery therefore remains highly uncertain and could well disappoint." However, a separate survey from the U.S. Institute of Supply Management showed the pace of U.S. manufacturing growth rose in May. ISM's index of national factory activity was 52.8, up from April's reading of 51.5, which had tied with March's figure as the lowest since May 2013.
In Canada manufacturing sector, activity contracted in May for a fourth straight month as new orders and employment remained soft. The Markit/RBC PMI edged up to a seasonally adjusted 49.8 last month from 49.0 in April but the index has been below the 50 mark that indicates growth in the sector since February. Activity in Brazil's floundering manufacturing sector contracted at its sharpest pace in almost four years in May, furthering expectations that Latin America's largest economy is settling deeper into a painful recession. The Markit/HSBC Brazilian manufacturing PMI fell to a seasonally adjusted 45.9 in May from 46.0 in April. Persistently high inflation rates and higher import costs due to a depreciating local currency have weighed on Brazilian companies' competitiveness. Meanwhile, dropping consumer confidence continues to fuel pessimism among businesses. Mexico's manufacturing sector sentiment also slipped in May to a seven-month low as output dipped, but there were signs of strong new export orders helped by a weak peso. The Markit/HSBC Mexico Manufacturing PMI dipped to 53.3, its lowest since October and down from 53.8 in April. Mexico's peso hit a record low in March and has recovered only slightly. A slump in oil prices and expectations of higher interest rates in the United States have hammered Mexico's currency since last year.
SOURCE: The Reuters
The round table organised by EURATEX during its General Assembly on 28 May 2015, became an exceptional opportunity to meet young entrepreneurs sharing their views on the challenges and opportunities for creating and running a manufacturing SME in Europe. Five fashion and textile start-up companies from UK, France, Belgium and Spain came to Brussels to present their ideas, new business models and innovative methods of production.
Recipe for successful start-up
From the wide-spectrum of markets addressed during the round table there is no single recipe for a successful start-up, perhaps a number of ingredients should be combined – talented people with a bright idea, a good strategy and a decent plan of its execution, the European Apparel and Textile Confederation reports. The round table was organised by EURATEX during its General Assembly on 28 May 2015 and featured five fashion and textile start-up companies. The role of the external support is essential, in terms of finance and mentoring in protecting and safeguarding innovation. However, there are much more factors that determine the actual success of the newly created textile and fashion companies, according to the Confederation. Marcel Olivé, CEO of Nooem – the Spanish company producing textile-based accessories for technology, underlined that business environment should be more favourable for young companies willing to produce made in Europe goods. He believes that entrepreneurial people often get discouraged by uneasiness to start and run their own business – administrative burdens, stern taxation rules and humble access to finance.
Trust and mutual understanding
Building trust and mutual understanding among the actual and potential partners is another challenge for the new companies. Catherine Teatum and Rob Jones, owners of London based womenswear brand Teatum Jones, say it was not easy for them to build the reputation of trusted business partners. Receiving the renowned awards from the UK Fashion and Textile Association and the Centre of Fashion Enterprise helped them to gain recognition. BioSerenity, the company using smart clothing with embedded medical diagnostic devices, has also been recognised by a number of international awards. Pierre-Yves Frouin, the company’s CEO, pointed out that along with the financial prize, awards bring valuable mentoring support and networking opportunities. Venture capital is another source of finance for young companies. However, all participants of the round table agreed that while preparing fund raising a long time in advance, the start-ups should not lose track of their own business model and strategic priorities.
Cross-fertilization of ideas
To start a prosperous company, often there is no need to reinvent the wheel – one should apply disruptive approach to the existing models and cooperate with the right partners, often thanks to the mentoring role of incubators. Sébastian Ramel explained how using data in different manner brought success to his start-up company Fitizzy – an online service helping consumers to calculate the right size of clothing purchased online. An interesting example of cross-fertilization of ideas was also given by the company Projects, which started the production of textile based volleyball nets with embedded led lights. To respond to the specific need of certain sport it implied launching new industrial value chains on very narrow market niches.
SOURCE: The Innovation in Textiles
China and South Korea on Monday formally signed the bilateral free trade agreement (FTA), sharing views that the pact will serve as an all-round cooperative platform for both countries to seek new growth engines. Chinese commerce minister Gao Hucheng and his South Korean counterpart Yoon Sang-jick formally signed the bilateral FTA in central Seoul, three years after the two countries began talks on the deal in May 2012. After President Xi Jinping's state visit to Seoul in July 2014, negotiations on the pact witnessed rapid progress. President Xi and his South Korean counterpart Park Geun-hye announced a conclusion of substantive negotiations on the deal in Beijing in November 2014, and the two nations initialed the FTA three months later. The deal, written in Chinese, Korean and English, will be implemented after being ratified by the parliaments of both countries. Xi and Park exchanged letters to re-confirm their support and expectations for the largest bilateral FTA for China in terms of trade volume. Xi said in his letter that the FTA will bring a leap forward in the bilateral trade relationship, substantively benefit the people of both countries and further contribute to economic integration of East Asia and the Asia-Pacific region, as well as to the global economic development. Park said in her letter that the FTA deal is a historic landmark which will deepen the bilateral strategic cooperative partnership and serve as an institutional framework for future cooperation.
During the ministerial talks on the sidelines of the formal signing ceremony, Gao and Yoon shared views that the Sino-South Korea FTA will expand bilateral trade and investment, and that it will serve as an all-round cooperative platform for the two countries to seek new growth engines. The two commerce ministers exchanged views on various issues, including a regional economic integration via the trilateral FTA between Beijing, Seoul and Tokyo and the Regional Comprehensive Economic Partnership (RCEP). Under the free trade deal, South Korea will eliminate tariffs on 92% of all products from China within 20 years after the implementation in return for China abolishing tariffs on 91% of all South Korean goods. The two countries agreed to resume negotiations about the services sector within two years after the FTA comes into force to seek an opportunity for further liberalization of the sector.
Furthermore, a total of 310 products manufactured at the Kaesong Industrial Complex would be subject to preferential tariffs right after the FTA implementation, allowing for more benefits to the industrial park than any other free trade pacts that South Korea has signed. The industrial zone is located in the North Korean border town of Kaesong, north of the heavily fortified land border that separates the two Koreas. About 120 South Korean companies are running factories there, hiring some 53,000 DPRK workers. South Korea expects the bilateral FTA to raise its real GDP by 0.96 percentage points and create 53,800 new jobs in the next 10 years after the implementation. The FTA was forecast to help South Korean companies make foray into the world's largest consumer market. China's GDP amounted to US$10.4 trillion in 2014, more than seven times South Korea's US$1.4 trillion, according to Seoul's trade ministry. Though the rate of growth has slowed in the last few years, China remains one of the world's fastest growing economies with an annual growth rate of more than 7%. Trade between China and South Korea has risen to US$235.4 billion in 2014 from US$6.4 billion in 1992 when the two countries established diplomatic ties, according to data from the Korea International Trade Association (KITA). China has been South Korea's No.1 trading partner since 2004. South Korea has been China's fourth-largest trade partner since the same year, according to the KITA data.
SOURCE: The WantChinaTimes
On May 24, Chinese Premier Li Keqiang arrived in Chile’s capital city of Santiago. Chinese senior officials proposed that the Free Trade Agreement (FTA) between China and Chile be upgraded to cover more products and expand tax breaks. Chinese enterprises are encouraged to invest in Chile’s wind energy industry and the construction of hydropower and photovoltaic power stations. Following the proposal, the two countries signed a double taxation agreement (DTA), marking China’s 100th tax agreements signed with other countries. Chile was the first country in Latin America to sign an FTA with China, and this year marks the pact’s 10th anniversary. In Latin America, Chile is China’s third-largest trading partner. The bilateral trade between the two sides reached US$ 34.1 billion in 2014.
SOURCE: The China Briefing
Peru and Honduras have inked a Free Trade Agreement, which aims at boosting trade and investments in both nations. The deal was signed by Peruvian minister of foreign trade and tourism Magali Silva and Honduras’ foreign affairs minister Auturo Corrales Alvarez on Friday, after which a ceremony was held in Lima to mark the culmination of an official visit by Honduran premier Orlando Hernandez to the Andean nation. The agreement covers areas including market access, trade and investment, sanitary and phytosanitary regulations, competition and intellectual property, among others. Peruvian president Ollanta Humala Tasso said the deal marked a significant step towards the conquest of new markets. “This is an important step to intensify trade integration and find new stages to pursue trade cohesion,” he told Andina. “It will allow both private forces and governments to forge trade-related strategic partnerships.” Hernandez claimed the agreement plays an important role in his country’s attempt to partner with the Pacific Alliance. “To Honduras it (the agreement) means a lot, because this allows us to meet the basic requirements that now give us a place as potential candidates to become full members of the Pacific Alliance,” he said after explaining that what needs to be done now is to get the agreement ratified by the Congress of his country.
SOURCE: The Fruitnet
Clothing made from tropical fabrics such as piña and banana are usually used only during weddings, baptisms, burials and other special occasions in the Philippines. But the Philippine textile research institute of the department of science and technology (DOST-PTRI) is keen on making tropical fabrics more mainstream, it said on its website. The establishment of PTRI’s P54 M innovation centre for yarns and textiles (ICYT) that will produce yarns customized to customers’ and industry needs is a step closer to this goal which is part of the bigger objective of revitalizing the textile industry in the country. The innovation centre has been established to produce yarns of abaca, banana, pineapple and other indigenous fibres to make them available to handloom weaving communities and commercial millers or knitters in the country. “We aim to make indigenous yarns accessible to our handloom weaving communities as well as commercial millers or knitters,” said PTRI Director Celia Elumba during the launch of the innovation centre recently in Taguig City recently. Elumba also revealed that PTRI has partnered with Power Fashion, the company behind the local clothing brands Unica Hija, Vise Versa, and Bayo, which has agreed to use locally produced tropical fabrics in one of their capsule collections.
The ICYT is just the first of PTRI’s initiatives geared toward reviving the textile industry. Senator Loren Legarda, who graced the launching, expressed support for these initiatives. Senator Legarda renewed her call for the convergence of concerned local government agencies in strengthening the local fabrics industry during the launch of the ICYT. She said promoting the use of tropical fabrics will not only preserve Filipino culture and heritage but will also help support the agricultural sector. Legarda is the author of the Tropical Fabrics Law which aims to promote Philippine tropical fabrics through the use of such materials for the official uniforms of government officials and employees. PTRI will also establish regional handloom innovation centers and work on upscaling the natural dye production in the country to complement the innovation centre. DOST secretary Mario G. Montejo noted that the department’s efforts in reviving the industry is part of its contribution to the government’s vision of inclusive growth as these are seen to bring economic activity in the countryside
SOURCE: Fibre2fashion
The pressure on India to allow the e-commerce sector to be a part of the proposed Regional Comprehensive Economic Partnership (RCEP) pact is set to intensify with Australia ready to put its weight behind Japan’s demand for its inclusion at the next round of negotiations in Kyoto this week. “We will certainly support Japan at Kyoto, as we want a separate chapter on e-commerce in the RCEP agreement. We are ready to keep our ambitions low to begin with, but the pact has to have provisions for higher levels of opening up in the future,” an Australia government official told Business Line. The RCEP, which is being negotiated between the 10-member ASEAN, India, Japan, China, Australia and New Zealand, has been focussing mostly on goods, services and investments. Japan, however, floated a paper earlier this year on e-commerce proposing that members take up commitments to give national treatment and non-discriminatory dispensation to digital products and a working group be set up to open up the e-commerce sector.
FDI rules
India does not allow foreign direct investment (FDI) in business-to-consumer e-commerce but allows 100 per cent FDI in business-to-business e-commerce. Foreign players, such as Amazon and eBay, are in India in the marketplace model where they do not sell their products but allow a platform to other players to sell their goods. “We are aware that attempts will be made to include e-commerce formally in the RCEP negotiations at Kyoto. But we will not let the RCEP dictate our domestic policies and will not take on any commitments that go against our country’s interest,” a Commerce Ministry official said. The next round of RCEP talks will begin on June 7 and attempts will be made to wrap up the negotiations by the year-end. With its 16 members, the RCEP is set out to be the biggest regional trade bloc once it is concluded. The Australian official said that to accommodate needs of countries such as India in the area of e-commerce, it was ready to go slow in the beginning. “We can accept very low ambitions to begin within e-commerce. But the chapter should ensure that the sector is opened up substantially at a later time,” the official said.
SOURCE: The Hindu Business Line
