Textile Raw Material Price 2015-06-08
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1271.9 |
USD/Ton |
0% |
|
VSF |
2031.9 |
USD/Ton |
0% |
|
ASF |
2490.9 |
USD/Ton |
0% |
|
Polyester POY |
1220.6 |
USD/Ton |
-1% |
|
Nylon FDY |
3098.3 |
USD/Ton |
0% |
|
40D Spandex |
6392.3 |
USD/Ton |
0% |
|
Nylon DTY |
1443.2 |
USD/Ton |
0% |
|
Viscose Long Filament |
3375.5 |
USD/Ton |
0% |
|
Polyester DTY |
5960.2 |
USD/Ton |
0% |
|
Nylon POY |
1495.4 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2935.3 |
USD/Ton |
0% |
|
Polyester FDY |
2685.8 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2723.3 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1989.5 |
USD/Ton |
-1% |
|
45S T/C Yarn |
2984.2 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2185.1 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2511.3 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2886.3 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2739.6 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.1415 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.9621 |
USD/Meter |
-3% |
|
40S Combed Poplin |
1.3535 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.7746 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.7827 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16307 USD dtd. 6/08/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Indian textile manufacturers face the pressure of cheap import of synthetic yarn from China. They blame the 12.5 per cent excise levy on the product for not being able to compete in price, and have urged the government to remove it. In the first 11 month of 2014-15, staple fibre import rose to $197 million as compared to $149 mn in the same period of 2013-14, showed data compiled by the Synthetic & Rayon Textile Export Promotion Council (SRTEPC). In the past two years, Chinese cost of manufacturing has gone up — wages, energy and financing. Consequently, their export share has gone down by 10-12 per cent. However, the capacity additions made in two years have resulted in excess availability of synthetic yarn and fibre, says the industry here, alleging this being dumped in India. “The only way forward, therefore, is to reduce excise duty on all synthetic textile raw materials and fabric, to enable Indian producers to grab the global opportunity vacated by China,” said Anil Rajvanshi, chairman of SRTEPC.
The Council says the 12.5 per cent levy makes us uncompetitive in global markets, too, with China’s vacated space taken by Bangladesh and Vietnam. Apart from fibres, filament and spun yarn import of $825 million, India also imported synthetic fabric worth $780 mn in 2014-15. Filament yarn is woven directly for synthetic saris and other dress material, an item of mass consumption. Pruducers here are in the small, medium and large segments. “Rising import has resulted in about 30 per cent of looms closing in major producing centres like Surat. Thus, the industry needs urgent attention,” said a senior official from the sector. It is a mass commodity product and thus, sold at cheaper prices as compared to staple fibre which is mixed with cotton and viscose to produce good quality suiting and shirting etc. Thus, PSF is sold at import parity. In India, out of 4 million tonnes of polyester produced, 3 million tonnes is filament yarn.
SOURCE: The Business Standard
A group of textile entrepreneurs from Tirupur cluster and its hinterland called on State Industries Minister P. Thangamani for requesting the State Government to represent the grievances of the textile sector pertaining to cabotage rules and subsidy under Technology Upgradation Fund Scheme (TUFS) to Centre. Prabhu Damodaran, secretary of the Texpreneur Forum which coordinated the pleas, told The Hindu that the present cabotage rule prevents the foreign vessels from carrying cargo from one Indian port to another even if the ship from abroad has adequate space left after off-loading certain quantity of cargo in one of the Indian ports en-route to another Indian port. “These restrictions are hampering the transportation of raw materials like cotton from Gujarat via sea route as services by Indian vessels between one Indian port to another port are much lesser when compared to the foreign vessels shuttling between our ports. If cotton is transported instead by lorries, only smaller quantities can be forwarded and also the transportation costs goes up steeply,” he said. The entrepreneurs have asked Mr. Thangamani and Secretaries in textile and industries Ministries in Tamil Nadu to make a representation to the Union Government to dilute the cabotage rules or at least relax the rules in the case of agricultural produces so that cotton, the main raw material for apparel production in Tirupur belt, could be comfortably transported. “Presently, seven million bales of cotton (one bale if 170 kg) are forced to be transported through lorries due to inadequacies in ship transportation subsequent to the cabotage rules,” said Mr. Prabhu Damodaran. Another important issue for which the State Government support was sought to put pressure on the Centre has been the subsidies pending under TUFS. As of now, almost Rs. 1,500 crore worth of subsidies are pending disbursal in Tamil Nadu alone. If this was cleared, Tamil Nadu economy will boom,” industrialists pointed out. The need for reducing the duties on manmade fibres was also stressed by the entrepreneurs to the Minister.
SOURCE: The Hindu
Industry bodies welcomed the move of Bangladesh government to give transit access to India. The Federation of Industry and Commerce of the North East Region (FINER) on June 8 said that the agreement on India's longstanding request for transit rights through Bangladesh, signed during Prime Minister Narendra Modi's maiden visit to the country, will open up a new era in trade and commerce between the two neighbours. According to FINER, the agreement that focuses on connectivity by road, rail, rivers, sea, transmission lines, petroleum pipelines and digital links will yield tremendous economic benefits. "This transit right will improve Northeastern region's connectivity with Southeast Asia and South Western China. Goods movements from different parts of India will be faster as waterways of Bangladesh can be used to move consignments," said FINER chairman RS Joshi.
SOURCE: The Economic Times
The textile sector accounts for about 14 per cent of India's industrial production and nearly 12 per cent of the country's export earnings. CRISIL has analysed the performance of more than 200 micro, small, and medium enterprises (MSMEs) in the textile sector, rated on the basis of their financials during the period 2011-12 to 2013-14 (financial year April 1 to March 31). The analysis reveals that while net sales have registered a compound annual growth rate (CAGR) of 20 per cent, the operating profit and net profit margins have declined by 10-30 basis points (one percentage point is 100 basis points) during the three-year period. The operating profit margins declined on account of raw material price volatility and other factors. Additionally, higher interest and depreciation costs as a result of capacity additions and modernisation have also contributed to a decline in the net profit margins. CRISIL expects a slowdown in both domestic demand and export demand from the Western markets during 2015-16. However, favourable raw material prices are expected to result in a marginal improvement in profit margins.
SOURCE: The Business Standard
Indian economy is witnessing "stable growth momentum" and mixed trends are seen in other parts of the world including China and the US, according to Paris-based think tank OECD. The assessment is based on the grouping's Composite Leading Indicators (CLIs), that are designed to anticipate turning points in economic activity relative to trend. "The CLIs continue to point to stable growth momentum in India and to easing growth in China. However, a loss in growth momentum remains the outlook for Brazil," the Organisation for Economic Cooperation and Development (OECD) said on Monday.
OECD, a grouping of 34 countries, last week projected India's growth to remain "strong and stable" at 7.3 per cent in 2015 on the back of revival in investments. Pegging the growth rate at 7.4 per cent for 2016, the grouping had said that decline in oil prices would reduce pressures on the current account deficit, inflation and subsidies. India has surpassed China to become the world's fastest growing economy by clocking 7.5 per cent GDP for the March quarter. In 2014-15, economy grew 7.3 per cent, as per figures released by Central Statistics Office last month. Meanwhile, OECD said the CLIs point to firming growth in the euro area, particularly in France and Italy, while growth momentum shows signs of easing in Canada and the US," the grouping said in a statement. Stable growth momentum is anticipated in the UK, Germany and Japan, and tentative signs of a positive change are emerging in Russia, it added.
SOURCE: The NDTV News
Further easing of the rules for companies to raise funds from overseas may not be carried out soon. The government and the RBI are yet to firm up a plan to deregulate external commercial borrowings (ECBs) and at the same time make hedging mandatory for foreign currency risks as was suggested by an expert panel, sources said on Monday. The restrictions on ECBs would remain for now till the central bank was comfortable that it would be able to address potential risks to macro-economic stability from complete liberalisation of borrowing norms, a senior finance ministry official said. “Once the RBI is comfortable that it can monitor hedging, then we can go ahead with it,” the official said. The central bank is yet to propose a transition path for implementing the Sahoo panel report, the official said.
The MS Sahoo panel, which submitted its report in March, had suggested removal of restrictions such as sectoral and company-specific caps, maximum cost of funds, maturity and end-use-related for ECBs. It also suggested compulsory currency hedging, in sync with the requirements of the economy at a given time with the underlying theme of averting a market failure. The panel said the current norms “are neither contemporary nor grounded in addressing identified market failures”. The proposed reform was meant to end the discretionary (approval) route that lends itself to an undesirable degree of subjectivity. “Ultimately, everyone wants that outcome (suggested by the Sahoo panel),” the official said. There are some concerns that increasing limits in ECB were very risky and liberalising it completely could trigger a situation like the Asian (currency) crisis, another official said.
The RBI and the government are currently discussing on how to reach it, “but so far we don’t think it’s a good idea to increase the ECB limits”, the second official said. The authorities aren’t sure by how much overseas borrowing would rise if ECB norms are liberalised, but expect that the local currency to turn more “volatile”, in the current global situation, the officials said. The government and RBI have an understanding among them that the overall ECB in a year should not breach the $40-billion mark.
SOURCE: The Financial Express
Emerging market (EM) currencies came under pressure on Monday, after US Federal Reserve rate rise fears surfaced. The rupee ended near a month’s low of 64.09 to the dollar, compared with the previous close of 63.76. It opened at 64.04 and during intra-day trade, touched a low of 64.17, where it had ended on May 12. US jobs data, issued on Friday, boosted the dollar globally on Monday. This raised concern that the US Fed might decide to raise interest rates sooner than later, due to recovery in the economy. Data showed that employers added 280,000 jobs in May, the most in five months. The positive data led to the weakening in EM currencies. “There is a clear indication that at least till the Federal Open Market Committee (FOMC) meeting, scheduled for June 15-16, there will be pressure on the rupee. It might depreciate till 64.60, at least till the FOMC meeting,” said Anindya Banerjee, currency analyst, Kotak Securities. The US Fed’s minutes of its April meeting had revealed that a rate rise in June was “unlikely”, due to concern about weaker economic growth. According to Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai, the Reserve Bank of India (RBI) had intervened in the currency market through dollar sales by state-run banks, which helped the rupee to recover slightly. “The next resistance for the rupee is seen at 64.50 a dollar,” he added. Since the start of this month, the rupee has weakened by 26p. So far this month, there have been foreign outflows of Rs 2,516 crore from domestic markets. Meanwhile, RBI has been building foreign exchange reserves as a preparation to face the US Fed’s rate increase action, expected later this year. When this happens, it is expected, there will be outflows from EMs such as India. “We believe that, broadly, the markets will find the appropriate rate for the rupee. Where we intervene is when we find strong flows going in or going out in such a way that the rupee moves significantly and it is temporary and not likely to sustain,” said RBI Governor Raghuram Rajan earlier this month, in a post-monetary policy interaction with the media. Data issued on Friday showed the country’s foreign exchange reserves rose by $917.5 million in the week ending May 29 to $352.47 billion.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 60.90 per barrel (bbl) on 08.06.2015. This was higher than the price of US$ 59.80 per bbl on previous publishing day of 05.06.2015.
In rupee terms, the price of Indian Basket increased to Rs 3904.30 per bbl on 08.06.2015 as compared to Rs 3821.22 per bbl on 05.06.2015. Rupee closed weaker at Rs 64.11 per US$ on 08.06.2015 as against Rs 63.90 per US$ on 05.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 08, 2015 (Previous trading day i.e. 05.06.2015) |
Pricing Fortnight for 01.06.2015 (May 14 to May 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
60.90 (59.80) |
63.49 |
|
(Rs/bbl |
3904.30 (3821.22) |
4045.58 |
|
|
Exchange Rate |
(Rs/$) |
64.11 (63.90) |
63.72 |
SOURCE: PIB
German exports and industrial output both rose more sharply than expected in April, getting Europe's largest economy off to a strong start to the second quarter. Seasonally adjusted exports jumped by 1.9 percent on the month, data from the Federal Statistics Office showed on Monday, far outstripping the consensus forecast of analysts for a rise of 0.1 percent. Imports meanwhile fell 1.3 percent, countering economists' expectations for a rise of 0.5 percent on the month and widening the country's trade surplus to 22.3 billion euros. That may add fuel to the international debate over Germany's high current account surpluses as the G7 meets in Bavaria. "This morning's data shows that the economy has left its industrial hibernation behind," ING economist Carsten Brzeski said, adding that the figures pointed to a good start to the second quarter. He said the European Central Bank's record low interest rates, the still weak euro, relatively cheap energy and Germany's robust labour market were "the best prerequisites for another decent growth performance". Data on Friday showed German industrial firms received 1.4 percent more orders in April than the previous month as strong foreign demand outweighed a slip in domestic demand. "German exporters are increasingly capitalising on the advantages of a weaker euro, as well as a global demand recovery," Berenberg economist Christian Schulz said. April marked the third straight month of growth in exports. In the first quarter German gross domestic product grew 0.3 percent, a marked slowdown from 0.7 percent growth in late 2014, with foreign trade largely to blame. In the second quarter, leading economic institutes expect the economy to gain momentum and expand 0.5 percent. For the whole year, the government expects domestic demand to drive a 1.8 percent expansion, while the central bank predicts 1.7 percent growth.
SOURCE: The Reuters
A bigger-than-expected slide in China's imports in May strengthened expectations more policy stimulus may be needed to avert a sharp slowdown in the world's second-largest economy. Economists say persistent weakness in the country's imports point to a slackening domestic economy. Meanwhile, erratic global demand and a relatively strong yuan, also cast doubts over the government's ability to hit its full-year trade growth target of six percent. Exports in May fell 2.5 percent from a year ago, data from the General Administration of Customs showed on Monday, smaller than a 5 percent fall forecast by economists, while imports tumbled 17.6 percent versus an expected 10.7 percent drop. "The data shows the Chinese economy is still in the process of seeking a bottom. We expect trade conditions to continue to be sluggish in the following 4-5 months, with more government policy rolling out to stabilize (the economy)," said Liu Yaxin, macro strategist at China Merchants Securities in Shenzhen. Liu added that Chinese companies were being outflanked in global markets due to a firm yuan CNY=CFXS, which has gained against major non-dollar currencies in recent months.
China posted a near record trade surplus of $59.49 billion in May, but weak imports highlight slowing domestic consumption. Many analysts have already penciled in sub-7 percent growth for the second quarter, raising the risk that the government will not meet its full-year growth target of around 7 percent. China's exporters have been struggling to cope with weak overseas demand, rising labor and currency costs, exacerbating downward pressure on the economy. In May, exports to the United States, China's top export market, rose 7.8 percent from a year earlier, while shipments to the European Union, the second largest market, dipped 6.9 percent, customs data showed. "With more bad news likely on the economic front, the government is under pressure to come up with more supportive policy measures again," Kevin Lai, senior economist at Daiwa Capital Markets in Hong Kong, said in a research note. "However, like the previous rounds of stimulus, the overall impact on the real economy would not be so meaningful."
SOURCE: The Reuters
Communist Cuba's newfound interest in foreign capital has its limits, as Philippe Pouletty found out. A French doctor, venture capitalist and founder of biotech company Abivax, Pouletty is working with Cuba's Center for Genetic Engineering and Biotechnology to develop a therapeutic vaccine to treat chronic Hepatitis B that could be on the Asian market in two years and in Europe after that. But when he pitched the idea of floating a company on the pan-European stock market Euronext with the Cuban state as a shareholder, that was clearly too much, too soon. "I told him in a half serious, half joking mode, that I had a capitalist proposal," Pouletty said of his conversation with Cuban revolutionary leader Fidel Castro's eldest son, Fidel Castro Diaz-Balart, a science advisor to the government. "His response after more than 30 seconds was 'That's indeed very intriguing, but if you want us to reach an agreement quickly, that's not the fastest route. It's a few years too soon.'" Instead, Abivax agreed to buy vaccines at a predetermined price and pay royalties to Cuba when the product is on the market.
Pouletty's story offers a peek into the mindset of Cuba Inc. Convinced their country needs capital, Cuba's leaders are welcoming businesses under a foreign investment law passed a year ago, but they want tight control over the pace of change. U.S. business interest in Cuba has exploded since December, when President Barack Obama and Cuban President Raul Castro announced they would restore diplomatic relations after decades of hostility. "In the morning on Dec. 17, Cuba was still a word spoken in U.S. business circles with hushed tones. By the afternoon, half of corporate America was rambling around forming a Cuba team," said Mark Entwistle, a former Canadian ambassador to Cuba and now a partner at Toronto-based merchant bank Acasta Capital who advises companies interested in Cuba. Among those joining a recent New York state delegation to Cuba were executives from JetBlue Airways Corp (JBLU.O), Pfizer Inc (PFE.N) and MasterCard Inc (MA.N). Most U.S. companies are still blocked by the 53-year-old trade embargo, although Obama has relaxed it for some imports, travel and telecommunications. That has allowed for minor deals such as Netflix (NFLX.O) streaming movies in Cuba and Airbnb listing Cuban rental properties online. If Obama can convince Congress to end the embargo, U.S. firms would be free to do business here, though they would still face major obstacles, including a multi-layered bureaucracy, an unpredictable legal system and highly regimented labor market.
Many foreign companies have thrived over the years. They run hotels, build ships, refine oil and pack meat. Some have a share in bottled water, beer, soda, rum and cigar businesses. Canada's Sherritt International (S.TO) is perhaps the most vested. It has been here since 1992 and generated 73 percent of its C$1.136 billion revenues in 2014 from Cuba-related businesses. Sherritt mines nickel in Cuba and refines it in Canada in a 50-50 joint venture with Cuba's government. It also produces 20,000 barrels per day of oil that it sells to Cuba and has a one-third interest in an electricity joint venture. Even in a business subject to price swings, Sherritt says it has always made a profit or at least broken even with Cuban nickel. "We would tell others that Cuba's a great place to do business," said Sean McCaughan, vice-president for investor relations, even though the embargo means top Sherritt executives are banned from setting foot in the United States and the company is cut off from U.S. capital markets or shipping through U.S. territory. Other companies have failed miserably in Cuba and were forced to leave or had their executives imprisoned and their assets confiscated. Petty bribery can land people in jail. And at least one billionaire real estate mogul came away from a recent trip to Cuba unimpressed. "I didn't find there were lot of great opportunities. It was like going back in time," Stephen Ross, chairman and founder of The Related Companies, told CNBC television. "You need a government that really wants change, that really wants business, and really wants to see growth, and you don't really have any of that feeling at all."
Those who have been successful have simple advice: be flexible and listen to Cuban officials, because they will tell you exactly what they want. "There are foreigners who come here with an attitude of superiority. In other words, 'We're going to show the Cubans.' In general, those are the ones who fail spectacularly," said Alexandre Carpenter, co-president of cigarette-maker Brascuba, a joint venture between Cuba and the Brazilian subsidiary of British American Tobacco (BATS.L). There is no escaping the state's central planning. Foreign firms in joint ventures must order raw materials a year ahead of time. Property is leased from the state, it is not up for sale. Cuba regularly draws up a portfolio of projects it wants foreigners to help with. The latest one, issued in November, outlines 246, most of them joint ventures, that need investments totaling $8.7 billion.
One of the largest foreign firms in Cuba is Brazil's Odebrecht [ODBES.UL], which built a $900 million port at Mariel, the centerpiece of an economic development zone designed to attract capitalist ventures with a more liberal import-export regime. Odebrecht wants to build a plastics factory there and it also has deals to expand Havana's international airport, operate a sugar refinery, and build two hotels. Mauro Hueb, head of Odebrecht's operations here, says the advantages of operating in Cuba include an educated, low-cost workforce and low logistical costs, and that to take advantage a company needs to learn and respect local customs. "You have to have the capacity to adapt," said Hueb. "Here in Cuba, we consider ourselves a Cuban company." Other successful ventures, some with U.S. stockholders, include Sherritt and French builder Bouygues (BOUY.PA). Swiss conglomerate Nestle (NESN.VX) has a bottled water and soft drinks business. Spanish hoteliers Melia Hotels International (MEL.MC), Iberostar and NH (NHH.MC) have established footholds in tourism and global beer giant Anheuser-Busch InBev (ABI.BR) brews Cuban suds.
Cuba's communist government first opened to international firms in the 1990s amid economic crisis caused by the collapse of the Soviet Union, its main ally and benefactor. Results have been mixed. Cuba says around 60 percent of foreign investment projects begun since the 1990s have had to close. Sometimes it kicks foreign partners out, saying they failed to live up to their side of the deal. Sometimes the companies leave on their own. The corporate landscape is still sparse, with only around 100 direct investment projects and a similar number of deals in which foreigners manage a Cuban company without an equity stake. While U.S. firms hope the normalization of relations and economic reforms under way in Cuba will improve the investment climate, experts say change will be gradual. For years, foreigners' biggest complaints have been the lack of control over labor, the uncertain legal environment, and the multiple layers of bureaucracy to get a project approved. "Forget owning a piece of the rock. The most you can hope for is a 50-50 venture with a state-run partner," a European economic attaché said. "And that will be the exception. The rule remains a minority interest." British-Dutch consumer goods giant Unilever (ULVR.L)(UNc.AS) became the first major corporation to enter Cuba after the fall of Soviet communism. Desperate for hard currency and consumer products, Cuba agreed to a 50-50 venture on a factory complex but when the 15-year deal came up for renewal it insisted on majority ownership. Unilever left the country although it is now in discussions on returning, several sources familiar with the talks said.
SOURCE: The Reuters
The US’s economic growth is showing further signs of weakening while a recovery is gaining traction in Euro Zone countries such as France and Italy, the Organisation for Economic Co-operation and Development said on Monday. The OECD’s monthly leading indicator, a measure designed to flag turning points in the international economy, showed dips for the US and other key economies such as China and Brazil. The indicator, a synthetic index where 100 is the long-term average, remained at 100.7 in the Euro Zone but eased to 99.5 from March’s 99.7 for the US.
SOURCE: The Hindu Business Line
MEG prices went up in Asia in the last week ended June 5 from hike in buying interest in the region. In SE Asia, average prices went up by US$ 30/ton or 3.24 per cent and were quoted at US$ 955/ton in the last week, as compared to its previous week. In India, average prices climbed by US$ 30/ton and were assessed at US$ 955/ton in the last week, up 3.24 per cent as against its previous week. In China, average prices grew by US$ 20/ton and were spotted at US$ 945/ton in the last week, an increase of 2.16 per cent from its previous week.
SOURCE: Fibre2fashion
