|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1194.40 |
USD/Ton |
-1.08% |
|
VSF |
2080.42 |
USD/Ton |
0.39% |
|
ASF |
2480.18 |
USD/Ton |
0% |
|
Polyester POY |
1178.09 |
USD/Ton |
0% |
|
Nylon FDY |
3034.96 |
USD/Ton |
0% |
|
40D Spandex |
6200.46 |
USD/Ton |
0% |
|
Nylon DTY |
2627.04 |
USD/Ton |
0% |
|
Viscose Long Filament |
1386.95 |
USD/Ton |
0% |
|
Polyester DTY |
3263.40 |
USD/Ton |
-0.50% |
|
Nylon POY |
5996.50 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1452.21 |
USD/Ton |
-0.34% |
|
Polyester FDY |
2855.48 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2724.94 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1925.41 |
USD/Ton |
0% |
|
45S T/C Yarn |
2969.69 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2692.31 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2104.89 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2496.50 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2888.11 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.96 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.34 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16317 USD dtd. 07/07/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The textile ministry in consultation with the finance and revenue departments to look at the possibility of a duty cut on man-made fibre as high cost of key raw material for manufacturing blended garments is making Indian goods uncompetitive in the global market. Each year, nearly Rs . 900 crore worth of man-made fibre material is imported by garment makers. The textile industry has been intensely lobbying for duty cuts on both domestic and import fronts, had been given hope during the previous year's budget, but the decision is yet to arrive. SK Panda, secretary, ministry of textiles said that they are pursuing the matter with the ministry of finance. Since the proposal is for a rate cut, which is an issue of revenue loss for the government, it is taking time. According to World Trade Organisation data, among southeast Asian nations, India has 5-10 percent customs duty on many of the fibres, but its competition countries such as Thailand, Indonesia and Vietnam have lower duty structures ranging from zero to 5 percent.
While, man-made fibre draws an excise duty of 12.5 percent, it has elaborate import restrictions, leading to a cumulative duty of 29 percent. Viscose fibre, one of the most common man-made fibres, attracts an anti-dumping duty, which takes its total duty up to 46.3 percent. The cost of one kilo of viscose fibre is around Rs . 155, while the same material costing Rs. 111 in China, expressed in Rs will cost Indian currency. Taking into account the import duty on the fibre, foreign shipments cost as much as the Indian produce. Tonnes of the material are being imported by Indian garment makers as the global market for blended garments is surging and there are not enough Indian suppliers. India exported Rs . 2,480 crore worth of man made fibre goods in April this year, a drop of 6 percent compared with the same period last year.
Indian clientele for garments includes global retailers such as Walmart, British clothing company Next, German and fashion retailers, Oliver. Textile entrepreneur Milton John, whose Cotton Blossom India exports finished garments worth Rs. 200 crore annually, lost key client Walmart to a Cambodian competitor last month purely because of over high costs of sourcing associated with India-made blended garments. According to Prabhu Damodharan, secretary, Indian Texpreneurs Federation, due to high input costs, Indian exporters are losing business as a lot of orders have started shifting to southeast Asian nations now.
SOURCE: Yarns&Fibers
The Indian cotton textile sector that has not been faring quite well for the past few years could see some stability in the current financial year, India Ratings and Research said in a report today. The sector would maintain an overall stable outlook led by stable spinning margins in the cotton yarn segment, range-bound cotton prices and favourable domestic and export demand. "However, the outlook for cotton yarn exporters is negative due to a slowdown in demand for yarn particularly from China, leading to softer yarn realisations and lower capacity utilization," the report added. Last year the EBITDA margins for the textile firms were affected after a 20 per cent decline in cotton prices. As a result inventory held by the textile firms too saw lower profit margins. In the current financial year the margins could recover in the range of 10-13 per cent, the report said.
Currently India has a small share in the global textile trade. Pakistan and Bangladesh are one of the biggest players in the textile sectors. Industry trackers say that India is well positioned to gain from weak input prices and growing demand for apparels. "India Ratings has revised the outlook for the synthetic textile sector to negative for FY16 from 'negative to stable'. Unfavourable cotton-polyester staple fibre spreads have hurt substitution demand for synthetic fibres and synthetic yarn. Lower export competitiveness of Indian synthetic yarn also contributes to the subdued outlook as import and central excise duty continue on man-made fibres," the report added.
SOURCE: The Economic Times
Despite witnessing a robust growth in air cargo exports over the years, the Tiruchi international airport has not seen shipment of home textiles notwithstanding its proximity to textile hub of Karur. Export of home textiles from Karur, a booming trade centre in the central region, continues to be routed through sea despite Tiruchi airport being at its arm’s length. Cheaper rates and the advantage of dispatching goods in bulk are factors prompting textile exporters of Karur to send their home textile products by sea than air. The textile hub of Karur has been witness to a booming business in home textiles with the volume of exports estimated at over Rs. 3,000 crore, according to trade circles. A mosaic of home textiles such as bed linens, pillow covers, aprons, gloves, cushion covers, tea and kitchen towels manufactured in Karur are being exported to overseas destinations. European Union, United States, Australia and Scandinavian countries happen to be the major overseas markets for the exporters of Karur. However, none of the major overseas nations which import a mosaic of textile products from Karur has a direct connectivity with Tiruchi airport which is at present connected to Colombo, Singapore, Kuala Lumpur and Dubai.
Exporters say bulk movement of home textiles was being shipped mainly from the Tuticorin Port to European destinations, US and other foreign markets. Routing textile cargo by sea is cheaper and cost effective for the exporters who have phenomenal advantage of dispatching their products in bulk at one go by sea, says V. Ananthapadmanabhan, chief executive officer, Karur Textiles Manufacturers Exporters Association. However, once international courier service kick-starts from Tiruchi airport, possibility of samples of home textiles being routed through air might take off. This was because samples would have to reach buyers at the earliest, says Mr. Ananthapadmanabhan. Although there has been an upswing in cargo exports from Tiruchi airport ever since export cargo terminal was commissioned in 2011, the commodity profile continues to remain largely unchanged. With the airport surrounded by agrarian districts, perishable commodities such as vegetables, fruits and flowers account for 90 per cent of the export cargo which are dispatched to Singapore, Kuala Lumpur and Colombo by different overseas flights every day. Tiruchi is after Chennai international airport in Tamil Nadu in handling of export cargo. With Tiger Airways planning to increase its services from Tiruchi, airport sources expect a further push in export of air cargo.
SOURCE: The Hindu
India export was worth US$363 million in 2014 to Greece while it imported US$131 million worth of goods from the crisis ridden European country. In textiles, exports were worth US$45 million and imports at a negligible US$3.3 million. Overall export fell dramatically to less than US$400 in 2012 when the crisis first erupted in Greece. Exports were worth US$800 in earlier years. All these numbers are apparently insignificant compared with overall trade numbers and thus will have negligible impact on direct trade between the two countries. Textile trade will remain almost immune. The fear that emerged is on What will happen to Euro then? While the impact of the financial crisis in Greece will definitely create upheavals in the currency markets, the Indian government and the Reserve Bank of India are closely monitoring the developments. Nirmala Sitharaman, India’s Minister for Commerce and Industry reportedly stated that the government is “very closely” monitoring the developments in Greece as that could have implications on the international currency market. She further added, “I think the Greece affair is going to play out for a few more days and we will certainly have to watch that…India’s foreign exchange reserves are comfortable....I think we have to be alert and keep watching what is happening.” While it is too early to ascertain the impact on the Indian INR, the weakening of the Euro has already started against the US$. At the time of writing this report the INR was pegged at 69.85 against the Euro and 63.31 against the US$. However, the fear looms large if the problem spread into other eurozone countries then exports may face several issues. Even exporters body Federation of Indian Export Organisations fear that further depreciation in euro against the US$ and Indian currency will impact exports to eurozone.
The 19-member eurozone accounts for about 20 per cent of the India’s total exports. Greece mainly import textile, garments and marine products from India while exports auto components, petroleum products, leather goods and machine tools to India. On the Greece side bank closures were in their second week holding tightly whatever cash they have, fearing banks may run dry. Cash machines are limited to dispensing Euros 60 per customer per day. Nobody has access to their safe deposit vaults either while small business operators cannot use credit cards or money from bank accounts to replenish their stock. These restrictions have created uneasiness which is undercutting the daily flow. Greeks, historically, have heroically withstood severe crisis and certainly do not like pushed around. They have even faced overwhelming opposition. Their rhetoric rejection of the European Union’s terms for further bail-outs echo their past history of overthrowing followed by liberation. Will Greece repeat its history, let’s watch.
SOURCE: Yarns&Fibers
The government has set up Customs Clearance and Facilitation Committees (CCFCs) at ports to ensure expeditious customs clearance of goods to improve ease of doing business for traders. "Ease of doing business: Customs Clearance and Facilitation Committees in ports bringing in systemic improvements. It's a recent initiative," Revenue Secretary Shaktikanta Das said in a tweet. It will facilitate trade at all the major customs seaports and airports. Welcoming the move, exporters body FIEO (Federation of Indian Export Organisations) said the move will help in getting faster clearances from different agencies. "Traders take clearances from different agencies for exports and imports. These committees will help in resolving matters related to clearances. Any delay in this process impacts traders," FIEO Director General Ajay Sahai said.
The CCFC will be headed by the chief commissioner of customs/commissioner of customs in charge of the seaport and airport concerned. It will have the senior-most functionary of Food Safety Standards Authority of India/port health officer, plant quarantine and animal quarantine authorities, Drug Controller of India, Port Trust/Airport Authority of India/Custodians, and Railways/CONCOR, among others as its members. The CCFC has been tasked with monitoring and ensuring speedy clearance of imported and export goods in accordance with the timeline. It has also been asked to identify and resolve bottlenecks, if any, in the clearance procedure. The CCFC would meet once a week or more frequently, if considered necessary by the chair. The government, in recent times, has taken a number of steps to create a more friendly business environment and trade facilitation, and setting up of the CCFC is a step in that direction.
SOURCE: The Economic Times
The Indian rupee has been the best performing currency among major emerging markets and may remain so that way, but the stability of the currency may take a knock from the crisis in Greece and the risk-off trade among investors. An ET poll of 14 market participants shows that the INR-USD pair may head to 64.50. However, a few respondents feel the Indian currency could fall to as low 65.50/dollar in the next three months. The slide may be due to the unhedged positions of local borrowers along with some knee-jerk capital outflows, depending on how the Greece debt crisis pans out. "We cannot ignore the possible impact of risk-off on emerging market capital flows," said Ananth Narayan, regional head of financial markets, South Asia at Standard Chartered Bank. "Also, with the rupee overvalued by over 10 per cent in REER terms, the RBI is likely to continue to mop up dollars, and arrest any significant rupee appreciation." The market has also been complacent and unhedged over the past few months — we think over $70 billion of long rupee positions have been built over the past 18 months," he said. The ramifications of the Greek "no" vote, which meant rejection of the bailout package offered by international creditors, would take time to unravel.
Risk-off sentiment could persist for weeks now, as the market moves from headline to headline, and mulls the possible impact on the rest of the periphery, experts said. "Pending an outcome on negotiations post the referendum, uncertainty has increased," said Saugata Bhattacharya, chief economist at Axis Bank "India will be exposed to volatility from a consequent global EM risk off. This, plus a strong dollar, will keep the Indian rupee under some pressure, even if transient." But, India's macro factors, strong enough when compared with other emerging countries, are seen as a "big push" for the local unit against the greenback. Signs of green shoots are there, and they are expanding. The ratio of stalled investment projects to the country's gross domestic product is now at 6.6 per cent from 8.4 per cent in March earlier. Also, better-than-expected monsoon has further revived hopes of a rate cut, a sine qua non to prompt corporates to embark on green field project expansions.
Foreign institutional investors so far net invested Rs 82,893 crore in Indian debt and equity securities while the rupee lost more than half percent value to the US dollar during the same time. Since June, the rupee gained about 0.67 per cent so far. "The rupee will not be as adversely impacted as people previously thought," said Nirmal Jain, chairman, IIFL. "Earlier people were worried whether this will impact on the risk aversion to emerging markets, will there be a flight of capital back to safe haven, but those were exaggerated fears." "As far as India is concerned, obviously our dependence at this point in time does not look significant," he said.
Greece accounts only for 2 per cent of eurozone's gross domestic product. It would not be a significant event, and to a large extent, it was already discounted, dealers said. The Reserve Bank looks all set to weather any volatility, should it happen. Over a period of time, the central bank has shored up $355 billon forex reserves compared with $275 billion when governor Raghuram Rajan had taken charge. "In any extreme outcome from Greece, the rupee may move within the range of 1 per cent against the dollar," said KN Dey, executive director, Mecklai Financial. "RBI has enough ammunition to control any excess volatility."
SOURCE: The Economic Times
Exporters and importers will be allowed to pay their fees and penalties through debit or credit cards from this week, a move aimed at further improving the ease of doing business in India.Currently, traders can pay fees only manually or through net banking. "The technical process to allow and enable payment of fee through debit/credit cards has been completed. The new Commerce Secretary Rita Teotia will formally launch the facility this week," an official said. The Directorate General of Foreign Trade (DGFT) receives lakhs of applications every month and the fees ranges between Rs 100 to Rs 10,000. The traders can avail this facility from all the public and private sector banks.
Exporters body Federation of Indian Export Organisations (FIEO) welcomed the move and said that it will help in reducing transactions cost. Further efforts are also underway for message exchange and integration of DGFT's system with income tax department and Ministry of Corporate Affair for verification of PAN and DIN/CIN details respectively. Once implemented, this would further reduce the processing time of applications at regional authority level. The ministry is also engaged with different departments, including revenue and shipping, to reduce paper work in a bid to cut transaction cost for exporters and improve ease of doing business. The government is aiming to improve India's overall ranking in ease of doing business index to 50th position in the next two years from the current 142nd.
SOURCE: The Economic Times
To ensure uniform minimum wages across the country, the Centre has hiked the national floor level from Rs. 137/day to Rs. 160/day with effect from July 1. Trade unions, however, said the move does not “make sense” as many States, such as Kerala, are already paying a much higher amount. Meanwhile, Labour Minister Bandaru Dattatreya has written to all the Chief Ministers urging them to take necessary steps to ensure that minimum wage rates of all scheduled employments are not below the national floor of Rs. 160/day, a Labour Ministry statement said on Tuesday. “While reviewing the movement of Consumer Price Index for Industrial Workers (CPI-IW) during April 2014 to March 2015, over the period April 2012 to March 2013, it was observed that the average CPI-IW has risen from 215.17 to 250.83,” Dattatreya said, adding that the floor rates have been increased accordingly. The National Floor Level Minimum Wage is fixed by the Centre and requires to be revised from time-to-time on the basis of the rise in CPI-IW. It was last revised from Rs. 115/day to Rs. 137/day with effect from July 7, 2013, the Ministry said.
Trade unions, meanwhile, accused the government of ignoring the consensus reached by the 43{+r}{+d} Indian Labour Conference on following a particular pattern for formulation of minimum wages. “Many States are already paying a higher amount. We have been demanding at least Rs. 15,000/month, and this comes to only over Rs. 4,500/month. This does not make any sense,” said Tapan Sen, Rajya Sabha MP and General Secretary, Centre of Indian Trade Unions, adding that trade unions wanted a ‘national minimum wage’, not ‘national floor level’ minimum wage.
SOURCE: The Hindu Business Line
The Greece-Euro Zone crisis is expected to have a lesser impact on the Indian economy than expected. Ranjit Shahani, Vice-Chairman and Managing Director, Novartis India, insists that a bigger crisis looms if the stock market in China comes crashing down. Speaking to BusinessLine he said, “The Greek tragedy that is playing out has a huge mindshare, but the market share is very low. Instead, one needs to keep an eye on the ball in China, rather than pay attention to the Greek drama that is going on." Stating that the possibility of a bigger challenge lies if the China stock market comes crashing down, he added that it has not been factored in by India. “If it (China stock market) does crash, our stock market will have a larger impact. The over heated situation in China is what one must look out for. The impact could be huge, right from the US to India," he said. He pointed out that one needed to pay attention to China and not to Greece at the moment. "The economy of Greece is too small in the world economy to make an impact. This is not a Lehman Brothers moment, and it is definitely not a pack of Dominoes set to go down," he said.
As for India, the Vice-Chairman said, “In India, our position is relatively more comfortable, both in terms of growth and in the economy. There are other positive financial indicators in India, take foreign exchange, for instance.” India has over $355 billion foreign exchange reserves. The corporate chief added that the odd short-term swing in the stock market was normal, and that it would not interfere with the basic fundamentals of the country. “Greece is a small blip and will be forgotten soon," he added.
SOURCE: The Hindu Business Line
India is getting increasingly isolated at the Regional Comprehensive Economic Partnership (RCEP) negotiations, with domestic industry lobbies mounting pressure on the government against any tariff concessions to their rivals in the 16-member grouping. Trade ministers of the grouping will meet on 13 July in Malaysia to align positions and accelerate talks to close a deal as scheduled by year end. “We are facing a lot of opposition from domestic industries, especially from the steel industry, against opening up the sector for competition. Our domestic steel price is $50 (per tonne) more than international prices. How is this acceptable? We are telling the steel industry don’t say the entire steel sector should be out of RCEP. We are asking them to give us a few tariff lines where we can negotiate. But they are adamant. We have to give somewhere to get somewhere else. If India will become too conservative and protective, we will be out of the race. Ultimately, it is going to be a call taken by the Prime Minister’s Office,” a government official said on condition of anonymity.
Sanak Mishra, secretary general and executive head of Indian Steel Association, said he is convinced steel should not be part of negotiations in RCEP or any other future free trade agreement (FTA). “India is a steel non-mature economy. If we open up for steel imports, then we will become an import dependent country for next 30 years. India has capacity and capability to produce steel for its own consumption. We should only import steel which we cannot produce here which is only 7% of our domestic consumption. We will keep up the pressure on the government not to include steel in RCEP negotiations,” he added. The textile industry also fears high imports of finished products from China as a result of RCEP. D.K. Nair, secretary general at the Confederation of Indian Textile Industry, said his association is not opposed to RCEP, but it should not be a route for China to export finished products to India. “We are asking that the rules of origin need to be finalized in such a manner that the raw material used should be either from the exporting country or the importing country, but not from a third country,” he added.
Siddhartha Rajagopal, executive director at the Cotton Textiles Export Promotion Council, said while India may gain in cotton textiles, in synthetic textiles, where the big bets are, the country may lose out. “We are already running a high trade deficit with China. We need to draft the rules of origin carefully,” he added. Started in May 2013, RCEP comprises the 10 economies of the Asean region—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—and six of its free trade partners—Australia, China, India, Japan, New Zealand and South Korea. Asean is short for the Association of Southeast Asian Nations. The grouping envisages regional economic integration, leading to the creation of the largest regional trading bloc in the world, accounting for nearly 45% of the world’s population with a combined gross domestic product of $21.3 trillion.
The regional economic pact aims to cover trade in goods and services, investment, economic and technical cooperation, competition and intellectual property. India’s interests lie mostly in services, the removal of technical barriers to trade such as those taken under sanitary and phyto-sanitary measures, and trade in goods such as pharmaceuticals and textiles. India has proposed an initial offer of 40% tariff liberalization, which other members of the grouping consider too small. With the Narendra Modi government aiming to make India a manufacturing powerhouse with its “Make in India” campaign and criticism that the previously signed FTAs have not benefited Indian companies, India is insisting on keeping ambitions low under the RCEP negotiations. At the same time, it does not want to lose out on the opportunity as it is not part of the other two mega-regional trade deals that are under negotiation—the Trans-Pacific Partnership (TPP), and the Transatlantic Trade and Investment Partnership (TTIP). Both are led by the US. So far, China and South Korea have been supporting India showing low level of ambition, mainly because of their rivalry with Japan. But India apprehends their positions will drift apart as talks progress. India is also facing pressure from other members led by Japan to agree to have a chapter on e-commerce trade among member countries, which it has so far resisted.
SOURCE: The Live Mint
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 56.01 per barrel (bbl) on 07.07.2015. This was lower than the price of US$ 57.88 per bbl on previous publishing day of 06.07.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3549.35 per bbl on 07.07.2015 as compared to Rs 3680.01 per bbl on 06.07.2015. Rupee closed stronger at Rs 63.37 per US$ on 07.07.2015 as against Rs 63.58 per US$ on 06.07.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 07, 2015 (Previous trading day i.e. 06.07.2015) |
Pricing Fortnight for 01.07.2015 (June 12 to June 26, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
56.01 (57.88) |
61.66 |
|
(Rs/bbl |
3549.35 (3680.01) |
3935.76 |
|
|
Exchange Rate |
(Rs/$) |
63.37 (63.58) |
63.83 |
SOURCE: PIB
Garment exports grew 4.08 percent to $25.5 billion in fiscal 2014-15, according to data from the Export Promotion Bureau. Knitwear exports increased 3.13 percent year-on-year to $12.42 billion while woven shipments grew 5 percent to $13.06 billion in the immediate-past fiscal year. Export earnings from the apparel sector were 5.24 percent below the annual target of $26.9 billion. Over 80 percent of the country's export earnings come from the garment sector, which was able to reach its target of annual export earnings once—in 2013-14—in the last four years. Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, blamed the fall in earnings on the shipping problems caused by the political crisis in January-March. Moreover, the devaluation of major currencies—dollar, Russian ruble and euro—is also responsible for the shortfall in target exports, he said.
Small and medium factories that are housed in shared buildings saw a fall in work orders after the Rana Plaza building collapse, Islam said. Overall exports rose 3.35 percent year-on-year to $31.2 billion in 2014-15, though the amount was well below the year's target of $33.2 billion. Exports surged in June, the last month of the fiscal year, fetching $3.04 billion, which is an increase of 7 percent from the previous month and an 8.68 percent growth from a year earlier, according to the government data. Jute and jute goods exports grew 5.34 percent year-on-year to $868.53 million, home textiles 1.49 percent to $804.34 million, and leather and leather goods 0.56 percent to $1.13 billion. Frozen foods declined 10.99 percent year-on-year to $568.03 million and furniture fell 8.55 percent to $38.94 million in fiscal 2014-15.
SOURCE: The Global Textiles
Government and the manufacturing sector should raise South Africa's competitiveness, says Department of Trade and Industry (dti) Minister Rob Davies. Speaking at the opening of the permanent exhibition site of the South Africa Technical Textile Cluster (SATTC) in Irene, Pretoria, on Monday, Minister Davies said he was glad that government supported the clothing and textile industry. SATTC is mainly focusing on the military, police, fire fighting, navy, and camping sectors. The site is also showcasing the impact of government support for the cluster programme. The cluster comprises of five groups namely: Canvas and Tent; Parachute Systems; Stepahead Military Headwear; Gelvenor Textiles and Fields Wear. Minister Davies said that the dti has established this cluster and others to ensure that members work together in order to promote the sectors. He said that both government and manufacturers need to raise South Africa's competitiveness and to appreciate the role that government support programmes can play in encouraging the manufacturing sectors to embark on a journey to becoming more export competitive. Minister Davies also stated that the previous incentive programmes based on the duty credit certificates were not working hence the department adopted a different strategy with the Competitiveness Improvement Programme.
According to Minister Davies, SATTC could benefit from government in different ways. "First of all we have this tool of localisation which is called designation. All clothing and textile products which are procured by public entities in South Africa should come from local manufacturers using local raw materials. There also is a need for a deeper conversation with the dti on market access opportunities with some of the countries on the continent. We do have foreign economic representatives on the continent that would be of great assistance with regards to market penetration," said Minister Davies. Barend Pretorius of Parachute Systems said that the cluster has assisted them in terms of coordination and marketing of their products."Working on the cluster configuration is so much easier to move out into the world marketing not only our product but also other members' products. We have agreed that we will market the products of other sector members when we go out of the country," said Pretorius. SATTC has also enhanced employment in the sector, thanks to government's interventions. Other than SATTC, there are three other clusters under textile and clothing that government is also spending money on in order to promote and enhance the competitiveness of the sector. These clusters are: National Fashion Council; Mohair Cluster and the South African Sustainable Textiles and Apparel Cluster.
SOURCE: All Africa
U.S. crude sank for a second straight day on Tuesday as a near-bankrupt Greece and China's stock market losses sparked an investor flight to safe havens, with technical selling threatening to push oil further into a bear market. Also weighing on crude prices was Iran's determination to seal a nuclear deal with global powers to bring more supply to the market and the restart of a key oil terminal in Libya. U.S. crude oil has lost almost 10 percent since Thursday's close for the sharpest two-day fall since end-November. It was down 55 cents at $51.98 per barrel by 1:45 p.m. EDT, after sliding almost $2 at the session low. Brent was almost flat, rising a mere 5 cents to $56.59. "There has been a lot of money looking to pile into the short-side, and there have been an accumulation of different triggers to cue that over a short time," said Paul Horsnell, head of commodities research at Standard Chartered in London. "Some were looking at Iran; for some it is macro spillovers from Greece or China; for others it's a pure dollar play, and for others the rise in U.S. rig counts." "None of those work in isolation, but put them all together in a short period and they'll do it. And after that, the technicals kick in to give a further push down."
U.S. crude is teetering toward a bear market technically, with its 17 percent drop since its May high of $62.58 being precariously close to the 20 percent selloff required from the last major peak to constitute a bear market. More downside momentum could push U.S. crude to test the six-year low of $42.03 set in mid-March, technical analysts said. Investors fled to the relative safety of the dollar and U.S. bonds as banks in Greece ran down to their last few days of cash after Greeks voted in a referendum to reject an international bailout. The dollar hit a five-week high, weakening demand for dolllar-denominated commodities from users of other currencies. Chinese equities, meanwhile, extended their hemorrhage, ignoring a slew of support measures from Beijing. "The U.S. dollar and Treasuries are what people are buying right now," said David Thomson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.
SOURCE: The Fox Business
The United States trade deficit widened slightly in May, the Commerce Department reported Tuesday, reflecting declines in sales of American-made aircraft and machinery as exports continued to suffer from a strong dollar. The deficit increased 2.9 percent to $41.9 billion in May, up from an April imbalance of $40.7 billion. Imports fell 0.1 percent to $230.5 billion. Exports slid at a faster pace of 0.8 percent to $188.6 billion. American producers have been hurt this year by the rising value of the dollar, which makes American goods less competitive in foreign markets. Even with the slight increase in May, the deficit in the last two months is averaging less than in the first quarter. That should help raise growth in the second quarter.
Trade slashed nearly 2 percentage points off growth in the first three months of the year. The big drag from trade combined with a severe winter sent the economy into reverse, contracting at an annual rate of 0.2 percent in the January-March period. Analysts say that a narrowing of the trade deficit in the April-June period will be a major factor in reviving overall growth. They forecast a rebound to an annual growth rate of around 2.5 percent, as measured by the gross domestic product, in the second quarter. Analysts predict solid job gains will bolster economic growth even more in the second half of this year, to around 3 percent. Paul Ashworth, chief United States economist at Capital Economics, said the dollar’s rise in value in the last 12 months would probably mean that trade would remain a small drag on the economy for the rest of 2015. But he added that with the dollar’s increase slowing in recent months, its drag on growth should fade in 2016. The deficit with China jumped 15 percent in May to $30.5 billion. This year, it is running 11.1 percent higher than the same period a year ago, putting the country on track for another annual record. The United States trade deficit with China is the largest with any country.
In May, the United States ran a rare trade surplus with its biggest trading partner, Canada. The $644 million surplus was the first monthly surplus with Canada since 1990. Job openings stayed close to a 15-year high in May, a sign that companies are expecting continued economic growth, but that actual hiring has not matched the level of advertised jobs. Workers at a shoe factory in Vietnam. Some of the thorniest issues in the proposed Trans-Pacific Partnership involve Vietnam. The Labor Department said the number of open jobs rose 0.5 percent to 5.36 million in May. April’s total was revised down to 5.33 million from 5.38 million, which had been the highest total in the 15 years that the government has tracked the data. The stronger confidence among employers has yet to produce an even stronger level of hiring and pay raises that would fuel faster economic growth. The number of new hires slipped somewhat in May for the second straight month, while the number of workers who chose to leave jobs — a sign of strength since resignations are generally associated with people finding better jobs — was basically unchanged. The challenge may be that employers are struggling to find skilled workers at the salaries being offered. But they also may be reluctant to increase pay to attract more talented applicants.
SOURCE: The New York Times
Multiple economic indicators in recent months suggest the Chinese economy is over the worst as pro-growth and reform measures take effect, according to the National Bureau of Statistics (NBS). "Positive changes are occurring due to government policies and reform measures," according to Sheng Laiyun, NBS spokesperson, who made the remarks in an interview hosted on the bureau's website on Monday. Sheng said that improvements in industrial output, fixed asset investment, and expanding consumption indicated an economic upturn. In May, industrial value-added output picked up pace and grew 6.1 percent year on year, up 0.2 percentage points from the previous month;while urban fixed asset investment increased 9.9 percent, also up compared to 9.6 percent in April; and sales of consumption goods expanded 10.1 percent in May, up 0.1 percentage point from April. The economic structure has continued to improve with high-tech sectors reporting increasing weight in industrial output, and the services industry is seeing faster investment growth, Sheng said. Meanwhile, structural reforms are boosting the private sector, which has reported faster industrial output growth. The Internet Plus strategy, the nation's digital drive, led online shopping sales value to grow 39.3 percent year on year in May.
The tentative upturn comes as major data is due, including GDP growth, for the second quarter on July 15. The spokesperson said multiple factors will be able to extend these positive changes into the latter half of the year, including a warming real estate market. Sales value of commercial properties rose 3.1 percent year on year in the January-May period, reversing a 3.1-percent fall for January-April, he said. Meanwhile, easier access for private investment in previously restricted sectors, and the enormous domestic consumption potential will also contribute to stabilization, according to him. However, Sheng cautioned that some improvements are still fragile and tentative. He said the country should remain watchful of downward pressure, and make harder efforts to achieve the annual growth target of around 7 percent for this year.
SOURCE: The Global Textiles
Negotiators working to establish a trans-Pacific free trade zone expect agreement to be reached by the end of the month, according to reports from the US. The 12 nations negotiating the deal, which would link 40 per cent of the global economy, hope to reach consenus on the creation of a vast trade zone stretching from Canada and Chile to Australia and Japan.The European Commisson describes the EU as the "largest economy in the world", but the new Pacific trade zone would account for a larger share of the world's GDP, imports and exports.The European Centre for International Political Economy reports that politicians on this side of the Atlantic have been reluctant to engage with the idea."It is not easy to give a ‘European view’ on the Trans-Pacific Partnership," it said last year, "but if there has been one, its revealing character has surely been the denial of the merits and feasibility of the whole enterprise."The Americans have no such reservations. It would be the most ambitious trade accord in a generation, says the New York Times, and a legacy-defining achievement for Barack Obama.
The US president has repeatedly promised that he would deliver the most progressive trade accord in history, and he now insists that "the time for rhetoric has passed".There are tough issues still to be resolved. These include questions over access to Canada's agriculture, and Australia's concerns over American pharmaceutical patent rules.Also to be ironed out are disagreements over Peru's rain forest management, Chinese components in Vietnamese textile exports and labour organising rights in Vietnam and Mexico.However, Washington is confident that a breakthrough can be reached. "It's not just US, but a number of other countries are reasonably confident negotiations can be concluded at this ministerial," said Daniel Price, who was a senior international economic adviser in George W Bush's White House.Although Canada have made more cautious noises, Adam Taylor, a former senior adviser to international trade minister Ed Fast said he expects a deal to come together fairly quickly. "The train's leaving the station," he told the Globe and Mail. "You're either on or you're off. It ain't waiting for you." Obama hosts Nguyen Phu Trong, the general secretary of Vietnam's Communist Party, at the White House today, with trade negotiations high on the agenda. Some of the most intractable issues in the proposed Trans-Pacific Partnership involve Vietnam.
SOURCE: The Week
