The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 21 JULY, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-07-20

Item

Price

Unit

Fluctuation

Date

PSF

1151.05

USD/Ton

-0.003

7/20/2015

VSF

2142.10

USD/Ton

0.0015

7/20/2015

ASF

2510.28

USD/Ton

0

7/20/2015

Polyester POY

1142.89

USD/Ton

-0.007

7/20/2015

Nylon FDY

2922.53

USD/Ton

-0.011

7/20/2015

40D Spandex

6204.26

USD/Ton

0

7/20/2015

Nylon DTY

3249.07

USD/Ton

0

7/20/2015

Viscose Long Filament

6032.83

USD/Ton

0

7/20/2015

Polyester DTY

1412.29

USD/Ton

-0.008

7/20/2015

Nylon POY

2759.26

USD/Ton

-0.006

7/20/2015

Acrylic Top 3D

2706.20

USD/Ton

0

7/20/2015

Polyester FDY

1363.30

USD/Ton

-0.002

7/20/2015

30S Spun Rayon Yarn

2742.94

USD/Ton

0.003

7/20/2015

32S Polyester Yarn

1877.61

USD/Ton

0

7/20/2015

45S T/C Yarn

2938.86

USD/Ton

0

7/20/2015

45S Polyester Yarn

2040.88

USD/Ton

-0.008

7/20/2015

T/C Yarn 65/35 32S

2481.70

USD/Ton

0

7/20/2015

40S Rayon Yarn

2906.21

USD/Ton

0

7/20/2015

T/R Yarn 65/35 32S

2677.63

USD/Ton

0

7/20/2015

10S Denim Fabric

1.14

USD/Meter

0

7/20/2015

32S Twill Fabric

0.96

USD/Meter

0

7/20/2015

40S Combed Poplin

1.06

USD/Meter

0

7/20/2015

30S Rayon Fabric

0.77

USD/Meter

0

7/20/2015

45S T/C Fabric

0.78

USD/Meter

0

7/20/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16327 USD dtd. 20/07/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Textile mills shut down to combat falling yarn prices

Close to 100 textile mills that make synthetic yarn in Tamil Nadu stopped production on Saturday (July 18), as part of the decision taken at a meeting of the synthetic spinners group of Indian Texpreneurs Federation (ITF) in Coimbatore last week, according to media reports. The move follows the decision by the ITF synthetic spinners's group's decision to shut their units during the weekend following the sharp fall in yarn prices. This was the first weekend the mills were closed following the decision. Nearly 17 lakh spindles had stopped production. The two-day shutdown over the weekend is estimated to have cut down the supply of 17 lakh kg of yarn to the market. Since the mills have huge stock and prices of synthetic yarn have declined, the mills are finding it unviable to continue operations. The mills are hoping that the two-day stoppages will be able to reverse the continuing fall in prices, the reports said. Prices of 56's count polyester cotton yarn, which was ruling at Rs190 per kg (ex-mill), is now being quoted at around Rs158 per kg.

SOURCE: Fibre2fashion

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Karnataka to establish four textile parks

The Karnataka Government proposed to set-up four Textile Parks in the State, Minister for Textile BabaraoChinchanasur said today. In a written reply to Malaka Reddy in the assembly, the Minister said the textile parks will come up in Tumkuru, Chamarajanagara, Ballari and Yadgiri Districts. Mr Chinchanasur said the parks would also be set-up in various parts of the State. The Government has promised to provide necessary facilities to them, he added.

SOURCE: The Web India 123

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Textiles body wants export sops extended to all knitted fabrics

The Cotton Textiles Exports Promotion Council (Texprocil) is surprised that the Centre has excluded certain knitted fabrics for concession under the Merchandise Exports from India Scheme. Knitted fabrics with HS (Harmonized System) Code 6006, which covers most of the knitted fabrics including those with lycra, were left out in the list of items covered for export benefit.

Value-added products

Knitted fabric with lycra are value-added products that are used widely in garments. The Director General of Foreign Trade had announced a new list of textile items eligible for export sops, last week. While welcoming the decision to include exports of cotton fabrics – woven and knitted – to Bangladesh and Sri Lanka under the MEIS, RK Dalmia, Chairman of Texprocil, said the decision would play a major role in boosting fabric exports to both countries as they are strong in garmenting and India is known for fabrics. However, he felt, if any benefit is granted to fabrics then it should cover the entire range to avoid unintended exclusions.

Exports to Africa

Dalmia urged the Centre to include knitted fabrics under HS code 6006 to Bangladesh and Sri Lanka, besides extending export sops to value-added products such as cotton dyed and printed fabrics and made-ups to African countries. These products, including khangas and khatangas, are used in traditional African dresses, and are predominantly manufactured by SME units in India, he said.

SOURCE: The Hindu Business Line

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GST can be an enabler for Make in India initiatives: Assocham

Industry body Assocham today came out with a set of recommendations on the proposed Goods and Services Tax (GST), saying the rollout may lead to around 1 per cent rise in India's GDP growth.  "Goods & Services Tax (GST) will be a game changer for the Indian economy. The new tax regime can lead to efficient resource allocation within the economy, improve tax compliance and positively impact GDP growth.  "More importantly, the projected boost to the manufacturing sector will make the proposed taxes a critical enabler to actualise benefits from 'Make in India' initiatives," Assocham President Rana Kapoor said.  The short-term recommendations include formulation of a clear and unambiguous definition of goods & services, a revenue Neutral Rate (RNR) suitably determined to rationalise tax burden and evolving a consensus on threshold limit for GST application to protect small businesses.  "The implementation of GST would lead to a simplified tax regime and easier compliance norms. This is projected to increase GDP annually by 0.9-1.7 per cent with an accompanying increase in tax revenues of around 0.2 per cent of GDP.  "Twenty per cent reduction in logistics costs of non-bulk goods is expected due to a rationalised tax framework. This would make domestic production of goods and services more cost effective with ensuing 3.2-6.3 per cent annual gains in exports," Kapoor said.

The chamber also recommended formulation of clear 'Place of Supply' rules to avoid ambiguity in tax administration and a mechanism to compensate states for potential revenue loss from GST rollout without major distortion of its structure, etc.  It further suggested ease of compliance through common electronic standards for filing returns, paying taxes towards central, state or inter-state GST and allowing tax rebate for purchase through electronic payment methods to encourage more transactions within the banking channel.  The long-term recommendations include empowering the proposed GST Council, refund of tax on inputs availed by exporters, eliminating the concept of Works Contract by subsuming taxable activities within the ambit of GST, an assessee-friendly tax regime that encourages and rewards compliance and implementing periodic GST return filing.  The industry body recommended comprehensive training on legislation and procedures for tax administrators and integration of IT network of GST with the information systems of the Ministry of Corporate Affairs and the Central Board of Direct Taxes.

SOURCE: The Economic Times

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Rupee weakens to three week low on dollar buying by banks, importers

The rupee ended at a three-week low on Monday due to dollar buying by banks and importers, especially oil importers. The rupee had opened at 63.54 and during intra-day trades it touched a low of 63.67, and a high of 63.54 a dollar. It ended at 63.67 compared with Friday’s close of 63.47. It had ended at 63.85 on June 29. “There were talks about oil companies buying dollars. Besides that, public sector banks also bought the American currency,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.   In foreign markets, the dollar hit a three-month high against a basket of major currencies after solid US inflation and housing data supported expectations for the Federal Reserve to raise interest rates in the coming months.

According to Bloomberg data, the one-month implied volatility — a measure of expected moves in the exchange rate used to price options — declined for a seventh day, falling nine basis points to 4.79 per cent in Mumbai, the lowest since February 2008. It is 400 basis points lower than this year’s high of 8.79 per cent reached in May. “Lower crude prices have wiped out a large part of the dollar demand from the market,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services. “The rupee’s volatility has been managed well by the central bank through intervention.”

SOURCE: The Business Standard

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Global crude oil price of Indian Basket was US$ 55.92 per bbl on 20.07.2015 

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$ 55.92 per barrel (bbl) on 20.07.2015. This was lower than the price of US$ 56.29 per bbl on previous publishing day of 17.07.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3553.72 per bbl on 20.07.2015 as compared to Rs 3573.85 per bbl on 17.07.2015. Rupee closed weaker at Rs 63.55 per US$ on 20.07.2015 as against Rs 63.49 per US$ on 17.07.2015. The table below gives details in this regard:

 

Particulars

Unit

Price on July 20, 2015(Previous trading day i.e. 17.07.2015)

Pricing Fortnight for 16.07.2015

(June 27 to July 13, 2015)

Crude Oil (Indian Basket)

($/bbl)

55.92            (56.29)

58.69

(Rs/bbl

3553.72        (3573.85)

3730.34

Exchange Rate

(Rs/$)

63.55            (63.49)

63.56

 

SOURCE: PIB

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U.S.-bound textile exports may hit $11 bln in 2015: Vietnam

Vietnam's textile and garment exports to the United States are expected to rise 12.24 percent this year from 2014 to $11 billion, the Vietnam Economic Times newspaper quoted a Vietnamese industry official as saying. The value could double after the Trans-Pacific Partnership agreement is signed, lowering tariffs for Vietnamese products to the U.S. market, the report said.

SOURCE: The Reuters

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Pakistan Government to increase textile exports to $26 billion

The government has prepared a plan to increase textile exports from the existing 13billion dollars to twenty-six billion dollars in the next five years. Under the plan, special incentives would be given to small and medium enterprises.  New schemes and initiatives will also be launched to increase usage of information communication technology, Radio Pakistan reported on Sunday. The plan envisages making the textiles sector compliant with labour and environment rules and conventions domestically and internationally. Textiles units will be encouraged to use modern management practices for improving efficiency and reducing wastage. The government will also provide vocational training to twelve thousand workers for their capacity building.

SOURCE: The Business Recorder

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Multiple taxes on Pakistan textile export industry

The government’s policy of ‘taxing’ the organised export-oriented industry through various surcharges and fees on their energy supplies, as well as through the implementation of numerous levies, has steeply raised the manufacturers’ costs during the last two years. The electricity bills of textile companies, for example, have gone up by almost Rs67bn or just under 5pc of the industry’s export earnings of $13.7bn. This is because of the 57pc spike in power prices, from the weighted average of Rs9.10 (inclusive of the Neelum-Jhelum surcharge of Rs0.10) per unit to Rs14.32 since the Nawaz Sharif government returned to power in June 2013. And textile manufacturers estimate the implementation of the gas infrastructure development cess (GIDC) to inflate their gas bills by an additional Rs34bn — or 2.5pc of their exports.

Theoretically, exports are zero-rated in Pakistan just as elsewhere, said S.M. Tanveer, chairman of the All Pakistan Textile Mills Association (APTMA). “In reality, however, the combined impact of the increased electricity and gas prices, as well as the different surcharges, levies, taxes and fees etc on export-oriented textile companies is around 12pc of their turnover,” he added. He said the abolition of the zero-rated status of textile exports and the raised cost of production has eroded the economic viability of the industry, affected its competitiveness, and made its products much more expensive compared with the massively subsidised exports from India, China and Bangladesh.  “The solution to the crisis lies in reducing the cost of doing business and making exports zero-rated,” he concluded, adding that the majority of textile manufacturers are losing money. “If you read the balance sheets of listed textile companies, you will find that most of them are suffering from losses.” Leather exporters agree. “The cost of our exports has skyrocketed in the last couple of years owing to the increase in energy prices, energy shortages, direct and indirect taxes and levies,” Agha Saiddain, former chairman of the Pakistan Tanners Association (PTA), said. “We are unable to compete with our regional rivals — India, Bangladesh and China — where the energy tariffs are much lower than ours. In Bangladesh, for example, the electricity price is half of what we have to pay, and their exports completely zero-rated.” The burden of un-refundable taxes on export-oriented industries is 5pc. “The manufacturing industry is doomed in this country unless you unload all refundable and un-refundable taxes before the export shipments leave our ports, bring down energy prices to the regional level of Rs7-9 a unit, and remove the power shortage,” Agha contended.

A leather garment exporter from Sialkot, who requested anonymity because of his relations with a federal minister, said Finance Minister Ishaq Dar was not even prepared to listen to their problems, let alone solve them. “Dar has transferred the cost of the state machinery’s failure in preventing electricity and gas theft and collecting taxes on to the exporters by spiking energy prices for them, imposing various taxes, fees and levies on their bills, stopping their [export] refunds, and making the imported raw materials dearer through increased import taxes,” he argued. Instead of passing on the benefit of falling global oil prices to the industry, he said, the government has imposed rationalisation and other surcharges to recover the cost of the 35pc electricity that is stolen or lost during transmission and distribution and unpaid bills from honest consumers. On top of that, the rupee is being artificially propped up to add to the losses of the exporters, he added. Agha was also critical of Dar’s claims of having stabilised the economy. “What economic stability is he talking about? The foreign exchange reserves have been built by accumulating debt. The exports are declining and the imports rising in spite of the falling oil import bill. Foreign investment has bottomed. Growth has slowed down. No new industry is being set up.” On the other hand, he said, Bangladesh had increased its foreign exchange reserves ‘far higher than us by increasing its exports’.

Ahmed Kamal, a textile exporter from Faisalabad, said Pakistan’s tax-to-GDP ratio would rise to around 14pc if the revenue the government is collecting through ‘innovative’ measures (like the rationalisation and debt surcharges etc on power bills) were also added to the Federal Board of Revenue’s collection. “When state-owned companies make profits, the government pockets all of it to increase its revenue. When these companies make losses, the government transfers the entire burden on to the consumers. Aren’t our economic and finance managers being very clever and intelligent at the cost of jobs and exports,” he wondered.

SOURCE: The Dawn

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Taiwan to make energy saving mandatory for textile sector

Beginning next year, the textile industry in Taiwan will have to mandatorily take energy conservation measures, as per a directive of the Ministry of Economic Affairs (MOEA), according to local media reports. In its effort to improve Taiwan’s energy use efficiency, the MOEA has come out with a draft regulation, which if properly implemented can save up to 40,000 kilolitres of oil equivalent per year in the textile industry alone, the reports said. Textiles is categorised as one of the heavy energy users by the MOEA under the Energy Administration Act. The ministry is planning to give a tax cut to textile companies that invest in renewable energy, or take steps to reduce the overall energy consumption. The draft regulation includes rules governing steam’s temperatures and oxygen content. Moreover, textile manufacturers will need to keep a close watch on water outflow, water temperature, etc.

SOURCE: Fibre2fashion

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Thai textile & clothing exports’ downtrend continues

Continuing the downward trend, the exports of textile and clothing from the Southeast Asian nation of Thailand declined by 7.13 per cent to $2.836 billion in the first five months of 2015, compared to $3.053 billion earnings in comparable period last year, data from the Thai Garment Manufacturers Association showed. Segment-wise, textile exports dropped by7.16 per cent year-on-year to $1.745 billion, while garment exports decreased by 7.09 per cent to $1.091 billion during the five-month period, according to the association.  In the textile category, woven fabric exports fetched $595.09 million, followed by yarn and man-made filaments with $322.68 million and synthetic filament and staple fibres with $296.87 million. Similarly, among apparel, man-made fibre garment exports were valued at $342.69 million, followed by cotton garments at $287.21 million, and garments of other textile materials at $221.85 million.  In terms of major destinations of Thai garment exports, the US led the pack with $372.52 million, whereas the 28-member EU accounted for $240.89 million, Japan $152.15 million, ASEAN(9) $62.51 million, and China (including Hong Kong) $57.41 million. Thai clothing exports to the EU saw maximum drop of 15.46 per cent during the period under review, mainly due to the country losing import-duty privileges from this year. In 2014, Thai textile exports dropped marginally by 0.14 per cent year-on-year to $4.602 billion, while garment exports decreased by 0.57 per cent to $2.857 billion.

SOURCE: Fibre2fashion

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Polyester pricing in June 2015 - A year of fall

Given the rapid changes in prices of polyester feedstock ethylene and paraxylene prices, their respective derivatives reflected similar trends year on year. Asian MEG markets fluctuated widely opening June and prices jumped in line with the ethylene and PTA market. They fell in the third week on short selling and bearish polyester markets as the peak season drew to a close. Prices, however, climbed again June-end on expanding downstream operating rates. Meanwhile, MEGlobal nominated Asian July contract price at a roll over. Asian spot was down 1.5% in June and 4.8% from a year ago.

European June contract price was settled up on tight supply amid bearish spot dynamics. MEG balance continued to tighten in May pushing spot truck prices up to on strong demand from polyester markets. Ethylene shortages and unplanned ethylene oxide outages plus utility problems had adversely affected MEG production in late May into June, tightening up balances even more. Spot fell Euro10 in June but were slightly up 0.7% year on year. Contract price for May was quickly settled at Euro1,080 a ton DDP and for June at Euro1,107 a ton DDP. US MEG price rolled over on stable expectations. Production was near to maximum with only a minor slowdown at one producer in early May. Demand was strong with sales reported above normal levels. US spot was down 6% from last year.

PTA prices regained sharply in Asia week one as there was no end to plant issues across China and Japan. However, they moderated later as issues subsided and attention turned to waning demand only to edge up last week. European PTA was static in June. CFR China prices were down 2.5% from May and 25% from a year ago. With stable outlook, some PTA buyers were encouraged to look for spot deals outside the region. In US, PTA producers were running close to capacity, with supply back to normal in the region. However, there are suggestions of stronger PET imports, which could impact regional PTA demand. Prices were down 7.3% year on year in June. Polyester chip markets in Asia were range bound as trading was insipid in June. Offers for semi dull and super bright chips were down 3.5-4% from May and 24% from June last year. In US, the absence of settlement in raw materials delayed announcement by fibre chip producers as most of the market was on a raw material formula based on current-month raw material prices. Chip spot price moved down 9% year on year in June, while the same in Europe declined by over 15%.

PFY markets in China were on weak correction in June and producers pegged offers mostly flat, and reduced in few specs on weak cost and limited buying interest. In India, POY market was stalemated amid bearish sentiment and producers lowered offers for some specs. In Pakistan, DTY prices saw notable decline in prices in the last week of June although producers pegged offers stable. In China, POY 75/72 prices declined 6% in Shengze. In Europe, 167 Dtex POY prices were down 15% while in US 70D POY was pegged 5.3% lower than last year. PSF prices were on a rise in China opening June as a fire at JX plant resulted in the shutdown of two paraxylene lines which supported PSF producers to raise offers immediately. However, prices declined later in the month as the support eased rapidly. In China, 1.4D PSF was pegged down US cents 4 from last month and 21% down from June 2014. In Europe, 1.7dtex PSF prices were down 17% in June 2015 compared to last year while in US 1.2/1.5D PSF was pegged 3.8% down in similar comparison.

SOURCE: Yarns&Fibers

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