The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 30 JULY, 2015

NATIONAL

INTERNATIONAL

 

Textile Raw Material Price 2015-07-29

Item

Price

Unit

Fluctuation

PSF

1137.99

USD/Ton

-0.43%

VSF

2158.43

USD/Ton

0.15%

ASF

2510.28

USD/Ton

0%

Polyester POY

1102.07

USD/Ton

-0.74%

Nylon FDY

2873.55

USD/Ton

0%

40D Spandex

6040.99

USD/Ton

0%

Nylon DTY

6032.83

USD/Ton

0%

Viscose Long Filament

1387.80

USD/Ton

0%

Polyester DTY

2693.96

USD/Ton

0%

Nylon POY

2706.20

USD/Ton

0%

Acrylic Top 3D

1338.81

USD/Ton

0%

Polyester FDY

3151.11

USD/Ton

0%

30S Spun Rayon Yarn

2759.26

USD/Ton

0%

32S Polyester Yarn

1828.62

USD/Ton

0%

45S T/C Yarn

2938.86

USD/Ton

0%

45S Polyester Yarn

2906.21

USD/Ton

0%

T/C Yarn 65/35 32S

2661.30

USD/Ton

0%

40S Rayon Yarn

2024.55

USD/Ton

0%

T/R Yarn 65/35 32S

2465.38

USD/Ton

-0.66%

10S Denim Fabric

1.14

USD/Meter

0%

32S Twill Fabric

0.96

USD/Meter

0%

40S Combed Poplin

1.06

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 = 0.16327 USD dtd. 29/07/2015)

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

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Meet on Textile Park in Andhra Pradesh

A meeting to discuss the status of operations at the textile park at Pashamylaram in Medak district was informed that only two out of ten powerloom units that started commercial production were working and the remaining have shutdown. A total of 15 entrepreneurs, including ten powerloom units, had launched production while another 12 units have not yet taken off. The meeting was attended by Industries Minister Jupally Krishna Rao, Irrigation Minister T. Harish Rao, MLAs Chinta Prabhakar and G. Mahipal Reddy and Principal Industries Secretary Arvind Kumar.

SOURCE: The Hindu Business Line

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Bengal to weave magic in UK

It will be a Bengal summer at one of Britain's most revered museums next year — the Victoria and Albert Museum.  Bengal's stunning textiles and designs will form part of V&A's spring summer festival in April 2016. Biswa Bangla, on the other hand, will be part of the London Design Festival this year from September 19 to 27. V&A is going big on Indian fabrics. 'The Fabric of India', being held at V&A from October 3 2015, to January 10, 2016, will be the first exhibition to fully explore the incomparably rich world of handmade textiles from India. From the earliest known Indian textile fragments to contemporary fashion, the exhibition will illustrate the technical mastery and creativity of Indian textiles and will be the highlight of the V&A India Festival. Celebrating the variety, virtuosity and continuous innovation of India's textile traditions, 'The Fabric of India' will present approximately 200 objects made by hand.

On display will be examples of everyday fabrics and previously unseen treasures; from ancient ceremonial banners to contemporary saris, from sacred temple hangings to bandanna handkerchiefs, to the spectacular tent used by Tipu Sultan (1750-1799), the famed ruler of Mysore. The exhibition will offer an introduction to the raw materials and processes of making cloth by hand. Displays of the basic fibres of silk, cotton and wool will illustrate the importance of India's natural resources to its textile-making traditions. The opening section will reveal the process of using natural dyes such as pomegranate and indigo and the complex techniques of block printing, weaving and embroidery across the ages, together creating a visual compendium of India's astonishingly diverse array of fabrics. Highlights will range from muslin embroidered with glittering green beetle wings, sequins and gold wire, to a vast wall hanging appliquéd with designs of elephants and geometrical patterns, to a boy's jacket densely embroidered with brightly coloured silk thread and mirrors.

Wealth, power and religious devotion are all expressed through textiles, and the exhibition will examine how fabrics were used in courtly and spiritual life. Sacred fabrics created for temples and shrines would employ the best of available materials and highest levels of craftsmanship. Examples on display will include a Hindu narrative cloth in silk lampas weave, depicting avatars of Vishnu dating to around 1570; a 16th-century Islamic talismanic shirt inscribed with verses from the Quran in ink and gold paint; a Jain panel embroidered with silk thread and an 18th-century crucifixion scene made in South-East India for an Armenian Christian church. This section will also explore the range, opulence, scale and splendour of objects handmade for the rich and powerful courts of the 17th centuries. Fine hangings and large floor spreads depicting beautifully flowering plants, used for decoration in the Mughal and Deccani courts, will be shown alongside one of the rarest pieces of Mughal dress and a lavish tent used by Tipu Sultan. The tent will be fully erected in the gallery, allowing visitors to walk inside it to see the magnificent decoration to be viewed close at hand. The historical and ongoing importance of textiles to the economy of India will also form a key focus with the exhibition highlighting the prevalence of Indian cloth around the world over millennia.

SOURCE: The Times of India

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Govt okays GST changes

The Union Cabinet on Wednesday cleared important changes to the government's constitutional amendment Bill on the proposed national goods and services tax (GST). However, exact modalities of a crucial change to limit up to one per cent tax over GST to inter-state sale of goods would be decided later, a move taken to woo dissenting parties. The changes were based on recommendations by the Rajya Sabha panel which examined it; the committee's report was given a few days earlier. The revisions are likely to be introduced in the House's ongoing session. The Lok Sabha had earlier passed the legislation, which means it will have to now approve these changes. The constitution amendment is an enabling mechanism to allow the Centre and states to impose a GST. After its passage, the new indirect tax regime would require another central law, as well as state laws, on a GST. The Bill passed by the Lok Sabha had a provision for levy of a tax up to one per cent additional to the GST, for inter-state supply of goods. The idea was to help producing states in the switchover, as GST is a destination-based tax. However, this had drawn criticism for those who said it would have a cascading effect. To address the interests of both sides, the panel had recommended the proposed GST law say inter-state movement of goods wouldn't be taxable if without a consideration, meaning the movement of goods within the same company (stock or branch transfers) would be exempt. The cabinet decided to defer determining the details of the mechanism to restrict the tax of up to one per cent over GST on inter-state movement of goods for a consideration. It may come up either in the GST law or GST rules later.

The Rajya Sabha panel had also suggested that compensation to states should not decline from the fourth year. The current Bill said states would be fully compensated for their losses for the first three years after the switch; this would fall to 75 per cent in the fourth year and 50 per cent in the fifth. The panel wanted full compensation for five years, not a tapering one. The suggestion has been cleared by the Cabinet. Sources said the government believes it would take two days for the Rajya Sabha to clear the revised Bill. Then, it would have to go to the Lok Sabha. The Congress party, the main dissenter all along, has said it rejects the changes approved by the Cabinet. The bill's passage requires a two-thirds majority of those present and voting in each of the two Houses. The Congrees, AIADMK and Left parties, all of which had given dissent notes to the Rajya Sabha panel report, have a total of 89 members in the 245 in that House. If they all vote against, the two-third majority would fall short of seven votes. Congress spokesman Randeep Singh Surjewala said the bill approved by the Cabinet was pitted with compromises. Among other things, the party wanted to completely do away with the up to one per cent tax on inter-state sale. Saloni Roy, senior director, Deloitte in India, said apart from the issue of passage in the Rajya Sabha, there was a question on whether business would get enough time for a transition from the current indirect tax regime to the proposed GST regime. And, if the information technology infrastructure for GST implementation would be ready by April next year, the government's target date for implementation.

SOURCE: The Business Standard

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Govt readies 3-tier offer for RCEP

The government has readied its strategy on goods trade under the Regional Comprehensive Economic Partnership (RCEP). The next round of talks is scheduled to take place in Nay Pyi Taw, Myanmar, on August 24-26. RCEP, being spearheaded by China, is seen as an answer to the US-led Trans-Pacific Partnership talks. It is being negotiated among the 10-member Asean economies -Singapore, Malaysia, Thailand, Vietnam, Indonesia, Philippines, Myanmar, Laos, Cambodia and Brunei -- and six of its free trade partners - China, Australia, Japan, South Korea, New Zealand and India. After a lacklustre period since these started in 2012, member-countries have been having frequent negotiations to close a deal by December. After the talks in Myanmar, the countries will have a round in Busan, South Korea. So far, there have been eight rounds of talks. "Our strategy is very clear. We will offer a certain set of tariff lines for Asean (Association of Southeast Asian Nations), South Korea and Japan, with whom we have an FTA (free trade agreement) and our other non-FTA partners. We cannot offer the same to everyone. With the countries with which we have an FTA, we cannot go above a certain level that has already been fixed," a top official in the ministry of commerce and industry told Business Standard.

According to the official, India had already informally put forward the proposal during the inter-ministerial session on RCEP at Kuala Lumpur, Malaysia, earlier this month. It was decided that India would offer 80-85 per cent of tariff lines for duty cuts to South Korea and Japan, 70-75 per cent of tariff lines to Asean economies and 40-50 per cent to China, Australia and New Zealand. Indian industry, especially the automobile, steel, textile, dairy and rubber sectors, is concerned that a trade deal that includes China could wipe them off from the markets. "We are very much aware that some of the sectors have taken a huge beating. Why only China -- we have taken a beating on coffee, cardamom and other agricultural products from even Vietnam. That is why we are not offering everything to everyone. It has to be approached differently and we are well aware of industry's concerns," the official stated.

SOURCE: The Business Standard

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'India has the potential to become a multi-trillion dollar economy'

India has the potential to become a multi-trillion dollar economy with a per capita income of about $40,000 by 2050 if it manages to grow at seven per cent annually, for the next 30-35 years, a World Bank official has said. "If we can manage to grow at seven per cent for the next 35 years, we will be the second largest economy," World Bank executive director for Bangladesh, Bhutan, India and Sri Lanka Subhash Chandra Garg said. Addressing the Indian-American community at the Indian consulate, Garg underlined that India will have to transform its agriculture completely, grow its services and manufacturing sectors, and give a boost to health care and tourism. He noted that a "big challenge" will be to get people out of agriculture and use them in the manufacturing and services sectors, while also ensuring that agricultural production in the country increases. He acknowledged that the Indian government's push on manufacturing through its Make in India initiative is required to boost the sector in the country and contribute to economic growth.

SOURCE: The Business Standard

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'Gurdaspur terror attack hits Indo-Pak trade sentiments'

The terror attack in Gurdaspur district may not have an immediate impact on trade between India and Pakistan through the Attari-Wagah route, but traders admit this "cowardly act" has hit the business sentiments and could act as a potential threat to bilateral trade between two nations. Calling for peace and tranquillity, traders, however, said India should continue to give befitting reply to those who want to disturb harmony with their nefarious designs as done in the case of terror attack at Dinanagar in Gurdaspur. "Business sentiments have definitely been hit at Attari-Wagah trading point because of terror attack in Gurdaspur as such attacks lead to tension among importers and exporters of both nations ," a trader based in Amritsar said. "Every businessman will worry about his money involved in the trade as and when such incidents occur. And this is happening now with every trader here," he said. Echoing similar sentiments, a clearing agent at the Integrated Check Post Amritsar, said, "Yes, tension is palpable and sentiments are low because of terror attack." However, traders pointed out that it was difficult to gauge any impact on the trade between India and Pakistan as of now as negligible volume of business is taking place at present.

Currently, a few trucks of cotton yarn are moving across the border while no export of vegetables is taking place to Pakistan. Similarly, some trucks laden with cement and gypsum are coming into Indian territory. They further said the government should maintain tough posture to thwart any attempt of terror coming from across the border to disturb peace. Last year in November, trade between India and Pakistan through the Attari-Wagah land route came to a halt in the wake of suicide attack at Wagah. The two countries started cross border movement of trucks in October 2007 from Attari Check post at Amritsar to Wagah border with an intention of boosting bilateral trade. Currently, Pakistan allows import of 137 items through land Attari-Wagah land route including vegetables, oil cake, fruits etc. Indian imports are cement, gypsum, dry dates, rocks salt, aluminium ores etc. The volume of India's trade with Pakistan through Attari-Wagah land route increased from USD 129 million in 2007-08 to USD 671 million in 2013-14.

SOURCE: The Economic Times

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India, Australia engaged in 'complicated negotiation' over FTA

Australia has said it is engaged in a "complicated negotiation" with India to conclude a free trade agreement with Australian negotiators battling with "strong protectionist sentiments and technical market issues". "Like Australia it's (India) a federation, so sometimes you have different state taxes and charges as well. It's a complicated negotiation but we are working very hard on it," said Peter Roberts, assistant secretary from Department of Foreign Affairs and Trade. Roberts said the talks were tough as Australian negotiators battling with "strong protectionist sentiment and technical market issues as well". He was speaking at the Australian Grain Industry Conference here.

India ranks 12th biggest trading partner of Australia with two-way trade between the two standing at over 15 billion Australian dollars. The negotiations between Australia-India are expected to enter ninth round next month, after talks in New Delhi earlier this month. The latest discussions covered issues including market access for goods, services and investment, rules of origin; customs procedures and trade facilitation; technical barriers to trade; sanitary and phytosanitary measures, economic cooperation and legal and institutional issues. Andy Crane, the chief executive of Australia's biggest grains exporter, CBH, said trade agreements were vital in ensuring Australia remained competitive, saying everyday a product was delayed at a country's border equated to a 0.8 per cent tariff on trade. Crane said "precious little" grain was being sent to India, but there was untapped potential in markets around the Indian Ocean Rim. However, he warned of relying on free trade agreements to "save Australia's agricultural industry". "We have a lot to do to put our own house in order. What we need to do is focus on the supply chain and focus on areas we can improve on," Crane said. He said the government needed to cut "red tape" to promote foreign investment, which would also ensure Australia remained competitive. Meanwhile, Japanese trading giant Mitsui & Co has expressed confidence that a free trade agreement between Australia and India would be concluded before the end of the year.

Mitsui Australia chief executive Yasushi Takahashi was quoted by 'The Age' report as saying that he was confident an agreement with India would be signed before the end of 2015. Comparing the recently signed Australia-Japan economic agreement, Takahashi said, "Japan is a very complex market and India is a very complex market, but I don't think many people know that between Japan and India there is already an FTA." "If two complicated countries can agree on an FTA, anything can happen, so I'm optimistic. (Trade Minister) Andrew Robb is very enthusiastic about entering an agreement later this year and I believe him," he added. Australian government has already signed trade agreements with Japan, Korea and China in last one year.

SOURCE: The Economic Times

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Exim Bank-backed advisory firm ready for African push

The Exim Bank of India has partnered with a few big domestic firms to set up an advisory company in Mauritius to propel exports to Africa.The shareholders’ agreement for this company — Kukuza Project Development Company (KPDC) — was signed on July 24, Exim Bank CMD Yaduvendra Mathur told BusinessLine here.The venture had been in the works for more than a year. The African Development Bank holds equity in KPDC while Infrastructure Leasing & Financial Services (IL&FS) is its main sponsor.“Exim Bank, State Bank of India and African Development Bank have together taken a 49 per cent stake and the rest is with IL&FS. The initial authorised capital is pegged at $25 million,” Mathur said.KPDC will essentially look to bring infrastructure projects in Africa to a bankable stage and facilitate exports from India to Africa.Opportunities for infrastructure development in Africa are huge, with a World Bank study projecting the annual investment requirement in infrastructure at $90 billion. ‘As much as two-thirds of this annual requirement will be for fresh investments and the rest for maintenance. KPDC, which will focus on early-stage design and preparation of projects, is expected to process about four-five projects a year to begin with.The advisory firm is expected to assume turnkey responsibility to prepare the contractual, technical and financial arrangements of its projects, and market such projects to potential private and public-private investors.

SOURCE: The Hindu Business Line

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Indonesian textile industry faces formidable challenges

The textiles and textile products (TPT) industry in Indonesia is currently facing pressure from both inside and outside the country. In the domestic market, slowing economic growth, which is expected to continue throughout the year, has led to a decline in the people’s purchasing power causing lower demand for textile products.  The declining demand in the local market, accompanied by increased production costs and more intense competition, has caused manufacturers to reduce their production capacities. Meanwhile, the export market is weak nowadays due to low economic growth also being experienced in Indonesia’s export destinations. As a result, the performance of the TPT industry over the first quarter of 2015 was relatively poor, suffering a contraction with negative growth of 0.98 percent year-on-year, making it a worse performer than the manufacturing industry, which saw growth of 3.87 percent, and Indonesia’s Gross Domestic Product (GDP), which saw growth of 4.71 percent.

The decline in TPT exports was already seen in the first quarter of 2015 and is predicted to stagnate for the remainder of year. In the first quarter of 2015, TPT exports were worth just US$2.3 billion, lower year-on-year by $2.5 billion. According to the chairman of the Indonesian Textile Association (API), Ade Sudrajat, the TPT export target this year has been set at the same figure that was realized last year, $12.6 billion. TPT exports as of the first quarter of 2015 had only reached 18.3 percent of this target. The value of total sales in Indonesia’s TPT industry has averaged around $20 billion over the last three years. Exports account for roughly 63 percent of this figure. Given the large share being contributed by exports, the performance of the TPT industry is sure to be greatly influenced by global economic conditions, particularly in the US and Europe, which represent Indonesia’s largest TPT export markets.

In 2015, the US economy is expected to improve. However, its impact on the recovery of Indonesian TPT exports will not be immediately significant and perhaps won’t be felt this year. In addition, Indonesian TPT exports are also facing various domestic constraints such as, the length of the loading and unloading process at ports, known as dwelling time. Another constraint is the paucity of free trade agreements in place with key export destinations, such as the US and the EU, with whom Indonesia’s major textiles competitors, such as Vietnam and Malaysia, already have free trade agreements. Furthermore, almost 60 percent of the total value of TPT exports comes from garments. These products use the Harmonized System (HS) for product classification and fall into chapter 61 (knitted and crocheted apparel and accessories), 62 (other apparel and accessories) and 63 (other textile articles, sets and used clothing). By country/region of destination, the largest market for Indonesian TPT exports is the US, which accounts for 31.08 percent, followed by the EU with 16.02 percent, Japan on 9.60 percent, Turkey on 5.10 percent and ASEAN on 6.90 percent. The majority of Indonesian TPT exports to the United States in 2014 fell within HS chapters 61 and 62, which accounted for 47.07 percent and 46.65 percent respectively. Indonesian TPT exports to the EU in the same period were overall less focused on these two chapters, and also more weighted toward chapter 62 goods, which formed 41.67 percent of exports to the EU, with chapter 61 forming 31.84 percent.

In the domestic market, an obstacle facing the Indonesian TPT industry comes from the influx of imported products into the country, particularly those from China and Korea. Over the last five years, the average value of Indonesian TPT imports has grown by 12.45 percent. Another obstacle is that rising energy prices early this year, affecting fuel and electricity, have caused soaring costs in the TPT industry. This increasingly reduces the competitiveness of Indonesian TPT products in the domestic market where imported products could be up to 20 percent cheaper. In the first quarter of 2015, the value of TPT imports reached $2 billion, nearly a half of this year’s import target of $5 billion. In 2014, the greatest portion of Indonesia’s TPT imports, 32.88 percent, came from China, followed by Korea, accounting for 17.81 percent and ASEAN, accounting for 10.41 percent. Most of Indonesia’s TPT imports — about 94.24 percent — comprised goods in HS chapters 50 to 60.  HS chapters 60 to 63, which refer to garments and form most of Indonesia’s TPT exports, accounted for only 5.76 percent of imports. The issuance by the minister of finance of Regulation No. 132/PMK.010/2015 constitutes one of the government’s efforts to reduce the influx of imports, including by raising import tariffs for some TPT products. Most of the TPT products affected by such increases are garments under HS chapter 61, specifically men’s and boys’ overcoats, the tariff for which rose from 15 percent to 25 percent. Fluctuation in the prices of raw materials such as cotton due to the rupiah depreciation against the US dollar is also still prevalent. To date, most cotton — approximately 95 percent of which is used in the TPT industry — still has to be imported as the quality of domestic cotton is far below standard and there are no guarantees of its supply to the TPT industry.

As such, the rupiah depreciation that is causing fluctuations in the price of raw materials has further contributed to industry problems, becoming a major concern. Aside from price fluctuations, supply channels for the procurement of cotton also represent a hindrance. The procurement of cotton is largely done through intermediaries. This means that TPT industry players have to buy cotton from brokers at high prices. According to the secretary general of API, cotton import procurement patterns in Indonesia show that about 60 percent comes from abroad, with 30 percent from warehouses in Malaysia and the other 10 percent from retailers who import the material only to sell it on again. The length of the cotton import chain means the price of this vital raw material for textiles is higher when it arrives at the end user. In light of this, API is urging that the relocation of cotton from warehouses in Malaysia to warehouses in Indonesia be carried out immediately so that logistical costs, especially transportation and warehousing costs, can be reduced. The API’s wishes in this regard seem to be in line with the priority program of the Industry Ministry that aims to build a bufferstock for the TPT industry.

The Industry Ministry is encouraging the TPT and footwear industries to spur on export sales. To that end, the ministry is providing various stimuli and incentives. First, it is offering additional incentives including the easing of obtaining raw materials for textiles and textile products through the lowering of government-borne duties (BMDTP) for importing some industrial materials. Second, it is providing ease of access to financing as mandated by Act No. 3/2014 regarding industry. Third, it is developing a buffer stock for the cotton industry.  Fourth, it is undertaking inter-ministerial coordination in order to promote domestic trade. Fifth, it is carrying out efforts that directly promote exports. In this regard, the ministry plans to open up opportunities for cooperation in the form of free trade agreements (FTA) with countries that buy Indonesian garments. With particular regard to FTAs, the Industry Ministry has confirmed the government’s commitment to establishing partnerships that provide the maximum benefit to national industry.

SOURCE: The Jakarta Post

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The All Pakistan Textile Mills Association (APTMA) announces strike against increase in power rates and taxes on August 7

The All Pakistan Textile Mills Association (APTMA) has announced a strike against an increase in the power rates and taxes on August 7. In a statement, APTMA Chairman SM Tanvir said that exports were reducing due to the government policies. He said that the government had imposed power bills amounting to Rs 100 billion on the textile sector to fill the gaps in its exchequer caused by power pilferage and line losses. He said that in 2013 the per unit price of electricity was Rs 8 while the price of per barrel of oil in international market was $109 whereas in 2015 when the price of oil was hovering around $50 per barrel the government had raised the electricity prices to Rs 14 per unit, which was unjustified. The APTMA chief claimed that Finance Minister Ishaq Dar was not ready to hold a meeting with the association over the issue which is why they had now decided to call a strike on August 7. It is pertinent to mention here that the traders’ associations have also called for a strike on Aug 1 to protest against the government for imposing withholding tax on banking transactions.

SOURCE: The Pakistan Today

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Thailand to Hold FTA Negotiations With Pakistan

The Thai Cabinet has approved free trade agreement (FTA) negotiations with Pakistan, with talks to start in the near future, Thai News Agency (TNA) reported. Deputy Commerce Minister Apiradi Tantraporn said here on Wednesday that the first Pakistani-Thai FTA meeting will be officially held in September and both countries are expected to seal the FTA deal by mid 2017. Apiradi also revealed that Thai Commerce Minister General Chatchai Sarikulya is scheduled to visit Pakistan from Aug 12-13 for the third meeting of the Pakistani-Thai Joint Trade Commission. The deputy minister noted that the upcoming meeting will focus on mutually benefiting trade in gems, jewellery, food, farm and fishing products, automobiles and parts and textile, pointing out that Pakistan is an important source of gems and fishing products for Thailand. According to the deputy minister, both Pakistan and Thailand plan to raise the value of bilateral trade to US$2 billion by 2018.

SOURCE: The Bernama

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UK, Indonesia to strengthen economic ties

Indonesian President Joko Widodo and the visiting British Prime Minister David Cameron have expressed their commitment to improve economic ties between the two nations. Addressing a joint press conference in Jakarta, Cameron said, “The UK is the fifth-largest foreign investor in Indonesia. We're natural business partners, but there's much more that we can do.” Cameron said leading engineering and energy companies from the UK could help Indonesia in executing Jokowi's infrastructure plan. He also expressed UK's full support to the Asean Economic Community as it would “boost trade not just within countries of the region, but between regions and the rest of the world”. Separately, speaking at the UK-Indonesia Business Forum, Cameron said Britain can easily increase its investment in Indonesia.  

During his visit Cameron announced that the UK government would make available up to 1 billion pounds of export finance credit to the Southeast Asian nation. However, UK trade and investment minister Francis Maude, said that businesses had their concerns about tariffs on imported products in Indonesia and also about non-tariff barriers. Cameron, who was accompanied by representatives of 30 major UK companies, said that UK's corporate tax rate is now the lowest in the G20, and his government is slashing business taxes as well. As per the data with the Indonesia Investment Coordinating Board, the UK was the fifth-largest foreign investor in Indonesia last year with investments of $1.6 billion. In the first half of 2015, investment of about $425 million has come from the UK.

SOURCE: Fibre2fashion

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Cambodia sees sharp rise in the number of garment factories

Cambodia has witnessed 21 percent rise in the number of garment and footwear factories, from 528 in late 2013 to 640 in March 2015, while exports are up by more than 10 percent in the past 16 months according to a recent International Labour Organisation (ILO) report, which claims the rapidly growing state of the industry has confounded those who suggested that increased minimum wages for workers would lead to a decline of the sector and the exit of inward investors. The buoyant state of the textile industry in Cambodia also offers a pointer for Myanmar where Korean investors are threatening to leave if new minimum wage legislation is implemented. The minimum wage in Cambodia has more than doubled since 2012, when it stood at US$ 61. The monthly minimum wage level of US$128 (effective as of 1 January 2015) is lower than the likes of China (US$297), the Philippines (US$269) and Thailand (US$237), but above Sri Lanka (US$66), Bangladesh (US$71) and Pakistan (US$99 to US$119). The ILO said that the garment manufacturing sector now employs 600,000 workers in Cambodia, although this figure relates to the export sector only and does not include factories working as sub-contractors. This is not only a good news for Cambodia's garment and footwear industry, but also for the workers in these sectors.

Welcoming the fact that the government, unions, and employers all committed in June 2014 to a minimum wage review process is evidence-based and takes into account a range of social and economic factors. In this context, the ILO hopes that [its new Bulletin] will become a vital resource helping key actors in the world of work to have an informed discussion and constructive negotiation on minimum wages and other social and economic issues in the garment and footwear industry. It is vital that the impact of the minimum wage on enterprises, productivity, competitiveness and employment is taken into account. Workers and their unions are understandably concerned to ensure that wages are adequate to meet the needs of workers and their families.

SOURCE: Yarns&Fibers

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Polyester prices correct on falling energy complex and supply imbalance

In the week ended 17 July, the Asian ethylene markets continued to be hit by weak demand amid ample supply while prices touched a four-month low. The spread between North East and South East was at its widest in 11 months as the two markets saw diverge trend. Asian markers CFR NE was down US$20 a ton while SEA CFR fell US$35 a ton on the week. The ethylene-naphtha spread was wide at US$65 a ton. In Europe, ethylene spot continued to fall on bearish price expectations following the restart of Shell’s 900,000 ton a year Moerdijk cracker. Prices fell Euro11 a ton FD NWE while CIF NWE was down US$32 a ton on the week. In US too, ethylene spot slipped on plant restart as expansion neared completion while weak crude and tumbling downstream PE prices contributed to the decline. Spot ethylene gave back US cent 0.25 per pound FD USG on the week.

Paraxylene prices fell US$31 a ton on the week and US$10 a ton FOB Korea and CFR Taiwan/China on 17 July as crude oil prices fell and downstream demand weakened further. Meanwhile, FCFC shut its plant for turnaround. European paraxylene and orthoxylene prices were down US$29 a ton FOB ARA on the week despite a marginal recovery of US$1 on 17 June driven by a recovery in gasoline prices. In US, paraxylene market activity was minimal and spot tracked falling Asian prices. Production economics were still under tight supply. Spot mixed xylene price also fell week over week under pressure of lower spot gasoline amid weak blending demand. US spot assessments fell US$35 a ton FOB USG while mixed xylene fell US cents 10 per gallon.

Polyester intermediate mono ethylene prices declined in the week of 17 July but the drop was marginal amid talk of traders coming back to the market to procure additional cargoes for end-July to first-half August. Traders believed that a floor was reached after successive decline in spot prices. The CFR Southeast Asia and CFR China fell US$8 a ton week on week while nearby-month cargoes were offered at US$871-872 a ton in China while bonded cargoes were offered at US$885-890 a ton. Europe spot MEG prices fell Euro40 a ton FCA NWE due to weak demand and falling feedstock. Buyers from coolant market held back buying expecting prices to drop further. In US, MEG spot remained unchanged as market slowed down on softening demand, but remained steady. August prices are expected to drop. US MEG prices were stable on the week at US cents 40 per pound FOB USG.

Meanwhile purified terephthalic acid prices went lower in the week in Asia as demand continued to soften, particularly in China. With downstream polyester markets still recovering and signs of decline in the run rate imminent, PTA markets saw limited trades. The CFR China and CFR Southeast Asia PTA markers fell US$20 a ton week on week while in China, discussions weakened gradually to US$640-650 a ton. Offers for one-day bonded cargoes were at US$690 a ton. In US, PTA downstream users awaited June price which remained unsettled creating uncertainty since paraxylene price declined on the week. European PTA June contract price was assessed at Euro763 a ton FD NWE which remained unchanged while July paraxylene contract price was not settled.

Offers for semi dull chips and super bright chip in China rolled over while those for CDP chip were down US$65 a ton on the upper end of the price range. Polyester filament yarn markets were thin while producers adjusted offers according to fundamentals, mostly cutting down. In China, POY offers were down at some sellers, and discounts were still available. FDY market was mostly stable but was quiet on tepid sales. Inventory was high, and liquidity remained tight. In India, POY producers pegged offers mostly stable on sluggish sales while market activity remained thin. Downstream buying was done on a need-to basis. In Pakistan, DTY market remained thin on sluggish raw material while downstream buying was quiet. Producers pegged offers largely stable. PFY markets are likely to roll over the weakness in coming week.  Polyester staple fibre markets were largely weak during the week as upstream energy complex and PTA prices fluctuated at low levels. Indian producers’ prices were down and only a few small parcels were traded while in Pakistan PSF market was mostly stable and quiet this week. Indian PSF was cheaper by INR4 a kg at INR82.25 a kg or US$1.30 a kg, down US cents 7 on the week.

SOURCE: Yarns&Fibers

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