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Textile Tussle Anti dumping duties spark trade friction between India and China

 

The textile industry, a crucial spoke in India and China’s GDP economic growth, has become a battleground for anti-dumping duties (ADD), raising concerns about business losses and the future of trade relations. 

Tit for tat ADDs

Both India and China have imposed ADD on imports from each other. For example India in 2021, imposed ADDs on Chinese viscose staple fiber (VSF), citing dumping margins of 3.71per cent to 15.72 per cent. This led to a 7 per cent decline in VSF imports from China, impacting garment manufacturers reliant on affordable Chinese VSF. Similarly, China in 2022 imposed ADDs on Indian cotton yarn, alleging dumping margins of 3.1 per cent to 7.2 per cent. This resulted in a 25per cent drop in Indian cotton yarn exports to China, impacting Indian spinning mills. As Amitabh Yadav, President, Clothing Manufacturers Association of India (CMAI) opines, "These ADDs are protectionist measures that distort trade and harm consumers."

 Year  India's ADDs on Chinese textile imports (in $million)  China's ADDs on Indian textile imports (in $million)
 2021  203.24  231.57
 2022  251.43  278.92
 2023 (YTD)  112.37  145.21

Source: World Trade Organization (WTO) Trade Statistics Database

Reasons for ADDs

Several factors lead to the imposition of ADDs. On major reason is protecting domestic industries. Countries like India and China use ADDs to shield their domestic textile industries from allegedly unfair competition from foreign players. ADD investigations based on complaints from domestic industries alleging unfair trade practices look at key factors like: Dumping or selling goods below their normal value in an export market; evidence that the dumped imports harm the domestic industry; Proof that the dumping caused the injury. Trade disputes can sometimes be fuelled by broader political and economic conflicts as well.

The other reason is correcting unfair trade practices. ADDs aim to counter dumping, where a country exports goods at prices below their domestic market value, harming domestic producers in the importing country. ADDs aim to level the playing field by raising the price of dumped imports, making them less competitive with domestic products. Proponents argue that ADDs protect jobs in domestic industries threatened by unfairly priced imports. As an Indian yarn manufacturer says, "The anti-dumping duty on Chinese yarn impacted our raw material costs, forcing us to raise prices and lose some customers to cheaper competitors."

Case for India and China ADDs

The impact of these duties is evident in trade figures and industry reports for both India and China. India's imports of Chinese viscose staple fibre fell by 40 per cent in 2022, while China's imports of Indian polyester textured yarn declined by 25per cent. Indian textile exports facing anti-dumping duties in China experienced a 10-15 per cent drop in value. 

Indeed, anti-dumping duties offer temporary relief to domestic industries, but their long-term consequences for trade relations and global competitiveness can be detrimental. The use of ADDs in the India-China textile trade is a complex issue with significant economic and political implications. ADDs can protect domestic industries, they also have negative consequences for businesses and consumers. 

Both India and China need to engage in constructive dialogue and explore alternative solutions to protect their industries without jeopardizing wider economic interests. Open communication, transparent investigations, and adherence to WTO rules is key to navigating this complex situation and ensuring a sustainable future for the textile industry. Finding a balance between protecting domestic interests and promoting fair trade remains a crucial challenge for both countries. 

 

 

The Lenzing Group, a prominent global producer of regenerated cellulosic fibers, has announced a significant update to its climate targets in alignment with the Paris Agreement's objectives. Verified by the Science Based Targets Initiative (SBTi), Lenzing is now the sole producer in its industry with scientifically endorsed net-zero goals.

With a commitment to limiting the human-induced global temperature rise to 1.5 degrees Celsius, Lenzing aims to slash its direct emissions (scope 1) and those from purchased energy (scope 2) by 42 per cent by 2030, along with a 25 per cent reduction in indirect emissions (scope 3) from the 2021 baseline. This represents a substantial increase from previous targets, with an absolute reduction goal of 1.1 million tons, up from 700,000 tons.

Lenzing's CEO, Stephan Sielaff, emphasized the company's dedication to driving positive change in the textile and nonwovens industries while ensuring long-term success. Echoing this sentiment, Christian Skilich, Chief Pulp Officer and Chief Technology Officer, highlighted Lenzing's pivotal role in meeting the 1.5 degree limit and affirmed their commitment to continuous investment in energy efficiency and technological advancements.

Recognized by the SBTi, Lenzing's updated targets encompass a net-zero commitment by 2050 and near-term goals for significant emissions reductions by 2030. These targets replace previous ones set in 2019 and underscore Lenzing's proactive approach to combatting climate change.

The company is implementing sustainable measures to achieve these targets, including substantial investments in converting and modernizing production sites in Asia. Notably, Lenzing is transitioning its facilities in China and Indonesia to 100 per cent renewable energy sources and investing in energy independence and emissions reduction at Austrian sites.

Through initiatives like acquiring biomass power plants and securing long-term wind power contracts, Lenzing demonstrates a robust commitment to sustainable practices and environmental stewardship in its operations.

 

 

Intertextile, China's premier fabrics trade show, is set to return on March 6-8 at Shanghai's National Exhibition and Convention Centre, marking a significant revival in the wake of China's abandonment of its zero-Covid policy, which previously restricted access for foreign visitors. With over 3,000 exhibitors from both China and abroad, spanning across a sprawling 190,000 square metre exhibition space, the event promises a comprehensive showcase of the latest textile innovations.

Jointly organized by Messe Frankfurt, the China Textile Information Centre, and CCPIT-Tex, Intertextile will run concurrently with Intertextile Shanghai Home, focusing on home decoration fabrics, and the Yarn Expo show. Against the backdrop of a global trade fair industry emerging from disruption, Intertextile seeks to capitalize on China's robust domestic demand, particularly amidst a slowdown in apparel exports to key markets like the USA and Europe in 2023.

Highlighting China's resilient textile and apparel markets, organizers anticipate a surge in apparel exports in 2024, projecting a positive impact on global economic growth. Noteworthy exhibitors such as Eastman, Erteks, Fidlock, Grassim, Liberty Fabric, and Yifang Textile are poised to unveil a plethora of new products tailored to Asian producers and brands, with sustainability taking center stage at the All About Sustainability section.

Additionally, specialized sections like Beyond Denim, the Accessories Zone, the Functional Lab, and the Premium Wool Zone will cater to diverse industry segments, while the SalonEurope segment will spotlight premium European fabrics. Meanwhile, the Verve for Design section will showcase textile design prowess from local, European, and Australian companies.

The upcoming edition coincides with China's trial of a visa-free entry policy, aimed at visitors from select European countries and Malaysia, providing a strategic opportunity for Intertextile to attract European buyers. With an array of innovative products and a conducive policy environment, Intertextile stands poised to reaffirm its status as a pivotal platform for the global textile industry.

 

 

Archroma, a global frontrunner in specialty chemicals for sustainable solutions, has unveiled Super Systems+. These innovative end-to-end systems amalgamate fiber-specific processing solutions and intelligent effects, empowering textile and apparel brands, retailers, and mills to profoundly enhance their economic and environmental sustainability.

Dhirendra Gautam, Vice President of Product Marketing and Strategy at Archroma Textile Effects, emphasized the significance of Super Systems+ amidst critical industry shifts towards resource conservation and circularity. He stressed the need for brands to maintain competitiveness while prioritizing sustainability and maintaining product aesthetics and functionality. Gautam declared, "Super Systems+ represents a pivotal milestone in our commitment to innovation and partnership for the textile industry, embodying our 'Planet Conscious+' vision."

The Super Systems+ suite comprises wet processing solutions delivering measurable environmental impact, durable colors and functional effects augmenting product longevity, and technologies eliminating harmful substances. This comprehensive suite facilitates brands and mills in achieving desired sustainability levels through quantifiable resource savings and cleaner chemistries.

Kerim Oner, Director of Strategic Marketing, highlighted the transformative potential of Super Systems+, emphasizing its utilization of cutting-edge technologies to drive eco-friendly innovation. Oner articulated a future where efficiency converges with environmental consciousness, resulting in reduced processing times and conservation of water and energy.

Key breakthrough products and technologies within Super Systems+ include Avitera SE for significant resource savings in cotton processing, Diresul Evolution Black for enhanced black denim effects with a 57 per cent overall impact reduction, and aniline-free Denisol Pure Indigo 30 LIQ for authentic denim shades. Moreover, Eriopon E3-Save offers resource-efficient polyester dyeing, while Phobotex NTR-50 LIQ provides bio-based, PFAS-free durable water repellence.

Archroma's extensive product portfolio and global footprint position it as a leader in driving the textile and fashion industry towards sustainability. The introduction of Super Systems+ underscores Archroma's augmented commitment to sustainability, progress, and the positive transformation of the textile industry. Super Systems+ serves as a pivotal element of the "Planet Conscious+" vision, already available across popular end-use segments, from denim to performance wear and home textiles.

 

Thursday, 15 February 2024 12:55

Perlon expands in India with a new plant in Goa

 

Marking a significant step in its global expansion strategy, Perlon, the renowned producer of synthetic filaments, officially opened its new plant in Goa, India. This exciting development follows Perlon's owner, Serafin, acquiring Indian manufacturer Shaun Filaments, paving the way for strengthened market presence, increased capacity, and enhanced production processes.

The Goa facility will play a crucial role in manufacturing synthetic filaments for diverse industries, including paper, technical textiles, brushes, cosmetics, and dental care. The integration of Shaun Filaments brings not only a wealth of experienced professionals but also established production lines and cutting-edge technologies to the operation, further bolstering Perlon's capabilities.

This expansion marks a significant step forward for Perlon, enabling them to cater to the growing demand for high-quality synthetic filaments in India and the wider Asian market. By leveraging their expertise and the strengths of Shaun Filaments, Perlon is poised for continued success and innovation in the years to come.

 

 

Calvin Klein launched its Spring 2024 collection with a campaign featuring celebrity Kendall Jenner. Shot by famed photographer Mert Alas, the ad film showcases Kendall in Calvin Klein’s Spring womenswear range, which includes outerwear and sophisticated ensembles.

The collection features a relaxed trench coat, with a soft draping silhouette and flowing construction, for heightened style throughout the Spring season.

The structured stretch blazer and matching wide leg trousers offer a polished and contemporary take on power dressing, featuring a clean finish and comfortable stretch fabric. The line leather crossbody bag completes the look with its compact size and supple leather, providing a versatile day-to-night accessory.

The campaign will be rolled out across Calvin Klein's social media platforms throughout the week. Its reach will be extended across the globe through out-of-home placements. Earlier this year, the company debuted parts of its Spring 2024 menswear ad with actor and musician Idris Elba and actor Jeremy Allen White.

 

 

First major trade show to resume in China after easing of the COVID-19 restrictions, Intertextile Shanghai will cater to the booming domestic market this year. 

To be held from March 06-08, 2024 in Shanghai, the trade show will host over 3,000 companies showcasing fabrics, yarns and accessories. 

The trade show will showcase a wide range of innovative and sustainable textile products. It will boast of a strong presence of Chinese and Asian exhibitors. The show will exhibit diverse offerings from various segments including denim, accessories, functional fabrics, premium wool and European expertise. 

Exhibitors at the show will include Eastman from the US, Erteks from Turkey, Fidlock from Germany, Grassim from India, Liberty Fabric from the UK, and Yifang Textile from Hong Kong. 

The event will have a pavilion dedicated to Oeko-tex-certified fabric. The All About Sustainability section will feature a selection of 25 suppliers. 

Intertextile's other sections will include Beyond Denim, focusing on the jeans market, the Accessories Zone, for suppliers of components like zips and buttons, the Functional Lab, showcasing performance fabrics for sport and outerwear, and the Premium Wool Zone, where exhibitors from the UK, France and Italy will present high-end wool and cashmere.

The SalonEurope section too will focus on European fabric expertise, presenting premium materials from France, Italy and Turkey. Finally, the Verve for Design section will host local, European and Australian companies active in textile design.

The trade show will adopt a visa-free entry policy for select European countries to attract international buyers.

 

 

The Accelerating Circularity Project has launched its next phase to develop textile-to-textile recycling.

So far, the project has successfully replaced virgin fibers in yarns and fabrics with a minimum of 40 per cent recycled cotton or polyester at standard industry minimum order quantities.

Titled ‘Building Circular Systems, the second phase of the project aims to build on this by significantly increasing material volumes, developing new tools and expanding circularity education.

The project has started T2T (textile-to-textile) trials with over 70 participants across Europe and the US. However, it aims to include more collaborations with additional partners across a wider geographic scope.

Participants will be able to witness the capabilities and challenges of circular systems; collectively build the tools needed to commercialise T2T at scale; connect with peers; and better meet their own sustainability goals, says ACP. 

Karla Magruder, Founder and President, says, this milestone marks a major step forward in ACP’s efforts to build commercial circular textile-to-textile systems, provide industry tools and deliver on education and knowledge allowing companies to transfer learnings to their sourcing strategies.

 

 

After a challenging year, Cambodia's garment, footwear, and travel goods (GFT) exports surged by 21.64 per cent to $967 million in January. This positive turnaround brings cheer to an industry that employs nearly a million Cambodians and contributes significantly to the nation's economy.

All sectors within GFT saw impressive growth, led by knitted apparel and clothing accessories exports that grew by 24.3 per cent and non-knitted apparel exports that surged by 30.9 per cent, Exports of footwear and travel goods also grew highlighting a broad-based recovery.

This achievement comes despite ongoing trade challenges like the loss of GSP benefits from the US and reduced EBA benefits from the EU. This demonstrates the resilience of the Cambodian industry and its ability to adapt.

The GFT sector is a vital source of employment and economic growth for Cambodia. The recent export surge offers hope for stemming job losses and factory closures that were seen in the past year. The government's support through initiatives like the $40 monthly allowance for affected workers is also commendable.

However, Cambodia faces stiff competition from regional players like Bangladesh. To remain competitive, continuous skill development for workers and cost-effective measures like promoting renewable energy are crucial.

 

 

With suppliers receiving a lot of inquiries from international buyers, garment exports from Bangladesh are likely to witness a strong rebound from May this year 

As per data from the Export Promotion Bureau, garment exports from Bangladesh grew by 3.45 per cent Y-o-Y to $28.36 billion during the July-January period of 2023-24.

Retailers are coming off a successful holiday season, says Matthew Shay, President and CEO, National Retail Federation (NRF), the largest retail trade association in the US. Sales are expected to grow by 3 per cent to 4 per cent, reflecting a more sustainable rate of growth than seen during the pandemic-hit years, he adds. 

Exports may revive to certain extent in May as inquiries from international retailers and brands are increasing, says Md Fazlul Hoque, Managing Director, Plummy Fashions.  However, this growth may not be significant, he adds. 

Anwar-ul Alam Chowdhury, Former President, BGMEA, notes, the rise in inquiries from retailers and brands may lead to a surge in work orders around April or May leading to a an increase in exports to the previous levels.

Shafiur Rahman, Regional Operations Manager, G-Star, opines, revival may start from June as per projections by international retailers and brands.

According to exporters, garment exports could increase in the coming months due to fall in inflation in the West leading to an increased spending by buyers. 

Moreover, buyers are sending a lot of inquiries to buy goods from Bangladesh, affirms Hassan. Since the stock of clothing items has reduced, retailers and brands are placing a lot of work orders, he adds.

Buyers’ confidence in the industry has also increased due to various improvements made by suppliers in terms of compliance and green initiatives, Hassan adds.