According to the China Customs, China’s polypropylene (PP) imports declined by 22.56 per cent Y-o-Y to 324,127 metric tons in July 202 compared to the same period of last year. However, the imports increased by 3.49 per cent M-o-M. Of all, imports of homo PP imports declined 22.69 per cent Y-o-Y to 213.4kt, imports of co PP declined 26.21 per cent Y-o-Y to 95.5kt while imports ofra co PP increased by 16.02 per cent Y-o-Y to 15.2kt.

The total export volume of PP in Jul 2022 was about 114.2kt, a year-on-year increase of 67.61 per cent; among which the export of homo PP was about 104.7kt, a year-on-year increase of 74.52 per cent.

From the monthly data, the export volume of homo PP has continued to decrease in the past three months. The main reason is that the price spread between RMB market and PP CFR China market continues to narrow, and the export arbitrage window shrinks or even closes (for example, at the end of July, the RMB price has once exceeded the PP CFR China price).

From the perspective of trading partners, the main sources of imports are South Korea, the United Arab Emirates, Japan and Singapore, with a total import volume of more than 60 per cent, and the ranking has basically remained unchanged in the past three months. Overall, the import situation is relatively stable.

Data released by the Central Agency for Public Mobilisation and Statistics (CAPMAS) shows, Egypt's cotton exports nearly doubled on a Y-o-Y basis in August 2021, with India importing the largest amount of Egyptian cotton.

By the end of last year's crop season, which ended in August 2021, Egypt’s cotton exports increased by 101.5 per cent to 1.7 million kantars from 874,000 kantars in the same period the year prior.

A rise in local production boosted Egypt’s cotton exports during the year. Production increased 33 per cent to 2.3 million kantars in 2021, an increase of around 33 percent compared to a year prior.

Around 87 per cent of Egypt’s cotton exports were imported by India, around 1.5 million kantars, according to CAPMAS.

Recently, Egypt has introduced a new auction system that allows farmers to sell their crops in line with international prices to boost production and revive the once-flourishing industry.

Lenzing has joined the Dutch Denim Deal, a public-private initiative that intends to accelerate sustainability and recycling in the industry.

The deal was initiated by the Dutch government and signed in October 2020. Among the goals in the deal is creating at least 3 million jeans with 20 percent or more post-consumer recycled content by the end of 2023. All of the signatories also agree to use at least 5 percent post-consumer recycled cotton across their denim collections as soon as possible.

The deal launched with 30 partners. And to-date, it has gathered signatories including brands, manufacturers and organizations. Among the deal signers are PVH Europe, Mud Jeans, Scotch & Soda, Transformers Foundation, Bossa, AGI Denim and Kipas.

To create a level playing field with competing countries, The Cotton Textile Export Promotion Council of India (Texprocil) has urged the Government to allow duty-free import of Extra Long Staple type.

The import duty on cotton has been removed till October 31. However, the government has exempted the specialized cotton variety ELS which is not grown commercially in India.

Tge move will help fabric and home textile exporters to fulfill orders of global brands and retailers at competitive prices and increase exports as other competing countries such as Bangladesh, China and Vietnam allow duty-free cotton imports, says ManojPatodia, Chairman, Texprocil

The annual world export of knit fabrics is about $42 billion of which India’s share is just 1.8 per cent at $763 million. The remission rate of 1 per cent fixed for cotton knitted fabrics does not fully reimburse domestic taxes. The rates for knit fabrics should be 4.3 per cent which will be in line with the rate for woven fabrics.

In the next 5-7 years, India’s textile industry can expand to $250 billion and achieve an export target of $100 billion, Patodia adds.

International cotton prices traded at seven-week high in August while prices in India jumped over 12 per cent during the month. The rise in cotton prices is mainly a result of crop losses due to pests and heavy rains across cotton-growing areas despite a rise in area under cultivation, says Ravindra Rao, VP-Head Commodity Research. Prices are also rising owing to defaults in imports that are causing stock depletion.

Weather, pests damage cotton crops

Atul Ganatra, President, Cotton Association of India, attributes the rise in cotton prices to low volumes caused by acute liquidity shortages. In August, cotton bales in India totaled 25,000 bales a decrease of 10,000 bales from October and November, he adds. However, the area under cotton cultivation increased to 121.3 lakh hectare during the month, says Ajay Kedia, Commodities Expert. He believes, lurking fear of pest attacks is causing cotton prices to surge coupled with the harm caused by last year’s untimely rains in October-November. The crop will continue to be affected by weather conditions and rising pest attacks, he adds. Cotton price rise has led to a decline in demand from the textile industry. Demand across the country is slow but steady, says Kedia. However, with monsoon intensifying further crop damage may occur, he warns.

Global projections decline

Cotton prices in the US are increasing on account of higher sales, exports for new season crops and lower crop production. Cotton stocks on ICE Cotton (December) jumped to its highest levels in two months as reports of deteriorating crop condition due to hot, dry weather in key growing areas, surfaced. Currently, cotton stocks in the country are trading around 118 cents per pound.

In its monthly report, United States Department of Agriculture (USDA) has cut US cotton production forecast by three million bales to 12.6 million bales for 2022-23. The country’s exports are projected to fall by two million bales to 12 million bales during the current year. US ending stocks are expected to decline to their lowest levels in a century to 1.8 million bales. Abandonment estimate by the USDA increased 1.42 million acre in a single month while textile production estimate dropped from 7.7 million bales to 2.9 million.

Demand stabilization has eased supply chain pressures and is supporting prices. However, rising cotton prices may pressurize profit margins of textile players, believes Kush Godasara, Independent Market Expert. They will have to bear this burden for a while as slackening demand makes it impossible to pass on the increased costs to consumers.

At a recent conference to connect the supply and demand of raw materials for Vietnam’s textile and garment industry, the Ministry of Industry and Trade confirmed the country has risen to be the third largest clothing exporter in the world. Organized by the Trade Promotion Department under the Ministry of Industry and Trade, the conference noted, Vietnam’s share in the global textile and garment market is 6.4 per cent behind China’s 31.6 per cent and Europe’s 27.9 per cent.

Textile and garment turnover rises by 21.6%

As per economist Huynh Thanh Dien, Europe, the US and Japan are Vietnam's three main textile and garment export markets accounting for 34.1 per cent, 16.8 per cent, and 5.3 per cent of global share respectively. Growing rapidly, Vietnam’s textiles and garments export turnover accounted for 12 per cent of the country’s total export turnover in 2021. It amounted to $40.4 billion. In the first half of 2022, Vietnam’s textile and garment export turnover increased 21.6 per cent to $23 billion against the same period in 2021.

Consumer demand decline due to inflation, COVID-19 risk

Despite growth, Vietnam’s textile and garment industry faces multiple challenges today, says Huynh Minh Vu, Deputy Director, Center for International Integration Support. Rising inflation in the US and EU has led to major demand drop in these countries. The Russia-Ukraine war has also pushed up raw material prices. The country also faces the risk of COVID-19 resurgence with sub-variants. This is affecting the textile supply chain as trading partners including China, Japan, and Taiwan have applied strict anti-pandemic measures.

Trade remedy cases rise

The industry’s performance is also being impacted by 15 new Free Trade Agreements (FTA) with 60 countries and territories that Vietnam is participating with, opines Phan Khanh An, Deputy Head-Legal Department-Trade Remedies Authority of Vietnam, Ministry of Industry and Trade. So far, foreign countries and territories have initiated over 210 trade remedy cases against Vietnamese exported goods. Of these, 22 cases are related to textile products, mainly concerning anti-dumping and safeguard measures in Turkey, the US and India. Vietnam exports around 60 per cent of recycled yarns to China. However, the Zero COVID policy being implemented by China is threatening to disrupt China’s market for recycled yarns.

New trade policies way ahead

The pandemic has made Vietnam textile and garment industry heavily dependent on imported raw materials. The country currently sources 55 per cent it is requirements of raw materials locally. Textile and garment enterprises are currently not accepting long-term orders due to the risk of low unit prices. They are urging authorities to introduce new policies to encourage investment and attract FDIs in raw material development. Many domestic enterprises are collaborating with other companies to expand their capacity and become self-sufficient in production

The H&M Group has collaborated with The Renewal Workshop to launch a new test collection made from unsold clothes that have been repaired and brought back to market through its COS (Collection of Style) branded stores.

As per a Textile Value Chain, report, this first of its kind ‘Restore’ collection developed by its internal innovation department ‘The Laboratory’ and its fashion brand COS (Collection of Style) will launch in three stores located in Berlin, Stockholm and Utrecht. The COS brand launched in 2007 and currently operates over 250 stores in more than 40 worldwide markets.

Laura Coppe, Head-Circular/Sustainable Business Development, The Laboratory, says,the brand launches new solutions for a lower impact on the environment whilst offering customers quality, beautiful products that last.

Global leader in custom apparel, Indochino has expanded its women’s suiting range.

The brand will now offer a new women’s base pattern, developed over the past year. This will help the brand further streamline the measurement and fitting process, as well as accommodate diverse body shapes and silhouette trends.

Focusing on personalization, this new silhouette will better allow customers of all genders to create a made to measure suit that fits their style preferences and identity. The silhouette will be offered in all of the brand’s fabric options, and with all of the stylistic customization options that have become hallmarks of the brand’s shopping experience.

The women’s suiting range is now available at 8 showrooms across the US and Canada, including locations in Vancouver, Toronto, New York City, Seattle, and Bellevue, with plans to expand to additional showrooms in 2023. Each item in the collection is customizable and made to measure. Custom suits from $449 and separates from $99.

Organized by SteppinOut and SoleSearch in association with Royal Enfield, India’s largest sneaker festival Sneaking Out ended in Hyderabad recently.

The event celebrated the rising trend of streetwear, sneakers and hip hop culture with an exciting opening act by the phenomenal DJ Ivan Lendl as well as renowned artists including BohB, DJ Mavericks and Venom. Along with the biggest curation of sneakers and streetwear seen thus far, from the finest homegrown as well as international brands, the pop culture extravaganza hosted an elite lineup of over 100 exhibitors from around the country.

Several brands showcased their line of products including Farak, VibeTheHype, Cop Underdog, Helios and Prosperity. The festival also featured performances by some of the top music artists in the country and hosted other exciting activities like auctions, gaming zones and a whole lot more.

KhusbuMav, Marketing Head, SteppinOut, says, events like SneakinOut are not just a platform for these resellers, they are actually a celebration of sneaker culture and creating experiences which have become an integral part of the sneakerhead community and are here to stay.

The sneaker fest partnered with brands like Royal Enfield, Casa Bacardi, Jimmy’s Cocktails and served as just the right opportunity for the sneaker and streetwear communities to learn and celebrate their mutual love. It concluded on a grand and successful note, and is expected to return at an even higher scale soon.

The entire spandex value chain saw weaker demand and cost during as prices of BDO collapsed in late June. Players of spandex value chain were more determined to reduce production with plunging cost, depreciating PTMEG and spandex inventory and weak demand for downstream fabrics.

Supply of PTMEG remained high in China. The settlement of price was passive since Q2, mainly following the price trend of BDO, while the profitability of PTMEG started being feeble after Q2.

Spandex 40D has been unprofitable since Q2. BDO market also witnessed apparent losses after price slumped. The whole value chain suffered deficit. Market players tried to reduce supply to ease the contradiction of supply glut after faced great losses, which could further lower inventory.

More factories scaled down output with pressure from losses and inventory. The whole value chain saw great production curtailment in July, with run rate down to 50-60 per ent. The pressure of mounting inventory weakened after production was cut. Sales improved. The competition under low prices dwindled under losses. Price gradually touched bottom. Price of BDO started stabilizing from mid-Aug. As a result, the whole value chain is estimated to touch bottom in short term.

Downstream demand is supposed to largely increase in traditional peak season Sep and Oct by convention, which may also warm up this year, but the improvement is likely to be pressed. With the expectation of economic recession, weaker consumption and high stocks of downstream and middle stream products, demand is anticipated to grow slowly.

Price of BDO-PTMEG-spandex is expected to touch bottom in short run. Downstream buyers may slightly increase purchasing in expectation of recovering demand, which will lower high inventory burden. However, the specific improvement still needs further confirmation.

The whole value chain has witnessed a new round of capacity expansion. Producers may adjust unbalanced supply/demand pattern by altering supply. With supply glut, prices are expected to shiver near the cost line for a long period.