The global textile industry is facing a complex and evolving landscape, as industry leaders share their insights and concerns. Deepak Gupta, Head of New Product Development at Aditya Birla Yarn (ABY) in Jakarta, Indonesia, expressed the challenges faced by the company, stating, "Despite very low demand, we are working close to 90% of our capacities, and hence there is huge pressure on margins, and we are also building our inventories." This emphasizes the strain on textile businesses as they navigate turbulent waters.
Tapan Sannigrahi, VP Marketing & Downstream Development at APR (Sateheri), Jakarta, Indonesia, highlighted the global slowdown, he added, "the spinners are working under capacities," implying that while the market is challenging; however, it's not as dire as some may have anticipated.
Anil Tibrewal, CMO of Spun Yarns at PT Indo-Rama Synthetics Tbk, pointed out the contradiction of increased cotton futures despite the low demand and the substantial idle capacity in the spinning sector world over, with approximately 25 million spindles lying dormant. He warned that when this idle capacity starts getting utilized, cotton prices could rise further, calling for the market to brace itself for higher prices.
China, the largest producer of polyester, faces its own challenges with abundant capacities. Additionally, the Indian spinning sector has witnessed significant expansions, which Yatish Pandey, CMD of Texperts, finds surprising, given the low domestic demands and exports due to high cotton costs. However, Pandey also sees a silver lining for Indian spinners, suggesting that they may play a more prominent role in the cotton yarn sector, considering the changing dynamics in China. He highlighted the need for upgrading technology, as outdated methods could hinder progress.
The Yarn Expo Autumn 2023 event, Asia's largest yarn and fibre trade platform, offered a glimpse into the industry's future trends and potential growth areas. It featured over 500 exhibitors from various countries, showcasing innovative yarn and fibre products, eco-friendly cotton, and green products across multiple zones. Notably, the event highlighted the significance of technology upgrades and international collaboration to navigate the challenges facing the textile industry.
Yarn Expo Autumn was held in conjunction with Intertextile Shanghai Apparel Fabrics – Autumn Edition, CHIC, and PH Value, creating a platform where various sectors of the textile and fashion industries converged, fostering opportunities for exhibitors and buyers alike.
