Soaring benzene prices lift downstream nylon chain values in December
Amid weaker demand in China, prices of Benzene soared across regions in December but later showed moderation. In US, spot benzene moved up to 16-month high due to rising Asian numbers, a strong derivative styrene market and low benzene fixtures to the US. In Europe, benzene spot moved up during the month. Asian marker, FOB Korea surged 18% in December and declined 5.9 per cent YoY. US spot prices rose 16.7 per cent while it fell 7.3 per cent YoY as compared to previous year’s average. European spot was up 22.6 per cent on the month while it fell 3.5 per cent YoY.
On the back of moderate demand and range‐bound benzene, prices of caprolactum continued to surge. Spot prices hit a 2-year high during the month on a CFR China and CFR Taiwan basis because of limited supply, feedstock benzene prices, higher domestic Chinese prices. Asian caprolactam spot prices in December were up 27.5% from last month while it declined 14.4 per cent YoY.
In line with surging caprolactum, prices of Nylon chip in December skyrocketed, given high crude oil and benzene values. Producers operated cautiously, leading to tight supply and low inventory. Converters trimmed operation and made rigid procurement. Coupled with healthy demand for engineering plastics/film grades, nylon chip market was bolstered a bit. Offers for Taiwan-origin chips were up 26.5 per cent from last month. In China, bright conventional spinning nylon-6 chips were up 30.3 per cent from November while semi-dull chips rose 30.1 per cent on the month.
Given higher raw material cost which in turn eroded margins, prices of Nylon filament yarn soared in December. Thus, suppliers trimmed run rates to below 70 per cent with cautious mentality. Demand for warp‐knitting, weaving and AJ covering sectors witnessed smooth sales while circular‐knitting mills and lacing mills ran at lower rate. In China, semi-dull FDY70D/24F was up US cents 59 a kg from previous month while FDY40D were US cents 64 on the month.
Mafatlal Industry aims at school uniforms
Mafatlal Industries wants to have school uniform sales of Rs 1000 crores by 2020-21. The company has two manufacturing units in Gujarat to cater to this segment. Over the last two years, it has invested close to Rs 300 crores on capex in these units. In the uniform area, corporate uniforms account for 70 per cent of Mafatlal’s sales but this is expected to come down to 60 per cent as sales of school uniforms are showing a rise.
Mafatlal Industries makes ten crore meters of garments a year of which school and corporate uniforms together comprise about 50 per cent. The market for Indian uniform garments is pegged at Rs 12,000 crores and it is growing by 10 per cent per annum. The uniform garment sector is also witnessing a 10 to 15 per cent year-on-year growth. School uniforms are replaced every two or three years, but corporate and institutions take a longer time.
Mafatlal Industries, the flagship company of the Arvind Mafatlal Group, is expected to close 2016-17 with a sales income of Rs 625 crores against Rs 545 crores registered in the corresponding year-ago period. Apart from school and corporate uniforms, it is into hospitality uniforms, medical uniforms, bed linens, bath towels, specialty fabrics, denim, men’s wear and women’s wear.
Italian menswear expected to end 2016 with a revenue growth of 0.9 pc
According to estimates presented at Pitti Uomo 91 by Sistema Moda Italia (SMI), the Italian fashion and textile industry federation, Italian menswear is expected to end 2016 with a modest 0.9 per cent revenue growth reaching almost €9 billion. In 2015, its revenue rose by 1.4 per cent. Above all, the estimate reflects a slow-down in export sales while the decrease in the Italian domestic demand's rate of decline seems to have chiefly benefited those businesses that are not exclusively focused on manufacturing. However, Italian manufacturing output in 2016, net of the sale of imported goods, is expected to post a marked recovery by rising 1.2 per cent, compared to a 3.5 per cent shortfall in 2015.
Over the same period, Italian export sales are forecast to grow by 1.9 per cent for a value of nearly €5.8 billion. This increase is lower than the 2.3 per cent rise recorded in 2015 chiefly owing to the performance in emerging countries as well as to the weaker-than-expected trend of USA domestic demand.
Imports on the other hand are forecasted to buck the trend and fall by 0.5 per cent, for a total value just below the €4 billion mark. Geographically, exports and imports to/from the EU are both reportedly growing (+3.9 per cent) while conversely the business with non-EU countries is expected to decline by 0.9 per cent in both directions.
Haryana to have carpet, hosiery clusters
A carpet cluster and a hosiery cluster will come up in Haryana. Carpet weaving calls for a high degree of skill and dexterity. A carpet consists of dyed pile yarns; a primary backing in which the yarns are sewn; a secondary backing that adds strength to the carpet; adhesive that binds the primary and secondary backings; and, in most cases, a cushion laid underneath the carpet to give it a softer, more luxurious feel.
Haryana wants to boost hosiery goods manufacturing in the state. The state will set up a hosiery cluster in Sirsa while the Centre would initially spend six crores to develop the cluster. A building will be constructed in the village. As a group about 120 people of the village would make sweaters, shirts and uniforms. Modern machines will be installed and the textiles would be marketed through tenders and other mediums which would prove beneficial for people working in this industry. All beneficiaries of the scheme belong to scheduled castes and backward classes and it is the first group of its kind in the country. Sirsa produces 40 per cent of the total cotton produced in the state and this area is famous as a cotton belt in the country.
Germany’s leading trade fair Texprocess at Frankfurt from May 9-12
German and European manufacturers of sewing and Garment technology and machines for processing technical textiles have positive expectations of the leading trade fair Texprocess that will open its doors in Frankfurt for the fourth time from May 9 to 12.
Elgar Straub, Managing Director of VDMA Textile Care Frankfurt said that 2016 was another successful year for the sector. Sales of German manufacturers of sewing and Garment technology increased by 15.9 per cent in real terms from January to October compared to that of last year.
Likewise, incoming orders increased by 2.8 per cent. He was speaking on the occasion of the international Texprocess press conference in Frankfurt. He further said that VDMA Textile Care, Fabric and Leather Technologies will present itself at this year’s Texprocess for the first time with their new names reflecting the sector’s strong international orientation. In addition, all sectors represented in the association find themselves represented in the name viz. manufacturers of Sewing and Garment technology, Shoe and Leather technology, Laundry and Textile cleaning technology as well as machines for processing Technical Textiles.
For a change, Vietnamese apparel firms receive full orders until March
In welcome news, Le Tien Truong, General Director of the Vietnam National Textile and Garment Group (VINATEX) has said that garment and textile enterprises of the country have received enough orders to keep them busy through the first quarter of this year. Addressing a press conference on January 9, Truong said that in 2017, the group targets a rise of 11 per cent in export turnover, 14 per cent in production value and 12 per cent in revenue.
He predicted that this year, Vietnam’s garment and textile sector will face numerous challenges including a lack of support in taxation policies as several important trade deals such as the EU-Vietnam free trade agreement and the Trans-Pacific Partnership will not become effective in 2017. Competition will become fiercer as other countries will continue attracting orders thanks to their advantages in tax and exchange rate, he said, adding that the instability in the EU economy will also affect the industry.
He further noted that last year was gloomy for the world apparel sector. Major importers including the US, the EU and Japan experienced low or decreased demand for garment and textile products. Vietnam’s apparel also saw under-expectation result with 28.3 billion USD in export, up 5.7 per cent year-on-year.
VINATEX earned over 2.5 billion USD, a rise of 5 per cent over 2015 with a pre-tax profit of over 41 trillion VND on a 5 per cent year-on-year increase. The average income of its employees rose 8 per cent over the previous year to reach 6.7 million VND per month. Truong also said that the results showed the great efforts of the sector, as Vietnam recorded higher growth than major competitors such as China, India, Bangladesh and Indonesia.
Berling Fashion week to have 70 shows
Berling Fashion Week will be held January 17 to 20, 2017.
The fashion week is expected to draw nearly 2, 00,000 visitors, including 550 trade journalists. In total more than 70 fashion shows and 200 events will be staged over the four-day event. The exhibition owes its reputation as Berlin’s best fashion fair to the carefully selected brand mix.
The program includes the fashion trade show Panorama, which is described as the largest fashion exhibition in Europe. Expanding in size and concept, this season’s show will see an increased surface, boasting 42,000 square feet more than last year and nine new halls. Panorama Berling is also expanding the existing range of products by adding a dedicated area for lingerie, underwear and loungewear.
Sustainable fashion and upcycled designs will be showcased at dedicated trade shows GreenShowroom and Ethical Fashion Show. However specialised brands will be also present at the largest trade fairs with numerous sustainable brands in the line-ups.
Over 1000 brands and 1800 collections will be on display. The catwalk schedule will be moving into a new venue. New this season will be an outdoor section. Trade shows Show & Order, Bright and Seek will continue to serve their respective segments at the Berling Fashion Week.
European Commission suggests reinstating Sri Lankan trade concession
The European Union's executive has suggested that the bloc reinstates a trade concession to Sri Lanka as an incentive to the government to promote human rights and good governance. The move, a victory for the new coalition government, could boost Sri Lanka's exports which have been falling due to sluggish demand from advanced economies.
The European Commission's trade commissioner, Cecilia Malmstrom, said that the move could make a significant contribution to Sri Lanka's development by increasing exports to the EU. But this also reflects the way in which we want to support Sri Lanka in implementing human rights, rule of law and good governance reforms, she said in a statement.
The removal of customs duties was granted again in exchange for Sri Lanka's commitment to ratify and implement 27 international conventions on human rights, labour conditions, protection of the environment and good governance. The move on the part of the EU would be accompanied by rigorous monitoring, the commission said. It will become effective in four months if the European Parliament and the Council do not raise objections.
Sri Lanka lost the concession in 2010 after the then-president Mahinda Rajapaksa rejected international demands to address human rights abuses allegedly committed during a 2009 offensive to crush a Tamil insurgency. Since ousting Rajapaksa in January 2015, the coalition government of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe has agreed to address the alleged abuses via an impartial mechanism that meets international standards.
EU to soon accord GSP status to Sri Lanka
Marking a significant turning point for the country’s industrial and export sectors, Sri Lanka will soon receive Generalised Scheme of Preferences Plus (GSP+) status of the European Union (EU). This was disclosed by President Maithripala Sirisena. The GSP+ trade concessions are linked to the country’s compliance with human rights and labour rights conventions.
On the topic, Sirisena said that agreements with the countries, businessmen, investors and international organisations of the EU are very open. The current government is honestly committed to the development of the country. He was speaking at a ceremony to inaugurate the newly built bridge in Halloluwa, Dodanwala, Kandy.
During the last two years the present government was able to build friendship with all the countries in the world, eliminating many hindrances which halted the forward drive of the country, he added. In 2010, Sri Lanka lost the GSP Plus status as a cause of the United Nations Human Rights Council (UNHRC) alleging violations of human rights during the civil war. Subsequently, when the EU evaluated Sri Lanka in 2014 it found that the country was not adhering to 3 of the 27 international covenants that a country must abide to qualify for the consideration of GSP Plus.
However, last year, the European Council said it welcomed the significant advances made by Sri Lanka to restore democratic governance, initiate a process of national reconciliation and re-engage with the international community and the United Nations system since the presidential elections held in January 2015. Apparel account for 46 per cent of Sri Lanka’s exports to the EU. As an effect of the President’s announcement, stocks of two leading garment companies, MGT Knitting Mills and Teejay Lanka, became active on the Colombo Stock Exchange (CSE).
Cotton prices surge in India
Cotton prices in India began the New Year with a bang. After being stuck in a narrow range all through December, cotton prices broke above a key resistance point by surging higher. The cotton futures contract traded on the Multi Commodity Exchange (MCX) is up about six per cent. Cotton prices were on a strong downtrend in the second half of 2016.
Along with restricted arrivals, the Cotton Corporation of India’s decision to purchase at market price from various parts of the country has also aided this price reversal. The recent rally eases the downtrend that was in place between July and November last year and also signals a trend reversal. The outlook is bullish. The 21-day moving average is turning around and is signaling a cross-over above the 200- and 100-day moving averages in the coming days.
This strengthens the bullish view and suggests that the downside could be limited in the short term. There is strong support in the Rs 19,500 to Rs 19,200 band. Though an intermediate dip to test this support region cannot be ruled out, a break below this support zone is unlikely. Traders with a medium-term perspective can make use of dips to go long near Rs 20,000.
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China decides to cut import/export tariffs this year
According to the Ministry of Finance (MOF) of the country, China will adjust tariffs on a number of exports and imports from January 1. The adjustment was approved by the State Council after the same was scrutinised by its Customs Tariff Commission.
MOF said that tariff adjustment will be based on innovation-driven development, encouraging imports of the country’s much-needed advanced equipment, key components and energy raw materials. The import tariffs of items including integrated circuit testing and sorting equipment, aircraft hydraulic actuator and pyrolysis furnace will be reduced through the provisional tax rates.
Tariffs on specialty food such as tuna, arctic shrimp and cranberry as well as cultural products such as original sculpture will be reduced in order to give a wider choice to domestic consumers. The import tax on yew skin and foliage required for the production of anti-cancer drugs and acarbose hydrate for diabetes drugs will also be reduced as a response to the public’s concerns about medical and health care.
Import tariffs of sodium acrylate polymers and semi conductor products with the flow function which are subject to the provisional tax rates will also be adjusted in order to protect domestic industries. Export tariffs of nitrogen fertiliser, phosphorus fertiliser and natural graphite will be scrapped and that of nitrogen-phosphorus-potassium compound fertiliser and steel billet will be reduced.
In order to expand bilateral and multilateral economic and trade co-operation and accelerate the implementation of the free trade area initiative, the country will continue to levy conventional tariffs on selected imported goods originating from 25 countries and territories in 2017. Tariffs will be further reduced under free trade agreements between China and South Korea, Australia, New Zealand, Peru, Costa Rica, Switzerland, Iceland and Pakistan.
The scope of commodities and tariffs will stay unchanged under free trade agreements between China and Singapore, ASEAN and Chile as well as the Asia-Pacific Trade Agreement. Meanwhile, the range of goods subject to zero tariffs under the Closer Economic Partnership Arrangement (CEPA) with Hong Kong and Macau will be further widened.
Next Planet Textiles’ agenda taking shape
Preparations, for this year’s edition of Planet Textiles, to be held at Vancouver’s Sheraton Hotel on May 22nd, is taking shape as additional speakers have been confirmed. The growing issue of textile micro-fibre pollution will be a key issue of the event, as well as sessions on finance, deforestation and chemical management which will form a significant part of the agenda.
The annual event on sustainability is jointly co-hosted by MCL News & Media and the Sustainable Apparel Coalition as part of a series of environmental meetings in Vancouver where around 400 delegates are expected to attend. The agenda will have a variety of industry leaders and environment experts to enable participants gain a fuller understanding of issues, including; micro-fibre pollution in aquatic environments, solutions and the latest research to the problem, deforestation and the man-made cellulosic industry, chemical management in relation to wastewater as an effluent and how to finance innovation and change in our industry.
Environmental publications have increasingly been probing issues surrounding micro-fibre pollution and the role of the textile industry in this process. Correspondingly, Peter S Ross, VP-Research at the Ocean Wise Conservation Association will deliver a presentation of his latest findings on this issue. Ross is an Adjunct Professor at the University of Victoria, and served as a Research Scientist with the Canadian government between 1996 and 2013. He is a leading authority on ocean pollution, having published over 150 scientific articles and book chapters, with a focus on the source, transport, fate and effects of priority pollutants.
In 2014, he launched the Ocean Pollution Research Program at Ocean Wise and leads a major solution-oriented micro plastic pollution research programme. His team is currently working with major outdoor retailers and MetroVancouver waste water treatment operators to evaluate the possible role of textiles and other domestic sources to micro plastics in coastal environments.
Hong Kong Fashion Week to open on January 16
"More than 1,500 exhibitors from 20 countries and regions will take part in the 48th HKTDC Hong Kong Fashion Week for Fall/Winter. Organised by the Hong Kong Trade Development Council (HKTDC) it opens its doors from January 16 up to 19 at the Hong Kong Convention and Exhibition Centre."
More than 1,500 exhibitors from 20 countries and regions will take part in the 48th HKTDC Hong Kong Fashion Week for Fall/Winter. Organised by the Hong Kong Trade Development Council (HKTDC) it opens its doors from January 16 up to 19 at the Hong Kong Convention and Exhibition Centre.
Fashion collections, seminars top attractions Some 20 fashion events including a variety of fashion shows, trend forecasting seminars, forums and networking events will be staged. Under the theme ‘Hall of Games’, Fashion Week welcomes first-time exhibitors from Sweden, Italy and Pakistan with two new zones: ‘Fashionable Sportswear’ and ‘Denim & Casual Wear’. Fair highlights will include two Fashionally Collection shows staged by 14 fashion brands from emerging design talents showcasing the 2017 Fall/Winter collections, such as first-time participants Jane Ng, Yeung Chin, Kenson Tam, Winnie Chen and Key Chow.
The Buyer Forum will delve on ‘Opportunities in Emerging Markets’ where the speakers would be Cambodia’s Pohlam Seila, Principal Founder of Artisanry and Russias Ruben Nariyants, Head Logisitics Department. Fashion Snoops will host a seminar ‘Key Trends Stories for Men and Women’s Wear for S/S 2018’ where the speaker would be Michael Leow of Fashion Snoops.
The Woolmark Company will analyse trends for wool and host the ‘Seminar on The Wool Lab S/S18’. ZALORA’s Managing Director will share his insights at the seminar titled ‘ZALORA: Navigating the Wave of Omni-Channel Retailing’. During the event, Fashion Snoops will deliver seminar on ‘The Key Trend Stories for Men’s and Women’s Wear for S/S 2018’. A Buyer Forum has also been organised on the second day of the show. This will be followed by Seminar on ‘Knitting Tech – From Materials to Finishing’.
Pakistan offers exporters incentives
Pakistan has unveiled a package to boost the country’s exports. Duty drawback for garments would be seven per cent, for textile made-ups six per cent, for processed fabrics five per cent, for yarn and grey fabric four per cent, for sports goods, leather and footwear seven per cent and for carpets and tents five per cent.
Import duties on cotton, customs duty on manmade fiber other than polyester and sales tax on imports of textile machinery have been abolished. Liberal incentives are likely. Exporters will be liable to increase exports by five per cent from January to June 2017 and then by a further 10 per cent in financial year 2017-18.
Dozens of power plants are being installed under the China Pakistan Economic Corridor. The objective is to ensure availability of cheaper electricity on a sustainable basis. The plan is that 10,000 megawatts of electricity would be added to the system by next year and 30,000 megawatts within the next few years.
A network of roads, highways and motorways will be laid, integrating different regions of the country. Interest rates have been lowered and investors are being facilitated. The zero-rated facility has been given to five export sectors in the budget.
