Oil
Price rebounds to two-month high in New York
Crude oil prices clearly rose yesterday in New York, back
to levels not seen since October 2nd. Last summer's scenario
will not repeat, however. Any rebound in oil prices would
not be easily transmitted to the polyester chain this time.
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Cotton
Prices retreating to lower levels
Cotton prices further retreated yesterday in New York as
futures failed in confirming Monday's rally. Prices subsequently
declined today in Asia. Weekly US export data should today
give a new indication of the coming trend in international
cotton prices. TOP |
US
Terry Towel imports: Jan-May 2006
Indian towel suppliers are doing well on the US market this
year while Pakistani shipments are less strongly rising.
China is limited by the new quota reimposed by the United
States, and Brazil is losing ground. Prices were generally
higher over the January-September period, partly due to
a sharp increase in Chinese unit values, as reflected by
our series of graphs and tables. TOP
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India
vs. Pakistan on Korea's Cotton Yarn Market
India & Pakistan are together sharing 70% of very important
Korean market for cotton yarns with India generally ranking
first. Depending on segments, however, Pakistan may be the
top supplier, especially for low-count yarns. India is much
stronger on the market for combed cotton yarns, as reflected
by our series of tables analyzing monthly shipments and
prices per segment. TOP |
Polyester
Price weakness confirmed by new PX-PTA Contract Prices
Polyester prices are not expected rebounding in the short
term after new PTA and PX contract prices were yesterday
issued for December deliveries, indicating further weakness
on the international market. Polyester chips are also declining
these days on Asian markets. TOP
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EU
T-shirt market conquered by Bangladesh and India
Bangladesh and India took larger shares of EU's cotton T-shirt
market this year, after quotas were reimposed on Chinese
products. Shipments from Vietnam are surging, boosted by
extremely low prices while Turkey is increasingly threatened
by the high level in its prices. TOP |
Uzbekistan
will export less cotton, more yarns
Cotton prices were today unchanged in Asia after New York
yesterday consolidated. Uzbekistan's cotton exports could
decline this season as more cotton is processed within the
country with yarn exports expanding at the same time, according
to a new report from the US Department of Agriculture (USDA).
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US-Mexico
agreement on cumulating of origin will boost CAFTA trade
The United States and Mexico are expected this week signing
a decisive cumulating agreement that will allow apparel
producers in Central America and the Dominican Republic
(D.R.) using Mexican fabrics including denim, without losing
their duty-free access to the US market. This is a decisive
but complex chapter of textile trade negotiations. TOP
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Latest
Regulations regarding Textile Trade
- World Trade Organization: US Subsidies on upland cotton.
EU's notifications regarding certain products.
- US Customs: 2007 China Quotas
- Hong Kong Department of Trade: China's Production Permits
for Silk-spinning Enterprises.
- China's Ministry of Commerce: First Achievement Distribution
Plan of Textile Exported to the U.S. and EU in 2007.
- Hong Kong's Trade and Industry Department: China's notices
related to textile quota management.
- US CITA: Short-supply designation under the AGOA: certain
cotton/cashmere combed and ring spun yarns.
- European Union: anti-dumping duties on PSF imports (Huvis).
- Hong Kong's Trade and Industry Department: Results of
Application for Quantitative Limits for Textile Exports
to the European Union and the United States.
- US International Trade Commission: Investigations about
Performance Outerwear and Travel Goods of Textile Materials.
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Yarn
Prices on the International Market
International yarn prices did not radically change over
the last three weeks, according to our sources in India.
Prices are more declining than rising, as a result of increased
competition from China, especially on the viscose segment.
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Wool
Prices fell amid rising volatility
Wool prices dipped across the board this week, reflecting
strong volatility on the market. Orders are now nearly completed
ahead of Christmas recess and demand may weaken in the next
three weeks before the break. Prices also fell in South
Africa and New Zealand. TOP |
Spun
Yarn Prices in China
Spun yarn prices were stabilized in the past two weeks in
China after sharply declining in October. Demand is back
on the 100% cotton yarn market and prices should not decrease
in the short term, as cotton prices stopped dropping. Spun
polyester yarns are expected further falling, by contrast,
in line with lower PSF prices. Viscose yarns are resisting
any decline. TOP
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Viscose
Prices to stay at high levels
Viscose prices are no more moving after sharply increasing
this year. Although cotton and polyester are falling, strong
demand for viscose in China is supporting new price levels.
India's Aditya Birla would be in talks with Lenzing to form
a major global group with 38% of global market. TOP
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Egypt's
QIZs attract Apparel Investment from Turkey
Egyptian QIZs are a tremendous success, as confirmed by
the surge in US apparel imports from this country and the
sharp increase in Israeli exports of materials required
in rules of origin, our Special Envoy to Cairo reports.
Turkish groups are now planning to invest in Egypt in order
to take full advantage of duty-free access on US market
and very low labor costs. TOP
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Denim
Group Arvind Mills further Boosting Apparel Business
World's second largest denim group Arvind Mills reported
falling profits in its second quarter fiscal, reflecting
excess supply on Indian denim market and declining demand
on the international market. The group continues developing
its apparel business in order to reduce the denim share
in total revenues. TOP |
Nylon
Prices may rebound over higher Caprolactam
Nylon prices were slightly down in the past four weeks in
China but could rapidly recover, in line with a sharp rise
in raw material costs. Caprolactam prices are being boosted
by a possible lack of supply in Asia, although benzene prices
are currently declining. TOP
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EU
Imports of Printed Cotton Bed Linen in First Half 2006
Pakistan took additional shares of EU's import market for
printed cotton bed linen in the first half. Thanks to lower
EU tariffs this year, Pakistani suppliers reduced Turkey's
share while Bangladesh is resisting. Prices did not change
in euro terms, as reflected by our series of tables and
graphs. TOP |
Paraxylene
in short supply until 2010
The current lack of paraxylene could put pressure on PTA
producers until 2010, Tuesday said a top Reliance manager
in Mumbai. Investing in PX plants is much more expensive
than building PTA facilities. As a result, the PTA market
will be dominated by excess capacities in the coming year
while confronted with a lack of raw materials. TOP
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Last-minute
chance for Peru, Colombia, Haiti and Africa
Peru and Colombia will possibly lose duty-free access on
the US apparel market at the end of the year, unless US
Congress approves a last-minute bill in the coming days.
Haiti and Africa may receive new trade benefits, at the
same time. With a new Congress dominated by Democrats taking
charge in January, further trade liberalization may be suspended.
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Spandex
prices stabilized at higher level in China
Spandex prices were apparently stabilized at a much higher
level in the past two months in China. New anti-dumping
duties are supporting prices and should help domestic producers
in gaining shares on the global Spandex market. New capacities
are being added in China that should strengthen demand for
upstream products, such as THF and PTMEG. TOP
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US-China
Quotas for 2007: no Embargo in sight
Washington just announced 2007 limits on textiles and apparel
from China. Although US imports of Chinese products may
next year rebound, there is no clear evidence that quotas
may again be fully filled with consecutive embargoes. A
new textile crisis between the United States and China would
be a real surprise. TOP |
EU
Imports of W/G Denim Trousers in First Half 2006
Prices of women denim trousers imported into the European
Union were up 20% in the first half, after Brussels reimposed
quotas on Chinese jeans. Far from protecting North African
suppliers, the new limits benefited Bangladesh, Vietnam
and Indonesia while Turkey kept its 25% share of EU's market.
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Higher
Polyester Feedstock Prices in Asia
Polyester feedstock prices were today higher in Asia, reflecting
strong demand and low inventories in the polyester chain.
Although oil and paraxylene prices further declined yesterday,
PTA may continue rising after Asian production was sharply
reduced in the past months. New PTA capacities will soon
be added in China, nevertheless. TOP |
US
Cotton Bed Sheet Market swallowed by Pakistan and China
The US market for cotton bed sheets offers a clear view
of the low-cost revolution. Pakistan now attracts more than
50% of the import market with China taking another 22%.
Except Turkey and Brazil, other countries retreated in 2005
and 2006 while US production is rapidly disappearing. TOP
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US
Embargoes still looming over Vietnam, in spite of WTO's
Accession
Although Vietnam was officially accepted as a new WTO member,
apparel exports to the United States may be far from surging
in 2007 while embargoes could still be imposed before the
end of the year. Possible exhaustion dates are below calculated.
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Textile
exports decline by 5.2 pct in October
The declined of 5.23 per cent have been registered during
October 2006.The export of textile products declined by
5.23 per cent to US$783.883 million during October 2006
against $827.174 million the same month last year. TOP
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Major
textile exporters not to attend Heimtextil in Germany
Major textile exporters of Pakistan will not attend in prominent
Textile Fair – Heimtextil in Germany in January 2007;
Rana Arif Tauseef, former Chairman Pakistan Textile Exporters
Association (PTEA) said. TOP
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Cheaper
China-made fabrics flood Pakistan markets
China-made fabrics have flooded Pakistan in the past few
years because they are cheaper for consumers. But Pakistani
manufacturers find their share of the domestic market fast
shrinking; traders said. TOP
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Increase
in rebate to 15 percent on export of textiles recommended
The Standing Committee of National Assembly on the textile
industry recommended the government to increase the rebate
from 6 percent to 15 percent on the export and provision
of gas on the original prices to the textile industry; sources
said. TOP
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Textile
ministry proposes strategy to attract Chinese investment
The textile ministry had proposed a two-pronged strategy
to attract Chinese investment and techniques in weaving
segment of the declining textile industry. TOP
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Textile
associations propose to cut production cost by half
Various textile associations have proposed the National
Textile Committee to cut the production cost by half. TOP
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Textile
industry downsizes workforce to save costs
The textile industry has begun downsizing workforce to save
the costs as textile and garments exports fell by 10.42pc
in 1QFY07 to $2.459bn from $2.746bn in 1QFY06. TOP
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Profitability
of textile sector goes down
The profitability of textile sector has gone down by 14
percent in the 1st quarter of the current financial year.
The rising cost of financing pushed up the cost of production.
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MTI
conducts research study for apparel, home textile cos.
The MTI Consulting is conducting a research study ‘Rags-2-Riches’
for Pakistani apparel and home textile companies to identify
opportunities in the sub-continental market. TOP
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Exporters
invited to explore Vietnamese textile market
Vietnamese entrepreneurs invited Pakistani exporters to
explore Vietnamese textile market; the delegation head Do
Nhu Dinh, Vice Minister of Trade said. TOP
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Survey
of textile sector productivity efficiency starts
The Werner International has started cross section survey
of textile sector to assess the productivity efficiency
after finding some leading textile units performing much
higher than the benchmarks. TOP
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Textile
industry favors cutting production cost over subsidy
The textile sector is in favor of cutting the cost of production
and doing business in the country to enable textile exporters
compete with their regional rivals, chairman of National
Textile Strategy Commission Subcommittee. TOP
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Govt
suggested to adopt remedial measures for textile sector
The immediate remedial measures to stem the declining trend
in exports and improvement of textile sector has been suggested
to avoid the adverse affect on export orders for next year.
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PCSI
assigns 5 NBP branches to collect cotton fee
The
five branches of National Bank of Pakistan (NBP) for receiving
the cotton standardization fee from ginners of the region
has been designated by the Pakistan Cotton Standard Institute
(PCSI). TOP
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Standing
committee to propose gas tariffs reduction for textile industry
The proposal of reducing gas tariffs for the textile industry
will be made to prime minister, Shaukat Aziz by the Standing
Committee on Textile of National Assembly, industry sources
said here on November 06. TOP
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Govt
to review all taxation and tariff related issues
Government has decided to review all taxation and tariff
related issues including the Research and Development support
for garment units in Export Promotion Zones (EPZs); official
sources said. TOP
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Romanian
delegations to visit Pakistan for textile products
A delegation of three Romanian business firms representing
Technical Safety SA of Romania will visit Pakistan aiming
to purchase safety equipment for construction workers and
textile items. TOP
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Ministry
may propose gas subsidy for textile sector
The Ministry of Textile is expected to propose gas subsidy
for the textile sector; an official at sub-committee of
National Textile Strategy Committee said here on November
01. TOP
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Textile
industry plans to counter global competition
The textile industry is reengineering ‘Pakistan’s
Textile Vision-2015’ to raise annual exports to more
than $15 billion, raise cotton production from the present
level of 12 million bales to 20 million bales, and to provide
more jobs by investing between $7-10 billion. TOP
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Comprehensive
textile policy on anvil to address prevailing crisis
A comprehensive and stable textile policy is on the anvil
to address the prevailing crisis in the industry; Federal
Minister for Textile Industry Chaudhry Mushtaq Ali Cheema
has said. TOP |
Ministry
allows R&D for all textiles categories
Research and Development (R&D) for all textiles categories
has been allowed by the Ministry of Textile Industry to
support manufacturers and exporters of home textiles. The
Ministry of Textile Industry has issued a notification here
on November 11. The condition of having in-house facility
of dyeing and printing have been removed. Thereby, it allows
all category of manufacturers and exporters of home textiles
to get R&D support. In August this year the Ministry
of Textile Industry had allowed three per cent R&D support
on export of dyed and printed fabrics and in home textiles
three per cent for white fabrics and five per cent on dyed
and printed fabrics. The R&D will be given to the manufacturers
and exporters of these categories of home textiles on the
f.o.b. value of exports destined to Australia, Bangladesh,
Canada, China, Egypt, EU, India, Indonesia, Japan Jordan,
Lebanon, USA, South Africa, Malaysia etc.
Business leaders of home textiles, appreciating the government’s
move said that this would ensure level-playing field to
all category of manufacturers and exporters and also help
increase exports of textile goods. TOP |
Govt.
to allow textile machinery imports from India
The ministry of commerce under the government of Pakistan
has released an order (S.R.O. 1100 (I)/2006) to allow
the import of most of the textile machinery manufactured
in India, industry sources said here on November 20. Under
the order, one significant omission from the list was
the Ring Frames and textile dyeing & processing machinery
and both the countries being signatory to the South Asian
Free Trade Agreement (SAFTA), had been negotiating for
better trade relationship in spite of the political differences
and this step could be the return gift to India’s
MFN status to Pakistan. Earlier, Pakistan had put 1,527
tariff lines on the importable list of goods, covering
a total of 772 products. With the latest order, the list
is extended to 1841 tariff lines under 1074 products.
However,
like India, Pakistan is also a beneficiary of the WTO’s
quota free regime and has a strong as well as a growing
textile industry, while the recent trade statistics shows
that the investment in the textile sector is declining
and manufacturers are negotiating with the government
for concessions. The import of textile machinery during
2004-05 stood at US$ 928.6 million, decline to US$ 771.46
million in 2005-06 and import during July-Sept 2006 was
US$ 145.73 million which was considerably lower than the
corresponding quarter in the last fiscal. The textile
industry in Pakistan has a great potential to grow due
to availability of raw material and cheaper work force
and the supportive measures of government towards the
industry would help the industry to grow through out the
value chain. The Indian machinery manufacturers have a
fair chance to cater this new market with better technology.
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