EU-China
Quotas Fill Rates and Prices
Quota shortages are now
in sight in China for a series of European clothing categories,
including pullovers. Quotas could be fully filled by the
end of the year for most sensitive products, announcing
a possible surge in shipments in the coming year, when European
restrictions will have been eliminated.
TOP |
Spun
Yarn Prices in China
Cotton yarn prices mostly
declined in the past two weeks in China, in line with lower
cotton prices and weak demand from downstream industries.
Spun polyester yarn prices also decreased for the same reasons
while viscose yarn prices were boosted by higher viscose
fiber prices and strong demand from customers. China's imports
of cotton yarns further increased this year, in addition.
TOP |
Wool
prices now declining
Wool
prices frankly decreased this week in Australia although
the local currency also fell. This is a possible sign that
demand from downward industry may be weaker in the coming
period, after wool prices sharply increased over the last
twelve months. TOP |
Polyester
further falling in China
Polyester prices
are further declining in China although glycol prices are
now expected remaining at their new high levels, due to
a lack of supply from the Middle East. New polyester capacities
are being added in China which are also depressing prices.
TOP |
Cotton
Prices under pressure from early harvest
Cotton prices are
mostly stable these days but under pressure from early start
of the harvest in the Northern Hemisphere. Picking already
began in China while Pakistani spinners started buying the
new crop. India is still waiting for the new harvest with
domestic prices sliding. The Labor Day weekend in the United
States should limit activity in New York until next Tuesday.
TOP |
US Apparel
Imports from Hong Kong in First Half 2007
US apparel imports
from Hong Kong were nearly halved in the first part of the
year after rebounding in 2006. With US buyers no more fearing
embargoes of products from the mainland, shipments through
Hong Kong are rapidly declining. The removal of quotas at
the end of 2008 should further reduce Hong Kong's role as
a trading hub. TOP |
Viscose
Filament and Staple Fiber Prices
Viscose prices clearly
rebounded in China, reflecting a continued strength in demand
from domestic and international customers. Raw material
costs are again climbing, in addition, being however absorbed
by the rise in prices. Global leader Lending released record
profits and an optimistic forecast for second half of 2007.
TOP |
Asia's
Dependency on US-China Quotas: A Product Analysis
Low-cost apparel exporting
countries like Bangladesh, Cambodia or Vietnam are extremely
dependent on US-China quotas. After examining their overall
dependency in a previous report, EmergingTextiles.com now
releases an in-depth analysis of the situation in most important
categories, including cotton trousers (347/348) and cotton
knit shirts (338/339).
TOP |
Latest
Regulations regarding Textile Trade
-
China Ministry of Commerce (MOFCOM): Third US textile
quota bid (in Chinese).
- Hong
Kong Trade and Industry Department: Third US textile quota
bid.
-
European Union: Anti-dumping duties on PSF from Belarus,
Korea, Saudi Arabia and China. Anti-dumping duties on
Polyester Filament Fabrics from China.
-
US Federal Trade Commission: Polyester and PTT.
-
Norway: Proposed ban on consumer goods containing certain
hazardous substances, such as PFOA.
-
US Customs: Rules of Origin Changes for NAFTA regarding
Mexico. Folklore Articles from Mali Eligible for Preferential
Tariff Treatment
-
US Committee for the Implementation of Textile Agreements:
Possible Safeguard Action on Imports from Honduras of
Cotton, Wool, and Man-Made Fiber Socks. Determination
under the Textile and Apparel Commercial Availability
Provision of the CAFTA-DR Agreement: certain knit open
work crepe fabrics and two woven fabrics.
-
US Committee for the Implementation of Textile Agreements:
Determination under the African Growth and Opportunity
Act: certain additional textile and apparel goods from
Mali. Determination under the Textile and Apparel Commercial
Availability Provision of the CAFTA-DR Agreement: certain
circular knit, three-end fleece fabrics
-
US International Trade Administration (ITA): Certain Polyester
Staple Fiber from Taiwan: Notice of Extension of Time
Limit for the Final Results of the Antidumping Duty Administrative
Review.
-
US Committee for the Implementation of Textile Agreements:
Adjustment of Import Limits: China.
-
China Ministry of Commerce (MOFCOM): Decree Requires Deposits
for Certain Textile Sector Goods.
-
Hong Kong Trade and Industry Department: Impending Expiry
of Anti-Dumping Measures against Imports of Synthetic
Stable Fiber of Polyesters from the Republic of Korea.
-
US ITC: U.S. Trade Law and FTAs: A Survey of Labor Requirements.
-
European Union: Anti-dumping duties on bed linen from
Pakistan.
-
US ITA: Imports of Certain Cotton Shirting Fabric: Solicitation
of Applications for Allocation of Tariff Rate Quotas.
- US
Customs: South Africa Handloom/Ethnic Printed Fabrics
AGOA Agreement.
-
US ITC: China: Government Policies Affecting U.S. Trade
in Selected Sectors.
|
Nylon
and Caprolactam Prices in China
Nylon prices remained
stable in the past weeks in China although raw material
costs further increased. Demand should rebound in the near
term but filament stocks reached a high level. Triggered
by a series of overhauls and rising demand from the tired
cord industry, the rise in caprolactam prices is reducing
margins of China's polyamide producers.
TOP |
Spandex
Prices stabilized in China
Spandex prices
may rise in the coming weeks after they stopped declining
in the first part of August. Demand is expected recovering,
with China's textile production progressively returning
to normal. Raw material costs remain extremely firm ahead
of a series of planned overhauls in September in Asia. TOP |
India
Cotton Fiber and Yarn Prices
Cotton yarn prices further
increased in the past weeks in India, although cotton prices
were declining. Stronger demand ahead of the festive season
explains this improvement in spinners' margins. New investment
plants in additional facilities were recently announced
by Indian companies while a record cotton crop in the coming
season would not depress fiber prices thanks to a new rise
in yarn production, our India Correspondent reports.
TOP
|
China
may rapidly exceed 50% of post-quota import markets, Canada's
data indicate
China's share of post-quota
apparel markets could rapidly exceed 50%, as demonstrated
by Canada's import data. Chinese shipments continue surging
in a country where quotas were not reimposed in 2005. Bangladesh
and Cambodia also made strong gains, thanks to a duty-free
access under generous rules of origin. Other origins lack
a similar decisive advantage to compete with China.
TOP |
Glycol
Prices are sharply increasing
Polyester prices
are still depressed by a lack of demand from Chinese textile
industry. Raw material costs are mixed with PTA possibly
stabilizing in the near term and MEG surging under sharply
higher ethylene prices.
TOP |
PTA
prices depressed by lower Oil and PX
The downward trend on the
PX/PTA market is being confirmed these days, after crude
oil prices sharply fell from their recent record. Polyester
prices could slightly declined on spot markets, as a result,
although glycol prices are being boosted by higher ethylene
prices.
TOP |
Korea's
Polyester Filament Fabric Exports in First Half 2007
South
Korea's exports of polyester filament fabrics again fell
in the first part of the year, reflecting growing competition
from China on the international market. Domestic producers
continue shifting to higher quality products while also
selling low-priced fabrics to Italy or Brazil, as reflected
by our series of statistical tables. TOP |
China
Cotton Woven Shirt Exports in First Half 2007
China's exports of cotton
woven shirts are indicating how quotas impact the level
in shipments and prices. Prices surged in categories under
limit, less sharply increasing where quotas were removed.
While EU only reimposed quotas on women's shirts, the US
only sanctioned men's shirts from China, by contrast, allowing
an interesting comparison. TOP
|
US
would not impose anti-dumping duties on imports from Vietnam
The US administration
will probably not launch anti-dumping investigations on
apparel imports from Vietnam. Preliminary data covering
the first six months are not showing a dramatic surge in
shipments and unit prices were not significantly falling
at the start of the year. With a first official report due
on September 11, the US Department of Commerce should then
say if an anti-dumping investigation is being launched.
TOP |
Yarn
Prices on the International Market
Yarn prices may now decline
on the international market. Demand in Europe and Latin
America is resisting any new increase after prices reached
higher levels in the past period. A radical change is being
felt on the viscose yarn market, more specifically. In addition
to usual tables, we below added prices of sewing threads
and acrylic base yarns from China.
TOP |
Hong
Kong Clothing Re-Exports in First Half 2007
Hong
Kong remained a very strong apparel trading hub in the first
half this year, even benefiting from a rebound in re-exports.
US and EU quotas on clothing imports from China continue
boosting shipments through the SAR of products made in the
mainland. TOP |
India
Knitwear Exports: Segment Analysis
India's
knitwear exports suffered from a slowdown in the first three
quarters of fiscal 2006-07 (April-December). T-shirt exports
continued however rising while sales in other segments were
down. A comprehensive unit price analysis is below released
by our India Correspondent. TOP |
Govt
offers incentives to attract investment
Pakistan
will try to attract global manufacturers of shuttle-less
textile machines to encourage them to set-up manufacturing
units in Pakistan. The proposed 10 year tax holiday is expected
to attract investment. TOP |
Fabric
exports register negative growth
The
All-Pakistan Textile Association (APTA) has said that due
to the closure of a large number of spindles (over 2.5 million)
the export of grey fabric has come down by 34.7 percent
in June. Even though the exact number is not known. TOP |
Cotton
market witnesses heavy trading
Spinners and mills continued to cover their positions against
forward sales to a number of countries. Ginners were also
not inclined to hold onto their long unsold positions amid
conflicting reports of damage to the crop. TOP
|
Textile
Industry policy to be made attractive
The Textile Industry Development Policy 2007 is expected
to offer 10-year tax holiday to encourage foreign investment
in textile machinery manufacturing and 10-year tax holiday
for foreign investment in establishment of bonded cotton
warehouses in the country. TOP
|
Millers
advised to wait and watch
A group of textile millers held an emergency meeting presided
by group leader Adil Mahmood to take stock of the situation
regarding cotton arrival and suggested the members not to
buy cotton. TOP
|
Textile
delegation finds solution to taxpayers' problems
A delegation of All Pakistan Textile Processing Mills Association
(APTMA) held a meeting in Islamabad with the Chairman of
Federal Board of Revenue (FBR) to discuss the problems and
difficulties faced by the members. TOP
|
Textile
sector should meet global standards
The surge witnessed in textile exports to US recently may
last for another two years till the quota restrictions are
lifted. The Pakistan exports were limited to categories
under quota restrictions on China. After the quota restrictions
are abolished the exporters will face the challenge of low
cost high quality Chinese. TOP
|
Permanent
committee to sort out custom related problems
Federal Secretary Textile Zafar Mehmood while addressing
members of Pakistan Hosiery Manufacturers Association (PHMA)
has said that the government is planning a permanent Export
Facilitation Committee, which will work under a designated
officer for solution of custom related problems of textile
associations. TOP
|
Lint
spot rates increase on higher demand
Lint spot rates increased in the Karachi Cotton Market (KCA)
on Monday. The KCA spot rate increased from Rs 50 per maund
to Rs 2,950 per maund on higher demand. Around 5,500 bales
were traded. TOP
|
One
thousand textile experts to visit ITMA 2007
The World’s largest textile machinery exhibition to
be held in Munich, Germany will be attended by more than
one thousand Pakistani textile sector professionals and
businessman. According to Messe Munchen International (MMI).
TOP
|
Cotton
shortage in international market to touch 5 million bales
There is a shortage of 5 million cotton bales in international
market compared to last year. This has increased the prices
of cotton in domestic and international markets. TOP
|
Government
approves new textile policy
The Prime Minister has approved the new Textile Policy (NTP)
which will help increase the output of textile products,
improve global competitiveness and generate employment in
the industry.TOP |
Textile
industry up in arms against rise in power tariff
The All Pakistan Textile Mills Association (APTMA) has requested
the government to rethink the proposal for 10 paisa per
unit increase in electricity tariff. The textile industry
is already facing problems due to the high cost of energy.
TOP
|
ROZs
can help improve living standard in tribal areas: PM
Prime Minister Shaukat Aziz has said that the plan to set
up Reconstruction Opportunity Zones (ROZs) with duty free
access to the US would help to improve the overall economic
conditions in the less developed areas. TOP |
Exports
make a good start for the $19.2 billion target
According to the trade figures released by Federal Bureau
of Statistics (FBS) the exports of the country amounted
to $1.486 billion in the month of July 2007 as compared
with exports of $1.342 billion. TOP
|
Government
policies slowing down textile exports
The All Pakistan Textile Association (APTA) has said that
due to the law and order situation in the country foreign
buyers are unwilling to visit Pakistan and it will be difficult
to achieve the export target of $19.2 billion with the current
cost of doing business. TOP |
Import
cotton from India urgently: APTMA
The APTMA members from Lahore, Karachi and Peshawar met
over a video conference to review the cotton and textile
situation in the wake of an unprecedented rise in cotton
prices, which touched Rs 3,500 per maund. TOP
|
Fine
lint dominates trading
Karachi cotton market witnessed eager buying of fine lint
from traders. The Karachi Cotton Association’s (KCA)
spot rates remained unchanged at Rs 3,150 per maund. Around
4,500 bales were traded on Friday. TOP |
