FW
In late May, Huahong and Sanfangxiang plan maintenance, and the operating rate of direct-spun PSF is predicted to decrease to around 90 per cent at that time, which has limited impacts on the supply. In short term, direct-spun PSF will run under pressure.
Plants will not adjust up prices despite around cost line or facing losses due to previously high inventory and bearish outlook. According to CCFGroup, a considerable part of polyester yarn has flown to warehouses of traders instead of downstream. Bearish downstream demand and inventory accumulation of grey fabric are indisputable facts.
The weakness of upstream raw materials and sluggish downstream demand have not been reflected in polyester yarn prices which are offered stably by the mills. T32S is mainly traded at 11,800-12,100yuan/mt in Fujian, Jiangxi, Jiangsu and Zhejiang, and at 11,200-11,400yuan/mt in Hebei. Most market players believe that the inventory accumulation is likely to happen in May and Jun due to slack season.
Spinning companies listed at Dhaka Stock Exchange (DSE) logged higher profits in the July-March period of the current year from that of a year ago thanks to a price hike of yarn.
As per Daily Star, between July and March of the current fiscal year, Bangladesh earned $23.48 billion from apparel shipments, which was 2.55 per cent lower than that in the corresponding period last fiscal year, according to data from the Export Promotion Bureau.
While textile and RMG were struggling, spinning mills availed the advantage of the price hike of yarn which turned out to be a big influencer of their higher profits.
Among six listed spinners, four witnessed higher profits and two were able to make a profit on incurring losses previously.
Malek Spinning logged the highest profit growth among all the 26 listed textile companies. Its profit rose more than eight times year-on-year to Tk 39 crore in the first nine months of the current fiscal year.
Cotton was being traded at $0.60 to $0.85 per kg on an average during the June-December period last year, which later on ranged between $0.95 and $1.7 in March, according to data of Bangladesh Textiles Mills Association (BTMA).
The spinning mills attributed the hike in cotton prices to rising demand for the item globally and its supply crunch, and upward costs of other related logistics following the emergence of the pandemic.
Due to the pandemic, cotton price rose in the world market which enhanced yarn prices. It ultimately had an impact on the local yarn market, said Mir Ariful Islam, Head-Research, Prime Finance Asset Management Company.
VF Corporation’s revenues in fiscal 2021 from continuing operations decreased 12 per cent to $ 9.2 billion (excluding acquisitions) while adjusted revenue decreased by 13 per cent. The company’s revenues from active segment decreased 15 per cent including a 15 per cent decrease in Vans® brand revenue and a 3 percentage point revenue growth contribution from acquisitions.
Revenues from the outdoor segment revenue decreased 11 per cent – including a 9 per cent decrease in The North Face® brand revenue. On the other hand, revenues from the work segment increased 7 per cent, including a 9 per cent increase in Dickies® brand revenue.
Majority of the company’s supply chain is currently operational. Suppliers are complying with local public health advisories and governmental restrictions, which has resulted in isolated product delays. VF’s revenues in the fourth quarter increased 23 per cent to $2.6 billion. Its revenues in fiscal 2022 are expected to grow by 28 per cent to $11.8 billion including an approximate $600 million contribution from the Supreme® brand.
The global textile machinery market, as estimated at 5.9 million units in 2020, is expected to reach 10.1 million units by 2026 with a CAGR of above 9.1 per cent. As per a new report by Global Industry Analysts, global market for knitting machines by 3D knitting technology is expected to grow at a CAGR of 27.4 per cent by 2026. Most of this growth will be driven by increased demand for advanced, automation and the capability of artificial intelligence, reports Textile Today.
China is expected to lead growth. The country, which recorded 80.4 per cent of global sales in 2020, is expected to grow by 28.8 per cent CAGR to reach 2.7000 units by 2026. The spinning machines segment is expected to grow at 7.6 per cent CAGR and 8.8 million units by 2026. The draw texturized machine segment is likely expand at a CAGR of 18.6 per cent for the next seven years.
In terms of specific regions, the textile machinery market in the US is estimated at 39.1 thousand units in the year 2021. Asia-Pacific is forecast to reach a projected market size of 3.8 million units by the year 2026 trailing a CAGR of 9.4 per cent over the analysis period.
Also, Japan, China, and Europe, each forecast to grow at a CAGR of 6.6, 9 and 8 per cent respectively over the analysis period.
Bangladesh’s apparel exports to the US declined by 8 per cent during the January-March 2021, shows data released by Office of Textiles and Apparel (OTEXA). OTEXA data reveals, US apparel imports declined 2.46 per cent during the January-March 2021 period to $17.41 billion. China and Vietnam emerged as the largest exporters to the US with a growth of 12.69 per cent and 1.40 per cent respectively in the January-March period in 2021. While, Bangladesh’s apparel exports to the US declined by over 8.0 per cent during the first quarter of 2021 year-on-year, showing a much slower recovery compared to China and Vietnam.
Bangladesh exported $ 1.53 billion worth of apparels in the January-March period of 2021, down from $1.67 billion during the same period of 2020. During the first three months of this year, Bangladesh RMG exports increased to 608.97 million sq. mt. from 603.11 million sq. mt in the corresponding period last year. RMG exporters, however, related slow demand in the US followed by higher COVID-19 infection rates and the change in sales pattern, to the pitiable performance of apparel export to its major destination.
Faruque Hassan, President, BGMEA said, Bangladesh shipped mostly woven items to the US, adding that demands for woven items were also declining as people largely stayed at home. He hoped that Bangladesh’s exports to the US would increase from October onwards with the improving US economy after the country’s good coverage of the COVID-19 vaccination.
US ratings agency, Fitch Ratings expects apparel sales to improve in 2021 though overall sales are expected to remain below 2019 level. Stronger survivors in the apparel sector will also benefit from accelerating competitive shrinkage and limiting new store openings, says Fitch Ratings. Retail sales in the first quarter got a boost from increased vaccinations, government stimuli and discretionary budget savings by reducing service spending.
Revenues of top retailers Walmart, Target and Home Depot increased 15 to 40 per cent in the first quarter compared to 2019 levels. Fitch expects these retailers to maintain recent increase in market share, given a strong omni-channel model. These retailers could increase their revenue by 3-4 per cent at CAGR from 2019 levels to 2022, slightly higher than Fitch’s pre-pandemic expectations. Target could see a sustainable rise in discretionary categories such as apparel and home, and consumers tried Target’s private label assortment as a means of travel integration in 2020.
Fitch predicts multi-year investments by Kohl’s, Nordstrom and Macy’s could help stabilize or accelerate market share. Focus areas include omni-channel capabilities, store remodeling, investments in various channels, active wear and beauty categories. These retailers will benefit from the accelerated cash-constrained professional apparel players and department store closures and restructuring activities in 2020.
German luxury fashion house Hugo Boss is likely to be acquired by Mike Ashley’s Frasers Group. As per Apparel Resources, Frasers Group increased share in Hugo Boss in January this year up to 15.2 per cent. It represents 5.1 per cent of Hugo Boss’ total share capital. The Group intends to be a ‘supportive shareholder’ of the German fashion brand.
Frasers Group also owns 3.3 million shares through contracts for difference, which represents 4.8 per cent of Hugo Boss’ shares, and 3.7 million shares through the sale of put options –amounting to 5.3 per cent of the retailer’s share capital.
Known for selling apparels, accessories, footwear and fragrances, Hugo Boss is one of the largest apparel companies of Germany, with worldwide sales of €2.9 billion in 2019. The company was founded in 1924 by Hugo Boss and originally produced general purpose clothing.
With the rise of the Nazi Party in the 1930s, Boss began to produce and sell Nazi uniforms. Boss would eventually supply the wartime German government with uniforms for organizations such as the Hitler Youth and Waffen-SS, resulting in a large boost in sales.
Japanese sportswear firm Mizuno Corporation has decided to ban cotton sourced from China's Xinjiang region, amid allegations of human rights abuses by Beijing against the Uyghur Muslims. The company will discontinue using Xinjiang cotton in its products. China has been rebuked globally for cracking for sending Uyghur Muslims in Xinjiang to mass detention camps, interfering in their religious activities and subjecting them to abuse including forced labor.
Earlier this week, the US Customs and Border Protection blocked a shipment of men's shirts for the Uniqlo casual clothing chain in January for allegedly violating an import ban on items containing cotton sourced from Xinjiang. The US banned imports of cotton and tomato products from Xinjiang in January, and Canada and the United Kingdom followed suit. Many international brands, including H&M, Nike and Ralph Lauren, have also declared their products are not made from Xinjiang cotton, reported South China Morning Post (SCMP).
Meanwhile, Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden have issued a joint statement expressing grave concern at the human rights situation of Uyghurs and other Turkic Muslim minorities in the Xinjiang province.
However, China has denied its involvement in human rights abuses against the Uyghurs in Xinjiang while reports from journalists, NGOs and former detainees have surfaced, highlighting the Chinese Communist Party's (CCP) brutal crackdown on the ethnic community.
Q4 profit after tax (PAT) of Teejay Lanka PLC grew 80 per cent to Rs 760.8 million. As per the Island Online’s reports, the profit before tax improved 67 per cent to Rs 902.8 million while revenues for the quarter increased 40 per cent to Rs 9.770 billion. At the company level, Teejay Lanka’s revenues increased 56 per cent to Rs 6.297 billion, profit before tax grew by 52 per cent to Rs 599.4 million and net profit increased by 65 per cent to Rs 575 million.
At group levels, Teejay Lanka’s revenues for the year ending March 31, 2021 declined 4 per cent to Rs 31.853 billion. Its group profit before tax for the year declined by 6 per cent to Rs 2.650 billion while profit after tax for the year declined by 10 per cent to Rs 2.139 billion.
The group has reduced its administration costs by 5 per cent to Rs 1.356 billion while marketing and distribution costs have been curtailed by 24 per cent to Rs 148 million. The company is expanding its Indian plant with an investment of $26 million which will increase its daily production to 20 tonne.
UK Research & Innovation (UKRI) will officially launch the Textiles Circularity Centre on May 24, 2021.
The launch is a part of the wider UKRI National Interdisciplinary Circular Economy Research (NICER) Program, a four-day event running from May 24-27, 2021 that will introduce the five National Interdisciplinary Circular Economy Centres and the Circular Economy Hub.
The center aims to turn post-consumer textiles, crop residues and household waste into renewable materials for use in textiles to catalyze growth in UK manufacturing and the creative industries. It aims to develop new supply chains, textile production, design and consumer experiences, while reducing the UK’s reliance on imported and environmentally and ethically impactful materials.
The NICER Program is the largest UKRI investment focusing on Circular Economy (CE) to date. The £30 million investment supports five National Interdisciplinary Circular Economy research centers, of which the Textiles Circularity Centre is one.
