"World cotton production declined in 2018 to an estimated 118.4 million bales due to lower acreage and yields. The US was not the only country plagued by weather and pest issues in 2018. As compared to 2017, India’s crop declined by 2.0 million bales. Australia harvested 43.4 per cent less acreage in 2018 due to severe drought conditions, resulting in a 2.2 million bale reduction as compared to 2017. Pakistan’s production also fell 950,000 bales. The 19.1 per cent increase in Brazil’s cotton acreage in 2018 did offset some of the production losses experienced in other countries. Brazil produced a record 11.0 million bales, an increase of 1.8 million bales over 2017."

Year 2018 was full of uncertainty and volatility for the world cotton market. This uncertainty surrounding the ongoing trade tensions between the United States and China, is one of the most challenging issues facing the global cotton market today. Last month, the two countries concluded a round of talks aimed at resolving the dispute with further discussions planned for mid-February. President Trump had set March 1st for either resolving the trade issues or increasing tariffs applied to approximately $200 billion of imports from China. Based on the positive statements resulting from the recent negotiations, the NCC assumes that the additional tariffs being imposed by the two countries will be removed in advance of the 2019 marketing year. With exact timing unknown, the ultimate resolution is not assumed to have a significant impact on the balance sheet for the 2018 marketing year.

Production to increase in 2019

World cotton production declined in 2018 to an estimated 118.4 million bales due to lower acreage and yields. The US was not the only country plagued by weather and pest issues in 2018. As compared to 2017, India’s crop declined by 2.0 million bales. Australia harvested 43.4 per cent less acreage in 2018 due to severe drought conditions, resulting in a 2.2 million bale reduction as compared to 2017. Pakistan’s production also fell 950,000 bales. The 19.1 per cent increase in Brazil’s cotton acreage in 2018 did offset some of the production losses experienced in other countries. Brazil produced a record 11.0 million bales, an increase of 1.8 million bales over 2017. For 2019, production is expected to increase in most major cotton producing countries. World production is estimated at 125.5 million bales.

Consumption to reach 126.5 million bales

World cotton consumption is expected at 123.6 million bales in 2018 marketing year. Estimates have been revised downward due to the ongoing trade dispute as well as a slowdown in the Chinese and world economies. For 2019, consumption is expected to increase to 126.5 million bales.

Consumption to exceed production in 2019

Cotton consumption exceeded production by 5.1 million bales in the 2018 marketing year. Ending stocks declined to 75.5 million bales. Stocks outside of China increased to a record 46 million bales. The world production is estimated to increase by 7 million bales in 2019 to 125.5 million bales, which would be the highest level since the 2011 crop. World consumption is projected to increase to 126.5 million bales in 2019. Ending stocks are projected to decline to 74.2 million bales. Stocks outside of China are projected to increase to a record 46 million bales.

While the Council’s economic outlook does not attempt to project cotton prices, it is important to review some of the factors shaping the current price situation. Cotton prices maintained a weaker appearance since August 2018 due to the U.S.-China trade dispute as well as a slowdown in the world economy. Based on the underlying assumptions and resulting cotton balance sheet, the level of stocks outside China in the 2018 marketing year along with higher projected production in 2019 may contribute to a more bearish tone for cotton prices in the next year. However, the increase in world trade due to higher Chinese imports along with a resolution to the U.S.-China trade dispute could provide some price support.

Wrangler is re-launching some of its core denims. These include six iconic products such as 124MJ jacket, which became the archetypal denim jacket, to the 27MW western shirt, created for cowboys but embraced by rock stars.

Wrangler will also reissue the authentic 11MWZ, its first jean and the original slim fit cowboy cut and re-imagine a women’s style. The collection is available on the Wrangler website.

Vietnam’s exports to the US in January 2019 were up 42.1 per cent compared to the same period last year.
Exports of garments and textiles to the US increased 34.1 per cent. Other Vietnamese exports to the US include footwear, wood and timber products and mobile phones. Vietnam has also been able to export mangoes to the US after a decade of negotiations and the completion of all procedures required by one of the most choosy markets in the world. In addition the two countries do business in numerous other fields such as seafood, rice, coconut products, mechanical goods, manufacturing, chemicals, cosmetics, electric cables, electronic equipment, and semiconductors.

Two-way trade turnover between Vietnam and the US has increased nearly 120 times. At present, Vietnam is ranked 16th among the leading trade partners of the US.

The US made up 23.3 per cent of Vietnam’s total export turnover in January.

Trade relations between Vietnam and the US in 2019 are expected to see important changes because the US looks likely to recognise the market economy of Vietnam after July 1, 2019.

Therefore, bilateral ties will be laid on the important legal foundation of international commitments. So businesses in Vietnam are proactively developing markets and increasing their domestic production capacity.

The US lingerie giant Victoria's Secret is closing 53 stores in North America this year, citing a "decline in performance," as a reason. Its parent company L Brands reported fourth-quarter earnings after market close. Same-store sales at the Victoria's Secret brand declined by 3 per cent during the quarter and overall in 2018.

The brand has increasingly been accused of losing relevance among shoppers as its oversexualized ads and racy runway shows have failed to resonate in the era of #MeToo.

The annual fashion show's ratings also took a hit. According to ABC, the network that ran the show, 3.3 million people tuned in to watch the fashion show when it aired on December 2, down from 5 million viewers in 2017 and 6.7 million in 2016, when it previously aired on CBS.

Meanwhile, more body-positive brands such as American Eagle's Aerie and ThirdLove have gained market share.

American Eagle reported a 32 per cent increase in same-store sales at Aerie in the third quarter. This marked its 16th consecutive quarter of double-digit positive growth.

Africa has become the largest source of cotton for Bangladesh. Last year, Bangladesh, the largest importer of cotton in the world, met 37.06 per cent of its requirements for cotton from East and West Africa. The CIS (Commonwealth of Independent States) countries supplied 11.35 per cent of Bangladesh’s cotton requirements, 11.14 per cent from the US, 4.65 per cent from Australia and 9.65 per cent from the rest of the world. India accounted for 26.12 per cent of Bangladesh’s cotton imports, down from more than 60 per cent two years ago.

Bangladesh’s cotton imports will continue to commensurate with expansion in spinning. Last year, Bangladesh imported 8.28 million bales of cotton. In dollar terms, the imports are worth three billion dollars. The country produced 1.65 lakh bales of cotton last fiscal year, which is less than three per cent of the country’s annual demand for ten million bales. The hope is to produce 2.5 lakh bales of cotton by 2021, which will meet nearly seven per cent of the local consumption. Cotton has helped farmers in Bangladesh cultivate land which used to previously stay fallow due to lack of irrigation facilities. Cotton imports are proving to be a major drain on foreign exchange reserves in Bangladesh.

US manufacturers are accelerating their shift out of China, coming to terms with a new reality that the Trump administration's tariffs are not likely to go away any time soon.

President Donald Trump’s lead trade negotiator, Robert Lighthizer, warned lawmakers that the United States would need to keep the threat of stiff tariffs on China in place for years, even if a trade deal is inked, as part of an enforcement mechanism that would include frequent reviews of whether China was abiding by any agreement.

That confirms what many companies have already concluded. Even if the hot phase of this trade war passes, tensions will linger and continue to reshape the economic relationship between the world’s two largest economies.

Itema showcased the most comprehensive weaving solutions on the market to weave technical fabrics at Techtextil North America 2019. The event was held from February 26-28, 2019 in Raleigh, North Carolina With headquarters in Spartanburg, SC, Itema America, Inc., is the result of the successful merger in the early 2000 of two renowned weaving machines manufacturers, Sulzer and Somet.

During Techtextil North America, Itema America team focused on showcasing the company’s strong offering for technical fabrics weavers. Itema is uniquely positioned to offer technical textile manufacturers the top three weft insertion technologies; Rapier, Airjet and Projectile; in what is the most comprehensive portfolio on the market today for technical applications.

The latest Itema machine models – the rapier R9500, today available in its second generation offering superior energy savings and higher performances than ever before and the airjet A9500p with its real time filling insertion and best in class air-consumption have quickly become the machines of choice for many US weavers.

The global spandex market is expanding at a CAGR of 10.3 per cent.
Steadily rising population, coupled with increasing disposable income, is expected to drive the growth of the global spandex market over the forecast period.

Spandex is a manufactured fiber in which the fiber-forming substance is a long-chain synthetic polymer comprising at least 85 per cent of segmented polyurethane. This fiber, also called elastane, is a synthetic long-chain polyurethane-polyurea copolymer composed of rigid diisocyanate segments and flexible macro-glycol segments arranged in a specific order. The fiber is characterized by exceptional stretch and recovery properties, with the elongation at break of around 400 per cent to 600 per cent.

These characteristics entail its wide-scale use in a diverse set of applications in textile and clothing and healthcare industries. Some prominent areas of application for spandex fibers include sportswear, casual clothing, home furnishings, and undergarments. Medical and healthcare-related applications of spandex fibers include diapers, compression stockings and hoses, and bandages.

Asia-Pacific is expected to dominate the global spandex market, whereas the Middle East and Africa, Latin America, Europe, and North America are expected to account for a relatively smaller share in the global spandex market value. Asia Pacific is growing at a CAGR of 11 per cent.

The order index for Italian textile machinery from October to December 2018 fell compared to the same period for 2017.The index value stood at 101.9 points.

So both domestic and export orders obtained by Italian machinery builders fell. On the domestic front, the index stood at an absolute value of 148 points, that is, fully 12 per cent less than the same period for October to December 2017. However, foreign markets fell even further by 16 per cent, with the index standing at an absolute value of 98.1 points.

The domestic market was gripped by an overall sense of uncertainty that accompanied the new national budget legislation, not to mention the comparison with a record fourth quarter for 2017. On foreign markets, Italian machinery manufacturers had to face geopolitical situations that have considerably slowed investments. So Turkey, Iran, and even China, all primary markets for the sector, recorded a drop in demand for textile machinery for a variety of reasons.

Last year closed with a downswing both in terms of foreign sales and total production. The overall sentiment for 2019 isn’t very positive either.

Italy is the world’s second largest producer of machinery for the textiles industry. In the production of machinery for tanning, and for the footwear and leather goods industry, Italy accounts for over 50 per cent of world production.

Outlook India, a leading platform for key nonwoven professionals in the personal care and hygiene products, closed in India on a very successful note. Outlook India was the first ever platform of this scale and took place in India from 12-13 February in the Leela Ambience Hotel in Delhi NCR. The participants learnt and shared insights on the exciting market potential of India, whilst taking this unique opportunity for networking and doing business.

Organised by Edana and BCH, who have been partners for 12 years, Outlook India 2019 was the first ever edition of Edana’s flagship conference, which has so far been organised 17 times in Europe, three times in South-East Asia and twice in Latin America.

More than 320 delegates from over 152 companies were in attendance for the opening keynote presentation made by the Unicharm President and CEO Takahisa Takahara on Ideas for circular hygiene products for now and the future.

The second day opened with a keynote speech from Ashish Jajoo, Global Sales and Marketing Head at Birla Cellulose Nonwovens Division, on Bio based solution for wipes and the hygiene industry. Other sessions featured expert insights on market trends and presentations on the latest innovations and technologies pertaining to the absorbent hygiene industry.