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Fabric sales in Keqiao in China’s Zhejiang province and the world-leading hub for textile production and trading jumped 57.38 per cent in March, on the previous month, to 509 million metres, due to the seasonal factor. Trading volume was up 2.22 per cent y-o-y, too.
In the first quarter of 2016, the like-for-like trading volume expanded 3.34 per cent to 1.22 billion metres, while sales revenue increased 10.36 per cent, against the same period of the last year, to US$18bn.
The much higher growth rate of sales revenue was attributable mainly to the closures of dyeing mills in Keqiao, pushing up the dyeing costs dramatically. To tackle the thorny issue of pollution before the G20 Hangzhou Summit in September 2016, the local governments of Zhejiang province have shut down nearly 100 dyers in Shaoxing, one-third of the total, after the Spring Festival.
Meanwhile, the move from the government firstly prompted the mills to use more high-quality dyes. As a consequence, quotations for Disperse Black ECT 300 per cent, the key product, jumped around 65 per cent in March, to 28,000 Yuan per tonne in early April. The Reactive Black WNN 200 per cent traded at 27,000 Yuan per tonne on 1 April, soaring 50 per cent during the earlier month.
The closures of dyers boosted the confidence of the leading firms of the sector to raise their service fee by around 15 per cent, as employees had to work overtime every day after the Spring Festival.
The recent publication of a 10-page report titled ‘Mind the Gap: Towards a More Sustainable Cotton Market’ has prompted a response from Cotton Incorporated aimed at filling gaps in the report. Published by Pesticides Action Network UK, Solidaridad and WWF, the report was carried by a number of sustainability and textile trade press. The document portrays conventional cotton as unsustainable, citing environmental, social and economic issues. It also asserts that sustainable cotton is only available through certification programs such as Better Cotton Initiative (BCI), CMIA and Organic, and suggests that more promotion is needed to call attention to problems with conventional cotton.
Cotton Incorporated, in response published in the medias refutes some of the claims and provide facts to fill gaps in the report. In an editorial, Cotton Incorporated President and CEO Berrye Worsham called the ‘Mind the Gap’ report a document that pits cotton programs against each other, at the expense of the entire industry. The paper positions certification programs not as one path to responsible cotton production, but the only path. This philosophy favors paperwork over real, measurable and verified progress, including that made by conventional cotton growers in many countries. By identifying those facts that support a pro-certification agenda, the report obscures the fact that cotton is the only commodity fiber offering the supply chain multiple methods and programs to assure responsible production and traceability.
Cotton Incorporated points out many inaccuracies from the ‘Mind the Gap’ and strongly asserts the case for sustainable conventional US cotton. Cotton Incorporated also highlights the Cotton LEADS programme which is not mentioned in ‘Mind the Gap’ report.
Better Cotton Initiative (BCI) has announced a new partnership with the Israel Cotton Production & Marketing Board (ICB). As per the partnership, 100 per cent of Israeli farmers have signed-up to BCI, and Better Cotton from their first harvest is already available. With the addition of Israel, BCI now operates in 21 countries worldwide.
While Israel is a relatively small cotton producer, it demonstrates highly advanced practices at field level. Examples include country-wide implementation of integrated pest management (IPM) methodology based on plot specific scouting of pests and beneficial organisms, regular area-wide infestation assessment, cultural control methods, a pest resistance monitoring routine and regulated usage of pesticides. In the realm of water and nutrition management, highly controlled and cost beneficial application of these inputs are based on direct plant and soil monitoring. The hallmark of the Israeli cotton sector and its proven success in producing high yields of excellent quality cotton is the result of ongoing collaboration between growers and their cooperatives, ginners, extension services and research and development activities and institutions. This cooperation is coordinated under the leadership of ICB.
Israel produces predominantly extra long staple, feeding the Better Cotton supply chain with the highest quality cotton fibre. Many BCI members use Extra Long Staple to produce high-quality textiles.
World leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, Lectra has joined forces with Les Enphants and the Shanghai Institute of Visual Art to hold its inaugural childrenswear design competition in China using Kaledo®, Lectra’s textile design solution.
Outstanding designs from the competition will be included in Les Enphants’ children’s wear range, and the winner will be awarded a unique opportunity to intern for the company. Over 30 fashion design students from the Shanghai Institute of Visual Art took part in the competition.
China’s market for children’s products is expected to boom, with children’s wear becoming a major source of growth for fashion companies due to the government’s newly implemented two-child policy. The design campaign was officially launched in September 2015. Design Managers and Purchasing Managers from Les Enphants conducted classes, helping students carry out market research on upcoming childrenswear trends and define their design direction and style while providing creative guidance. Lectra’s design solution Kaledo helped the students bring their design ideas to life. The submitted designs were then evaluated by a panel of industry experts, followed by an awards ceremony recently hosted by the event sponsors. These designs will then be used by Les Enphants and even have a shot at appearing in the Shanghai 2016 autumn/winter fashion show, where they will be highly publicized and showcased to a wider audience.
Swiss companies have been close partners of Pakistan’s textile companies for more than six decades. Trade between the two countries has been increasing steadily. Switzerland is known worldwide for its precision watches, cheeses and financial services. However, Swiss competence is not limited to these sectors. Equally strong are Swiss companies in textile technology, testing equipments, chemicals and service sectors.
In the weaving sector Staubli is the world leader in jacquard technology and Jakob Mueller is the undisputed leader in narrow fabric technology. Pakistan is the ninth most important market for Swiss textile machinery manufacturers. While Swiss textile machinery exports to the key markets of Turkey and China have seen a sharp decline, Swiss exports to Pakistan have been increasing over the last three years.
Many Swiss companies are doing business in Pakistan independently and as joint ventures. Switzerland has also been contributing towards the development of Pakistan through its development programs. Exports of major textile items from Pakistan to Switzerland are cotton yarn, cotton fabrics, readymade garments, hosiery, towels, made-up textiles and synthetic textiles. Swiss companies import home textiles and clothing (other than knitwear) from Pakistan, selling them in Switzerland and Europe under their own brand names and designs.
The fifth annual fiber and textile workshop will be held in New Zealand from April 18 to 22, 2016. The conference is designed as a great opportunity for amateur artists to socialise and network. Like-minded people get together and have the opportunity to work with international artists to improve their skills. Overseas tutors from Germany, Australia and the United States will be taking intensive workshops on subjects such as collage, contemporary stitch, jewelry, printing patterns, textures and wax.
The conference will end with an exhibition of the art produced over the course of the week, which is open to the public. The event has six international tutors, each in a different field of fiber arts. More than 80 people from as far as Australia will meet to expand their artistic armory. A total of 81 people enrolled this year up from 60 last year.
The event is huge for the Whanganui arts community and is growing every year. It will be attended by internationally known tutors who are real full-time paid artists as well as women coming from Queenstown to Auckland and even Tasmania. Art teachers from across the country will use the workshops as professional development.
Some time back, Nepal’s readymade garments received duty-free facility in the US market. The special trade preference allows duty-free tariff benefits for up to 66 types of garment items including certain carpets, headgears, shawls, scarves and travel goods. Nepali garments will now be competitive in the US market. The US accounted for over 80 per cent of Nepal’s total garment exports at one time. The US had been imposing an average 16 to 17 per cent duty on Nepali garments.
Nepal’s garment manufacturers welcome the duty-free facility to the US market but say there are other issues to be resolved. Only 40 per cent of Nepali garments being exported to the US are eligible for Generalised System of Preferences facility. The rest 60 per cent are excluded from GSP. Nepal’s garment manufacturers have been lobbying for duty-free entry to the US for over a decade.
Meanwhile, Nepal is wrestling with the slow pace of economic recovery following the earthquake. Infrastructure needs to be developed. Attention is being sought for timely completion of the proposed hydropower projects, tourism development and productive use of remittance. Garment makers are being urged to expand their production capacity to ensure regular supplies to their main export destinations.
Cambodia's garment and footwear exports continued to see strong growth during 2015, though it grew at a slower rate than the year earlier. Despite an increase in exports, garment prices overall remain on a downward trajectory, although those shipped to the European Union went up for the first time in four years.
The latest data on industry exports, employment and factory openings are included in the most recent Cambodian Garment and Footwear Sector Bulletin released by the International Labour Organization (ILO). They also appear to show that a rise in wages has not dented trade. Not only did minimum wages increase from $128 to $140 at the beginning of the year, workers' average monthly wages jumped 20.7 per cent to $175 in 2015, up from $145 the year before, once a range of mandatory allowances were factored in.
However, the ILO warns: "While there do not appear to have been negative effects from past increases, Cambodia's minimum wage was low by international standard. For the year as a whole, total garment and footwear exports reached $6.3 billion, up 7.6 per cent over the $5.8 billion booked a year earlier. Even so, this is slower than the 9.6 per cent growth seen between 2013 and 2014.The footwear sector continued to accelerate with a 21.8 per cent surge in shipments to $538 million, while exports of garments rose by 6.5 per cent to $5.7 billion.
The European Union (EU) remains the largest market for Cambodia's garment and footwear exports, with a 46 per cent share, while the US accounts for 30 per cent. The remaining 24 per cent were destined for other markets, mainly Canada and Japan.
Despite the strong export performance, Cambodian garment producers faced the challenge of a continuing decline in the prices paid by their buyers, especially in the US and Japan. The average price of garments (per dozen) sold to the US in 2015 was 29 per cent lower than in 2005. Similarly, prices for garments sold to EU markets were 18 per cent lower in 2015 than in 2005.
American Apparel & Footwear Association (AAFA) released the 17th edition of Restricted Substance List (RSL), the industry's chemical management resource for banned or restricted chemicals and substances in finished home textile, apparel, and footwear products around the world. According to Rick Helfenbein, AAFA's president and CEO the organisation supplies the industry with valuable tools that are needed to manage a responsible and compliant supply chain, and to mitigate the associated risk. AAFA continues to develop the RSL to update international and national regulations restricting the use of certain chemicals in product manufacturing, he added.
RSL’s 17th edition covers 12 chemical categories with more than 250 chemicals and is updated to reflect additions or changes to regulations and laws that restrict or ban certain chemicals in apparel, footwear, and finished home textile products. AAFA's Environmental Taskforce and Peer Review teams review and update the RSL every six months.
AAFA's RSL has been downloaded more than 100,000 times. With its commitment to supporting responsible production throughout the supply chain, AAFA offers access to the RSL for free to the entire apparel and footwear industry.
Representing more than 1,000 world famous name brands, AAFA is the trusted public policy and political voice of the apparel and footwear industry, its management and shareholders, its four million U.S. workers, and its contribution of $361 billion in annual U.S. retail sales.
China’s MY16/17 cotton production is forecast to continue falling at 4.9 million tons (MMT), down from the estimated 5.2 MMT in MY15/16 and 6.5 MMT in MY14/15. Lower earnings resulting from China’s government cotton policies implemented since MY14/15 are expected to reduce the planted area further by 9 percent to 3.1MHa in MY16/17.
The government’s recent cut to the MY16/17 target price for Xinjiang cotton farmers by RMB500/ton ($78/ton) is expected to reduce cotton returns and negatively impact cotton planting intentions in this province. Similarly, in the Yangtze and Yellow River regions, the anticipated low government production support (not yet confirmed as of this report) and more profitable alternative crops will reduce MY16/17 cotton acreage in these regions.
Slower economic growth, strong imports of yarn, and greater use of increasingly more competitive fibers, in particular polyester, continues to impact the recovery of Chinese cotton consumption, estimated at 7.2 MMT in MY15/16 and forecast to grow slightly to 7.3 MMT in China’s large state cotton reserves – built during the government cotton state purchases during MY11/12- MY13/14– remain a challenge due to the low use of domestic cotton. As a result, at the beginning of MY15/16, China’s cotton stocks are estimated at a record 14.8 MMT, roughly about 61 percent of global stocks.MY16/17.
High carry-in stocks, slowdown in consumption growth, and the government’s ability to control domestic supplies –through state reserve sales and by limiting additional tariff rate quotas (TRQ)—will continue to reduce cotton imports to an estimated 1.1 MMT in MY15/16.Given the expected drop in China’s total cotton imports and increased competition from other cotton suppliers such as India and Australia, China’s imports of US cotton are expected to fall further in MY15/16.
Given the expected drop in China’s total cotton imports and increased competition from other cotton suppliers such as India and Australia, China’s imports of US cotton are expected to fall further in MY15/16. tons in MY14/15.
However, in order to stay competitive in export markets, the Chinese textile industry is likely to continue sourcing higher grade cotton from abroad. This supports a slight recovery in total cotton imports for MY16/17 forecast at 1.2 MMT. Correspondingly, imports of US cotton could recover slightly in MY16/17 but still at a lower level than the 587,000 tons in MY14/15.
