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After hitting lows last year not seen since the Great Depression, California’s 2016 cotton acreage is up at least 26 per cent. Roger Isom, president of the California Cotton Ginners and Growers Association, called the news ‘better than expected.’ Total cotton acreage in the San Joaquin Valley is a little more than 209,000 acres. Kings County continues its top spot at 83,260 acres of cotton planted, an 38 percent increase from last year.
Total cotton planting estimates for the United States range from 9.1 million acres by the National Cotton Council and 9.5 million acres based on U.S. Department of Agriculture (USDA). The higher USDA estimate puts the 2016 U.S. crop 11.4 per cent higher than last year’s cotton crop.
Based on the USDA and NCC projections, national figures show upland cotton acreage projected to be between 17 and 24 per cent higher. Western ELS cotton plantings could range from 5.7 per cent to 11 percent higher, depending on the source of the estimate.
Arizona planting intentions suggest a crop size between 115,000 and 137,000 acres, up from 29-54 per cent. Upland plantings in the Southeast are projected down 5.1 per cent based on estimates by both organisations. The Mid-South could plant anywhere from 25 to 45 per cent more cotton this year. The Southwest could plant anywhere from 6.1 to 11.2 per cent.
Facing an onslaught of imported undervalued Chinese fabrics, there is some good news for textile manufacturers in the country's largest man-made fabric (MMF) hub in Surat. The government is in the process of imposing anti-subsidy duty on import of fabrics from China, which is intended to make the prices of domestic fabric manufactured by the MMF sector competitive. Synthetic & Rayon Textile Export Promotion Council (SRTEPC) chairman Anil Rajvanshi said this during his visit to Surat for exhibitors' road show for the upcoming global buyer-sellers meet for man-made fibers and textile on Saturday.
Also known as a countervailing duty, this country specific duty, on imports is imposed to nullify subsidies provided by other nations and is intended to make prices of domestic products competitive. Importing countries also have other options, such as introducing an anti-dumping duty, to make domestic prices at par. The inquiry by India has been initiated under the supervision of director general of Anti-Dumping and Allied Duties, an arm of the ministry of commerce and industry.
The import of undervalued fabrics from China has paralysed the MMF sector in the city. Around 50 per cent of power loom weaving machines have shut down in the last two months, rendering over two lakh workers jobless. The production of polyester fabric has reduced from 4 crore metre per day to around 1.80 crore metre per day.
Uniqlo, the Japanese clothing chain has leveraged its prowess in mass production to build a fashion empire filled with shelves upon shelves of affordable, good quality items like down jackets, underwear and T-shirts. The retailer is now aiming to beat Western giants like Gap, H&M and Zara to become the world's biggest apparel maker. In the overcrowded, highly competitive casual fashion market, size is important but no guarantee of success. Analysts say Uniqlo's challenge is to carve out a brand identity of its own, going beyond its formula of delivering no-nonsense quality at good prices.
Interbrand ranks Uniqlo as Japan's most valuable retail brand, and eighth among Japan's global brands, including Toyota, Sony and Nintendo. The company's founder and chief, Tadashi Yanai, is Japan's richest man, according to Forbes magazine.
Analysts say that to move it its next stage of growth, Uniqlo also needs to beef up its digital presence and adapt to non-Asian markets. Winning over the huge market of suburban American shoppers will be crucial.
Turkey is one of the biggest textile markets on global market, and the spinning technology and product quality is higher than that of nations like India and Vietnam. Spinning capacity grew rapidly in recent two years, with cotton textile spindles staying around 8 million, mainly cotton yarn.
Cotton is insufficient in Turkey, requiring imports to satisfy production, and with decreasing cotton production, import dependency gradually intensified. Besides, Turkey almost does not have VSF capacity, needing import, and the capacity of PSF is not big too.
Cotton imports were large in Turkey, bigger than other cotton textile feedstock, keeping accumulating in 2011-2014, reaching 913kt in 2014 and dropping to around 803kt in 2015. VSF imports were also big, with annual imports staying 200-250kt, and around 244kt in 2015. Imports of PSF were small but kept rising in 2011-2015 with growth rate at 75 per cent, from 95kt in 2011 to 166kt in 2015.
Cotton yarn production grew slowly in Turkey during 2000-2007, with annual output staying around 500-800kt, amounted to 600-700kt in 2008-2012, but soared to 1020kt in 2013 and later was in stable consolidation. According to latest statistics, cotton yarn production totaled 264 kt in the first quarter of 2016, up 5.2 per cent y-o-y, and may exceed 1 million tons this year or hit new high if there is no accident factor.
Australian wool growers will be paying more income tax after sustained price rises for most of this year. While returns from superfine fleece are lagging the general market, buyers of the stylish lots and broader merino and cross bred fleece continue to buy at a premium. Wool volumes are falling below a critical threshold. Prices are at four year highs and still rising. Market's upward trend and relative stability hide powerful forces bringing unprecedented change to the industry. The current prices mean good returns for graziers growing medium fleece wools.
Demand has picked up particularly in the US as the influence of the global financial crisis subsides. The main buying is being done by Chinese mills. Fashion houses are using more wool, there is stronger demand for knitted fabrics, and in the US and Europe consumers are looking at woolen fabrics in a more favorable light. That is reflected in a very strong demand for the broader types of wools, the 25, 26 and 28 micron wools and the cardings.
The wool market is very volatile at the moment and this is another effect brought on by very strong demand and low wool supply in Australia.
The Vietnam Textile and Garment Group (Vinatex) is expecting export turnover to grow by 10 per cent this year. The group would focus on supporting its subsidiaries in trade promotion to enlarge export markets to meet the target. The group would also set up research boards on free trade agreements to take up the initiative in building effective business and investment strategies. Vinatex has invested in developing supply chains from materials to finished products over the past year. After launching operations of the Kiên Giang project in 2015, the group is completing the Phú Hưng fiber plant and a yarn dyed cloth project.
The group has also developed the Supply Chain Development Centre (SCDC) to be dependent on material sources. So far, SCDC has eight regular customers for garment products and has been developing 20 customers in the United States, Europe, South Korea and Japan. The centre has had 10 customers for cotton and fiber and has been developing 30 customers for its products in Chile, China, Thailand, and Malaysia, in addition to South Korea.
Vinatex gained good business results last year with high growth rates from seven per cent to 13 per cent from most of its large export markets.
Yiwu Tex 2016 held in China from June 14 to 16 features around 160 textile machinery exhibitors from 10 countries and regions to showcase the latest intelligent and sustainable textile manufacturing technology. It is expected to attract 12,000 visitors, over 20 trade associations and over 40 important textile-related corporates.
A full spectrum of smart and automated machineries, innovative fabric technologies and cost-effective business solutions tailored for the knitting, hosiery, sewing, garment and digital printing industries are showcased. Experts share their insights on business upgrade or transformation with the use of smart technologies, new fabrics, information communication technology and data management systems.
To accommodate diversified sourcing needs from buyers, the exhibition features three thematic zones including knitting and hosiery machinery, sewing and automatic garment machinery and dyeing, finishing and digital printing machinery.
Yiwu Tex is supported by leading knitting, hosiery and garment enterprises. Seminars focus on the topics of fiber and fabric innovation, planning and scheduling optimization systems for apparel production, intelligent traffic light management systems, digital textile printing, functional underwear, the social media, new sales channels and advanced planning and scheduling systems for the textile supply chain. The knitwear display zone showcases the latest fabric innovation, production techniques and pattern designs.
A textile mall called Tex Valley which has been set up under the Comprehensive Powerloom Cluster Development Scheme of the Union Ministry of Textiles had 225 showrooms inaugurated on June 9. Leading textile brands such as Pothys, Nandu Brand Lungies, Chextex, Cotton Blossom, ADT Saral volume zero, Pommy Garments, Twin Birds, Tantex and Kibs Lungies.
Based in Erode, the textile cluster is a strong powerloom cluster with aggressive manufacturing base and weak marketing linkages. Tex Valley has 12 different product zones with over 100 manufacturers and wholesale shops in each zone with proper index systems which can be identified easily by buyers. This helps to reduce the cost and time of the buyers and increase the confidence to encourage them to visit the Tex Valley campus.
The Powerloom Development and Export Promotion Council (PDEXCIL) had entered into an agreement with Tex Valley to establish its Regional Centre in Tex Valley campus. Tamil Nadu Textile Corporation has identified Tex Valley as its logistics and transit hub and sourced 10,000 sq ft of land in Tex Valley weekly market complex. The operations started in March.
As spinners report a steady stream of orders, demand for specialty yarns continue to be brisk mid-year. However, the commodities business continues mired in the unexpected slump that began earlier this year. And even for those that have noticed no appreciable decline in volume, orders are smaller than usual and the pipeline is shorter than they would prefer.
One broker who focuses on specialty yarns said that for them, business is stronger than what commodity yarn sellers are experiencing. In fact, business this year is ahead of where it was this time last year. But we can’t move the commodity yarns that I have acquired.
For the most part, with the exception of specialty yarns, spinners are disappointed with where they are at this point in the year. The spinners do not expect to experience an extended slowdown in orders. All indications were that the volume of business experienced over the past couple of years would continue. However, no one is panicking. While business is down, it is certainly not dreadful, and the spinners are optimistic that it will not get to that point.
Pakistan’s garment exports have fallen 12.4 per cent in the 11 month period (July-May) from a year ago. Cutthroat competition with countries like Vietnam, Bangladesh and China, is giving a tough time to exporters. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and still rising. While Pakistan gives exporters a four per cent rebate on an incremental basis, countries like Bangladesh go all the way.
Pakistan has witnessed 12 per cent decline in cotton cultivation this year as compared to last year. Pakistan is importing extra long staple cotton from the United States and some other countries. India gives subsidies on export of all surplus commodities which is not available to farming community in Pakistan. Due to massive subsidies on export of surplus commodities cotton in India, is cheaper in India than Pakistan.
To boost exports, Pakistan is contemplating a zero rated sales tax policy for five of its export sectors i.e. value-added textiles, carpets, surgical, sports goods and leather. Out of 4,00,000 cotton bales available in the country, 64,000 are with the Trading Cooperation of Pakistan and the rest with growers and other agencies.
