FW
Australian wool prices improved further this week, giving weight to the long-held belief of a relative global shortage of suitable greasy wool in front of machines or in stocks.
Broader microns continued to be the focus and largely carried the market higher this week. The progressive rises over the two selling days resulted in 21 micron wools jumping almost 50 cents clean for the sale, approaching 1500 cents clean. The 21 micron category briefly hit 1500 cents in June 2015, but the most notable recent encounter at this level was in 2011 and the record for any 21 indicator is 1682 cents back in 1988.
Widespread enquiry for new business, mainly China, India and to a lesser extent Europe, warned exporters of a dearer market on its way for the merino fleece segment. It was not an over-abundance of quantity that was being sought, but the fact that there were numerous users needing prompt or close in shipment, giving weight to the long held belief of a relative global shortage of suitable greasy wool in front of machines or being held as stock.
Forward sellers appeared to be well-covered and mostly just bought to advantage against the indents to supply their clients with any prompt lots needed prior to the recess.
Price of cotton went higher than that of VSF recently. Both cotton spot and cotton futures are staying at high level currently. Since quantity offered for sales is less than planned, short availability will sustain before new cotton arrives. (Monthly consumption of 600kt is higher than auction volume of 400-500kt). According to the acceptance of spinners and cotton futures tendency, cotton price is likely to be bolstered at 13,000-13,500yuan/mt.
Meanwhile, 2016/17 cotton production is estimated to reduce by around 15 per cent on falling cotton planting area and flooding in the Yangtze River valley. Given cotton supply reduction and rising commodity market, cotton price is expected to remain high.
VSF market has been pushed up by tight supply and higher cotton price since last Friday. Now the price has touched 13,700yuan/mt and most plants still have pre-sale volume. If cotton futures do not dive, VSF price in Jul may hit new highs since the start of 2016. The operating rate of some spinners and fabric mills may be influenced by G20 Summit in August, but the impact may be partially offset by maintenance of Zhejiang Fulida and increasing orders in the second half of year. The atmosphere of peak season may sustain in Sep-Oct but uncertainties exist afterwards.
When an ambitious businesswoman, Susan Bernard, attended the NASA Technology Days in Cleveland, Ohio, and got herself into the know about the latest NASA sensors, the idea of creating textile Instruments struck her mind. The project was about integrating a novel sensor technology into a fabric that would be able to monitor the condition of living beings.
The technology called SansEC, is a sensor that functions using electromagnetic vibrations in the air and does not need to be plugged in or use batteries. Originally developed by NASA Langley researcher Stanley Woodard, SansEC can simultaneously measure different physical phenomena, like temperature and fluid level, and functions even when badly damaged. A remote antenna interrogates the sensor and collects the measurements.
In the beginning, Woodard imagined using the sensor on space systems such as inflatable habitats or the Mars airplane. However, Textile Instruments is now a NASA licensee for the promising technology. With various embroidery techniques and a multitude of fabrics, the sensors can be virtually added to existing materials, uniforms or weaved directly, creating a highly resonant sensor at a low cost with no additional weight, NASA said in a statement. Textile Instruments has already made a prototype blanket of the same.
The September edition of Milano Unica (Sept. 6-8), designed for a global audience will take place at Fieramilano Rho, opening on the last exhibition day of both The Micam and Mipel to underscore the determination and political-economic importance of teaming up.
The ‘New Beginning’ of the 23rd edition of Milano Unica starts with the principle of offering a new dimension of service, creativity and excellence of the proposals put on display, with a view to accompanying visitors through the values of quality and authenticity that characterize Made-in- Italy production. Italy’s most prominent and important manufacturers but also foreign exhibitors will participate along with the participants from the Japan and Korea Observatories that, as usual, were selected based on product quality.
The event represents an innovation in textile and accessories trade shows, as it introduces a new system of establishing relationships between fabric manufacturers and customers and, also, the entire fashion system, thanks particularly to the thorough and complex trend research area. In fact, Milano Unica has invested on trend research, raising the bar and empathetically involving the reference audience, accompanying it through creative, never banal, explorations.
Milano Unica transforms itself into a place where a team-focused system does not diminish the individual personality of each single business, but instead creates an inclusive, barrier-free environment that invites visitors to walk smoothly through the areas. This restyling is intended to allow participants to experience a new dimension of service, business and entertainment.
World leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, Lectra has opened its subsidiary, Lectra Vietnam recently. Lectra has been present in Vietnam for over 20 years and represented by its agent Ly Sinh Cong Trading Service Company (LSC) for the past 12 years. The new subsidiary will take over LSC’s team and assets.
With the opening of the Vietnam subsidiary, Lectra is continuing its development plans in Asia. Said Daniel Harari, Lectra CEO, thanks to 5.5 per cent growth in the first quarter of 2016, Vietnam is one of Southeast Asia’s most dynamic economies. It is a top choice for manufacturers who focus on production costs and brands seeking to diversify supplies. The transpacific agreement signed in February 2016 will reinforce the attractiveness of the country, where Lectra has many customers, including very large Asian companies.
The apparel industry is vibrant in Vietnam. Clothing exports reached $21 billion in 2014 and should grow by 8 per cent, attaining $29.5 billion in 2016, nearly a third from local actors. Of the 6,000 textile and apparel companies, a large number are owned by Chinese, Hong Kong, South Korean, Japanese and Taiwanese companies operating out of Vietnam to take advantage of lower manufacturing costs.
Nylon fiber maker Invista has firmed up plans to slash a significant part of its Chattanooga plant production. The nylon 6,6 polymer made at the Chattanooga factory is used in apparel and automotive air bags. This move is expected to eventually lead to a significant cut in its 300-person workforce, it is gathered. The Koch Industries division that bought DuPont's Access Road plant in 2004 is totally stopping production of nylon 6,6 polymer in Chattanooga and shifting the work to two other facilities in South Carolina and Canada, according to Invista.
The company has made this announcement to ensure employees, contractors, site tenant companies and customers have as much time as possible to plan for the future. Since the move is a multi-phase restructuring process, it's premature to know as to how many employees would be impacted and when, officials of the company said.
The company anticipates an ongoing need for "a consistent workforce" into 2017. They'll assist with the transfer of production in addition to completing steps to safely secure the nylon 6,6 polymer assets not needed in the future, the company said. One thing that is noticeable is that other products are made by the company in Chattanooga though the plans for these functions are unclear.
Just three years ago, Invista made one of the biggest investments ever in the plant that spans more than six decades in the city to help the company penetrate the growing automotive parts market. The Invista decision is due to impact Kordsa Global, a company that's a tenant in the plant and on its own employs about 200 people.
Late last year, DuPont announced that it was closing the last of its operations at the plant. About 40 workers including 26 employees and 14 contractors lost their jobs at the end of last year.
In order to establish formal cooperation in the fields of skills development and vocational and professional education and training, a Memorandum of Understanding was signed by the Swiss State Secretary Mauro Dell’Ambrogio and India’s Minister for Skill Development and Entrepreneurship, Rajiv Pratap Rudy in Winterthur, Switzerland on June 22 last.
The agreement was signed at the second International Congress on Vocational and Professional Education and Training held in Winterthur. With this agreement, the two countries intend to complement existing commitment of Swiss and Indian players to professional skills development and vocational and professional education and training. The agreement is consistent with the strategy of the State Secretariat for Education, Research and Innovation SERI on international cooperation in vocational and professional education and training.
The agreement institutionalises cooperation between the two countries in these areas and aims to promote Swiss vocational and professional education and training internationally. The first such congress was held in 2014. Switzerland and India have fostered excellent bilateral relations in the field of education, research and innovation for many years.
In 2008, the Swiss VET Initiative India (SVETII) was launched to mark the 60th anniversary of the bilateral friendship agreement between Switzerland and India. It is based on the initiative of the Swiss private sector and is implemented by vocational training experts of both countries in different locations in India.
India has set up an apparel training centre in Nigeria to support the textiles industry of the West African country. This is a first of its kind centre in Nigeria set up in partnership with its government, the Commerce and Industry Ministry said in a statement. It was inaugurated on June 22. The centre has been established in Kaduna, Nigeria under the Cotton Technical Assistance Programme for Africa which is being implemented by the Indian Department of Commerce.
"The center is aimed to support and catalyze the initiative of Nigeria in realising the objectives to rebuild the cotton and textile value chain and address the need for skilled workforce for domestic as well export-oriented apparel industry in the west African region," the statement added. Nigeria is an important trading partner of India. The bilateral trade between the two countries stood at $12.17 billion in 2015-16 as against $16.36 billion in the previous fiscal. Nigeria is Africa's biggest oil producer, and its major export to India is crude. There are over 100 Indian companies present in Nigeria mainly in telecom, hydrocarbons, textiles, chemicals, electrical equipment, pharmaceuticals, plastics, IT and autos sectors.
India's exports to that country includes machinery and instruments, pharmaceuticals, chemicals, transport equipment and electronic goods. The major items of import are petroleum, crude, non-ferrous metals, wood and wood products, cashew nuts.
India is against the total elimination of duties on goods arriving from China and other members of the proposed Regional Comprehensive Economic Partnership (RCEP). Instead the country is trying for moderate tariffs and feels zero tariffs can be disastrous.
But India is yet to decide on the peak level of tariffs. The peak tariff rate would indicate the floor below which import duties would not be reduced and could be subject to negotiations if other members agree to India’s proposals. Apart from China other members of the 16-member RCEP include Japan, South Korea, Australia and New Zealand.
Faced with several complaints from the industry on the negative fall-outs of free trade pacts signed so far with partners such as Japan, South Korea and Asean (where it has agreed to gradual tariff elimination on most products), India is coming up with a model for future trade pacts where duties would not fall below five per cent.
A submission against tariff elimination is likely to be made by India in the forthcoming inter-sessional meeting in Jakarta this month. India is uncomfortable with the pressure being exerted by RCEP members, especially China, to agree on tariff elimination on a wide range of products.
The 32nd World Fashion Convention in Mumbai is going to be truly world class with a speakers list that is worthy of one of the industry’s main international arena. The IAF and the Clothing Manufacturers Association of India (CMAI) have combined forces to bring a strong combination of international speakers and the real top of the Indian apparel business. The Conference part of the Convention is scheduled for September 26 and 27. Most of the speakers for the conference have confirmed well in advance.
Alex Thomas, Vice President of Manufacturing Excellence and Technical Services at VF, Sanjeev Mohanty, MD&CEO of Jabong, Mark Jarvis, managing director of WTiN, Adriano Goldschmied, truly the godfather of denim who co-founded Diesel and Replay are the confirmed speakers among others.
The final session on branding, is a real star studded affair with the CEO’s of the Indian organisations of global brands Nike, Bestseller and Tommy Hilfiger are in the panel. The way these large global brands operate in one of the fastest growing markets in the world will give all delegates a great insight into the fascinating challenge for global apparel brands: combining global brand consistency with necessary local adaptations.
With a cast like this, the IAF’s 32nd World Fashion Convention in Mumbai is promised to provide the insights into the development of apparel industry.
