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World cotton production is forecast to increase seven per cent in the crop year that starts from August 2017. The higher 2017/18 cotton production projection is the result of favorable prices that are encouraging a rebound in area.
India, China, and the US are forecast to account for a combined 62 per cent of global cotton production in 2017-18.
Global cotton consumption is forecast to increase by two per cent as world economic growth recovers in 2017 and 2018.
After decreasing by three per cent in 2016-17, India’s consumption is forecast to recover due to competitive prices for its cotton yarn products, expanding capacity and the resolution of the consequences of demonetisation.
China’s mill use of cotton is forecast to increase by one per cent, accounting for 30 per cent of world cotton consumption. Mill use in Pakistan may grow by one per cent due to new incentives for textile exports while Bangladesh may witness a five per cent rise.
With over supply in major countries, cotton prices may remain subdued. Prices may also be tempered as China reduces its inventories by dumping cotton stock in world markets. Meanwhile, stocks in India, Brazil, the US and Pakistan are expected to rise in 2017-18 with larger crops forecast.
South Africa’s wool market traded lower at this week’s auction. Sentiment on the wool market was heavily influenced by the volatility and strengthening of the rand.
The 2016-17 wool growing season is nearing its end and at this penultimate sale prices particularly on the medium and shorter length wool declined significantly.
Demand for good quality long fleece wool remains good. The fierce rivalry between Lempriere, Standard Wool and Modiano continues unabated.
The rand was four per cent stronger against the dollar compared with the average rate at the previous sale. Major traders were Lempriere, Modiano, Standard Wool and Stucken & Co.
The average clean prices for the selection within the different micron categories for good top-making long fleeces were as follows: 18 microns decreased 1.7 per cent; 18.5 microns decreased two per cent; 19 microns lost 3.1 per cent; 19.5 microns moved down 1,9 per cent; 20 microns decreased with 1.9 per cent; 20.5 microns moved down1.6 per cent; 21 microns weakened 1.2 per cent; 21.5 microns decreased 1.5 per cent; 22 microns lost 1.1 per cent; and 22.5 microns decreased 1.5 per cent.
The Australian EMI lost 2.4 per cent this week. The Cape Wools All Wool Indicator lost 2.3 per cent.
Three synthetic fiber producers from the US have filed petitions alleging that dumping of fine denier polyester staple fiber from China, India, Korea, Taiwan, and Vietnam, and subsidised imports of the fiber from China and India, are causing material injury to the domestic industry.
The three producers have asked the US to investigate the dumping, subsidies, and injury and to impose anti-dumping and countervailing duties on the imports of fine denier PSF from the subject countries.
The petitions allege that producers in each of the five countries are dumping fine denier PSF in the US market at sizeable margins. China’s dumping margin is alleged to be 88.07 to 103.06 per cent, while that of India is 21.31 to 29.70 per cent.
The synthetic fiber producers who have filed the case are DAK Americas, Nan Ya Plastics and Auriga Polymers. They say such imports increased by 68 per cent from 2014 to 2016.
The allegations identify a number of significant national and regional programs, including preferential export financing, preferential income tax treatment, tax exemptions, rebates and credits on imports of inputs and capital goods used in the production of fine denier PSF and grants for fine denier PSF producers to assist in the development of export market and to protect against commercial risk.
Sri Lanka will get back GSP from the EU. The country first got the facility after the Asian tsunami disaster in December 2004 but it was then withdrawn in 2010 because of human rights violations issues.
With this restoration, Sri Lanka’s balance of payments and debt servicing issues could be resolved by increasing exports.
The EU remains Sri Lanka’s main export market, with more than 30 per cent of the country’s annual merchandise sold to Europe. The EU is the biggest single market for Sri Lanka’s apparel exports.
However Sri Lanka’s exports may not expand rapidly because of manufacturers’ inability to immediately enhance their production capacity.
Structural limitations, such as labor shortages, are also a barrier. A factor in the shortage of labor is the low wages paid by companies.
Increasing production capacity, above all, depends on attracting investment. Sri Lanka’s foreign direct investment halved in 2016 from the previous year. The fall was a result of international financial volatility and investors looking for more profitable production facilities.
Whereas Sri Lanka’s competitors, such as Bangladesh and Vietnam, are embarking on large-scale economic reform agendas, Sri Lanka’s relative reticence restricts its potential for growth.
In 2015, Vietnam, Pakistan and Cambodia had higher EU export earnings than Sri Lanka.
Top garment manufacturers, technocrats and technology providers recently got together to imagine the future of the garment manufacturing business in Bangladesh, in an event organized by Thread Sol.
The event explored a range of pivotal subjects set to impact the future of garment manufacturing in the country, in particular, three fundamental elements: resource optimisation, lowered costs and improved outputs.
Participants also took a closer look at how the best manufacturers in Bangladesh rely on a combination of technology and best practices to deliver timely output without compromising on quality or cost.
Factories in Bangladesh need automation and data analytics more than ever. The productivity gains could be significant as even a modest three or four per cent savings of fabric could add millions of profits that could be invested for the future.
Technology is a solution that can aid manufacturers in this dynamic industry. Some of the best manufacturers in Bangladesh have integrated technology into their set-ups and realised benefits. Manufacturers need to adopt the fast fashion environment of consumerism.
A recurring theme throughout the event was the notion that locking-in the right partnerships, with the right innovations, will enable apparel companies in Bangladesh to turn challenges into opportunities.
The event was organized by Thread Sol, a pioneer in enterprise material management for the sewn products industry.
Spinexpo trade exhibitions in France, US and China will present autumn- winter 2018 fibers, yarns and knitwear collections.
China Spinexpo will be held August 29 to 31, 2017, showcasing over 200 specially selected companies. This trade show caters to a growing mid-end domestic market and international brands manufacturing in Asia. The show continues to be a driving force in moving suppliers and buyers forward, urging them to bring fresh and new ideas in design, innovation and technical application.
Spinexpo France will be held July 3 to July 5, 2017. Products from leading top-level international exhibitors including 85 spinning mills, knitwear and machine manufacturers as well as the swatch studios, will be displayed at the show.
Spinexpo United States will be held July 18 to 20, 2017. The exhibition will feature 77 leading exhibitors, similar to those in Paris and is a B-to-B trade show attracting key influential brands from the American markets. Exhibitors will be showcasing innovative products with a focus on performance and functionality as well as new spinning and knitting techniques across core and fancy items. A special focus will be on a wider range of products with stock service, shorter lead times and faster delivery times.
Spinexpo is the industry’s leading sourcing exhibition dedicated to promoting innovation in yarns, fibers and knitwear.
Like-for-like sales in the UK were down 1.3 per cent overall for the month of May, while fashion stores were hit with a 3.6 per cent fall in year-on-year figures.
Fashion sales were negative in the first three weeks of May, while the figures for the month make it the fourth of the year recording no in-store growth, suggesting a worrying downward spiral for clothing retailers.
Home ware stores fared better, posting like-for-like growth of 1.2 per cent off a strong base this year, but the lifestyle goods sector was the major winner with a sales boost of 3.9 per cent year on year, buoyed by record tourist numbers and a weak pound.
Reduced spending, resulting from household budgets coming under increasing pressure from rising inflation and low wage increases, was being felt most by fashion retailers. They are facing turbulent times with rising operational costs, higher import prices and economic uncertainty.
These factors have resulted in higher inflation and therefore lower discretionary spend. Since shoppers need incentives to make purchases, retailers have chosen to run targeted, short-term discounting in an attempt to ignite spending and protect further erosion to margins.
The hope is that these turbulent times calm down and the right strategies pay dividends.
CPM (Collection Premiere Moscow) will be held August 30 to September 2, 2017.The fashion trade show will showcase clothing for spring/summer 2018 and incorporate 18 catwalk shows by high-end labels, trend lectures by in-house experts and seminars for buyers and exhibitors.
The event will present the latest international trends and collections for various segments including women’s wear, men’s wear, children’s wear, knitwear, leisure wear, leather wear, fur wear, swim and beachwear as well as accessories, young fashion, evening wear and lingerie.
CPM was founded in 2003. It is open for every fashion brand or their agents or distributors who would like to sell their collections to professional buyers. In addition there are many designers who are showing their latest collections to be ordered.
CPM is an information platform and a networking tool for the textile business in Russia. Some of the highlights this show offers are 47 fashion runways which show 1,520 collections in total, informative seminars and the Russian Fashion Retail Forum. This expo is the largest fashion celebration in Eastern Europe, attracting shop owners, corporate executives, buyers and store managers.
CPM includes three segments: CPM Premium, CPM Kids Premium Brands and CPM Accessories and Shoes.
For the 2017-18 fiscal year the government reduced the corporate tax for the sector to 15 per cent from the exiting 20 per cent in the proposed budget toease the growth of the readymade garments (RMG) sector as well as ease of doing business.
While placing the budget finance minister AMA Muhith pointed out saying that apparel sector has been enjoying various incentives and tax benefits and looking at the RMG sector’s contribution to economic growth and employment generation, he would reduce the corporate tax rate to 15 per cent for RMG sector. The reason being it was under manifold pressure due to adversities in the international market and claimed cash incentives along with withdrawal of withholding tax, he added. He ensures both sustainable development as well as conservation of our environment the government has undertaken various initiatives for preventing environment pollution and maintaining ecological balance. He also believes export to the US market will increase with accelerated economic recovery in US.
Talking to The Independent, research fellow of Centre for Policy Dialogue (CPD) Towfiqul Islam Khan says the tax rate will definitely facilitate the RMG sector to accelerate exports to the international market and thus there will be a boost in the local economy.
In regards to green factories in textile and RMG production Khan revealed that 67 LEED-certified factories were operating in Bangladesh, and among these, 13 have received platinum status, 20 gold status, and 34 silver status. 220 factories were waiting in the pipeline to get the LEED certification and hence according to him this 14 per cent tax rate will certainly encourage more factories to get green building certificates in future.
Compared to last year till March of the current fiscal year, growth of import payments stood at 11.07 per cent. Aiming to promote the growth of domestic heavy industries, the minister proposed to continue with VAT exemption for some items for a few years more.
The industries that will get the benefit are local manufacturers of refrigerators and freezers, air-conditioners, domestic producers and suppliers of palm oil and LPG cylinder manufacturers.
As many as 80 spinning mills in Pakistan have shifted to polyester and cotton blended fabrics from pure cotton fabrics.This has resulted in a reduced consumption of cotton yarn.
Imports of Indian yarn have increased as the production cost of cotton yarn in Pakistan is 16.5 per cent higher as compared to India. Besides, a sizeable quantity of cloth from Vietnam and China is also coming to Pakistan unchecked and thus badly affecting the local industry.
As many as 27 textile mills are for sale and a major portion of the machinery of these mills is being sold as scrap. It’s estimated that 200 out of the 1200 ginning factories will not become functional during the forthcoming cotton season.
Production of cotton could increase next year if the government ensures that the farmers get rates equal to international prices.
Meanwhile, with slow demand from spinners, cotton prices eased further.
Major deals on the ready counter that changed hands were: 600 bales from Kahnpur at Rs 7000 a maund, 800 bales from Rahim Yar Khan at Rs 7000, 200 bales from Pakpattan at Rs 6800, 1,600 bales from Haroon¬abad at Rs 7100, 1,400 bales from Alipur at Rs 6775, 756 bales from Jattoi at Rs 6800, 400 bales from Sanghar at Rs 6500 and 200 bales from Liaquatpur at Rs 7000.
