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The rise in the Chinese cotton futures market is mainly dominated by the mood.
Speculators pay more attention to the ZCE cotton futures.
The state cotton auction is going on, registered warehouse receipts hit a new high and the market is oversupplied.
Buyers on the spot market procured the on-call cotton sources, pushing up ZCE cotton futures. On April 4, China announced adding an additional 25 per cent tariff on cotton originating from the US. Though the market was quiet, market mindset has changed somewhat, and players are concerned about the supply of 2018/19 US cotton.
In late April, the downstream yarn and fabric market rebounded slightly, and orders increased. An upward tendency was seen, but the strength was weak.
The quantity of on-call cotton contracts on ICE July contract has hit a historical high, and US cotton is oversold, while registered warehouse receipts are very limited.
The relationship between ICE and ZCE cotton futures became closer due to the trade dispute.
With on-going de-stocking in China, whether the state cotton auction will continue next season remains uncertain, so forward contracts are relatively sensitive towards the bullish factors.
After the rise on forward contracts, nearby contracts climbed up as well.
Apparel Textile Sourcing will be held in Miami, May 21 to 23, 2018. This is an apparel and textile sourcing trade show. It will host over 200 international and domestic manufacturing firms who will present a range of products and process solutions in the field of manufacturing and sourcing services.
The show brings together inspirational leaders, and respected industry experts from the apparel, manufacturing, retail, and affiliated business industries to educate, network, share market intelligence, discuss pressing topics and engage in conversations that energize the flow of global commerce.
The show will welcome top apparel and textile manufacturers from over 15 regions with top brands, retailers, designers and sourcing professionals from China, Bangladesh, India, Pakistan, Mexico, El Salvador, Honduras, Peru, the US.
Product categories cover the whole world of apparel and textiles from fashion to function, from leather to lace. Categories will include finished apparel for men, women, and children that range from leisure, formal, denim, active, swim, intimates, and performance. There will also be homeware and linens, hardware, and textiles that include cotton, knits, yarns, leather, synthetic, and blends.
Seminars will cover topics including sustainability, global sourcing, supply chain, social compliance, influencer marketing, and branding strategies. Sessions will be presented by industry experts, top educators, respected designers, influential bloggers and economists.
For the first quarter Kornit Digital’s revenues rose 14.8 per cent compared to the prior year period. The higher revenue was attributable to growth in both products and services.
Kornit Digital is a leading provider of digital printing solutions for the global printing textile industry.
Growth in the quarter was broad based and included a diversity of customer and product categories, led by faster-than-expected customer adoption of Avalanche HD systems and upgrades.
Non-GAAP gross profit in the first quarter 50 per cent of revenues compared with a 44.5 per cent gross margin in the first quarter of 2017. Higher gross margins primarily reflected a favorable product mix compares to the first quarter of 2017 and an increase in the system's upgrade revenues.
Non-GAAP operating expenses in the first quarter were 44.5 per cent of revenues compared with 44.2 per cent of revenues in the prior year period.
First quarter non-GAAP research and development expenses were 16.4 per cent of revenues compared with 17.2 per cent of revenues in the prior-year period. Non-GAAP general and administrative expenses were 10.8 per cent of revenues compared with 8.8 per cent of revenues in the prior-year period.
For the balance of the year, the company is poised for the momentum to continue.
Kenya’s exports of goods to the US under the African Growth and Opportunity Act (AGOA) declined by 4.65 per cent in 2017.The exports were mainly of textile items.
Capital investment too dropped last year by 14.1 per cent. The value of exports reduced for a second consecutive year in 2017.
AGOA exports constituted 60 per cent of all Kenyan goods shipped to the US in 2017. Textile and apparel products continue to dominate Kenyan exports under AGOA since it was enacted in 2000.
AGOA was last extended in June 2015 for ten years till 2025, including third-country fabric provisions.
The African Growth and Opportunity Act allows US buyers to import goods from sub-Saharan Africa without paying duties or facing quota restrictions.
The US is Kenya’s largest apparel export destination. Textiles and apparel account for about 80 per cent of Kenya’s total exports to the US under the pact.
Kenya is looking to expand the list of products it exports. With the country becoming more visible on the global map, local traders are increasingly opening more supply channels to the US, helped by increased interactions with American investors.
Kenya’s volume of international trade in 2017 expanded by 15.4 per cent.
The Better Cotton Initiative (BCI) has completed four seasons of operation in the United States.
BCI was launched in the United States in 2014, in response to its retailer and brand members, who wanted to source US grown cotton that meets the Better Cotton Standard for social and environmental performance. Since then, along with its industry partners, BCI has now grown to include 366 farmers in 14 states, who now grow five per cent of US cotton.
Key to BCI’s rapid growth in the US has been an innovative group assurance approach to managing the requirements for participating farms. Growers participate as a part of a grower group, joining together with other growers in their area.
Global non-profit BCI promotes sustainable cotton production. Its program now covers about 15 per cent of the world’s production.
Nearly all US farms meet the core requirements for licensing. But unlike many other certification programs, which merely emphasize compliance, Better Cotton Standard also measures and encourages ongoing improvements, in things like water stewardship, soil health, and worker well-being.
In 2017 more than a million bales of cotton were produced by American farms participating in the Better Cotton licensing program.
US brands that are part of BCI include Target, Gap, Tommy Hilfiger, Calvin Klein, Guess and Nike.
For the first quarter Bangladesh’s apparel exports to the US fell by 0.92 per cent.
The country ranks third in shipments to the US, behind China and Vietnam. But in the same period China’s exports to the US grew 0.87 per cent and Vietnam’s exports to the US grew 3.32 per cent. China retains the top spot.
Bangladesh has not been seeing a growth in the export of garments to the US in recent times. Besides that, its product prices are also decreasing in the US market.
One reason for the sluggish exports could be the economic condition of the US itself. Bangladesh may be affected by the US’ decision to impose tariffs on apparel imports. There is a change in the attitude of US consumers, who now prefer spending more on electronic gadgets compared to clothes.
Garment items account for 95 per cent of the goods exported from Bangladesh to the US market. Bangladesh now faces an export duty of 15.62 per cent under America's most favored nations' category.
The US happens to be Bangladesh’s single largest destination for apparel exports. However Bangladesh has given up its efforts to seek the Generalized System of Preference in the US market, saying that it is imposing superficial conditions.
For the first quarter Asean apparel exports to the US surged by 0.95 per cent in export volumes while value-wise it escalated by 1.38 per cent.
The Association of Southeast Asian Nations is a 10-nation bloc.
Readymade apparel exports from Vietnam to the US grew 3.32 per cent yearly. Cotton and manmade fiber apparel exports were up 0.73 per cent and 6.25 per cent respectively.
On the other hand, Indonesia’s apparel exports to the US fell 5.78 per cent. Indonesia also fell drastically in volumes by 8.26 per cent.
Cambodia’s apparel exports to the US jumped 12.52 per cent. Volume-wise, Cambodia marked growth by 12.75 per cent.
Philippines was down by 9.41 per cent and 5.98 per cent in value and volume of apparel exports to the United States respectively.
Malaysia export volume fell 13.85 per cent and export value fell ten per cent. Thailand’s export volume was 1.94 per cent and value was up 2.40 per cent.
The textile and clothing industry is one of the important manufacturing industries in Asean countries such as Vietnam, Indonesia, Cambodia, Myanmar and Thailand.
Garments produced by Cambodia are mainly exported to the United States and the European Union. Indonesia’s exports of clothing account for about 70 per cent of the country’s total exports of clothing and textiles.
VF Corp, a global leader in branded lifestyle apparel, footwear and accessories, has recorded revenue of $3 billion in first quarter of 2018, the companys, revenue soared 12 per cent including a $233 million revenue contribution from the Williamson-Dickie acquisition.
The company's gross margin increased to 50.8 per cent, as benefits from a mix-shift towards higher margin businesses and changes in foreign currency were partially offset by the impact of the Williamson-Dickie acquisition.
Operating income on a reported basis was $311 million. On an adjusted basis, operating income increased 14 per cent to $330 million, including a $16 million contribution from the Williamson-Dickie acquisition. Operating margin on a reported basis decreased to 10.2 per cent. Adjusted operating margin went down to 10.8 per cent. Adjusted operating margin, excluding the Williamson-Dickie acquisition, declined to 11.2 per cent.
VF is in the midst of a transformation to become a purpose-led, consumer-centric organisation. Steve Rendle, chairman, president and chief executive officer stated that VF's transition period results were strong as the broad-based growth acceleration that began in the second half of 2017 continue the core growth engines are driving strong global momentum as it began to enter the acceleration phase of 2021 strategy.
International revenue is expected to increase 13 per cent to 15 per cent. By geographic region, European revenue is expected to increase 13 per cent to 15 per cent. In the Asia Pacific region, revenue is expected to increase 15 per cent to 17 per cent. And, in the Americas (non-U.S.) region, revenue is expected to increase 10 per cent to 12 per cent.
The company forecasts gross margin to be about 51 per cent and operating margin by approximately 13.2 per cent. The adjusted earnings per share is expected to be in the range of $3.48 to $3.53, reflecting growth between 11 per cent and 13 per cent.
Stäubli’s broad product range includes solutions for automated weaving preparation, frame and Jacquard weaving, and carpet and technical textile weaving. The recently re-engineered LX series features a lifting mechanism that allows high-speed weaving of even extremely heavy fabrics. The latest models in the LX Series, the LXL and LXXL, are likewise built for high speed but also for even greater load capacity.
A key feature of every Staubli SX or LX Jacquard machine is the MX module, which controls the precise up-and- down movement of each and every hook. The MX module is made of optimized materials and delivers remarkable service live.
Staubli offers automatic warp-tying machines for reliable single- or double-knot formation at maximum tying speeds. The machinery ensures efficiency, and the warp threads are perfectly drawn through the weaving harness. At the booth, visitors can observe the TOPMATIC tying machine, a perfect workhorse for mills weaving cotton, wool, silk, blended yarns, filament yarn, monofilaments, or technical yarns. For frame weaving mills, Staubli provides SAFIR automatic drawing-in machines, which have proven their capabilities in a very wide range of applications. The SAFIR S60 drawing-in machine for instance is particularly suited for premium shirting fabrics, men’s outerwear, home fabrics, and technical textiles.
Staubli’s ALPHA 500 series includes weaving systems for the creation of an extremely wide variety of rugs and wall-to- wall carpeting for the residential, contract, and transportation sectors. Many of the leading carpet weavers around the world use ALPHA machines in their mills to quickly respond to virtually any requirement.
Trade show Pure London is collaborating with product development, sourcing and production expert Thea Speechley to “fast track” the event’s sourcing and manufacturing section, Pure Origin.
Julie Driscoll, managing director of Pure London stated that with nearly 20 years’ experience working with leading textile manufacturers, trading companies and international textile exhibitions instilling systems and processes within the supply chain. Thea will utilise wealth of experience, knowledge and valuable global network to fast track Pure London’s sourcing and manufacturing section Pure Origin.
Pure Origin will run alongside Pure London and Pure Man, and will bring together all aspects of fashion sourcing and manufacturing under one roof. The July edition will feature more than 70 manufacturers from the UK and around the world will be exhibiting, including Portugal, Turkey and Mauritius.
Speechley, who currently lives and works in Australia, Hong Kong and China, commented on her new role saying that Pure Origin is a fantastic opportunity to showcase new manufacturing techniques, fabrics and innovations and its potential for growth is very exciting.
The next edition of Pure London and Pure Origin takes place at London Olympia from July 22nd to 24th.
