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As per the data released by International Cotton Advisory Committee (ICAC), the volume of cotton traded internationally is expected to decline by 8 per cent to 8.1 million tons in 2014-15, driven by reduced shipments to China from a record of 5.3 million tons in 2011-12 to an anticipated 2.1 million tons 2014-15. While the increased volume of trade benefited many exporting countries and farmers, it did not reflect improved demand for cotton.
In 2011-12 when imports increased by 26 per cent to 9.8 million tons, world consumption decreased by 7 per cent to 22.8 million tons, the smallest consumption since 2003-04. While world consumption is forecast to increase by 3 per cent to 24.2 million tons in 2014-15, below the level seen in the seven years before international cotton prices spiked.
In 2011-12, China implemented its policy of buying domestic and imported cotton for its national reserve and consequently became a large importer of cotton. Since 2011-12, the high price of cotton in China hurt its spinning industry, but helped the spinning industry in other countries, such as India, Pakistan, Bangladesh, Indonesia, and Vietnam. In 2012-13, the season after China’s implementation of its new cotton policy, India’s consumption grew by 12 per cent to 4.8 million tons and is expected to grow by 7 per cent to 5.4 million tons in 2014-15. Similarly, Pakistan’s consumption grew by 9 per cent to 2.4 million tons in 2012-13 and is forecast to grow by 3 per cent to 2.6 million tons in 2014-15.
Bangladesh, Indonesia, and Vietnam also saw similar growth in 2012-13 in consumption and should continue growing in 2014-15, though at a slower rate. In contrast, China’s consumption fell by 4 per cent in 2012-13 to 8.3 million tons and is expected to fall by 1 per cent in 2014-15 to 7.8 million tons.
In 2014-15, exports from Greece and the CFA zone are forecast to rise by 6 per cent and 3 per cent, respectively. However, exports from other large producing countries are expected to decrease in 2014-15. The United States’ exports are expected to decrease by 1 per cent to 2.26 million tons while Australia’s exports are expected to decrease by 23 per cent to about 800,000 tons. Additionally, India, the second largest exporter, could see a decrease of 21 per cent to 1.1 million tons in 2014-15 as more of its cotton is consumed domestically.
World ending stocks are forecast to increase by 12 per cent in 2013-14 to 20 million tons, and then to expand by another 5 per cent in 2014-15 to 20.1 million tons. Additionally, ending stocks outside of China are expected to increase by 7 per cent to 9.1 million tons in 2014/15 as China will be importing less of the surplus production than in the last two seasons. The projected accumulation of cotton stocks will weigh on international cotton prices in 2014-15, particularly as more stocks will be held outside of China.
According to the 36th annual International Textile Machinery Shipment Statistics (ITMSS) report, shipments of the new textile machinery fell in most segments. As per the figures released by the International Textile Manufacturers Federation (ITMF) that covers six segments of textile machinery, are compiled in cooperation with some 117 textile machinery manufacturers.
Worldwide shipments of new large circular knitting machines in 2013 remained unchanged on the record level of 2012. In comparison, global shipments of new short-staple spindles rose by 10 per cent while those of open-end rotors decreased slightly by 2 per cent and those of long-staple spindles dropped by 45 per cent. Also the number of new draw-texturing spindles shipped was down by 29 per cent, those of new shuttle-less looms by 4 per cent, and those of new electronic flat-knitting machines by 24 per cent. 
Circular and flat knitting machinery
Global shipments of large circular knitting machines increased by 27 per cent from 28,900 in 2011 to 36,640 in 2012, which set a new record. In 2013, the amount of machines remained practically unchanged at 36,575. Also in this segment, Asia was the main regional investor absorbing 91 per cent of all new machines shipped in 2013. The biggest single investor was China with a total of 27,460 (a global market share of 75 per cent) followed by India, Turkey, Bangladesh, and Indonesia.
In the segment of electronic flat knitting machines global shipments in 2012 dropped by 34 per cent to 46,100 machines. Also in 2013, global shipments recorded a decline of 24 per cent. The bulk of global shipments of electronic flat knitting machines was delivered to Asia (30,300 or 86 per cent), while Europe's share (including Turkey) reached 12 per cent.
Spinning and texturing machinery shipments
In 2012, shipments of short-staple spindles fell by 27 per cent to 10.51 million spindles but rose again in 2013 by 10 per cent to 11.56 million. Global shipments of long-staple (wool) spindles dropped in 2013 by 45 per cent from 146,400 to 80,800. Europe was the main recipient, followed by Asia and the Americas.
As far as open-end rotors are concerned global investments decreased slightly in 2013 by 2 per cent to 443,200. Asia was once again absorbed by far the most of the new rotors (351,400 or 79 per cent of global shipments). Country wise, China was the dominant investor putting in place 271,740 or 61 per cent of global shipments.
From 2010 to 2011, global shipments plummeted from 13,200 to only 1,824 by 86 per cent. In 2012, no shipments of single heater draw-texturing spindles were recorded. In 2013, shipments reached 2,600 spindles, of which 2,120 went to Asia and 480 to Europe. In the segment of double heater draw-texturing spindles investments dropped from 717,760 to 505,080, a decline of 29 per cent. 90 per cent of all shipments went to Asia.
By far the biggest single investor in this type of draw-texturing machinery was again China where 366,480 new spindles or 73 per cent of global shipments were installed, followed by distant second Japan, India, Vietnam and Egypt
Weaving machinery segment
Worldwide shipments of shuttle-less looms fell by 4 per cent in 2013. The main reason for this development was a further decline in shipments of water-jet looms. After a skyrocketing jump of 537 per cent in 2010 and in 2011, global deliveries of water-jet shuttle-less looms dropped by 65 per cent to 39,920 machines in 2012 and by 13 per cent to 34,580 in 2013. In the shuttle-less loom segment of rapier/projectile looms shipments increased marginally from 23,250 in 2012 to 23,830 in 2013.
Also deliveries of shuttle-less air-jet looms increased from 23,300 in 2012 to 25,010. As in previous years the main destination of shuttle-less looms was Asia, where 76,390 or 92 per cent of all new shuttle-less looms were installed.
Shima Seiki Italia will hold a private exhibition at its Italian office next month, following its successful show at Milan this March. The exhibition will be a showcase of the company's diverse line-up of computerised flat knitting machines covering all aspects of knit manufacturing. It will feature the flagship Mach 2X series with slide needles mounted on four needle beds as well as the compact SWG-N2 series whole garment knitting machine for industrial textiles.
The ultrafine gauge SWG-First series with 21G capability and the Mach 2Sir with the highest possible number of intarsia carriers will also be presented. The comprehensive line-up will also include the Sry123LP with loop pressers that produce unprecedented knitwear with woven textures and the new SVR workhorse series.
Demonstrations will also be performed on Shima Seiki's SDS-One Apex 3 design system that is at the core of the company's total knitting system concept.
With comprehensive support of all aspects throughout the knit supply chain, the Apex 3 integrates knit production into one efficient workflow from yarn development, product planning and design to machine programming, production and even sales promotion.
Shima Seiki Italia is the Italian subsidiary of the Japanese computerised knitting machine manufacturer.
Staubli will show a selection of its modern textile machinery at ITMA Asia, June 16 to June 20, Shanghai. This includes cam motions, dobbies, and electronic jacquard machines with harnesses as well as weaving preparation systems with automatic warp drawing in, leasing, and warp-tying machines.
Four complete jacquard installations on weaving machines will be demonstrated. One installation is equipped with a type LX3202 jacquard machine with 12,288 hooks and Stäubli harness weaving tapestry and upholstery fabric on a 180 cm wide rapier weaving machine. A second installation consists of a rapier weaving machine and a type SX jacquard machine with a Stäubli harness of 13,450 cords producing 220 cm wide car seat fabric. The third is a type SX electronic jacquard machine with 2,688 hooks and Stäubli harness of 6,000 cords weaving car seat fabric 190 cm in width on an air-jet weaving machine operating at approximately 1,000 weft insertions per minute.
At a special demonstration stand the full range of Stäubli harness types will be shown with a type DX jacquard machine including harness for any standard application. At another demonstration stand the LX32 type jacquard machine for weaving narrow fabrics such as ribbons and labels will be shown with 192 hooks and harness with four repeats
Companies in Vietnam's garment and textile sector are actively seeking new suppliers of materials to reduce their dependence on imports from China.
Finding material suppliers from countries other than China, which is currently the main supplier to Vietnam, is seen necessary for two reasons. First, is to reduce dependency on China, and second is to prepare for the Trans-Pacific Partnership (TPP) agreement, expected to be signed later this year.
The TPP agreement is likely to apply the yarn-forward principle, where fabric and garments made from yarn imported from China, which is not a part of TPP, would not enjoy duty-free benefit for exporting to other TPP-member countries.
For the first five months of 2014, Vietnam’s exports of garments showed a positive trend. Vietnam’s fabric production from natural fiber during January to May 2014 was 129 million sq m, registering an increase of 17 per cent year-on-year. However, production in May dropped by 5.4 per cent over April figures. In May 2014, Vietnam’s exports of garments and textiles showed a decrease of 8 per cent compared to April exports.
The Vietnam Textile and Apparel Association has asked enterprises to explore importing materials from countries like India, Indonesia, Malaysia, South Korea and Thailand.
Invista and Lenzing, specialized fiber producers once again collaborated for Fall/Winter 2015-16 to promote new styles with Tencel/Lycra and DualFX technology. Both companies showcased these collaborations during the recent denim trade shows held in May 2014. Invista presented them at Kingpins in Amsterdam, while Lenzing introduced them at Denim by PV in Barcelona.
Among mills who have pioneered this concept, Tejidos Royo of Spain and ADM of Pakistan, showcased their latest range at Kingpins Amsterdam and at Denim by PV in Barcelona. While Royo’s MeSu line includes fine, sophisticated denims made with Tencel/Lycra and DualFX technology, ADM believes that combining Tencel/Lycra and DualFX technology makes jeans wearable all year long.
Two European mills who are introducing Tencel/Lycra and DualFX technology for the first time this season include Textil Santanderina from Spain and Orta from Turkey. Textil Santanderina is using the innovation to get shape retention even in super skinny jeans along with the super soft hand feel of Tencel and cotton for their ‘Superlast’ collection.
From North Asia, both Central Fabrics and Prosperity have used this novel option of combining these two fibers.
The competitiveness of Chinese clothing industry is set to weaken over the next few years as costs rise. Hence, export growth could falter. The rise in costs in China stems in part from significant increases in fuel and shipping costs. Also wage rates have risen to the point where they are higher than in many other Asian countries.
Rising costs in China are already forcing an increasing number of western apparel brands and retailers to cut back on their sourcing from China and have their apparel manufactured elsewhere. The strongest growth of EU clothing import in 2013 was from Bangladesh, Cambodia and Pakistan, while the strongest growth in the US clothing import market was from Bangladesh, Sri Lanka and Vietnam. However, a number of western apparel brands and retailers are expanding their retail operations in China to capitalise on an expected upsurge in domestic demand.
The potential for growth in China’s domestic market is huge. Consumer expenditure per head on clothing in China is extremely small. If expenditure per head in China were to climb, then the additional domestic demand for clothing would more than compensate for any likely fall in exports given that it equates to about nine times China’s clothing exports to all destinations in 2013.
Textile and raw material exports from Turkey, excluding apparel, amounted to $769.8 million during the month of May 2014, recording a rise of 2.8 per cent, compared to the same month last year, as per the data released by the Turkish Exporters Assembly (TIM). According to the May Export Data of TIM, the country exported textiles and raw materials worth $769.8 million in May 2014, compared to the $748.5 million worth of textile and raw material during the same month last year. Textiles and raw material exports in May 2014 accounted for 5.7 per cent of the overall exports made from the country during the month.
During the month of April 2014, Turkey exported textiles and raw materials worth $791.5 million, a jump of 12.9 per cent year-on-year. Textile and raw material exports accounted for 6 per cent of the overall exports made by the country during the same month. In 2013, Turkey exported textiles and raw materials worth $8.39 billion registering a rise of 7 per cent compared to 2012.
All Pakistan Textile Mills Association (APTMA) Punjab Chairman SM Tanveer has demanded that the Pakistani government should announce a stimulus plan to revive the ailing textile industry in the region. It wants a boost to employment and investments in the segment.
The APTMA has pointed out that due to lack of support the industry is increasingly becoming less competitive domestically and internationally. He said that there is a dire need for proper encouragement for development of the sector.
Tanveer points out, although energy projects envisioned by the Chief Minister of Punjab Shahbaz Sharif can be beneficial for the sector, they are long-term plans, and the Punjab textile industry requires immediate relief. The APTMA Punjab Chief added that due to severe load shedding losses of the textile industry are unbearable and the cost of production has increased manifold as compared to the competitors in the region. The viability of the industry will be totally eroded if the government fails to resolve energy-related issues.
He also informed that due to load shedding and shortage of gas supply as well as rising production costs, during last few months, about 375,000 spindles have stopped operation in Lahore and Faisalabad, some 312,000 in Multan and 158,000 in Rawalpindi. Production of more than 100 spinning mills have also been reduced in Punjab as the industry is operating only in one shift.
The Alliance for Bangladesh Worker Safety has surveyed 508 readymade garment units. The survey result shows that 99 per cent of the factories are structurally sound. Less than one per cent of the units surveyed were found to be unsafe in terms of structural integrity.In instances where the buildings are identified as overloaded, factory owners have been urged to take immediate action to reduce the load and reinforce the buildings' columns. Common issues include inadequate fire suppression equipment, lack of fire doors and poor electrical wiring.
Workers who are unable to work due to factory closures are being compensated in part by the Alliance's Worker Support Fund, which is made up of dues from each of the Alliance's 26 member companies. Nearly 1,000 workers’ salaries have been paid following Alliance-recommended factory closures to date.
The Alliance has reiterated its commitment to inspect 100 per cent factories by July 2014. Before they are released, inspection reports are shared with factory management and worker representatives. The goal is to ensure that inspection reports are comprehensive and consistent, and done in a way that allows for the process of remediation to continue, while minimising the impact on factory workers.
www.bangladeshworkersafety.org/
