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Textile Briefs International
Vietnam’s Government has decided imposing minimum prices to domestic apparel exporters in order to limit a growing risk of US anti-dumping duties. Exporters now need requesting export licences from authorities. Permits will not be granted to companies selling at too low prices. In the meantime, US Department of Commerce began implementing its monitoring program.
US cotton T-shirt imports from Asia continued surging in 2006 but are still at a very low level. Latin American countries are able resisting, however, now having more generous rules of origin for duty-free access. Other decisive advantages include very low product prices with reduced transport costs and proximity to the US market.
China abolished its trade-boosting discounted lending rates for its major export firms, a move designed to trim its massive and growing trade surplus. The cancellation of the allowance that provided key export companies with up to a 10% discount on bank loan rates was effective immediately.
Taiwan’s exports of Polyester Staple Fibers (PSF) again declined in the last year, confronted with surging competition from China’s fibers on Asian markets. After sharply rising in 2006, PSF sales to the European Union will probably be affected by re-imposition of anti-dumping duties by EU’s Commission earlier this year.
US apparel imports from Indonesia surged in 2006, partly due to US quotas that were re-imposed on most sensitive Chinese products. In addition to protecting Indonesian exporters from Chinese competition, US limits apparently boosted illegal trans-shipments of Chinese apparel through Indonesia. In categories where US quotas totally disappeared, Indonesian exporters were much less successful.
Under a WTO’s agreement, the United States is committed to offer duty-free and quota-free access to the poorest countries, including Bangladesh and Cambodia. U.S. textile industry requested to exclude from benefits apparel exporters in the two countries. Two solutions are being offered, including exclusion of apparel from the list of eligible products and strong rules of origin.
After the removal of quotas in 2005, Mexican apparel exporters are now confronted with CAFTA-DR’s implementation that may boost competition from Central American countries. The Mexican apparel industry heavily relies on sales of cotton knit shirts and trousers that are still protected by US quotas on Chinese products.
US-China quota fill rates are not yet reaching alarming levels by mid-March, except for cotton trouser imports that already account for 25% of US annual limit. Compared with last year’s same period, quota fill rates are much higher in a large number of categories, however, reflecting a better use of quantities in restricted categories.
China’s biggest trading partners, especially the US, blames the mammoth trading imbalance on an artificially weak currency, the yuan, arguing that it gives Mainland exporters an unfair advantage.
The European Union (EC) has announced that they would start negotiations on FTA with four to five countries, including South Korea, ASEAN and India, etc., though negotiations have not yet started.
India’s polyester industry is expanding less rapidly than expected, according to a Government’s report, with consumption and use below official targets. The just unveiled Budget for 2006-07 will reduce import tariffs for polyester intermediate and fibers in order to boost consumption in the country.
Polyester prices could be raised in the coming days after crude oil rebounded in New York, now heading towards US$62 per barrel. In addition to a possible rise in raw material costs, polyester prices may be stimulated by a rebound in demand from China’s textile industry that did not accumulate stocks ahead of New Year holidays. PTA and MEG further increased in Asia and should be stimulated by higher crude prices in the coming weeks.
In Indian textiles, the growth and value addition can happen not in conventional textiles but only in nonwovens and technical textiles. Indian manufacturing sector should have tremendous growth backed by solid innovation. Nonwovens and technical textiles involve processes to develop value added engineered textiles directly from fibre to fabric by reducing the cost with increased productivity.
Indian Ambika cotton manufactures premium quality cotton yarn for hosiery, high quality cotton shirting and is an established player in international and domestic yarn market. Ambika Cotton has recorded net sales of Rs104.9 crore, as against Rs108.48 crore net sales for twelve months ended FY06. Net profit for nine months ended December 2006 increased to Rs22.2 crore, as against profit for the whole year at Rs18.97 crore last year.
As expected in the past weeks, wool prices sharply rebounded in Australia. Offered quantities were much lower by the end of March, in line with continued drought affecting the country. A long series of reasons are actually behind this new surge in prices, from a lack of supply to globally increasing purchasing power that stimulates demand.
Viscose prices continued sharply increasing in the past two weeks in China with filament prices even rocketing 4% to 10%. Surging exports and very low inventories are behind the new rise in prices, with a lack of supply affecting the filament industry.
In the past weeks, wool prices sharply rebounded in Australia. Offered quantities were much lower, in line with continued drought affecting the country. A long series of reasons are actually behind this new surge in prices, from a lack of supply to globally increasing purchasing power that stimulates demand.
