Textile Industry Updates (From 1st February to 28th February 2019)
1) Bangladesh is likely to sign a MoU with Russia to boost exports, especially in apparels.
The country has also been looking at Russia for quite some time as a potential export destination for readymade garments.
2) India is trying to implement sericulture projects worth ₹900 crore in the North East region to empower farmers and weavers, under the North East Region Textile Promotion Scheme (NERTPS).
3) Afghanistan has begun exports to India through Iran’s Chabahar port, as the landlocked country turns to overseas markets to improve its economy.
At the inauguration of the new export route on Sunday in Zaranj city in western Nimroz province, President Ashraf Ghani said Chabahar port is the result of healthy cooperation between India, Iran and Afghanistan.
4) Cotton prices India are expected to rise marginally and remain strong for 2019 after rising substantially in 2018. The current weakness is also seasonal in nature. The prices are expected to average at `125-127 per kg for cotton season (CS) 2018 -19.
Further, prices are also expected to be supported by weakened rupee and rising consumption in both the domestic and overseas markets. Prices would also be affected by the ongoing trade talks between the US and China.
5) Pakistan Cotton prices came under pressure in line with world markets on Thursday.
The world leading cotton markets including New York reeled back amid slow buying. The slow demand for cotton yarn kept spinners away from the proceedings and only some needy small units were seen in the trading ring. As a result, the official rates were lowered by Rs 100 per maund.
6) The e-commerce sales during fiscal 2019 at Walmart US soared 40%, driven by Net Promoter Score and the continuous improvement in Customer Value Index.
For full-year 2019, total revenue was US$ 514.4 billion, an increase of US$ 14.1 billion, or 2.8%. Excluding currency, total revenue was US$ 515.1 billion, a rise of US$ 14.8 billion, or 3%.
7) As eased tension of Sino-US trade relationship fueled cotton sentiment in the US, more enquiries emerged in China’s domestic cotton spot market, and suppliers offered a bit higher. Cotton spots market firmed a bit on gains of CZCE (Zhengzhou Commodity Exchange).
8) U.S. Customs and Border Protection (CBP) has ruled that some plastic hangers can be classified separately from garments to save duty costs on imports.
Exports of multiple products from Wagah Border have come to a halt from Sunday as importers on the Indian side refused to purchase goods following up to 200% duty imposed by Indian government. But imports of some products including cotton and PSF yarn etc. continue to arrive from India through Wagah Border.
9) In 2018, Czech companies sold clothing, textiles and fibres worth 56.5 billion crowns, an increase by three percent on the previous year, according to an annual report released by the Czech Association of Textile, Clothing and Leather Industries (ATOK).
10) After a 7% increase in exports during 2018, Guatemala’s apparel and textile sector expects to reach $2 billion in sales this year.
Crisis in Nicaragua and an 8% increase in customer demand in the United States were some of the reasons for growth reported last year by textile companies in Guatemala.
11) Cambodia is facing the risk of temporarily losing its non-tariff export privilege to the European market, as the European Union (EU) on Monday started the 18-month process under the Everything But Arms (EBA) trade scheme.
Asian sourcing powerhouses Bangladesh, Vietnam, Cambodia and India all posted double-digit percentage gains for U.S. imports of blue denim apparel for the year to date through November, according to belated data released by the U.S. Commerce Department’s Office of Textiles & Apparel (OTEXA).
12) Facing a March 1 deadline for threatened 25% tariff hikes on imports from China, cargo shipments arriving at major U.S. container ports remained at higher-than-usual levels in December, according to the Global Port Tracker report from the National Retail Federation and Hackett Associates.
13) Goods from Jiangsu and Central China were in tight supply and offers for small parcels went higher. Liquidity was still thin as the market began recovering from holiday. Low price indications from sellers were scant.
14) India’s export to China is expected to reach an all-time high this fiscal with the US-China trade spat creating new opportunities for exporters and Beijing removing some trade barriers in its effort to check the growing bilateral trade imbalance.
15) According to commerce ministry, Bangladesh exporters have received spot orders worth $23 million from international buyers at the 24th edition of the country’s annual Dhaka International Trade Fair (DITF), nearly $4 million higher compared to the previous year.
16) World cotton production for the 2018/19 season is forecast up slightly, led by larger crops in China, Brazil, and Australia more than offsetting lower production in Turkey and India, according to the latest report from the United States Department of Agriculture (USDA).
17) Global professional services organisation EY announced the launch of GST DigiLearn, a comprehensive, cloud-based digital learning solution to provide systematic and structured training support to meet the GST training needs across an organization.
The solution contains the latest GST changes and offers advanced modular packs specifically meant for key functions – sales, procurement, legal, tax and accounts.
18) MCX has empanelled new warehouses for delivery of cotton at Arvi, Hinganghat and Wardha in Vidarbha region.
As on February 6, out of total deposits of 1,06,300 bales certified stock across delivery centres in India, about 23,300 bales were deposited at the newly added delivery centres.
19) Cambodia could be the biggest sufferer among developing economies as a result of Brexit. Cambodia’s garment industry is a major supplier to the UK fashion industry and it has favorable entry terms.
20) The move to diversify away from China as a supplier of apparel to the U.S. continued in November, with Asian neighbors gaining ground, according to belated year-to-date data released Wednesday by the U.S. Commerce Department’s Office of Textiles & Apparel (OTEXA).
21) Indian textile ministry alongwith the Clothing Manufacturers Association of India (CMAI) will identify powerloom clusters in the country and go ahead in a big way for skilling of powerloom sector.
22) With the 164 World Trade Organisation (WTO) members unable to arrive at a consensus over some 25 separate e-commerce proposals at the body’s biennial conference at Buenos Aires in December, 76 countries and regions recently agreed at the World Economic Forum (WEF) in Davos to start negotiating this year on a set of open and predictable e-commerce regulations.
23) The strong rise in oil prices continues to exert more pressure on the rupee compared to the dollar index. WTI-crude oil prices have surged over 5% in the past week from around $52 per barrel to currently trade at $55.2 per barrel.
24) India faces duty disadvantage up to 9.6% against other neighbouring LDCs. The global demand of textiles has also declined significantly in 2014-17, contributing to reduction of textiles exports from India.
As per World Trade Organization’s (WTO) systems, the Least Developed Countries (LDCs) enjoy Generalized System of Preferences (GSP) because of which they enjoy duty advantage.
25) Bangladesh’s garment exports to non-traditional markets grew 36.21% year on year in the current fiscal year’s first six months. This was made possible by a stimulus package and duty-free market access.
26) Apart from the US, European Union and Canada all others are considered non-traditional or emerging markets for Bangladesh. Of those, eleven are performing stronger than others. Australia, Brazil, Chile, China, India, Japan, South Korea, Mexico, Russia, South Africa and Turkey are the eleven stronger markets.
27) A US plan to hike tariffs on China next month could trigger an economic downturn and let other countries take over about $200 billion of China’s exports, a study by the U.N. trade and development agency UNCTAD.
28) India is trying to extend protection to vulnerable sectors including certain textile items, despite huge pressure on New Delhi from most countries participating in the Regional Comprehensive Economic Partnership (RCEP) negotiations to offer tariff concessions on almost all traded items.
29) According to the Vietnam Textile and Apparel Association, Vietnam gained nearly 2.7 billion U.S. dollars from exporting garments and textiles in January, posting a year-on-year increase of 6.7%.
30) Specifically, turnovers of Vietnamese garments and textiles, including Tshirts, jackets, dresses and fabrics, exported to China surged 23.9%, and to Japan rose 7.6%.
31) As assessed by Drewry, a decline in transpacific freight rates drove down the composite World Container Index (WCI) for the week ended Thursday due to Chinese New Year.
The Chinese New year begins on Tuesday, with factories in China and some facilities in Vietnam and elsewhere in Asia closing for several weeks surrounding the celebration.