NEWS CLIPPINGS · including Abercrombie & Fitch, Donna Karan, Marks & Spencer, Next, Target and...

IBTEX No. 054 of 2013 APRIL 01, 2013

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NEWS CLIPPINGS

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INTERNATIONAL NEWS 1 Interstoff Asia Essential remains the home of the latest fabrics and

fashion trends in Asia 2 NY futures moved sideways this week 3

Weekly US Cotton Market Review

4 China to increase state cotton sales in April 5 Pakistan: Zero-rated apparel textile sector disapproves two percent

sales tax 6 CCI to promote US cotton textiles at Apparel Sourcing Show 7 US cotton acreage to plunge 19% in 2013 - USDA 8 Turkish firm to set-up ginning plants in Turkmenistan 9 Bangladesh Sudden Spike In Cotton Price In Local Market Hits RMG

Sector Hard 10 Cotton Yarn Prices in Bangladesh

NATIONAL NEWS 1

Cotton prices firm on limited selling

2 Linen fabrics are yet to catch Chennai’s attention 3 Maharashtra's power situation improves 4 Cotton prices firm on limited selling 5 Contaminants a thorn in the side of U.S. cotton exports

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INTERNATIONAL NEWS

Interstoff Asia Essential remains the home of the latest fabrics and fashion trends in Asia

Expanded seminar programme with increased focus on eco topics

Rising designers from Hong Kong transform exhibitors’ fabrics into cutting-edge fashion

Once again, Interstoff Asia Essential reinforced its status in the region as the home of cutting-edge fabrics, up-to-the-minute trend information, inspiring fashion collections and the latest industry information. Buyers, exhibitors, fashion designers and seminar speakers alike all praised the fairs uniqueness in the Asia-Pacific for being more than just a place to source fabrics.

A total of 7,244 visitors from 42 countries and regions passed through the doors from 13 – 15 March 2013. Senior General Manager of Messe Frankfurt (HK) Ltd, Ms Wendy Wen, was pleased with the results of the show as it wrapped up. “We continue to position Interstoff Asia Essential not just as a sourcing fair, but as an event where buyers, exhibitors and designers can get the latest updates and ideas in design and trends, new technologies and eco-friendly products and processes,” she said. “The quality of exhibitors that choose to showcase their fabrics and accessories here, as well as the big-name international buyers who source from them, supports our belief that Hong Kong is the perfect place in Asia to achieve these aims.”

Exhibitors satisfied with calibre of buyers

This year, a total of 229 exhibitors from 10 countries and regions took part in the fair, including from China, Germany, Hong Kong, Italy, Japan, Korea, Macau, Switzerland, Taiwan and Thailand. A lot of these exhibitors come to Hong Kong to take advantage of the major fashion brand buying houses that are located here. “Many of the international brands have their buying offices in Hong Kong,” said Mr Tsuyoshi Osada from Kowa Company Ltd of Japan. “They are interested in what we have to offer. The number of visitors to our booth has been good,” he explained on the final day of the show.

This sentiment was shared by Mr James Nam, President of NK Fabric from Korea. “This is my second time here and business has been better at the fair this year than last year,” he commented. “We met over 100 different customers including Abercrombie & Fitch, Donna Karan, Marks & Spencer, Next, Target and Zara, and they were interested in placing orders.”

Gaining access to European buyers is another reason many exhibitors choose to participate in this fair. One such company is Teijin Hong Kong Ltd which, among

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many other things, produces advanced fibres and composites. “We focus mainly on European markets, with a small proportion of our business in China” said Mr Alvin Chan. “This is the third year we have exhibited at the fair, and overall it helps us to gain new customers from European markets.”

Ms Susan Yu, Sales Manager for Zhejiang Phoenix Village Textile Co Ltd from China was also satisfied. “I met with Hong Kong garment exporters here; in fact most of them have export businesses in Europe and the US and have specifically asked for our fabrics,” she said. Ms Yu also found the business matching service very useful, saying she could “have a detailed talk with the buyers and better understand their requirements.”

Increasingly, exhibitors are seeing this fair as the perfect opportunity to meet eco buyers. Everest Textile Co Ltd from Taiwan, which specialises in eco products, is one such company. “We see the fair as a good chance to sustain our eco brand image and maintain relationships with old customers,” said Ms Julia Kao.

Buyers to Interstoff Asia Essential were also pleased with the opportunities presented to them. Ms Olivia Wildes, Design Manager for Kate Spade has been to the show a few times before. “I came to meet some of our existing vendors from Taiwan, and I also discovered some new China mills that will be really good for us,” she said. “It’s always good to come to one place to see if I can discover something new. I’ve found some good leads on what I'm looking for here.”

The sentiment of finding everything in one place was shared by Ms Liza Lam, Vice President of Asia Sourcing at Charming Shoppes Inc. “We joined the business matching programme here to meet with exhibitors from the Shaoxing County pavilion. It’s good that I can see them all here in a one-stop shop meeting, and it helps introduce us to some new suppliers by going direct to the manufacturers,” she commented.

While Ms Amy Mann, Senior Testing Manager for Ann Taylor Sourcing Far East Limited, appreciated the range of eco fabrics suppliers. “This fair contains very rich elements in terms of exhibitors, especially those with eco materials,” she said, adding that the seminar programme also encouraged her to visit the show frequently.

Expanded seminar programme with increased focus on eco topics

To provide the industry with the latest information on eco issues, a much-expanded seminar programme was offered this year. This included seven seminars on certifications and standards, and one on sustainability. These were lead by representatives from the likes of GOTS, Testex AG, WRAP and WWF.

Ms Shirley Han, Representative for Greater China for Global Organic Textile Standard (GOTS), was pleased with the response from the audience after her seminar. “I talked to people who visited the seminar last year and were back again to learn about new developments,” she said. “I am very pleased that people

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are interested in sustainability issues and want to keep up-to-date on the latest information.”

Mr Johnny Shen was one such person. As President of Ever Shine Y&F Co Ltd, a supplier of eco fabrics, he came to Interstoff Asia Essential to learn about changes in the industry. “The fair is good at organising fringe events, such as trend forums and the eco seminars which assist us to forecast the future trends,” he observed.

Fashion trends are another strong focus of the fair, with the ever-popular trend forum displaying next season’s trends, as well as seminars delivering insights into the popular fabric colours and patterns for Spring / Summer 2014. It is this combination of fashion trend displays and seminars, alongside the latest fabrics from exhibitors that makes Interstoff Asia Essential a niche fair in the region. Ms Geneviève Flaven, from Style-Vision in France, who conducted a seminar on women’s fashion accessories and casual wear, summed it up nicely. “I want people to learn about the trends in this seminar, which will then help them navigate throughout the show and make their selection of fabrics easier,” she said after her seminar.

Visitors could also browse through the Research & Education Zone, created in partnership with the Hong Kong Research Institute of Textile and Apparel (HKRITA), which featured unique, cutting-edge garment and textile design applications. While in the Designers’ Studio, buyers could see up-close the outfits that had been modelled on the catwalk during four fashion shows.

Rising designers from Hong Kong transform exhibitors’ fabrics into cutting-edge fashion

As well as learning about the trends for next season, visitors and exhibitors at the fair were able to witness how the latest fabrics would look as finished products. Seven of Hong Kong’s up-and-coming fashion designers used fabrics sponsored by 18 exhibitors to showcase their talents in the Fabric to Fashion catwalk events.

One such designer was Erik Cheung, who brought his BINAR brand to the fair with a collection titled ‘Reconfiguring the Landscape of Memory’. He utilised fabrics from exhibitors in the Shaoxing County pavilion, which was making its debut appearance this year.

Speaking after the catwalk show, Mr Cheung praised the opportunity the fair provides for collaboration between industry players. “Interstoff Asia Essential has provided me with a chance to meet different kinds of customers. Exhibitors kept asking me how to use the fabrics to turn them into products. And I met a good supplier here from Korea, and one from Japan, with very interesting fabrics, and we have started a collaboration.” Mr Cheung also met with a representative from Lane Crawford who was interested in his handbag

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collection, proving once again that Interstoff Asia Essential is the perfect event for buyers, suppliers and designers to come together to do business.

The next edition of Interstoff Asia Essential will be held from 25 – 27 September, also at the Hong Kong Convention and Exhibition Centre. The Spring edition returns next year from March 19 – 21, 2014.

For details on this and other upcoming Interstoff Asia Essential trade fairs and events, please visit: www.interstoff-asia.com.

For information on all Messe Frankfurt textile fairs worldwide, please visit: www.texpertise-network.com.

Background information on Messe Frankfurt

Messe Frankfurt is Germany’s leading trade fair organiser, with 538* million euros in sales and 1,891* active employees worldwide. The Messe Frankfurt Group has a global network of 28 subsidiaries and approx. 50 international Sales Partners, giving it a presence for its customers in more than 150 countries. Events “made by Messe Frankfurt” take place at more than 30 locations around the globe. In 2012, Messe Frankfurt organised 109* trade fairs, of which more than half took place outside Germany.

Messe Frankfurt’s exhibition grounds, featuring 578,000 square metres, are currently home to ten exhibition halls and an adjacent Congress Center. The company is publicly owned, with the City of Frankfurt holding 60 percent and the State of Hesse 40 percent.

For more information, please visit our website at: www.messefrankfurt.com

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Published in www.messefrankfurt.com- March 26, 2013

**************** NY futures moved sideways this week, as May added 26 points to close at 88.46 cents, while December gave up 45 points to close at 87.37 cents.

The main feature this week was the USDA Prospective Plantings report, which was released earlier today. According to the USDA, cotton is the big loser in the fight for acreage, as farmers are expected to commit just 10.0 million acres to

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cotton this spring, which would be 2.3 million acres or nearly 19% less than what was actually planted a year ago. Traders seemed to see the number as neutral to mildly bullish, although they certainly realize that this is still very much a moving target at this point.

Planting intentions for corn and soybeans are nearly identical to what was planted last season, with corn at 97.3 million acres (+0.1 million) and soybeans at 77.1 million acres (-0.1 million). The big winners in the plantings sweepstakes are wheat at 56.4 million acres (+0.7 million) and sorghum at 7.6 million acres (+1.4 million). It looks like wheat and sorghum are stealing acreage from corn and soybeans in certain parts of the country, whereas corn and soybeans in turn are taking it away from cotton in other areas.

There are still a variety of factors that may alter planting decisions over the next couple of months. Price is the obvious one and cotton continued to make up ground against its closest competitors corn and soybeans, as they got hammered today in the wake of bearish stock reports. November soybeans ended today’s session at 12.51 dollars/bushel, down nearly 27 cents, while December corn closed at 5.38 dollars/bushel, down over 32 cents.

Interestingly, when we take a look at where cotton, corn, soybeans and were trading a year ago, we notice that cotton and corn were almost at identical levels to where they are today, whereas soybeans were trading substantially higher. On March 28 last year, December cotton closed at 90.69 cents/lb (vs. 87.37 today), December corn was at 5.36 dollars/bushel (vs. 5.38 today) and November soybeans closed at 13.20 dollars/bushel (vs. 12.51 today).

Based on the above price structure, cotton farmers intended to plant 13.2 million acres a year ago, or 3.2 million acres more than what the USDA is currently projecting! Since cotton has about the same price ratio to corn as last season and is much better off compared to soybeans, such a huge drop in acreage doesn’t seem to make sense. We therefore believe that the last word in regards to cotton acreage is not spoken yet and that some farmers may have a change of heart over the coming weeks.

US cotton continued to be in good demand last week, as another 254’800 running bales of Upland and Pima cotton were sold for both marketing years combined. Shipments were once again excellent at 360’500 running bales. For the current season we now have total commitments at 11.8 million statistical bales, of which 8.1 million have already been exported. Commitments for August

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onwards amount to 1.3 million statistical bales, which is 0.4 million bales ahead of last season.

Open interest in ICE futures did not change much this week, as the total is still at 209’254 contracts, down just 949 lots over the last five sessions. May and July futures still have a combined 168’292 contracts open, which is quite a bit considering that there isn’t a whole lot of cotton left for sale outside China. These 16.8 million bales in current crop open interest compare to 13.5 million bales last season and 11.5 million bales two years ago.

Based on the CFTC report as of March 19, which includes futures and options, the trade held at net short position of 16.8 million bales (5.1 million long vs. 21.9 million short), whereas speculators were 9.7 million bales net long. Index funds, which are driven by money flows rather than market moves, owned the remaining 7.1 million bales in net longs.

So where do we go from here? After trading down to a low of 86.12 cents earlier this week, the market encountered decent underlying support from mill fixations (May on-call sales were down 1’841 contracts net) and new cash business, as US prices moved back in line with foreign growths. As long as mills are able and willing to pay prices in the mid-90s for high grades, landed Far East, and as long as the trade carries this massive net short position, we see it difficult for the market to sell off by more than a few cents.

There are twelve weeks remaining until July futures head into the notice period and the market’s direction during that time frame will to a large degree depend on how this big open interest in current crop futures is dealt with. Who will blink first, spec longs or trade shorts? The longs are in a more comfortable position, because they are sitting on a profitable long, which they will continue to ride until the trend reverses. Also, the inversion between July and Dec is working in the specs favor, since they are able to pick up roll gains in case they decided to hang on to their longs.

The trade shorts on the other hand are in a less comfortable spot. Not only is their position nearly twice as big as the spec long – the difference being the index fund long which will simply get rolled forward – but most of these trade shorts form part of basis-long positions (long physicals/short futures) that have not been working too well basis-wise. The widening inversion between July and December creates some worries in that regard, as it doesn’t make sense to hang on to a physical long position in a market with negative carry. We therefore

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believe that traders will start to push physical sales, which in turn requires the buying back of futures. In other words, the more the trade sells on the physical front, the more futures will get bought back, which puts additional pressure on the basis and keeps the futures market well supported. There doesn’t seem to be an easy way out from this trap, unless the specs were for some reason (macroeconomic event) to decide to cash in their longs.

We therefore see continued support in May and July, with the potential for short-covering rallies, while December should start to stall out as grower hedging becomes more widespread.

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Published in plexus cotton - March 28, 2013

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Weekly US Cotton Market Review

Spot cotton quotations averaged 245 points lower than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 82.68 cents per pound for the week ended Thursday, March 28, 2013. The weekly average was down from 85.13 cents last week, and 85.37 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 81.53 cents on Monday, March 25 to a high of 83.34 cents on Wednesday, March 27.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 28 totaled 5,082 bales. This compares to 13,446 bales last week and 57,652 bales reported a year ago. Total spot transactions for the season were 1,553,976 bales, compared to 811,409 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 88.46 cents, compared to 88.20 cents last week.

SOUTHEASTERN MARKETS

Spot cotton trading was inactive. Supplies were moderate. Demand was good. Producer offerings were moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Severe thunderstorms brought rain, hail, and strong wind to areas across central Alabama, the Florida Panhandle, and south Georgia early in the period. Localized power outages were reported in several areas, due to downed power lines. Severe drought conditions have been removed

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from the entire state of Georgia due to persistent soaking rainfall in recent weeks, according to the U.S. Drought Monitor.

Subsoil moisture conditions were rated mostly adequate to surplus. Light, scattered precipitation was received in areas of the Carolinas and Virginia as partly cloudy conditions prevailed, with daytime temperatures in the high 40s to mid-50s. The wet conditions delayed fieldwork in most areas and a period of dry and sunny weather was needed in the near term to allow saturated soils to firm. Producers were considering burn-down strategies that needed to be applied soon ahead of approaching planting activity.

SOUTH CENTRAL MARKETS

North Delta

Spot cotton trading was slow. Demand was light. Producer offerings were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. A light volume of forward contracting was reported.

Scattered showers, strong winds, and cold temperatures dominated the weather pattern during the week. About one inch of rain was reported in most areas already saturated from previous storms. Daytime temperatures ranged from the low 30s to the mid- 50s, with wind chill factors in the mid-20s.

Overnight lows were in the low 30s. Limited fieldwork was underway as spring planting rapidly approached. Producers were finalizing spring planting decisions. According to the National Agricultural Statistics Service’s recently released Prospective Plantings report, acreage in Arkansas is expected to drop to a record low level this season.

South Delta

Spot cotton trading was inactive. Demand was light. Producer offerings were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. A light volume of forward contracting was reported. Rain showers, cold temperatures, and gusty winds prevailed during the week. Less than one inch of rain was reported. Daytime high temperatures were in the 50s, while overnight lows ranged from the upper 20s to the upper 30s. Saturated soil conditions delayed fieldwork in some areas. Strong cotton prices may have encouraged a few producers to plant more acres than originally estimated. Producers were finalizing planting decisions.

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According to the National Agricultural Statistics Service’s recently released Prospective Plantings report, acreage in both Mississippi and Louisiana is expected to drop to a record low level this season.

SOUTHWESTERN MARKETS

East Texas-Oklahoma

Spot cotton trading was slow. Supplies were light. Demand was moderate. Average local spot prices were lower. Producer offerings were light. Trading of CCC-loan equities was slow. Foreign mill inquiries were moderate. Interest was best from Indonesia, Korea, and Taiwan. Producer interest in forward contracting was good. In south Texas, planting gained momentum. More acres transferred from grain commitments to cotton because of parched field conditions and market prices. Planting neared completion, and some stands had emerged on irrigated fields in the Rio Grande Valley. Dryland fields offered mixed results, with some fields failing to establish a stand. In Kansas and Oklahoma, producers applied fertilizers and weed control. Fields were irrigated. Ginning continued.

West Texas

Spot cotton trading was slow. Supplies were light. Demand was moderate. Average local spot prices were lower. Producer offerings were light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from Indonesia, Korea, and Taiwan. Producer interest in forward contracting was good. Field preparations continued with temperature highs in the mid-40s to the mid-70s. Warm, sunny conditions were prevalent; although, hard freezes occurred with temperatures dipping into the teens and 20s early in the week. Producers applied fertilizers and herbicides. Irrigated fields were pre-watered to progress soil moisture. Repair and maintenance was conducted on field equipment ahead of planting. Industry members attended meetings.

WESTERN MARKETS

Desert Southwest (DSW)

Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Seedlings were up to a good stand in Yuma, Arizona. Some plants had progressed to the first true-leaf stage. Industry representatives reported that approximately 90 percent of the crop was planted and 50 percent of the crop was germinated in Yuma. A light amount of re-

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planting was done in the earliest planted fields. Planting forecasts were good for central Arizona. Initial planting began in the Buckeye area and into Pinal County. The Arizona Cooperative Extension will continue to collect cotton plants to detect possible Fusarium oxysporum f. sp. vasinfectum race 4 (FOV 4). This is an early-season disease of Fusarium wilt pathogen of cotton. Extension agents reminded producers to remain vigilant in managing glyphosate-resistant Palmer Amaranth. Pleasant, warm conditions were prevalent in southern New Mexico and El Paso, Texas. Droughty conditions persisted. According to the U.S. Seasonal Drought Outlook released March 26, the area was rated as moderate to severe. Producers prepared equipment for planting.

San Joaquin Valley (SJV)

Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were slow. Warm, pleasant conditions were the norm with temperatures in the high 70s. Field activities were brisk as more producers began preparing equipment for planting. Some producers began initial planting in Kern and Kings County. The latest snow survey indicated that Sierra Nevada Mountain snowpack conditions were less than 50 percent of average. Local weather experts indicated that January-March 2013 were the driest months on record for California.

The Central Valley Water Project decreased water allocations by 5 to 20 percent of requested amounts. A new in-field test kit to detect Fusarium oxysporum f. sp. vasinfectum race 4 (FOV 4) was released this month by Agdia. The field test provides positive or negative results of FOV 4 in about 30 minutes. FOV 4 has become problematic in the SJV. There is no known cure for the disease.

AMERICAN PIMA (AP)

Spot cotton trading was inactive. Supplies were moderate. Demand was good. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were steady, for current and new-crop cotton. Interest was best from China, Japan, Pakistan, and South America. Temperatures were in the mid-70s to high 80s in the region, which advanced fieldwork. Planting was virtually completed in Yuma, Arizona. Initial planting began in the San Joaquin Valley, but stopped with the threat of showers late in the period. Dry conditions persisted in New Mexico and El Paso, Texas. Producers prepared equipment for planting.

TEXTILE MILL REPORT

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Domestic mill buyers inquired for a moderate volume of 2013- crop cotton, color 41, leaf 4, and staple 34 for fourth quarter 2013 through first quarter 2014 delivery. Reports indicated most mills covered their immediate-tonearby raw cotton needs. No sales were reported. Yarn demand remained good and most mills continued to operate at capacity. Demand through export channels was moderate. Demand was best throughout the Far East for any discounted or low-grade varieties.

USDA ANNOUNCES SPECIAL IMPORT

QUOTA #7 - FOR UPLAND COTTON - MARCH 28, 2013

The Department of Agriculture’s Commodity Credit Corporation announced a special import quota for upland cotton that permits importation of a quantity of upland cotton equal to one week’s domestic mill use. The quota will be established on April 4, 2013 allowing importation of 14,776,787 kilograms (67,869 bales) of upland cotton. Quota number 7 will be established as of April 4, 2013, and will apply to upland cotton purchased not later than July 2, 2013, and entered into the U.S. not later than September 30, 2013. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period August 2012 through October 2012, the most recent three months for which data are available. Future quotas, in addition to the quantity announced, will be established if price conditions warrant.

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Published in Tecoya Trend - April 01, 2013

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China to increase state cotton sales in April

China, the world's top cotton consumer, will increase sales from state reserves of the fibre from April, in a bid to boost dwindling domestic supply, a government official said in a speech published on Wednesday. To help meet demand from textile mills, Beijing will step up sales from its bulging reserves, particularly of high-quality cotton, beginning in April, Li Yan of the country's top economic planner, the National Development and Reform Commission, told a meeting on Tuesday, but gave no further details.

Cotton supplies have been under pressure as a result of China's controversial state stockpiling policy, which has seen the government buy nearly 10 million tonnes, or about 60 percent of global cotton stocks, since 2011. Plans for sales by China and India, the world's largest producers of cotton, put New York prices under pressure last week. A four-day slide in prices ended on Tuesday, as reports of new import quotas in China helped buoy the market.

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The domestic supply squeeze could worsen this year with China's cotton acreage expected to fall to its lowest in a decade, Gao Fang, an official of the China Cotton Association, said in a speech posted on its website (www.china-cotton.org). Chinese farmers are likely to grow 6.8 percent less cotton this year, with the sowing area expected to fall below 4.67 million hectares, its lowest since 2002, Gao said.

The figures are in line with a survey published recently by the influential China Cotton Research Institute, which attributed the decline to the lower returns to cotton farmers, compared with those from planting grain. Beijing's stockpiling has kept domestic cotton prices as much as 40 percent higher than global prices, but Li of the NDRC said the government had no intention of changing the policy for the 2013 harvest, and would not set any limits on volumes. The government purchase price is expected to remain at last year's level of 20,400 yuan ($3,300) per tonne for the 2013/14 harvest. The price, aimed at boosting local farmers' incomes, is well above current global cotton prices.

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Published in Brecorder - March 31, 2013

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Zero-rated apparel textile sector disapproves two percent sales tax

Zero-rated apparel textile sector doubts whether Federal Board of Revenue (FBR) consulted with the Ministry of Textile Industry, Ministry of Commerce and Ministry of Industries on the two percent sales tax imposition. Pakistan Hosiery Manufacturers and Exporters Association (PHMA) dispatched letters to the Ministry of Textile Industry, Ministry of Commerce and Ministry of Industries, showing wonder at whether the FBR has consulted with these ministries on the relevant SRO.

The association said regretfully, "It is surprising that the genuine stakeholders were also not taken on board," and they feared "the imposition of the subject SRO will no doubt ruin the Textile Export Sector". Addressing the secretaries of the ministries, the PHMA invited their attention towards the already "adverse" factors striking the value-added textile sector, saying that the entire sector is undergoing financial troubles.

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" A huge amount of Sales Tax Refund Claims; Customs Rebate Claims; FED Claims and DLTL Claims are causing the severest ever liquidity crunch coupled with severest load shedding of Gas and Electricity; high costs of doing business etc," it said. The pertaining SRO is feared to worsen the financial position for the sector, it said, adding that textile exporters' profit began shrinking as their margin reached only four percent to five percent. "Many old established bank borrowing exporters' units have closed down," said the PHMA.

Central Chairman PHMA, Javed Bilwani said that the continuation of the zero-rating regime for apparel sector will help save billion of rupees for the nation. The regime will keep the "unscrupulous" elements out of business and help the country overcome corruption through tax refund claims, he suggested in the letters. He urged all three concerned ministries to take up the matter to reverse the regime to zero-rate, suggesting tax should be imposed on 10 percent to 15 percent local consumers textiles market.

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Published in Brecorder - March 31, 2013

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CCI to promote US cotton textiles at Apparel Sourcing Show

Cotton Council International (CCI), through its COTTON USA Sourcing Program, will host a pavilion at the Apparel Sourcing Show trade fair from May 21-23 to promote U.S. cotton textiles.

The Sourcing Program will coordinate with U.S. mills to display high quality yarns, knit and woven fabrics at its pavilion.

The Apparel Sourcing Show is Central America’s only textile show. Textile executives from Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Mexico and the United States will attend the event.

CCI, as one of the sponsors, will have the most prominent area at the show. CCI will also organize a private event in its pavilion for U.S. mills participating in the COTTON USA Sourcing Program.

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Published in Fibre2fashion - March 29, 2013

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US cotton acreage to plunge 19% in 2013 - USDA

The National Agricultural Statistics Service (NASS), Agricultural Statistics Board and United States Department of Agriculture (USDA) released estimates on cotton planting intention of US farmers in 2013.

Cotton growers intend to plant 10.0 million acres in 2013, down 19 percent from last year. Upland area is expected to total 9.82 million acres, down 19 percent from 2012.

American Pima area is expected to total 206,000 acres, down 14 percent from 2012. If realized, planted area in Arkansas, Louisiana, Mississippi, New Mexico, and Oklahoma will all be record lows.

As of March 24, cotton planting in Texas was 3 percent complete, 5 percentage points behind last year and 2 percentage points behind the 5-year average.

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Turkish firm to set-up ginning plants in Turkmenistan

Turkish firm Engin Group has signed a contract with Turkmenpagta (Turkmen Cotton) to build cotton factories in the Mary district of the Caspian state, Turkmen state media reported last week.

Two new factories will be built in the Mary province, according to the agreement inked by Turkmen President Gurbanguly Berdimuhamedov.

“The contracts will provide for the design and construction of two cotton-seed processing plants with an annual capacity of 40,000 tons each, as well as their engineering support systems in the Altyn Asyr district in the Akhal province and the Sakarchagi District in the Mary region,” the statement said.

A new manufacturing facility will also be built in the northern province of Dashoguz.

The new processing plants will each sit on nearly 40 acres of land. Construction of the plants is expected to begin next month, and should be completed in two years.

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The new deal with the Turkish firm is part of Berdimuhamedov’s push to modernize the cotton production industry in the country, which now largely depends on revenues from gas exports. The new plants will improve the quality of cotton seeds used by Turkmen farmers.

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Bangladesh Sudden Spike In Cotton Price In Local Market Hits RMG Sector Hard

Sudden rise in cotton price in local market has hit hard further the trouble-torn readymade garment (RMG) sector, industry insiders said.

Price of cotton has gone up by around 15 per cent in last fifteen days following the increasing price of raw cotton in the international market, they added.

According to them, the situation is worsening gradually because of hoarding tendency of international consumers including India, Pakistan and China.

Garment industry leaders said if the price spiral continues then many garment factories, especially the small and medium ones will not be able to execute their export orders and thus the sector may fail to achieve its shipment target for the financial year (FY) 2012-13.

"We have negotiated with buyers based on US$ 3.8 for a pound of 30 single combed cotton fifteen days ago, now the price stood at $4.18 which added another hurdle to our business after facing different types of difficulties like image crisis over compliance issue, labour unrest and political turmoil in the country," Managing Director of Abedin Knit Fashion Ltd, Naimul Huq told the FE Monday.

"Presently factory owners make less than five per cent profit against exports. So if we want to ship goods with losses, our factory would become bankrupt, if not, then buyers would breaks relation with us," he added.

Vice president of Bangladesh Knitwear Manufacturers and Exporters Association

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(BKMEA) Mohammad Hatem expressing his anger said the local spinners always maintain at least four to five months' stock of raw materials, so they should not charge high for their finished cotton soon after the price hike of raw cotton in the international market.

"Increased price of raw cotton has not yet affected the spinners but they increased price of cotton which is fully unethical and suicidal for the RMG industry," he added.

"We have urged the Bangladesh Textile Mills Association (BTMA) leaders time and again to give a notice of at least two months before hiking price but they did not care which may force shut down of many small and medium capital based garment factories across the country," Hatem added.

However, president of BTMA, Jahangir Alamin said that the association has not yet increased price officially but some mill owners might have been charging high price of their goods which is beyond their knowledge.

He also said that the spike in raw cotton price in the international market affects local spinners also along with the garment industry.

Bangladesh imports around 4.0 million bales of raw cotton annually. Of which around 35 per cent comes from India and the rest comes from Pakistan, Uzbekistan and Australia.

Knitwear sector consumes over seventy per cent of the imported cotton and the rest goes to the oven industry.

The country fixed a target of export worth around $10.62 billion for knitwear sector and $10.93 for the woven segment for the current fiscal year. The two main wings of RMG industry achieved export earning worth around $6.72 billion and $6.92 billion respectively during July-February period of the current FY.

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Published in cottonyarmarket - March 29, 2013

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Cotton Yarn Prices in Bangladesh

Cotton yarn prices suddenly jumped on the Bangladeshi market where cotton traders very rapidly raised cotton prices after they surged on the international market , our correspondent reports. Our monthly report includes a series of yarn prices for different counts in Bangladesh with historical data available from August 2012.

- From our Bangladesh Correspondent, Syful Islam

Yarn prices suddenly surged in Bangladesh, as a result of a jump in international cotton prices and of a stronger demand on the domestic market.

Such a rise of yarn prices resulted in a massive outcry among the textile and apparel producers.

Cotton prices up 5 cents in a month

In late March, the cotton price was increased by 5 US cents per Lb compared to the previous month, which has resulted in a significant rise of yarn prices.

The CIF Chittagong price jumped from 97.00 US cents to 102 cents per Lb of cotton.

According to textile industry in Bangladesh, this was mostly due to China now buying large quantities of yarn from India, the leading yarn exporter, resulting in higher cotton fiber and yarn prices in this country.

Bangladeshi textile and apparel producers now prefer buying locally made yarn which is comparatively cheaper than Indian one.

In addition, they can rapidly get the domestic yarn without having to pay carriage cost.

Higher yarn prices

With a stronger demand for domestic yarns, prices also increased on the Bangladeshi market.

Combed yarn prices more climbed than carded yarns.

In Bangladesh, carded yarns account for 80% of the market in volume terms, while combed yarns only have 20%.

Apparel makers said the rise of yarn prices has reduced their margins, as prices they previously negotiated with foreign buyers were based on lower yarn prices.

The Bangladeshi clothing industry is already confronted with political turmoil, which has resulted in lower orders from foreign buyers.

Too rapidly raising prices

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Domestic prices of raw materials are now very rapidly raised, when prices are increasing on the international market, therefore leaving downward processors with lower profits..

According to the apparel industry, yarn prices should have been increased only after two to three months, or the period needed to get raw materials at the Chittagong port after placing an order.

Despite continuous efforts from the ministry of commerce, Bangladesh has failed to refrain its traders from raising prices of textile inputs immediately after they rise on the international market.

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Published in Emerging Textiles - March 29, 2013

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NATIONAL NEWS


Cotton traded higher in most of the markets Saturday on limited limited selling and report that CCI will export one million bales of cotton from its reserve. Although activities were very thin due to financial closing.

Cotton ready delivery quoted at Rs 4,140-4,240 per maund in Punjab, Rs 4,130-4,140 per maund in Haryana and Rs 4,120-4,130 Rajasthan. Cotton for ready delivery offered at Rs 39,500 per candy in Gujarat.

CCI to export one million bales cotton - Cotton Corporation of India has sought permission to export one million bales of cotton - roughly half the stock held by it - in a representation to the Directorate General of Foreign Trade (DGFT) to benefit from the higher international prices. The Textile Ministry is also keeping an eye on rising registration of shipments for exports by private traders as high exports could lead to a shortage of cotton in the domestic market, two Textile Ministry officials told. We want CCI to export some of its cotton stock as it would

get a higher price in the international market. We have sought the DGFT’s views on the matter, the first official said. Registration At the same time, the Textile

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Ministry does not want exports to result in price spiral as it would lead to a shortage in the domestic market and further push up rising prices.

US cotton planting seen at 10 million acres - A mid-March increase in futures prices probably convinced some U.S. cotton producers to plant more cotton this

spring, but a big reduction from last year is still likely, according to USDA’s March 28 Prospective Plantings report. Cotton planted area for 2013 is expected to total 10 million acres, 19 percent below last year. Upland area is expected to total 9.82 million acres, down 19 percent from 2012. American Pima area is expected to total 206,000 acres, down 14 percent from 2012.

The National Cotton Council’s January survey indicated a 27 percent decline in U.S. cotton acres, based on higher corn prices, which have since softened while

cotton prices have strengthened.The Council’s estimate indicated a possible 50 percent reduction in Mid-South cotton acres compared to 2012. The Prospective Plantings report indicated a 38 percent decline, from 2.03 million acres in 2012 to 1.26 million acres in 2013.

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Published in cottonyarnmarket - March 31, 2013

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Linen fabrics are yet to catch Chennai’s attention

Linen fabrics are suitable for the climate in Chennai but due to a lack of awareness, the fabric is yet to be a hit in the city and state, according to president of Aditya Birla Textiles division S Krishnamoorthy.

Addressing reporters after the launch of their third exclusive showroom in Tamil Nadu on Wednesday, Krishnamoorthy said linen fabrics are extremely suitable for the climate of Chennai as it is skin friendly and anti-bacterial in nature.

He said the fabric’s moisture absorption capacity is double that of cotton and it keeps one cool in summer and warm in winter. He added that sales in Tamil Nadu has not picked up when compared to other southern states like Karnataka, Kerala and Andhra Pradesh.

Interestingly, the showroom in Chennai is the 76th exlusive showroom in Linen club fabrics in India, the premium brand from Jaya Shree Textiles, a unit of

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Aditya Birla Nuvo Ltd. Krishnamoorthy added that in the next two years Aditya Birla Nuvo plans to open 200 showrooms across India with four to five showrooms in Tamil Nadu this year.

The showrooms in the state would be opened at Tirupur, Erode, Salem and other locations. “We are also planning to open a showroom in Pondicherry,” he added.

Aditya Birla Nuvo has a share of 75 per cent in the Linen fabrics segement with a turnover of Rs 600 crore. In Tamil Nadu, the turnover is only five per cent and the target is to increase it to 10 per cent, said Krishnamoorthy.

Linen Club is popular with the leading garment brands of India such as Colour Plus, Louis Phillipe, Van Heusen, Wills Lifestyle, Park Avenue and other such exclusive brands.

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Published in newindianexpress.com - March 28, 2013

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Maharashtra's power situation improves

A clutch of Coimbatore-based textile mills want to shift to Maharashtra, according to sources. Reason: Acute power shortage in Tamil Nadu and Maharashtra's reputation for supplying power 24x7 to the industry. "Maharashtra is 82 per cent load-shedding free. MahaVitaran (state-run Maharashtra Electricity Distribution Company) is carrying out load shedding in the regions with high distribution losses and long pending arrears," Deputy Chief Minister and Energy Minister Ajit Pawar told Business Standard.

Pawar added the deficit in 2005 was 18 per cent, which had been brought down to three per cent. This achievement is notwithstanding closure of Dabhol power project and a few MahaGenco (Maharashtra State Power Generation Co. Limited) projects for want of fuel. The three per cent deficit at present is not because of non-availability of power, but because of the non-paying culture of the consumers, said an official. Despite peak demand crossing 15,073 Mw on March 25, MahaVitaran has been able to manage well. Agricultural consumers are provided eight hours of power supply during the day for four days and 10 hours' power during the night for three days.

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According to a MahaVitaran official, the demand is met through power purchases from MahaGenco, independent power producers, power exchanges and through bilateral contracts.

"MahaVitaran recently drew 300 Mw from the market at Rs 2.90 per unit. Had Dabhol power project and few projects of MahaGenco not closed, MahaVitaran would have surplus power to sell in the market," the official noted. He also rubbished reports that MahaVitaran was purchasing costly power from the independent power producers (IPPs) when MahaGenco had to back down some of its power plants.

Instead, the official said, MahaVitaran's move to enter into contracts with IPPs is paying off, because the closure of Dabhol and a few projects run by MahaGenco had not resulted in widening the gap between demand and supply.

Out of the total demand of the state, 25 per cent is of the agricultural sector, which is in the average range of 4,000-4,500 Mw, said the MahaVitaran official.

"Mahavitaran implemented the Single Phasing Scheme and Separate Gaothan Feeder Scheme for 31,000 agriculture-dominated villages of the total 41,000 villages of Maharashtra. Because of this, we could stagger or monitor the demand of agricultural sector to about 2,500-3,000 Mw.

Due to these initiatives, the demand which was generally within the range of 17,000-17,500 Mw reduced to 14,000-14,700 Mw," said the official.

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Published in cottonyarnmarket - April 01, 2013

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Cotton traded higher in most of the markets Saturday on limited limited selling and report that CCI will export one million bales of cotton from its reserve. Although activities were very thin due to financial closing.

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Cotton ready delivery quoted at Rs 4,140-4,240 per maund in Punjab, Rs 4,130-4,140 per maund in Haryana and Rs 4,120-4,130 Rajasthan. Cotton for ready delivery offered at Rs 39,500 per candy in Gujarat.

CCI to export one million bales cotton - Cotton Corporation of India has sought permission to export one million bales of cotton - roughly half the stock held by it - in a representation to the Directorate General of Foreign Trade (DGFT) to benefit from the higher international prices. The Textile Ministry is also keeping an eye on rising registration of shipments for exports by private traders as high exports could lead to a shortage of cotton in the domestic market, two Textile Ministry officials told. We want CCI to export some of its cotton stock as it would

get a higher price in the international market. We have sought the DGFT’s views on the matter, the first official said. Registration At the same time, the Textile Ministry does not want exports to result in price spiral as it would lead to a shortage in the domestic market and further push up rising prices.

US cotton planting seen at 10 million acres - A mid-March increase in futures prices probably convinced some U.S. cotton producers to plant more cotton this

spring, but a big reduction from last year is still likely, according to USDA’s March 28 Prospective Plantings report. Cotton planted area for 2013 is expected to total 10 million acres, 19 percent below last year. Upland area is expected to total 9.82 million acres, down 19 percent from 2012. American Pima area is expected to total 206,000 acres, down 14 percent from 2012.The National Cotton

Council’s January survey indicated a 27 percent decline in U.S. cotton acres, based on higher corn prices, which have since softened while cotton prices have

strengthened.The Council’s estimate indicated a possible 50 percent reduction in Mid-South cotton acres compared to 2012. The Prospective Plantings report indicated a 38 percent decline, from 2.03 million acres in 2012 to 1.26 million acres in 2013.

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Contaminants a thorn in the side of U.S. cotton exports

Our customers perceive U.S. cotton as being contaminant-free. Its a goal thats tough to achieve, but thats what they expect, says Mike Watson, vice president of fiber competition for Cotton Incorporated. If theres anything in a bale other than

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raw cotton, it shouldnt be there, he said at the annual meeting of the Southern Cotton Ginners Association. 30 March, 2013 by admin

U.S. cotton has a reputation for top quality with major mill buyers overseas, says Mike Watson but growers and ginners need to be increasingly vigilant to prevent contamination that can cause bales to be rejected and tarnish that outstanding reputation. Our customers perceive U.S. cotton as being contaminant-free. Its a goal thats tough to achieve, but thats what they expect, he said at the annual meeting of the Southern Cotton Ginners Association, held in conjunction with the Mid-South Farm and Gin Show.

If theres anything in a bale other than raw cotton, it shouldnt be there, says Watson, who is vice president of fiber competition for Cotton Incorporated, the research and promotion organization funded by assessments on producers and importers of cotton/cotton products.

There is a long list of contaminants found in bales, ranging from plastic shopping bags that may have blown into a field, to plastic module cover fragments, to shop rags, and on and on. Among the worst is twine used on farms its a real monster to deal with if it makes it through the ginning process and into the finished bale.

In recent years, Watson says, there has been a trend of farmers spray painting messages and art on modules. That paint often doesnt come out of the cotton. You should spray paint modules only when absolutely necessary. If you want to use modules as a billboard, attach a sheet of plastic and paint that but just be sure to remove it before it goes to the gin.

With the advent of round modules, he says, foreign buyers have become more watchful for plastic fragments. Anything remotely yellow will be blamed on module wraps. If a mill sees plastic in a bale, and your gin code is on that bale, youll likely be hearing from them. This is something thats going to demand close monitoring in order to eliminate as much of this contamination as possible.

With increasing use of electronics, bar coding, and radio frequency identification (RFID) systems, and information stored in the cloud, tracking of individual bales back to the source becomes a simple matter, Watson says.

Technology is becoming more integrated in our operations, to make production, harvesting, ginning, and transporting more efficient, but at the same time it raises the bar on accountability.

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Over the past two decades, Watson says, U.S. cotton has undergone a major transition, going from an agricultural product to a consumer product, and from a commodity used mostly in America to one thats mostly exported.

In the 1990s, we were using about 11 million bales domestically and sending about 7 million to foreign buyers, Watson. Now, were using only about 3.6 million bales domestically and are exporting 11.3 million. Cotton is now a truly global market. If it werent for exports, U.S. cotton sales would be in a world of trouble. At the same time that U.S. cotton exports have been increasing, there has been a major evolution in foreign spinning mills, he says.

Fifteen or 20 years ago, overseas mills were radically different than those in the U.S.; today, theyre essentially the same. The only difference is the distance we have to ship our cotton to those mills and tariffs and other barriers to trade.

To be competitive in the world market, spinning mills in China, the Far East, and elsewhere have had to move to the latest equipment and most efficient management. Now, these mills are using technology that was once predominant in the U.S.

Were seeing more vortex spinning, which is much faster but it puts a lot of stress on cotton fiber.

Cost is still a major consideration for foreign mills, Watson says. Depending on the yarn being spun, cotton can represent 50 percent to 75 percent of the manufacturing cost. If a mill doesnt buy wisely, it can be out of business. For years, he says, cotton and polyester prices tracked each other closely. But when cotton prices skyrocketed in 2011, cottons share of the market declined and polyester claimed a larger share.

Well be spending the next five or 10 years fighting and clawing to try and regain this lost market share, Watson says.

Quality is a key factor in helping to keep foreign mills buying U.S. cotton, he says.

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Five years ago, we had slipped in quality, particularly in terms of length and strength, but now were producing longer, stronger fiber on the farm and in the gin. Even so, he says, length uniformity has not been improving at the same pace, and work needs to be done to preserve fiber length and reduce short fiber content

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