After a month of positive YoY growth in August, spun yarn exports declined once again in September 2009 both in terms of INR (Indian Re) and US$. However, the decline was only in single digit. During the month, export was valued at Rs.615 crore, down 9.4%. The INR has depreciated against the US$ by almost 12% during the same period. In terms of US$, the value declined by 19.3% and volumes fell 10%. About 46 million kgs of spun yarn was exported valued at US$127 million in September 2009 as against 52 million kgs and US$157 million last year. The overall unit price realization averaged US$2.74/kg as against US$3.04/kg last year, implying a 10% fall. The most important positive feature is the significant increase in exports of manmade fibre spun yarns.
The Government is confident that the negative phase in exports will bottom out by December and take an uptrend by the end of the last quarter of this fiscal in view of the diversification of the exports basket to new markets in the last few months. Textile exports to Australia and New Zealand have acted as cushion to check the sharp decline in exports. These two destinations are new and diversified markets and were part of the 39 new thrust markets identified in the new Foreign Trade Policy (FTP).
ABOUT JAPAN
Japan is a country of 6,852 islands in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, People's Republic of China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south. The four largest islands are Honshu, Hokkaido, Kyushu and Shikoku, together accounting for 97% of Japan's land area. Most of the islands are mountainous, many volcanic. For example, Japan’s highest peak, Mount Fuji, is a volcano.
Japan has the world's tenth-largest population, with about 128 million people. The Greater Tokyo Area, which includes the de facto capital city of Tokyo and several surrounding prefectures, is the largest metropolitan area in the world, with over 30 million residents.
The sudden rise in US unemployment rate of August and rise in oil inventories weakened the rally in crude oil in September. US futures averaged US$69.47 a barrel, losing US$1.67 (2.4%)from its August levels. Similarly, European Brent declined 6.4% to US$68.01 per barrel. Compared to the corresponding month a year ago prices are still down by 33%. The US$ was also weakening against major currencies and since oil is pegged in US$, the US$ weakening reflects completely in oil prices.
Polyester Chain Ethylene prices declined in Asia, but were up in Europe and USA. In NE Asia, surplus caused by weakening domestic demand and approaching China National Day holiday eased prices while short supply in SE Asia partially consumed the surplus of NE Asia. Nevertheless, ethylene producers were focusing on reducing inventories and weak derivative prices.
