This year's lean
season for Indian textile exporters has been the worst ever since
the removal of quota system in 2005. Apart from severe competition,
fluctuating exchange rate and peaking raw material prices have been
dogging the industry in recent months. Exports are on a continuous
downward trend since March 2008. In August, yarn exports declined
15 percent to just 35.5 million kgs as compared to a month ago.
Major decline in export was seen in PV and viscose yarn. PV yarn
and viscose yarn exports declined by 42% and 31% respectively. The
overall realization too declined 15 cents to US$ 2.99/kg in August
as compared with a month ago numbers.
Destination wise, Brazil was the major importer
of yarns followed by Bangladesh, Korea and Italy. While exports
to Brazil and Korea declined, that to Bangladesh and Italy increased
23% and 66% respectively. Brazil imported 5.2 million kgs of yarn,
a decline of 1.2% as compared to previous month. The average realization
price was of US$ 2.83/kg.
FIBRE INTERMEDIATE
PRICES COOL DOWN IN LINE WITH FALLING CRUDE OIL PRICES
YnFx PriceWatch – Aug
08
Crude oil
prices declined 13-14 percent in August as compared to July numbers.
The WTI spot averaged US$ 112.18/ barrel, down 18%. Similarly, the
European Brent averaged US$ 114.98/ barrel. In Far East Asia, crude
oil price averaged at US$ 114.04/ barrel. Naphtha prices too declined
12.8% to US$ 1014per ton.
THAI'S TEXTILE & CLOTHING EXPORTS INCREASE
7% IN THE FIRST SEVEN MONTHS OF 2008
Thailand's exports of Textile and Clothing increased 7.3% in the
first seven months of 2008 compared to the first seven months of
2007. Against this, its imports increased 25% during the same period.
Thailand exports of Textile and Clothing (T&C) in 2007 totaled
US$6.96 billions whereas imports were at US$3.12 billions.
The US$550 million acrylic fiber industry has
been reporting poor performance over the past few years. Sixty-one
producers spread across 56 countries with a little less than 3
million tons capacity are facing a severe demand crunch and sharp
rise in input cost. In 2007, consumption declined 6% over 2006
while production fell by over 9%. The predicament was the doubling
of prices of acrylonitrile – the major raw material, in
the last four years. Product price during the same period was
up by 50-60% implying the inability of the ASF producers to pass-on
the rising costs.
Further, ASF producers were seeking alternative
for acrylonitrile or diverting to other form of production –
particularly - acrylic filament, a precursor to carbon fibre production.
