Although the following is just a sample, I encourage you to take a look at our news site, GlobecotNews.Com. Our daily reporting covers the major producing and consuming countries around the world -- and includes prices, market trends and analysis of government policies affecting the global trade of textiles.
July 22, 2010
Pakistan
Spot markets remain stable with moderate buying. Karachi Cotton Association spot rate remains unchanged at Rs. 6,000. Balanced demand and supply helped the prices to sustain a realistic level on the cotton market. Market turnover remains at 4,500 bales
Seed cotton prices both in Sindh and Punjab are reportedly down though slightly at Rs 2625-2650 (34.88-35.22 c/lb) and at Rs 2650-2700 per 40 kg (35.22-35.88 c/lb), respectively. Market sources have explained that the seed cotton prices come down on rising arrivals, but the mills are sidelined because of the uncertainties about the cotton yarn export duty. Expectations are rising that the date for export duty may be extended as the Senate standing committee on textile industry has recommended extension of 15% regulatory duty on yarn exports till August 26 and this factor may slow down the activity and prices in the coming days.
The Economic Coordination Committee (ECC) of the Cabinet has reportedly increased the import duty from 4.5% to 6% on polyester staple fiber, which is being interpreted as another blow to the spinning sector. The government would receive only minimal revenue because of this 1.5% increase in the duty, but spinners will have to pay around $8.8 million more because local manufacturers increase prices with an increase in the import duty, according to the local industry sources. Prices of locally manufactured polyester fiber are already higher by nearly 10% as compare to the imported fiber. Currently, local manufacturers are selling it at $1.54 per kg, while imported polyester fiber is available at $1.43 per kg, according to the All Pakistan Textile Mills Association’s (APTMA) representative. Pakistan’s total consumption of polyester fiber is around 450,000 tons a year. Out of which 350,000 tons are produced locally and the remaining quantity is imported.
India
In India, spot markets are reported to be steady through out the country. Prices remain unchanged, according to the local market sources. All India daily cotton arrivals remain at around 4,000-4,500 bales.
Indian monsoon rains are reported to be 17% below average during the period of July 15-21, narrowing the deficit from last week as showers improved in the past few days, boosting crop sowing prospects, according to the local weather department report. The rainfall was 24% below average during the July 8-14 period, according to the India Meteorological Department.
India is also concerned about its man-made fiber (MMF) industry and the textile ministry is reported to be planning to suggest to the government for the tax equality between cotton and man made fiber. Currently, MMF involves 10.3% excise duty whereas cotton is exempted from it. Similarly, MMF textiles attract an excise duty of 10.3%, but cotton textiles have an optional duty of 4%, according to the draft of the national fiber policy. The policy draft further explains that considering the future demand is expected to be largely in favor of man-made fiber based textiles, special attention is required to boost the consumption and production of man-made fibers in India. MMF accounts for 41%, while cotton accounts for 51% of fiber consumption in the $63-billion Indian textiles industry.
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