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          Turkey’s plan to impose anti-dumping duties on U.S. cotton imports will drive up costs for its own textile producers, hurting the competitiveness of their exports, the head of an industry group said on April 19.

 

          Ankara has decided to place 3 percent duties on U.S. cotton imports, saying in an announcement on April 17 that imports were hurting domestic cotton production. U.S. cotton farmers have said they will fight the decision through the World Trade Organization and Turkish courts.

 

          The spat is likely to put strain on trade relations between one of the world’s top fiber growers and one of its biggest customers at a time of weak global prices and demand.

 

           “This is a decision that will increase raw material costs of textile producers by 2-3 percent and will somewhat affect price competitiveness of Turkish exports,” İsmail Gülle, head of the Istanbul Textile and Raw Materials Exporters Union, whose members account for 70 percent of Turkish textile exports.

 

           “U.S. cotton has specialty uses, it is not something we could give up using, the industry will shoulder the costs.”

 

          Turkey is the second-biggest buyer of U.S. cotton, with shipments ranging from 1.5 million to 2 million bales per year.

 

          Turkey exported $17 billion worth of garments and ready-to-wear clothing last year, and $8 billion of textiles and raw materials, according to industry data.

 

          The move had been widely expected since February, when Turkey’s economy ministry said U.S. cotton was hurting the domestic cotton industry.

 

           “It was determined that the material damage to local production branch has been the result of dumping in imports,” the government said in its official gazette on April 17, announcing the move.

 

Source : http://www.hurriyetdailynews.com/

          Net sales for the three months ended December 31, 2016, at apparel retailer Bebe Stores slipped 16.8 per cent to $101.9 million as against $122.4 million reported in the prior fiscal’s second quarter.

 

          Comparable store sales for the second quarter of fiscal 2017 declined 10.5 per cent, compared to a drop of 2.5 per cent in the same quarter of fiscal 2016.

 

          However, gross margin as a percentage of net sales rose to 34.4 per cent in the reporting quarter, vis-à-vis 34.0 per cent in the earlier fiscal’s comparable quarter, primarily the effect of a reduction in markdowns and promotions.

 

          In the quarter under review, net loss fell to $5.2 million, or $0.65 per share, on 8 million diluted shares outstanding, versus loss of $5.5 million, or $0.68 per share, on 8 million diluted shares outstanding, in the previous fiscal’s second quarter.

 

Source : http://www.fibre2fashion.com/

            ISPO Munich 2017, the leading international sports tradefair to be held from February 5 to 8, 2017, at Munich, Germany, is set to host around 2,732 exhibitors. For four days, Munich will be a gathering of the international sports business. There has been a significant rise in the number of countries from abroad, making the fair more international than ever.

 

            From the latest winter sports trends and suitable outdoor equipment to the latest fitness and sports fashion trends and technical textiles, the tradefair will showcase everything that will be in the stores.

 

            Besides Germany, the countries with the largest numbers of exhibitors are China, Italy, Taiwan, Great Britain, and the United States. This year’s new exhibitors include Samsung, Casio, and Triumph. The Outdoor sector has seen strong growth with 40 new exhibitors. Among other things, they include international brands such as Scrubba, a former BRANDNEW finalist (2015) from Australia, and Sealand Gear from South Africa.

 

            For the first time after 16 years, Adidas will be part of this network again. Together with Adidas, ISPO is organising a symposium on “Digitalisation as a growth impetus in industry and commerce”. The symposium will then be followed by a product event.

 

            Health and fitness sports disciplines such as yoga and pilates are more popular than ever, making them a huge future market. ISPO Munich will give exhibitors a chance to present their latest developments in a special “Mobile Health & Fitness” area in hall B5.

 

            ISPO Munich is partnering with Bogner and the Fraunhofer Institute for Integrated Circuits to examine the topic of virtual reality in the retail trade. With a virtual reality headset, visitors can stand on a 500-meter-high tower of ice in the middle of a winter wonderland with an eagle circling above them in the middle of a snowstorm.

 

            Ski legend Hermann Maier will be honoured as the “Sports Personality of the Year” at the event.

 

            For the first time ever, ISPO will be a stronger platform for the topic of women in sports. As part of the ISPO Academy, panel discussions about women as a target group in the sports industry are planned. Women visitors can take advantage of the Women’s Business Lounge in hall B1. A guided tour of the fair for women, which is being organised in conjunction with Messe München’s “Women Connect” initiative, is also planned.

 

Source : http://www.chinatexnet.com/

            Owing to an increase in planted area, the world cotton production will rise by two per cent to 23.4 million tons, the International Cotton Advisory Committee (ICAC) has predicted in its first estimate of 2017-18 crop. After two seasons of contraction, cotton planted area is expected to grow by five per cent to 30.6 million tons for the 2017-18 crop.

 

            The world average yield is projected to decline by two per cent to 764 kg/ha, after improving by 13 per cent to 781 kg/ha in 2016-17, the ICAC Secretariat said.

 

            In 2016-17, the cotton area in India, the largest cotton-producing country, fell by 12 per cent to 10.5 million hectares due to competition from food crops. However, the average yield recovered by 16 per cent to 560 kg/ha, and production in 2016-17 is estimated to rise by 2 per cent to 5.9 million tons. In 2017-18, India’s area is forecast to recover by 7 per cent to 11.2 million hectares as firm domestic cotton prices and less attractive prices for competing crops attract more farmers to cotton. Assuming a national average yield of 530 kg/ha, production will increase by 1 per cent to 6 million tons.

 

            Cotton area in China declined for five consecutive seasons, reaching 2.8 million hectares in 2016-17. However, output has not fallen as quickly due to the fact that the share of cotton grown in Xinjiang, which has higher yields than other producing regions in China, has increased considerably. China’s cotton production in 2016-17 is estimated at 4.7 million tons. In 2017-18, its cotton area may expand by 3 per cent to 2.9 million hectares, and cotton output in China could reach 4.8 million tons in 2017-18.

 

            Following a season of higher than expected yields and firm cotton prices, cotton area in the United States is expected to expand by 10 per cent to 4.2 million hectares in 2017-18. The average yield in the US improved by 12 per cent to 958 kg/ha in 2016-17, and production is estimated at 3.7 million tons. In 2017-18, production in the US is projected to rise by 7 per cent to 4 million tons, assuming an average yield of 935 kg/ha.

 

            A significant drop in yields and poor returns in 2015-16 led to a 12 per cent decrease to 2.5 million hectares in Pakistan’s cotton area in 2016-17. The average yield recovered by 32 per cent to 699 kg/ha and output is estimated up by 17 per cent to 1.8 million tons. Pakistan’s cotton area is forecast to increase by 3 per cent to 2.6 million hectares, and assuming a yield of 739 kg/ha, Pakistan’s production could reach 1.9 million tons.

 

            World cotton mill use is expected to remain stable at 24.1 million tons in 2016-17 as high cotton prices discouraged growth in demand. However, mill use may expand by 1 per cent to 24.3 million tons in 2017-18. Mill use in the top three consuming countries, China, India, and Pakistan, is expected to remain unchanged from 2016-17. However, mill use is forecast to grow in Turkey, Bangladesh, and Vietnam by 2 per cent to 1.5 million tons, by 5 per cent to 1.5 million tons, and by 7 per cent to 1.2 million tons, respectively.

 

            Given the continued growth in mill use in countries that depend on imports, world cotton trade is projected to increase by 5 per cent to 8.2 million tons in 2017-18 from 7.8 million tons in 2016-17. Bangladesh is likely to maintain its position as the world’s largest importer of cotton with its volume forecast to rise by 5 per cent to 1.5 million tons. Vietnam’s import volume is projected to grow by 8 per cent to 1.3 million tons. Given the large exportable surplus and strong demand, exports from the US are anticipated to rise by 17 per cent to 3.2 million tons in 2017-18. India’s exports are forecast to fall by 7 per cent to 875,000 tons in 2017-18.

 

            World cotton stocks are expected to decline by 6 per cent at the end of 2016-17 to 18.1 million tons as China reduces its stocks by 17 per cent to 9.3 million tons. However, stocks outside of China are projected to increase by 8 per cent to 8.8 million tons or 36 per cent of mill use in 2016-17.

 

Source : http://www.chinatexnet.com/

            American cotton has made up about 40 percent of Vietnam’s cotton imports over the last three years as Vietnam’s demand for raw cotton has risen steadily for six years, with August to January (Marketing YTD) imports at their highest levels ever. This is a particularly positive sign for U.S. cotton exports. 

 

            U.S. exports of cotton have made up about 50 percent of Vietnam’s imports year to date, suggesting even greater market share than in the past. 

 

            Much of Vietnam’s growth in recent years has been driven by declines in cotton spinning in China. China’s now-ended cotton price support program required that the state reserve purchase large amounts of cotton, which drove up cotton prices in China relative to global levels. 

 

            As a result of this uncompetitive pricing, a wave of Foreign Direct Investment flowed into Vietnam’s spinning sector. 

 

            With the implementation of the ASEAN-China Free Trade Agreement, Vietnam-produced cotton yarn has duty free access to China, versus a 40 percent above-quota duty on raw cotton imported into China. 

 

            Many Chinese-owned mills relocated to Vietnam from China, spinning the same yarn using the same (mostly U.S.) cotton, then shipping the yarn to China for the next stage in the value chain. About half to two-thirds of Vietnam’s cotton imports are spun in foreign-owned mills, with much of it exported to China. 

 

            However, the very situation that gave Vietnam its startlingly fast growth threatened to take it away earlier this year and, with that lost cotton spinning, so too would be lost U.S. exports to Vietnam. As China sold its reserves at auction earlier this year, local prices in China moved closer to global levels, which stimulated some recovery in China’s domestic spinning industry. 

 

            Likewise, generous governmental support for yarn spinning in western China also helped increase China’s demand for raw cotton. The result of this was straightforward: those countries that had previously benefited from China’s high internal prices began to struggle. 

 

            With fall in China’s cotton prices, spinning activity in competitors like Vietnam sank in tandem. Many market observers believed this trend would continue and that Vietnam would lose a much larger share of the gains it had made in spinning activity. 

 

            Given the United States’ pre-eminent position in the Vietnamese cotton sector, any decline in Vietnam’s spinning would likely prove injurious to U.S. exports. This would be particularly frustrating as the U.S. 2016/2017 crop is large, and stocks have been building. 

 

            Additionally, when U.S. exporters were shut out of China by its initial policy moves, they were mostly able to shift to other markets, especially Vietnam, as spinning moved. But if demand in Vietnam dried up as a result of reserve auction sales in China, there would be no new spinning transferred to markets where U.S. cotton could compete for business. U.S. exports would have been replaced by releases from China’s state reserves. 

 

            However, the scenario described has not occurred. Vietnam’s cotton imports have turned upwards in recent months and are at record levels for August to November. 

 

            Vietnam’s strength relative to India and Pakistan may have several sources. Both India and Pakistan have faced crop shortfalls and tighter stocks in the last year, which led to comparatively high internal prices even as China’s domestic prices were becoming more competitive. 

 

            Another key factor driving Vietnam’s relative strength may be the China-ASEAN Free Trade Agreement, which began to come into effect in 2010. With full implementation of provisions related to cotton and yarn implemented fairly rapidly, China’s customs duty on yarn imported from Vietnam, or from any ASEAN country, is zero. 

 

            If duty-free access for yarn is driving increased spinning in Vietnam, then the China-ASEAN Free Trade Agreement could be pushing U.S. cotton exports higher. Yarn spinning being shifted from producer-countries like India, Pakistan, Uzbekistan, and to some extent China, into duty-preferred importer countries like Vietnam bodes well for U.S. exports. Because the China-ASEAN Free Trade Agreement does not require that raw cotton inputs be sourced within the area, U.S. exporters are able to derive an indirect benefit from China’s duty-free ASEAN access. 

 

            Notably, some other ASEAN countries such as Indonesia also saw yarn exports to China rise, while yarn exports from major non-ASEAN countries such as Uzbekistan and South Korea experienced declines.

 

Source : http://www.chinatexnet.com/

            Americhem, a global provider of custom colour and additive solutions for polymer-based products, has recently received the ISO 14001 environmental certification for its Suzhou, China, manufacturing plant. This standard recognises Americhem’s special focus on environmental management to ensure social well-being in addition to business goals.

 

            The certification audit was performed by SGS, one of the world's leading inspection, verification, testing and certification company. Americhem’s China plant also holds ISO 9001 and ISO 13485 certifications.

 

             “The certification of compliance with ISO 14001 recognises that the policies, practices and procedures of our plant highlight our commitment to environmental protection,” said Stanley Teoh, Americhem’s vice president and managing director for the Asia Pacific region. “With this certification, our customers can rest be assured that our plant exercises the highest level of dedication to our environment through waste reduction, energy efficiency, green business initiatives, safe work practices and sustainable development.”

 

            One of the main outcomes of the certification is the development and implementation of systems that continuously reduce waste. The environmental certification has led to a goal of working towards zero waste generation and emissions from the plant The Suzhou team began working on improvements in early 2016.

 

Source : http://www.chinatexnet.com