Egyptian apparel exports to the US market are ignoring the
recession, with a surge of 15% in US$ terms over the first
quarter. This is mostly due to the duty-free programme
benefiting local zones and recently expanded to Upper Egypt.
Thanks to these QIZs, the low-cost country became a leading
supplier of denim jeans to the US market.
Vietnam's apparel exports slightly declined over the
January-May period, but exports orders are now expected to
rebound. In addition to the global economic crisis, Vietnam is
confronted with the end of US limits on Chinese products.
Vietnamese exporters may however take advantage of generous
bailout plan from the government and consecutive price cuts.
The Indian Union Minister for Textiles, Mr Dayanidhi Maran,
has said that the government will strive for service tax
exemption for the textile industry. The government will work
towards reducing interest rates on pre- and post-shipment
credit and facilitate faster clearance of arrears of terminal
excise duties and Central Sales Tax. He was speaking at an
event organised by textile industry bodies to release a study
report “Impact of Economic Slowdown on Textile and Clothing
Industry.
EU cotton T-shirt imports began slowing down during the
current year although shipments from China took advantage of
the removal of quotas. Bangladesh resisted Chinese
competitiveness but other suppliers seriously suffered,
including Turkey, Morocco and Mauritius.
US imports of cotton trousers than made of corduroy and
denim further declined in the first quarter this year.
Shipments from China however surged, thanks to the elimination
of US quotas. All other origins dramatically suffered over the
period except a sharp increase of men's cotton trousers from
Egypt, Sri Lanka and Bangladesh.
China's exports and imports of denim cotton fabrics
heavily fell in the first five months of the year, as a result
of the global economic crisis. Prices significantly rose,
however, especially for denim exports to Bangladesh, according
to Chinese customs' data. Trade with Hong Kong remains very
significant.
Raw material costs of polyester producers fell in the
first week of June in India, with staple fiber prices also
declining as a result. Filament prices were mixed with POY
prices being reduced while textured yarn prices were raised,
thanks to stronger demand from weavers.
The American Manufacturing Trade Action Coalition points
out that Bangladesh already is the third-largest exporter of
apparel to the United States, just behind China, Vietnam and
Cambodia.
US apparel import prices slightly declined over the first
quarter this year, reflecting a slight rise in cotton apparel
categories, more than offset by a price cut in man-made fiber
categories. China and Bangladesh raised their cotton apparel
prices while they were sharply reduced by Indian exporters.
The world cotton sector has had a very tough time in the
just completed cotton season. At just about the time
harvesting for the new cotton crop had begun, the economic
turmoil broke out, bringing down with it prices of all
commodities including cotton to new lows. Prices of cotton in
the New York Futures markets had the misfortune of touching
four year lows. This has made a lot of farmers across many
major cotton producing countries like China jittery and
acreage of cotton is expected to fall substantially.
The American branch of the Hohenstein Institute has
created a new textile testing method that allows manufacturers
to evaluate the effects their fabrics may have on the people
who wear them. Scientists at Hohenstein’s Institute for
Hygiene and Biotechnology have developed the ability to test a
knitted fabric’s interaction with living skin cells to
indicate whether a fabric is likely to induce an allergic
reaction or skin irritation in the wearer.
India’s textile exports in 2008-09 are expected to be
close to $22 billion. Shipments in 2007-08 were $21.47
billion. A senior official in the Union Ministry of Textiles
said that domestic demand for textiles and clothing continued
to be significant and export orders were relatively dull.
A delegation of Chinese textile standards officials -
including Fang Xijiang, Director of the Standardization
Institute of the China Textile Academy, and his colleagues
studying US and Western standards used in textile and apparel
manufacturing - recently visited the Rock Hill, S.C.-based
North American headquarters and technology center of SDL Atlas
- a provider of textile testing equipment, supplies,
consumables and services.
President Rahul Mehta, Clothing Manufacturers Association
of India (CMAI) said global financial meltdown has affected
the textile sector, especially on the exports front, though it
has partially been cushioned by the weakening of the Indian
rupee. For the first time, we have been pushed out of the list
of top five exporting countries.
During the last UPA regime, the textile industry attracted
a total investment of Rs 1,04,506 crore in four years till
March 2008. But a majority of this investment was through
incentive schemes like Technology Up gradation Fund Scheme (TUFS),
which provided interest subsidy on loans taken by firms, said
Dayanidhi Maran, Union Minister of Textiles. He said the
ministry will strive to retain the current $22 billion textile
exports next year, till there is revival in the US and EU
markets.
UK and German clothing retail sales significantly
rebounded in May, thanks to a late and sunny eastern this
year. Rising unemployment continued however taking its toll on
clothing sales in France. The situation should relatively
improve in the coming months in the EU, as consumer confidence
slowly rises.
