Monday, November 15, 2010

Chinese Textile Exporters Struggle

Exporters of textiles at the Canton Fair say they are struggling to survive amid rising raw material and labor costs.
“Wages have increased as much as 30%. But several of our partner plants have stopped production because of the worker shortage,” said Chen Su, the assistant to the general manager at Sunvim Group, China’s biggest home textile company, Thursday.

In addition, prices of raw materials are rising rapidly. Cotton prices have risen from 18,160 Yuan (US$2,720) to 27,405 Yuan per tonne, a 51% increase. The prices of other fabrics are also rising. Furthermore, labor and raw material shortages often hampers the production of textile plants, leading to delivery delays, one of the greatest concerns for buyers.

Elliot Gessle, a British buyer at the Canton Fair, thinks Chinese textile products have lost their competitiveness. “Prices of most products are rising. But delivery delays have been the greatest headache,” he said. China’s textile industry is facing competition from other Asian countries with low labor costs. “Quality and efficiency in those countries are improving. They will catch up with China some day,” said Gessle, who also purchases from Laos and Cambodia. China exported US$149.8B of textile products in the 1st 9 months of the yr, a Year-on-Year growth rate of 23.14%. But exporters say the numbers are misleading.

The numbers are growing only because buyers are making bulk orders, said Luo Ping’an, the deputy general manager of Anhui Garments Import and Export Co. “In the past, buyers ordered goods of 1 or 2 months of demand. But now they buy half a year’s goods in one order.” Luo said buyers are making larger orders as they expect prices to rise and they want to avoid delays in delivery.

Chinese textile companies must focus on innovation and branding to address the many challenges they are facing, said Huang Yuefeng, an official with China’s Ministry of Commerce.Guangzhou-based Nandadi Garment Co. succeeded by putting traditional embroidery on jeans. It established its own brand, Vigoss in the United States, said a company representative surnamed Wu at the Canton Fair. “We have opened thousands of stores abroad, significantly increasing revenue and awareness of the brand,” Wu said.

The crisis is an opportunity for the competitive companies who will survive after small and medium-sized companies are forced out of the market, experts say.
—Paul A. Ebeling, Jnr. www.livetradingnews.com

Source: http://www.livetradingnews.com/chinese-textile-exporters-struggle-26891.htm

Saturday, November 6, 2010

Alok Industries to cut debt-equity ratio- Rajas Kelkar,ET Bureau

 5 Nov, 2010, 03.04AM IST
 MUMBAI: Alok Industries, a listed textile-to-retail company, expects to bring down its debt-equity ratio of 1.81 over the next couple of years by generating higher profits and selling part of the real estate business.

Alok Industries CFO Sunil Khandelwal said that the total value of the real estate portfolio, held in step-down subsidiary, is Rs 2,200 crore. The company expects to receive at least Rs 1,500 crore by March 2012 end. “We have 6,40,000 sq ft of commercial real estate held in step-down subsidiaries,” he added.

Alok Industries primarily makes textiles and owns retail stores in India and the UK. The company operates 260 stores called ‘H&A’ in India. Mr Khandelwal said that the company was looking to raise private equity for the retail business two years ago.


“We are looking to expand to 400 stores by March 2011 end. We will look at value unlocking in the retail business only when we reach 700 to 800 stories over the next couple of years,” he added. Mr Khandelwal said that the company follows a franchisee model.


In case of the UK stores, Alok could consider exiting the business, he said. UK retail stores ‘Store twenty one’ are expected to make profits this year. “The idea was to push Alok Industries products. However, these stores no longer sell any significant Alok Industries products,” he added.

While he did not specify any time line for selling this business, he said that the company could evaluate the option of bringing the UK retail brand to India. “We could look at all kinds of possibilities,” Mr Khandelwal said. 

 The core textile business is expected to grow at 10-11%, in line with industry growth. Mr Khandelwal said the textile industry in India is expected to grow to $220 billion from $70 billion currently in the next 10 years. Alok Industries reported Rs 1,451-crore revenue for the quarter ended September 30. The company’s market cap stood at Rs 2,245 crore.


Source: http://economictimes.indiatimes.com/news/news-by-industry/cons-products/garments-/-textiles/Alok-Industries-to-cut-debt-equity-ratio/articleshow/6874176.cms

Textile processing, sizing industries call off strike

 KHALID ABBAS SAIF
FAISALABAD  (November 05, 2010) : Textile Processing and Sizing Industries have called off strike against Gas Shedding Schedule after restoring the gas supply, here on Thursday, while Owners and workers Powerlooms industry took out procession at various places and strongly demanded that the government should immediately banned the export of cotton and yarn to save the Value Added Textile Industry and its three million labourers across the country.

Protestors announced that if demands not accepted, the labour intensive powerlooms industry will observed strike for indefinite period from November 10. Talking to newsmen, Salamat Ali, Chairman, Pakistan Hosiery Manufacturers & Exporters Association (PHMA) North Zone disclosed that the Federal Government has accepted the industrial demand to end the discriminatory gas shedding and assured that gas shedding will be observed across the board under a new schedule, which will chalk out with the consultation of industrialists.

He said that the spinners and other concerned lobbies are creating such an atmosphere as to force the labour intensive and export oriented Value Added Textile Industry to roll back and set down for complete closure. He mentioned that the excessive export of cotton and yarn was damaging the textile industry and exports. He pointed out that India had refused to provide cotton to Pakistan due to its shortfall, while our government facilitating the cotton and yarn exporters ignoring the three million shortfall of cotton.

Salamat Ali, Chairman, (PHMA) North Zone demanded that the export of cotton and yarn should be banned to control the burning situation, which hampering the industry and three million labour's livelihood. He said that the recent 60 percent increase in yarn within a month would also further aggravate the economic situation, while discriminatory gas shedding adding fuel to the fire.
He said that the spinners and other concerned lobbies are creating such an atmosphere as to force the labour intensive and export oriented Value Added Textile Industry to roll back and set down for complete closure. He mentioned that the excessive export of cotton and yarn was damaging the textile industry and exports. He pointed out that India had refused to provide cotton to Pakistan due to its shortfall, while our government facilitating the cotton and yarn exporters ignoring the three million shortfall of cotton.

Salamat Ali, Chairman, (PHMA) North Zone demanded that the export of cotton and yarn should be banned to control the burning situation, which hampering the industry and three million labour's livelihood. He said that the recent 60 percent increase in yarn within a month would also further aggravate the economic situation, while discriminatory gas shedding adding fuel to the fire.

He said that hike in the petroleum products prices would not only create problems for the weavers, knitters and exporters, but at the domestic front the cost of industrial production would also increase many fold. Doing unfair business for industrial sector is yielding negative impact on the domestic and foreign investment in Pakistan, which is registered 30 percent decline during the current fiscal year. Most of the industrialists are facing financial crunch, he added.

He demanded to the government that the export of cotton and yarn should be totally banned till meeting the demands of the domestic sector and should be eliminated the monopolists and capital Mafia, who are adding fuel to the fire by their speculative activities ignoring the national interests.

Addressing a media conference, Waheed Khaliq Raamay, Chairman Council of Loom Owners Association announced that if the government not control the excessive export of cotton and yarn, the power-looms industry would go indefinite strike, which is providing the livelihood to one million workers.
 
Source: http://www.brecorder.com/news/cotton-and-textiles/pakistan/1121208:textile-processing-sizing-industries-call-off-strike.html

Friday, November 5, 2010

Chinese textile exporters struggle amid rising costs

19:44, November 04, 2010     

Exporters of textiles at the Canton Fair, China's largest trade fair, say they are struggling to survive amid rising raw material and labor costs.

"Wages have increased as much as 30 percent. But several of our partner plants have stopped production because of the worker shortage," said Chen Su, the assistant to the general manager at Sunvim Group, China's biggest home textile company, Thursday.

In addition, prices of raw materials are rising rapidly. Cotton prices have risen from 18,160 yuan (2,720 U.S. dollars) to 27,405 yuan per tonne, a 51 percent increase. The prices of other fabrics are also rising.

Furthermore, labor and raw material shortages often hampers the production of textile plants, leading to delivery delays, one of the greatest concerns for buyers.


Elliot Gessle, a British buyer at the Canton Fair, thinks Chinese textile products have lost their competitiveness. "Prices of most products are rising. But delivery delays have been the greatest headache," he said. Exporters of textiles at the Canton Fair, China's largest trade fair, say they are struggling to survive amid rising raw material and labor costs.

"Wages have increased as much as 30 percent. But several of our partner plants have stopped production because of the worker shortage," said Chen Su, the assistant to the general manager at Sunvim Group, China's biggest home textile company, Thursday.

In addition, prices of raw materials are rising rapidly. Cotton prices have risen from 18,160 yuan (2,720 U.S. dollars) to 27,405 yuan per tonne, a 51 percent increase. The prices of other fabrics are also rising.

Source: http://english.peopledaily.com.cn/90001/90778/90860/7188811.html

Cotton Soars to Record on Mounting Demand in China, ‘Bull Feast’

Nov. 4 (Bloomberg) -- Cotton soared to a record $1.4052 a pound in New York on concern that global demand led by China will outstrip production and erode inventories. Prices have rallied 86 percent this year on concern that damage to China’s crop may force domestic mills to import more cotton than estimated, reducing global stockpiles already forecast to drop to a 14-year low. The fiber has been the best- performing commodity on the Thomson Reuters/Jefferies CRB Index over the past 12 months.

“Even at $1.35, demand has not cooled off,” said Rogers Varner, the president of brokerage Varner Bros. in Cleveland, Mississippi. “It’s a bull feast.” Cotton for December delivery rose 4.93 cents, or 3.6 percent, to settle at $1.4045 a pound at 2:48 p.m. on ICE Futures U.S. Earlier, prices reached $1.4052, the highest level since the fiber began trading 140 years ago. The commodity has more than doubled in the past 12 months.
In China, cotton futures for May delivery reached a record of 29,980 yuan a metric ton yesterday on the Zhengzhou Commodity Exchange.

The U.S., the world’s biggest exporter, shipped 560,798 bales of upland cotton for the week ended Oct. 28, up 20 percent from the average of the previous four weeks, the U.S. Department of Agriculture said today. China, the largest user of the fiber, purchased 59 percent of the exports.

Government Price Control
China’s government is increasing its control on the price of cotton and will pay attention to challenges faced by textile companies, said Wen Zhongliang, the commercial counselor at the Ministry of Commerce’s foreign trade department. Wen attributed rising prices to an expected production deficit this year and speculative buying.

“Small, family-owned mills are forced to close due to raw- cotton prices being too high,” Sharon Johnson, a senior analyst at First Capitol Group LLC in Atlanta, said in a report yesterday. China is “especially hard hit,” she said.

Boraas Waefveri AB said it filed for bankruptcy as the rising cost of cotton and a lack of sales at the Krenholm Valduse division in Estonia prevented the Swedish textile maker from returning to profit.
Surging cotton prices may mean more expensive clothes, sheets and towels as textile mills including India’s Arvind Ltd. and retailers such as Next Plc pass along higher costs to their customers.

Next, a Leicester, England-based clothing retailer, said yesterday it will raise prices as much as 8 percent in the first quarter because of the jump in costs. Ahmedabad, Gujarat-based Arvind, the world’s largest denim maker and a supplier to jeans maker Levi Strauss & Co. and Gap Inc., has raised prices by as much as 15 percent, Citigroup Inc. economists Rohini Malkani and Anushka Shah wrote in an Oct. 11 report.

--With assistance from Jae Hur in Tokyo. Editors: Millie Munshi, Steve Stroth
To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Source: http://www.businessweek.com/news/2010-11-04/cotton-soars-to-record-on-mounting-demand-in-china-bull-feast-.html

Lint prices hit Rs 9,000 mark, spot rate at Rs 8,500 amid rumours of tight Supplies

KARACHI  (November 04, 2010) : Prices were sharply higher on the cotton market on Wednesday as mills and exporters did active buying following the tight supplies rumours, dealers said. The Karachi Cotton Association (KCA) raised official spot rate by Rs 200 to Rs 8,500, they said.

In the ready business over 30,000 bales of cotton changed hands between Rs 8,400-9,000, they said. Seed cotton prices in Sindh and Punjab were sharply higher by Rs 100 to Rs 3900-4100 due to panic buying, they said. Market sources said that prices are tracking the NY cotton futures and tight supplies and delay by India in finalising the contracts causing rising uncertainties among cotton traders and this factor is pushing the prices sharply up.

According to a report the latest spike in US cotton futures to record highs replicates a bullish pattern that has been recurring for the last six weeks, where higher highs and higher lows point to a continued upward march. In Asia on Wednesday the US and China cotton futures climbed to all-time highs as tightening global supplies and strong demand from the world's top importer, China, continued to bolster the markets.

Bullish fundamentals have drawn large inflows of speculative funds into cotton, making it the best performing commodity this year, outshining the record-setting gold market and wheat futures. China's benchmark Zhengzhou cotton jumped 4.6 percent to 29,950 yuan a tonne, setting a new record for a third straight day, while the ICE Futures benchmark December cotton contract rose to a historic high of $1.3810 per lb in Asian trade.

On Tuesday the US cotton futures rallied to a fresh record due to speculative fund and trade buying sparked by a surge in China's cotton prices and worries over tight supplies spilling into the spring, analysts said. Analysts estimate that 80 percent of the US cotton crop, which is forecast at 18.87 million (480-lb) bales, already has been sold. They said most other major producers, such as Central Asia and Brazil, have sold their cotton as well. The benchmark December cotton contract rose the five-cent daily limit to trade at a record $1.3426 per lb at 9:57 am EDT (1357 GMT). The session low was at $1.2945.

The following deals were reported: 2000 bales of cotton from Rajan Pur sold at Rs 9000, 3000 bales from Shahdad Pur at Rs 8500-8600, 3000 bales from Tando Adam at Rs 8500-8600, 2000 bales from Mir Pur Khas at Rs 84000-8600, 1000 bales from Hyderabad at Rs 8500, 2000 bales from Sanghar at Rs 8400-8500, 2000 bales from Khairpur 8550-8600, 2000 bales from Upper Sindh at Rs 8700-8800, 400 bales from Chistian at Rs 8400, 400 bales from Khan Pur at Rs 8500, 3000 bales from Burewala at Rs 8500-8600, 1000 bales from Haroonabad at Rs 8400-8600, 1000 bales from Sadiqabad at Rs 8500, 600 bales from Hasil Pur at Rs 8500, 3000 bales from Khanewal at Rs 8500-8700, 200 bales from Shujabad at Rs 8500, 400 bales from Jahania at Rs 8500-8600, 1400 bales from Ahmed Pur at Rs 8600, 800 bales from Jan Pur at Rs 8600, 600 bales from Chichawatni at Rs 8600, 200 bales from Duniya Pur at Rs 8600, 1000 bales from Rajan Pur at Rs 8700-8750and 1000 bales from Dera Ghazi Khan at Rs 8700-8750.

===========================================================================
The KCA Official Spot Rate for Local Dealings in Pak Rupees
---------------------------------------------------------------------------
FOR BASE GRADE 3 STAPLE LENGTH 1-1/32"
---------------------------------------------------------------------------
                                    MICRONAIRE VALUE BETWEEN 3.8 TO 4.9 NCL
===========================================================================
Rate              Ex-Gin   Upcountry   Spot Rate    Spot Rate    Difference
                    For      Price     Ex-Karachi  Ex. KHI. As   Ex-Karachi
                                                  on 02.11.2010
===========================================================================
37.324 Kgs        8,500       120        8,620        8,420            +200
---------------------------------------------------------------------------
Equivalent
---------------------------------------------------------------------------
40 Kgs            9,109       120        9,229        9,015            +214 ===========================================================================
Copyright Business Recorder, 2010


Source: http://www.brecorder.com/news/cotton-and-textiles/pakistan/1120962:lint-prices-hit-rs-9-000-mark-spot-rate-at-rs-8-500-amid-rumours-of-tight-supplies.html

China National Cotton Exchange to Tighten Price Controls, Cut Volatility

By Bloomberg News - Nov 4, 2010 2:16 PM GMT+0530 Thu Nov 04 08:46:44 GMT 2010
China National Cotton Exchange said it will take measures to stabilize cotton prices and reduce volatility, the exchange said in a statement on its website today.
The exchange will curb cotton price manipulations and tighten risk controls, according to the statement.


Source: http://www.bloomberg.com/news/2010-11-04/china-national-cotton-exchange-to-tighten-price-controls-cut-volatility.html

Tuesday, November 2, 2010

OUTLOOK-India cotton seen down on arrivals

 MUMBAI Nov 1 (Reuters) - Indian cotton may edge lower during the week as arrivals are in full swing in most growing areas, but beginning of exports may limit losses, traders said on Monday.
"Arrivals have started in most places now. Prices have cooled down by about two percent since last week," said an official with the state-run procurer Cotton Corp. of India.

The arrivals stood at 2.11 million bales (of 170 kg each) as on October 30, compared with 1.72 million bales during the same period in the previous year, the official said.

India has allowed cotton exports for the 2010/11 season from Monday, an official with the federal textile ministry told Reuters. See [ID:nSGE6A00DS]

India, the world's second-biggest producer and exporter of cotton, delayed exports by one month until Nov. 1, as arrivals of the fibre were delayed. See [ID:nSGE68R0LV]

India has stipulated the exports at 5.5 million bales to facilitate domestic supplies. [ID:nSGE69A0AA]
In India, the most common Shankar-6 variety was trading at 41,600 rupees per candy (of 356 kg each) on Monday, up about 80 percent compared with a year ago, data with the Cotton Association of India showed.

Cotton output in India is likely to jump to a record 35 million bales in 2010/11, higher than the earlier estimates of 32.5 million bales, on better yields. [ID:nSGE68L0F2]
(Reporting by Sourav Mishra; editing by Sunil Nair)

Source: http://in.reuters.com/article/idINSGE6A00IR20101101

Saturday, March 27, 2010

Yarn short-supply leaves weavers, garment makers worried

Spinning mills blame it on labour shortage.
L. N. Revathy
Coimbatore, March 20
The domestic textile producers involved in weaving and garment  manufacture have raised a hue and cry over yarn availability and  rising prices. “Textile mills have stopped cotton yarn supplies. The  situation is getting worse and we are in a fix,” said a garment  exporter in Tirupur.

The knitwear cluster, sources say has not been getting their supply of  cotton yarn for at least a week now. Their monthly requirement of  cotton yarn (Tirupur alone) is estimated at around 27-30 million kg.Sources allege yarn producers of hoarding stock, anticipating a hike  in price-level from April. “They want to capitalise on the present  situation as there is huge demand for yarn. We see no reason for them  to jack the price now,” the Tirupur Exporters Association President,  Mr A. Sakthivel, told Business Line.

A quick glance at the yarn price movement shows that the 40s count  yarn has increased from Rs 139 a kg in August to Rs 170 now When contacted the Southern India Mills Association Chairman, MrJ.Thulasidharan, conceded that the price of yarn was on the rise. “Cotton prices have gone up significantly this season. This coupled  with the steep increase in labour cost, acute shortage of power,compelling mills to operate gensets is pushing the cost further.”

According to SIMA, the daily labour cost has risen from Rs 100-120 to  Rs 170 at present. “Even at these rates, we are unable to get  labourers. There is acute shortage,” Mr Thulasidharan said.On the power front, he said, “Andhra Pradesh alone is facing power  shortage of 50-60 hours a week. The situation here is no better. While  the State Electricity Board managed to supply power at Rs 7/unit in  January, it has not been able to do so since February, and we do not  expect the situation to improve during the summer months.”

“Cotton prices are ruling high and likely to increase further.” 

Shankar-6 for instance was ruling at Rs 25,700 a candy (of 355 kg)  during January. It is now quoting at Rs 27,900 a candy. Sources expect  the rate to touch Rs 30,000-mark before the close of the season.Cotton exports seem to be picking up. Out of the estimated export  volume of 55 lakh bales, 40 lakh bales have already been shipped  during the first five months of this season and sources expect the  export volumes to surpass the estimate in view of the favourable trend  in the international market.

“However, the domeztic market for yarn seems much better than the  international market. Yarn exports are picking up. We are willing to  supply to the consuming segment nearer home, provided the payment  terms are tight and comfortable,” a textile mill source said.Former SIMA Chairman and Managing Director Loyal Textiles, Mr Manikam  Ramaswami said: “Adequate yarn is available, but the mill sector would  consider to supply only to such of those units that paid promptly.”


The spinning units, it is learnt are demanding shorter credit cycle of  30 days against 60 to 90 days earlier. “Cotton is supplied only on  cash and carry basis. With the demand for yarn picking up, we cannot  afford to supply yarn on long credit cycles,” Mr Ramaswami said. He  further said, “the payment terms are rather rotten in the domestic  market. This is compelling us to look at other options. There is good  demand for yarn from China, Bangladesh, Turkey. Even if the rates are  low by Re 1– Rs 2 a kg, we receive our dues on time.”Mr Sakthivel, meanwhile, has appealed to the Union Textiles Minister,  Mr Dayanidhi Maran, to suitably advice the Chairman of the National  Textile Corporation (NTC) to produce the hosiery yarn to meet the  regular supply of yarn to knitwear garment units. TEA has sought  immediate Government intervention to ensure free flow of cotton yarn  to protect the knitwear garment units.

Source: http://www.blonnet.com/2010/03/21/stories/2010032151440500.htm

Water Conservation in Textile Industry

The textile Industry is in no way different than other chemical industries, which causes pollution of one or the other type. The textile industry consumes large amount of water in its varied processing operations. In the mechanical processes of spinning and weaving, water consumed is very small as compared to textile wet processing operations, where water is used extensively. Almost all dyes, specialty chemicals, and finishing chemicals are applied to textile substrates from water baths. In addition, most fabric preparation steps, including desizing, scouring, bleaching, and mercerizing use aqueous systems. According to USEPA a unit producing 20,000 Ib / day of fabric consume 36000 liters of water.

In textile wet processing, water is used mainly for two purposes. Firstly, as a solvent for processing chemicals and secondly, as a washing and rinsing medium. Apart from this, some water is consumed in ion exchange, boiler, cooling water, steam drying and cleaning.

Textile Industry is being forced to consider water conservation for many reasons. The primary reasons being the increased competition for clean water due to declining water tables, reduced sources of clean waters, and increased demands from both industry and residential growth, all resulting in higher costs for this natural resource. Water and effluent costs may in the more common cases, account for as much as 5% of the production costs.

Water Usage
Water usage at textile mills can generate millions of gallons of dye wastewater daily. The unnecessary usage of water adds substantially to the cost of finished textile products through increased charges for fresh water and for sewer discharge.

The quantity of water required for textile processing is large and varies from mill to mill depending on fabric produce, process, equipment type and dyestuff. The longer the processing sequences, the higher will be the quantity of water required. Bulk of the water is utilized in washing at the end of each process. The processing of yarns also requires large volumes of water. The water usage of different purposes in a typical cotton textile mill and synthetic textile processing mill and the total water consumed during wet process is given in table 1 and table 2 respectively.

Table 1: Water Usage in Textile Mills
Purpose Percent Water Use
Cotton Textile Sythetic Textile
Steam generation 5.3 8.2
Cooling water 6.4 -
Demineralised or RO water for specific purpose 7.8 30.6
Process water 72.3 28.3
Sanitary use 7.6 4.9
Miscellaneous and fire fighting 0.6 28


Table 2: Total Water Consumed During Wet Processing
Process Percent Water Consumed
Bleaching 38%
Dyeing 16%
Printing 8%
Boiler 14%
Other uses 24%


Wide variation is observed in consumption mainly due to the use of old and new technologies and difference in the processing steps followed types of machines used.

Table 3: Water Requirements for Cotton Textile Wet Finishing Operations
Process Requirements in Litres / 1000 kg of Product
Sizing 500 - 8200
Desizing 2500 - 21000
Scouring 20000 - 45000
Bleaching 2500 - 25000
Mercerizing 17000 - 32000
Dyeing 10000 - 300000
Printing 8000 - 16000


Every textile processor should have knowledge of the quantity of water used for processing. The volume of water required for each process is tabulated as under:

Table 4: Water Requirements for Synthetic Textiles Wet Finishing Operations
Process Requirements in Litres/1000 kg of Product
Rayon Acetate Nylon Acrylic/ Modacrylic Polyester
Scouring 17000 - 34000 25000 - 84000 50000 - 67000 50000-67000 25000-42000
Salt Bath 4000 - 12000 - - - -
Bleaching - 33000 - 50000 - - -
Dyeing 17000 - 34000 34000 - 50000 17000-34000 17000-34000 17000-34000
Special Finishing 4000 - 12000 24000 - 40000 32000-48000 40000-56000 8000-12000


Washing Efficiency
Washing process is characterized by its washing efficiency that is the amount of the compound that is removed divided by the total amount that could have been removed. Washing efficiency is not directly dependent on the amount of water used but is a function of:


Temperature
Speed of fabric in the washing range
The properties of the fabric
The properties of the washing range

Temperature
The temperature is important in washing because the temperature influences;
The viscosity of water. At a lower viscosity water can better penetrate through the fabric and washing will become more effective.
The affinity of compounds. At a higher temperature the affinity decreases and results in a better washing away of the unwanted components.
Migration of the components from the inner fibre to the water around the fiber. This migration is important for the total time the washing process will take.

Speed of Fabric in the Washing Range
The speed of fabric in the washing range determines the amount of water that is hanged in the fabric by passing a roller in the washing compartment. That is the liquor that was in the fabric before passing the roller with a high concentration of the unwanted components that is replaced by the washing liquor with a low concentration of the unwanted components.

The Properties of the Fabric
The properties of fabric influence the washing effectiveness by the amount of water that can be pressed through the fabric during washing. The openness of the fabric as well as the openness of yarn determines the length of the way the unwanted component has to migrate to the fluid that can be exchanged in the washing process. In the washing process generally only very little water from the pores between the fibres is exchanged when the yarns are strongly twisted this will be practically zero. As migration is a very slow process it will take much longer for all the components to be washed out. The same holds more or less for thicker yarns and heavy weight fabrics.

The Properties of the Washing Range
The effectiveness of the washing range is determined by the number of washing tanks, the number of compartments in each tank, the diameter of the roller and the way the fabric is led through the washing range. The washing effectiveness can be improved by placing rollers on top of the top-rollers. This squeeze off the excess water in the fabric and a better exchange of washing liquid will be realized. Also at high speed these top rollers will prevent water to be taken with the fabric to the next compartment.

Water Conservation and Reuse
Water is expensive to buy, treat, and dispose. If the industry does not have water conservation program, its pouring money downs the drain. Now, water conservation and reuse are rapidly becoming a necessity for textile industry. Water conservation and reuse can have tremendous benefits through decreased costs of purchased water and reduces costs for treatment of wastewaters. Prevention of discharge violations as a result of overload systems can be a significant inducement for water conservation and reuse. By implementing water conservation and reuse programs, the decision to expand the treatment facilities can be placed on hold, and the available funds can then be used for expansion or improvements to process equipment.

The first step in developing a water conservation and reuse program is to conduct a site survey to determine where and how water being used. It would be extremely helpful to develop a spreadsheet and/ or diagram of the water usage with specific details as shown below:

Location and quantity of water usage.
Temperature requirements.
Water quality requirements, i.e. pH, hardness and limitations on solid content, must meet clean water standards, etc.
Any special process requirements.


Water Conservation Measures
Water conservation measures lead to:
Reduction in processing cost.
Reduction in wastewater treatment cost.
Reduction in thermal energy consumption.
Reduction in electrical energy consumption.
Reduction in pollutants load.

Water conservation significantly reduces effluent volume. A water conservation program can cut water consumption by up to 30 percent or more, and the cost savings can pay for the required materials in a very short time. Since the average plant has a large number of washers, the savings can add up to thousands of rupees per year. Other reasons for large effluent volume is the choice of inefficient washing equipment, excessively long washing circles and use of fresh water at all points of water use.

The equipment used in a water conservation program is relatively inexpensive, consisting in most cases of valves, piping, small pumps, and tanks only. The operating costs for these systems are generally very low. Routine maintenance and, in some cases, electricity for the pumps, would be the major cost components.

The payback period for a water conservation system will vary with the quantity of water saved, sewer fees, and costs for raw water and wastewater treatment. In addition to the direct cost savings, a water conservation program can reduce the capital costs of any required end-of-pipe wastewater treatment system. Personnel from textile industry need to be aware of water conservation potential so they can help their organization realize the benefits.

Water Conservation Methods for Textile Mills
Numerous methods have been developed to conserve water at textile mills. Some of the techniques applicable to a wide variety of mills are discussed.

Good Housekeeping
A reduction in water use of 10 to 30 percent can be accomplished by taking strict house keeping measures. A walk through audit can uncover water waste in the form of:

Hoses left running.
Broken or missing valves.
Excessive water use in washing operations.
Leaks from pipes, valves, and pumps.
Cooling water or wash boxes left running when machinery is shut down.
Defective toilets and water coolers

Good house keeping measures often carried out without significant investments, but leading to substantial cost savings and the saving of water, chemicals and energy. Good house keeping measures are essential for a company, which is critical about its own behaviors. Implementing the following can make significant reductions in water use

Minimizing leaks and spills.
Plugging leakages and checks on running taps.
Installation of water meters or level controllers on major water carrying lines.
Turn off water when machines are not operating.
Identifying unnecessary washing of both fabric and equipment.
Training employees on the importance of water conservation

Water Reuse
Water reuse measures reduce hydraulic loadings to treatment systems by using the same water in more than one process. Water reuse resulting from advanced wastewater treatment (recycle) is not considered an in-plant control, because it does not reduce hydraulic or pollutant loadings on the treatment plant.

Reuse of certain process water elsewhere in mill operations and reuse of uncontaminated cooling water in operations requiring hot water result in significant wastewater discharge reductions. Examples of process water reuse include:

1. Reuse of Water Jet Weaving Wastewater
The jet weaving wastewater can be reused within the jet looms. Alternatively, it can be reused in the desizing or scouring process, provided that in-line filters remove fabric impurities and oils.

2. Reuse of Bleach Bath
Cotton and cotton blend preparation are performed using continuous or batch processes and usually are the largest water consumers in a mill. Continuous processes are much easier to adapt to wastewater recycling/reuse because the waste stream is continuous, shows fairly constant characteristics, and usually is easy to segregate from other waste streams.

Waste stream reuse in a typical bleach unit for polyester/cotton blend and 100 percent cotton fabrics would include recycling j-box and kier drain waste water to saturators, recycling continuous scour wash water to batch scouring, recycling washer water to equipment and facility cleaning, reusing scour rinses for desizing, reusing mercerizes wash water or bleach wash water for scouring.

Preparation chemicals, however, must be selected in such a way that reuse does not create quality problems such as spotting.

Batch scouring and bleaching are less easy to adapt to recycling of waste streams because streams occur intermittently and are not easily segregated. With appropriate holding tanks, however, bleach bath reuse can be practiced in a similar manner to dye bath reuse and several pieces of equipment are now available that has necessary holding tanks.

3. Reuse of Final Rinse Water from Dyeing for Dye Bath Make-Up
The rinse water from the final rinse in a batch dyeing operation is fairly clean and can be used directly for further rinsing or to make up subsequent dye baths. Several woven fabric and carpet mills use this rinse water for dye bath make-up.

4. Reuse of Soaper Wastewater
The coloured wastewater from the soaping operation can be reused at the back grey washer, which does not require water of a very high quality. Alternatively, the wastewater can be used for cleaning floors and equipment in the print and color shop.

5. Reuse of Dye Liquors
The feasibility of dye liquor reuse depends on the dye used and the shade required on the fabric or yarn as well as the type of process involved. It has already been applied whilst disperse dyeing polyester, reactive dyeing cotton, acid dyeing nylon and basic dyeing acrylic, on a wide variety of machines. However, commission dyeing where the shades required are much more varied and unpredictable would make the reuse of dye liquor difficult. But, given the right conditions dye liquor could be reused up to 10 times before the level of impurities limits further use.

6. Reuse of Cooling Water
Cooling water that does not come in contact with fabric or process chemicals can be collected and reused directly. Examples include condenser-cooling water, water from water-cooled bearings, heat-exchanger water, and water recovered from cooling rolls, yarn dryers, pressure dyeing machines, and air compressors. This water can be pumped to hot water storage tanks for reuse in operations such as dyeing, bleaching, rinsing and cleaning where heated water is required or used as feeding water for a boiler.

7. Reusing Wash Water
The most popular and successful strategy applied for reusing wash water is counter-current washing.


The counter-current washing method is relatively straightforward and inexpensive. For both water and energy savings, counter-current washing is employed frequently on continuous preparation and dye ranges. Clean water enters at the final wash box and flows counter to the movement of the fabric through the wash boxes. With this method the least contaminated water from the final wash is reused for the next-to-last wash and so on until the water reaches the first wash stage, where it is finally discharged. Direct counter-current washing is now generally built into the process flow sheet of new textile mills. It is also easy to implement in existing mills where there is a synchronous processing operation.

Use of Automatic Shut-off Valves
An automatic shut-off valve set to time, level, or temperature controls the flow of water into a process unit. One plant estimated that a reduction in water use of up to 20 percent could be achieved with thermally controlled shut-off valves.

Use of Flow Control Valves
A flow or pressure-reduction valve can significantly reduce the quantity of water used in a wash or clean-up step. These valves are particularly useful in cleaning areas where operators are not always aware of the need for water conservation.

Flocculation of Clean Water of Pigment Printing
A rotary screen printer uses as much water as a continuous washing range. All this water is used to wash the belt, to rinse the pipes and pumps and to clean the screens and squeegees. The water does not come in contact with the fabric. When only pigments are used for printing, it is relatively easy to coagulate the pigments and let them settle. The result is the clean water, which can be used for cleaning purposes.

Use Single Stage of Processing
Knitted fabric process combined bleaching/scouring and dyeing giving considerable saving in water. The scouring and bleaching process takes place for 10-20 minutes and without draining the bath the dyeing is carried out without any loss of depth of colour value. In some cases the finishing process can also be carried out along with the dyeing process.

Use of Low Material to Liquor Ratio Systems
Different types of dyeing machinery use different amounts of water. Low liquor ratio dyeing machines conserve water as well as chemicals and also achieve higher fixation efficiency but the washing efficiency of some types of low liquor ratio dyeing machines, such as jigs, is inherently poor; therefore, a correlation between liquor ratio and total water use is not always exact. Typical liquor ratios for various types of dyeing machines are given below:

Table 5: Liquor ratio in Different Dyeing Machines
Dyeing Machine Typical Liquor Ratio Liquor / Goods
Continuous 1:1
Winch 15:1 - 40:1
Jet 7:1 - 15:1
Jig 5:1
Beam 10:1
Package 10:1
Beck 17:1
Stock 12:1
Skein 17:1


Water Conservation Measures in Dyeing Equipment
Washing and rinsing are both important for reducing impurity levels in the fabric to pre-determined levels. Water and wastewater treatment prices are increasing, the optimization of water use pays dividends. One possible option is to reduce rinse water use for lighter shades. Here are some successful water reduction projects in batch and continuous operations.

Winch Dyeing: Dropping the dye bath and avoiding overflow rinsing could reduce water consumption reduced by 25%.

High and Low: Replacing the overflow with Pressure jet dyeing batch wise rinsing can cut water consumption by approximately 50%.

Beam Dyeing: About 60% of water preventing overflows during soaking and rinsing may reduce consumption. Automatic controls proved to be quite economical with a payback period of about four months.

Jig Dyeing: A wide range of reductions ranging from 15% to 79% is possible by switching from the practice of overflow to stepwise rinsing. Rinsing using a spray technique is also effective.

Cheese Dyeing: A reduction of around 70% is possible following intermittent rinsing.

Continuous Operation: A 20%-30% saving was realized by introducing automatic water stops. Counter-current washing proved to be the most effective method. Horizontal washing equipment delivered the same performance as two vertical washing machines, using the same amount of water.

Source:http://www.yarnsandfibers.com

Pakistan May Produce Record Cotton Output in 2010 as Rates Rise

March 9 (Bloomberg) -- Farmers in Pakistan, the world’s fourth-largest producer of cotton, may increase planting this year after domestic prices rose to a record and a global economic revival lifts demand from textile makers.

Output may increase to a record 16 million bales, Abdul Rasheed Khan, chairman of the Pakistan Cotton Ginners Association, said in a telephone interview from Multan today.Pakistan produced 12.7 million bales this season, in line with the government’s revised target, compared with an output of 12.1 million bales last year, Khan said. The government had initially set a target of 13.5 million bales.

Domestic prices rose to a record 5,750 rupees ($68) for 37.32 kilograms (82.3 pounds) yesterday, according to the Karachi Cotton Association. Cotton futures for May delivery fell 0.39 cent, or 0.5 percent, to 82.04 cents a pound on ICE Futures U.S. in New York. The most-active contract reached a two-year high of 84.6 cents on March 1 as adverse weather reduced output in the U.S., the world’s largest exporter, and demand revived.“Despite meeting the production target, local prices increased 50 percent this season, at a faster pace than the international market,” said Sohail Naseem, chairman of the Karachi Cotton Association. “The reason was demand was high as 16 million bales and the lack of hedging.” Cotton is planted in Pakistan between April and June, and harvested between October and December. Pakistan produced a record 14.4 million bales in 2005.

Pakistan may need to import as much as two million bales this year to meet rising demand from textile makers, Khan said. Mills have so far bought 800,000 bales from overseas, mostly from India, he said.Pakistan’s textile exports which accounts for two-thirds of the nation’s overseas sales, rose 2.4 percent to $5.95 billion in the seven months ended Jan. 31, according to the Federal Bureau of Statistics. The government plans to increase textile exports to $25 billion by 2014.

Editors: Naween A. Mangi, Ravil Shirodkar

Source:
http://www.businessweek.com/news/2010-03-09/pakistan-may-produce-record-cotton-output-in-2010-as-rates-rise.html

USDA Report: Cotton Stocks Tighten As Expected

NEW YORK, Mar 10, 2010 (Dow Jones Commodities News via Comtex) -- (Adds background, analysts' market outlooks.)By Holly Henschen of DOW JONES NEWSWIRESThe U.S. Department of Agriculture modestly adjusted forecasts for 2009-10 U.S. and world cotton consumption Wednesday, resulting in a supply and demand situation analysts said had been anticipated by the market.

"A lot of the changes in the U.S. and world are fairly small and may have already been factored into the market," said Gary Raines, fibers and textiles analyst at FCStone in Nashville, Tenn.

Cotton prices on ICE Futures U.S. were modestly higher ahead of the report but turned lower before quickly recovering losses. As of 9:52 a.m. EST, May cotton futures were back down 2 points at 80.33 cents a pound.

Higher cotton consumption from November through January prompted the USDA to raise its projection for U.S. 2009-10 domestic cotton consumption to 3.5 million bales from the 3.4 million bales forecast in February.

Analysts had anticipated the increase after several months of data showing domestic consumption was on the rise. U.S. textile mills used cotton at a seasonally adjusted rate of 3.660 million 480-pound bales in January, up from 3.538 million bales in December, the National Cotton Council said Feb. 25.

The USDA left its outlook for 2009-10 U.S. cotton production unchanged at 12.40 million bales.The USDA also left its estimate for 2009-10 U.S. cotton exports unchanged at 12 million bales.

As an effect of other changes, the USDA lowered its estimate for 2009-10 domestic cotton ending stocks to 3.2 million bales from the 3.3 million bales forecasts in the last report.

"Tighter [U.S.] ending stocks and higher consumption points to a smaller stocks-to-use ratio, which is supportive of prices," Raines said.

The USDA also adjusted world data to reflect higher consumption and lower ending stocks. The USDA trimmed outlook for world cotton production by just over 1% to 102.24 million bales from the 102.74 million bales forecast last
month.

The change came as the USDA decreased its projection for China's 2009-10 cotton production to 31.50 million bales from 32 million bales estimated in February.Analysts expected the USDA to reduce China's crop. In late February,
China's National Bureau of Statistics estimated the country's 2009-10 cotton production down 15% on the year at 6.4 million tons.China is the world's top cotton producer, importer and textiles manufacturer, as well as the top destination for U.S. cotton exports.The USDA also raised its outlook for China's 2009-10 cotton imports to 9.50 million bales from the 9 million bales anticipated in the last report.The USDA slightly increased its outlook for 2009-10 world cotton
consumption to 115.70 million bales from 115.53 million bales projected in February.Aside from higher outlooks for U.S. cotton use, Turkey and Vietnam are also expected to add to cotton consumption in 2009-10, the USDA said.

The USDA lowered its outlook for global cotton ending stocks to 51.41 million bales from the 52.08 million bales projected last month.

Analysts said cotton futures have found little direction from the report. Cotton prices, which rallied 22% from Feb. 5 through March 1, have stalled out and are creeping lower. May cotton slid 4.7% from the March 1 high of 84.60 cents through Tuesday's close at 80.33 cents a pound. Cotton rallied on expectations for strong demand following strong U.S. cotton export sales and talk of an economic recovery."Traders that were hoping the report would furnish a reason for the market to break out of its consolidation one way or another were obviously disappointed," said Mike Stevens, an independent cotton broker and analyst in Mandeville, La.Raines said traders' attention will now turn to planting for the coming season.

The USDA said in a preliminary report that U.S. producers are likely to plant 10.5 million acres of cotton in 2010 as recent high prices make the fiber attractive compared to alternative crops like soy and corn. The USDA is scheduled to release its 2010 spring plantings report March 31.

Nonetheless, indecision remains a them in the market, said Sharon Johnson, senior cotton analyst at First Capitol Group in Atlanta."The second half of March should be more sideways [trade] with erratic, volatile behavior as traders are less certain and mixed in their opinions," Johnson said.

-By Holly Henschen, Dow Jones Newswires; 212-416-2138; holly.henschen@dowjones.com
(END) Dow Jones Newswires

Source: http://news.tradingcharts.com/futures/9/5/136507759.html

Cotton Market Commentary – 2010.03.10

Posted on10 March 2010. Tags: Cotton, SoftsBelow is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!The market went into a holding pattern overnight ahead of the USDA’s March supply and demand report, after dropping sharply in pre-report action yesterday. Overnight action consisted of a small bounce that flew in the face of a higher dollar. Some traders are looking for another adjustment upward in US cotton exports today with a commensurate drop in ending stocks, but the slowdown in export sales last week may have reduced the likelihood that another significant adjustment will be made on the March report. Open interest continues to climb with the total up over 23,000 contracts in cotton since mid February as of March 9th.

Economic news and sentiment remains on the positive side with China’s announcement that their exports have risen to the highest levels in about three years. This continues the idea that China and much of Asia are in full recovery mode, and some analysts are even expecting an increase in jobs in the US during the month of March. In addition, the EU and Greece appear to be working out the Greek debt crisis. This still leaves a lot of question marks about the EU and about consumer demand in the US, although the S&P has risen back to near its January highs. Investors were sellers yesterday following nearly a week of successively lower highs in the May contract. Traders said that the push below the previous day’s lows generated a wave of selling by commission houses that helped to accelerate the losses as the day session progressed. The United States Trade Representative Ron Kirk said on Tuesday that he hopes the US can negotiate a settlement of the ongoing trade dispute with Brazil over US cotton subsidies. He noted that otherwise this would require negotiations with Congress on program changes in cotton. Deliveries against the March contract as of March 10th were 228 contracts, taking the total for the delivery period to-date to 4,118 contracts. Stocks registered for delivery against the ICE No. 2 cotton contract kept on rising yesterday, hitting 651,055 running bales versus the previous total of 630,905 running bales.


TODAY’S GUIDANCE: The cotton market relieved much of its pent-up selling pressure yesterday, but there is likely to be further selling over the short term barring a bullish surprise on today’s reports or a sharp drop in the dollar. Continue to look for a decline to near 79.00 in the May contract and possibly as low as 77.83. First support is just above 79.70 in the May contract with next support at 80.00 and then at 77.83. First resistance is at 81.82.

Source:
http://thehightowerreport.com/2010/03/10/cotton-market-commentary-2010-03-10/

Cotton prices surge in February addtime:2010-03-02

Cotton prices increased sharply in February 2010. The Cotlook A Index rose from 75.35 cents per pound on February 1 to 85.55 cents per pound on February 26. Cotton prices are supported by strong fundamentals: reduced production and rebounding mill use are expected to generate a 15% drop in global cotton stocks.

Based on the expected change in the ratio of ending stocks to use outside China and the average Cotlook A Index to date, the ICAC Price Model is projecting the 2009/10 Cotlook A Index at 74 cents per pound, 21% higher than in the preceding season. The 95% confidence level extends from 69 cents to 79 cents per pound. The daily Index could remain above 80 cents per pound for some time, but competition with polyester and the expected increase in 2010/11 cotton production could cause prices to return to lower levels for the last few months of the 2009/10 season.

Higher prices paid for 2009/10 cotton, combined with the recent decline in prices of grains and oilseeds and relatively stable production costs, will encourage farmers to increase cotton plantings in 2010/11. World cotton production is forecast to rebound by 10% to 24.4 million tons. World cotton mill use is expected to continue to recover in 2010/11, growing by 3% to 24.8 million tons, driven by continued improvement in global economic growth. World cotton trade is projected to increase slightly in 2010/11 to 7.5 million tons. A small reduction in cotton ending stocks is expected in 2010/11.

Source:
http://www.chinafabricsupplier.com/industry_news/Cotton-prices-surge-in-February-77.html

OUTLOOK-India cotton seen higher on soaring exports

MUMBAI, March 8 (Reuters) - India's cotton prices may remain higher this week after a federal minister backed the decision not to curb soaring exports of the commodity despite domestic price rise, analysts and traders said.

"There is sufficient stock of cotton in the country to meet the demand of the mills as well as export. No proposal is under consideration for banning cotton export at this stage," Panabaaka Lakshmi, the junior textiles minister told parliament last week. See [ID:nSGE6230HP]Earlier, A B Joshi, textile commissioner and chairman of Cotton Advisory Board (CAB) told Reuters about government's stand not to ban exports.India's cotton export in the first five months of 2009/10 cotton year jumped by 253 percent to 4.13 million bales, data on textile ministry's website showed.

The cotton year runs between October and September.Prices have risen about four percent in the past three weeks after the govt clarified unabated exports, analysts said."South Indian mills have become active buyers....export demand has increased from Bangladesh and Pakistan in the last week," said an official with the state-run procurer and exporter, Cotton Corp of India Ltd.

Analyst and traders said falling arrivals are also likely to support prices.
The daily average arrivals have dropped to 135,000 bales from about 160,000 bales a week ago, the Cotton Corp official said.

India's cotton arrivals stood at 23.1 million bales of 170 kg as on March 6, down from 23.8 million bales during the same period last year.

Arrivals have fallen sharply in Maharashtra, but rose in Gujarat this year, data showed.Arrivals rose about 22 percent to 7.6 million bales in Gujarat, while they were down over 21 percent to 4.8 million bales in Maharashtra.

The two states are India's top cotton producers.International cotton prices touched a two year high earlier this month. See [ID:nN03399796]
(Editing by Prem Udayabhanu)

Source:
http://in.reuters.com/article/domesticNews/idINSGE6270I520100308?sp=true

Cotton arrivals fall 2.9%: Gujarat tops in production

MUMBAI (Commodity Online): According to recent statistics provided by the central cotton body, Cotton Corporation of India (CCI), the cotton arrivals in India have fallen as much as 2.9% year-on-year for the  period October 1 –March 6, 2010.

As per the provided figures, the cotton arrivals in India is seen  falling during Oct 1-Mar 6, which was 23.1 million bales (1 bale=170  kg), down 2.9% from a year back levels.

Arrivals in Gujarat during the same period were 7.60 million bales, up  21.6% on year. Gujarat has emerged as the country's largest cotton  producing state. In Maharashtra, arrivals were lower by 20.7% at 4.8  million bales.

In north Indian states of Punjab, Rajasthan and Haryana, arrivals were  lower by 0.4% at 3.58 million bales. Punjab witnessed arrivals of 1.3  million bales, down 18.8% from a year ago. Arrivals in Haryana were  1.30 million bales compared with 1.28 million bales a year ago.  Rajasthan arrivals were higher by 37.3% at 975,000 bales during the  same period.

Arrivals for southern states of Andhra Pradesh, Karnataka and Tamil  Nadu stood at 4.84 million bales, down 6.7% from a year earlier.  Andhra Pradesh arrivals were down 9.4% at 4 million bales during the  same period. Spot cotton prices on NCDEX remained lower at Rs.588.4  down by 0.57% from its previous close.
 

Source:
http://www.commodityonline.com/news/Cotton-arrivals-fall-29-Gujarat-tops-in-production-26255-3-1.html

Reduced World Cotton Stocks Driving Prices (Feb 25, 2010)

Good demand for cotton products and reduced cotton production worldwide should mean good prices for U.S. cotton farmers as they begin planning for the 2010 cropping season.

Southeastern cotton growers had a good crop in 2009, though as much as 20 percent was likely lost to late season rains. Similar weather  problems hampered cotton production in other areas of the world.

With demand for cotton products weathering the economic recession as  well or better than most consumer goods, reduction in world stocks of  cotton over the past two years is likely to drive cotton prices up for  the 2010 crop.

Cotton growers from California to the Carolinas planted slightly more  than nine million acres in 2009, down 3.5 percent from 2008. As much a  15 percent of the crop was abandoned — in large part to record  rainfall from the middle to traditional end point of cotton harvest in  the Southeast and Mid-South.

What started out to be a great crop in the Southeast, especially in  the upper Southeast, was significantly reduced by heavy rainfall. Mike  Griffin, who farms about a thousand acres of cotton near Suffolk, was  still picking cotton well into January. He says he expects to lose  about 15 percent of the crop to the wet conditions.

Some of the abandoned acreage came in southwest Georgia where several  tropical weather fronts dumped more than 20 inches of rain during what  should have been peak harvest season.

While weather related yield cutbacks created sporadic economic  problems for farmers in the Southeast, these woes did further reduce  the total amount of cotton available in the world and will likely  contribute to higher prices for the 2010 crop.

Because of the delayed harvest, total U.S. production is difficult to  determine, but should finish up around 12.5 million bales.

On a global basis cotton production is expected to be down almost five  million bales. Small gains in production in South and Central America  are more than offset by China’s decline in cotton production of over  five percent.

Source:

http://www.farms.com/FarmsPages/Commentary/DetailedCommentary/tabid/192/Default.aspx?NewsID=28402

Yarn likely to cost more

BS Reporter / February 27, 2010, 0:05 IST

Excise duty has been increased from 8% to 10%.

The government has increased excise duty on petrochemicals in the organic chemicals category. The notification issued by the Central Board of Excise and Customs states that DMT, PTA, MEG and benzene to produce caprolactum and acrylonitrile have been raised from 8 per cent at present to 10 per cent. While caprolactum is a raw material for producing nylon yarn, other petrochemicals are raw materials for polyester yarn. Today’s government notification, which supersedes the earlier one, gives effect to these changes. It will result in an increase in the final product prices of synthetic yarns. Reliance Industries and Alok Textiles are some of the major producers of these yarns. Sunil Khandelwal, CFO, Alok Industries, said: “The final duty burden will not be much as these are modvatable, but marginal increase in duties will be passed on to the ultimate consumer”. Owing to this, yarn prices are expected to go up by 1-2 per cent or Rs 1 to Rs 1.50 a kg.

Producers manufacture fibre from these petrochemicals. And the duty on fibre too has been increased from 8 to 10 per cent, but duty paid on basic petrochemicals can be deducted from the duty on fibre, hence, overall it would not have much impact. Khandelwal believes the market will absorb these hikes since cotton yarn is more expensive and cotton prices are very high. However, Jayesh Pathak, president of the Bombay Yarn Merchant Association believes that “currently the demand for synthetic yarn is low and while producers may raise prices, the market may not be able to digest the hike.”

Source:
http://www.business-standard.com/india/news/yarn-likely-to-cost-more/386925/

Tuesday, March 2, 2010

Rising Wages In China = Re-Valuing China’s Currency

Rising Wages In China = Re-Valuing China’s Currency
By Mark Perry on March 1, 2010
NEW YORK TIMES — “Just a year after laying off millions of factory workers, China is facing 
an increasingly acute labor shortage. As American workers struggle with near double-digit unemployment,
unskilled factory workers here in China’s industrial heartland are being offered signing bonuses. 
Factory wages have risen as much as 20 percent in recent months
Some manufacturers, already weeks behind schedule because they can’t  
find enough workers, are closing down production lines and considering  
raising prices. Such increases would most likely drive up the prices  
American consumers pay for all sorts of Chinese-made goods. Rising  
wages could also lead to greater inflation in China.
Reasons for the labor shortage?
For one, the Chinese government has rapidly expanded postsecondary  
education. Universities and other institutions of higher learning  
enrolled 6.4 million new students last year, compared to 5.7 million  
in 2007 and just 2.2 million in 2000. At the same time, China’s birth  
rate has been sliding steadily ever since the introduction of the “one  
child” policy in 1977. Labor shortages have returned quickly in recent  
weeks as these long-term trends have collided with a recovery in  
overseas demand for Chinese goods.
Consumer spending is also rising briskly; auto sales more than doubled  
last month from a year before, and this has created many jobs in  
retailing, restaurants, hotels and other inland businesses.
Though the wage boost increases the prospect of inflation, it may have  
another more salutary aspect. The Obama administration has been  
pushing China to let the renminbi rise against the dollar, which would  
erode some of China’s formidable advantage in export markets. Rising  
wages in China have the same effect - while also giving Chinese  
families more spending power.”
Source:
http://www.dailymarkets.com/economy/2010/03/01/rising-wages-in-china-re-valuing-chinas-currency/