Downstream synthetic textile manufacturers are urging the government to revoke Quality Control Orders (QCOs) on man-made fibres (MMF), which they have undermined the competitiveness of the MMF supply chain by limiting access to affordable and specialised raw materials. With the textile sector already grappling with weak domestic demand, shrinking exports, and an underdeveloped raw material value chain, QCOs on polyester and viscose inputs have further exacerbated its woes, leading to significant idling of production capacity and balance sheets turning red, according to industry representatives. “We do not get our raw material at internationally competitive prices. That is the biggest problem, which is impacting our exports. The first item in the value chain, the raw material that you use for synthetic textiles, is either polyester staple fibre (PSF) or viscose staple fibre (VSF). All these basic raw materials are at least 20 per cent more expensive in India than anywhere else in the world. That is killing our competitiveness,” Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI) told The Indian Express. Industry players report that the market prices of PSF and VSF increased in FY24 following the implementation of QCOs on these inputs early on in the financial year. A QCO mandates foreign exporters to obtain Bureau of Indian Standards (BIS) certification to sell products covered under it in India. It is aimed towards curbing the import of poor-quality products into the country.
BIS, industry players allege, has been highly selective in granting certifications under the PSF and VSF QCOs to foreign exporters. For instance, while 65 per cent of PSF imports in 2022-23 came from China and Thailand. The BIS has not certified any Chinese unit alongside only three Thai units, two of which are owned by Indorama Ventures, which also manufactures PSF in India. Similarly, while 50 per cent of VSF imports in FY23 came from Indonesia and Singapore, no company in the two countries has received BIS certification. Moreover, the BIS has certified only three overseas VSF units in Austria and the United Kingdom, all owned by Lenzing AG. However, Lenzing’s Indonesia plant is yet to be certified. Consequently, PSF imports dropped 43 per cent in FY24 to Rs 520 crore from Rs 917 crore in FY23, as per official trade data. Similarly, VSF imports plummeted 65 per cent to Rs 710 crore from Rs 2,033 crore in the same period. Curbing of VSF and PSF imports has forced downstream users– including spinners, weavers, and knitters, to rely more heavily on domestic fibre supplies. Various industry representatives told The Indian Express that these inputs are more expensive in the domestic market, which also lacks adequate supply of specialised fibres.
In FY24, the MMF textile sector experienced a significant downturn, according to Directorate General of Commercial Intelligence and Statistics (DGCIS) data compiled by CITI. Exports of MMF apparel fell by 22 per cent to $2.89 billion from $3.53 billion in FY23. Overall exports in the MMF sector dropped by 11 per cent to $9.03 billion from $10.02 billion.
“The QCOs are a lethal thing that they have done. There is nothing wrong with quality control to ensure that the end product which the consumer is using doesn’t trouble the skin. If at all they have to apply QCOs, they should apply it on garments and fabrics. What is a QCO on raw materials going to do? It is not going to ensure that the end product is correct. It is a non-tariff barrier and a protection to them (domestic industry) so that they can charge higher prices,” Mehra said. In a meeting of the National Committee on Textiles & Clothing (NCTC) in May, representatives from various industry bodies called for suspending PSF and VSF QCOs for a few years to allow domestic upstream manufacturers to become competitive. The temporary removal of these QCOs, they argued, will help revitalise the sector by allowing access to cheaper raw material and improving sourcing flexibility. In March earlier this year, The Indian Express had analysed official documents obtained through the RTI Act to show how Aditya Birla Group-owned Grasim Industries Ltd lobbied the Ministry of Textiles to implement a QCO on VSF to curb imports. Grasim Industries is the sole producer of VSF in India. In August, 2021, the Competition Commission of India (CCI) issued an order stating that Grasim had abused its dominant position in the VSF market “by charging discriminatory prices to its customers, denying market access and imposing supplementary obligations upon its customers”. Grasim subsequently appealed the order before the National Company Law Appellate Tribunal (NCLAT) and the case is currently ongoing.
Source: Indian Express
Surat: A delegation of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) met Gujarat chief minister Bhupendra Patel and put forward its pending demands. The CM assured solutions to the demands of businesses and industries from the south Gujarat region. The delegation included SGCCI president Vijay Mevawala, vice-president Nikhil Madrasi, secretary Niram Mandela, treasurer Mrunal Shukla and representatives of various industries and businesses. One of the key demands put forward by the delegation was the urgent need for a textile policy. “In a meeting with SGCCI in Oct 2023 the govt gave assurance to announce the policy before election. Due to the delay in declaring the policy many industrial projects are on hold,” SGCCI stated in a communique. The chamber also requested the finalization of draft TP schemes, which have been pending for over 20 years, affecting the real estate sector. The delegation also raised concerns about the quality of electricity transmission in the Dakshin Gujarat Vij Company Ltd. (DGVCL) area, particularly in the Kim, Karanj, and Mora Borasara subdivisions. They claimed that “DGVCL disconnects the power multiple times by just sending an SMS” and demanded improvements in the quality of service. SGCCI made a representation on behalf of the South Gujarat Game Zone and Amusement Park Association, requesting relief for the game zones in the region that remain sealed despite adhering to govt guidelines. The chamber highlighted various issues related to GIDCs, such as the 18% GST on lease transfers, high subdivision of plots, and the collection of dues from former property owners by those who purchase the property through auctions from the National Company Law Tribunal (NCLT) or Debt Recovery Tribunal (DRT). SGCCI requested the CM to make a representation to the central govt to clarify that GST should not be applied to such transactions.
Source: Times of India
A 10-member delegation from Taiwan is in Tamil Nadu till July 12 exploring possibilities for joint ventures, better trade, and technology collaboration. G.R. Gopikumar, convenor of the Textile Panel of the Confederation of Indian Industry (CII), Tamil Nadu, told the media on Wednesday that a delegation from Tamil Nadu visited Taiwan last October and had business-to-business meetings with the textile industry heads and government officials in Taiwan. With strengths in technical textiles, especially sportswear, Taiwan is a leading manufacturer in the manmade fibre (MMF) sector. The 15-member delegation from Tamil Nadu invited the textile industry in Taiwan to visit India, he said.
The Taiwan delegation met officials of the Union Textile Ministry in New Delhi and visited factories in Coimbatore, Tiruppur and Erode districts on July 10 and 11. They also had meetings with industry heads in Coimbatore on July 10 and will take part in discussions with Tamil Nadu government officials in Chennai on July 12. K Vel Krishna, co-convenor of the panel, and Mr. Gopikumar said of the $40 billion textile industry size in Taiwan, only about $ 12 billion is in Taiwan. The rest are made in Indonesia, Vietnam and Cambodia by Taiwanese industrialists. They are looking at India to shift base from China. They want to understand the MMF eco system in India, the infrastructure facilities, and technology available. Taiwan is also very strong in textile recycling technologies and industries in India can benefit from it. Mr. Gopikumar said the CII has initiated a study with funding from the Tamil Nadu government on the technical textile industry in the State. The study will be done soon and will cover areas such as how brands look at the industry here. Dharmendra Pratap Yadav, Secretary of the Handloom, Handicraft and Textiles, Tamil Nadu, said in a press release the delegation is engaging in discussions with the State government to explore various opportunities for strategic partnerships, collaboration in global supply chains, and the vast Indian domestic market. M Vallalar, Textiles Commissioner, Tamil Nadu government, said, “Taiwan, with its advancements in environmental protection and recycling technologies, can support India’s sustainability efforts by potentially transferring these technologies.”
Source : The Hindu
The Coimbatore-based Indian Texpreneurs Federation (ITF) has presented growth plans for the textile and apparel sectors to the Textiles Minister Giriraj Singh. One of the suggestions was to double cotton yield to 1,000 kg per hectare. The federation represents the entire value chain of textile manufacturing in Tamil Nadu with a member base of 500 manufacturing units. Improving cotton yield to 1,000 kg per hectare can be the game changer for the entire value chain of Textiles & also boost farmer income. The present yield of 450-500 kg/ha in India is one of the lowest when compared with other producing countries like the US, China, Australia and West Africa, said the federation’s convenor D Prabhu, who met the minister in Delhi on Tuesday.
China plus One
The federation said that with suitable policy and directional changes, India can utilise the China plus One opportunity in apparel exports and improve the current monthly run rate of $1.5 billion apparel exports in a steady state manner. In comparison, China’s monthly run rate of exports currently is at $12 billion in apparel alone.
To grab more market share from the current 2 per cent in the US man made fibre apparel market, which is valued at $35 billion, India needs to create knowledge partnerships with MMF specialised countries and also do similar exercises within Indian clusters. As market diversification efforts, India should work with non-traditional markets like Japan, which has $23-billion potential. The team presented an idea of selecting five exporting companies each from five major clusters and hand holding them as a team. This will enable a positive mindset and experience towards these markets, Prabhu said. Satellite mapping of cotton cultivation, new plans to boost e-commerce fashion exports and structural issues like import duties on cotton, inverted duty structure on MMF also were discussed in detail. Satellite mapping is a scientific way of knowing the crop size and such data will reduce speculation about output and help farmers and industry to take right calls, he said.
Fashion e-commerce
Fashion e-commerce exports are an opportunity for SMEs to tap the global audience with lesser cost and also with better margins. Both the Central and State textile ministries can create a separate cell to handhold SME apparel and home textile makers to build business structure in this fashion e-commerce space, he said.
Inverted duty structure on MMF was 18 per cent for fibre; 12 per cent on yarn and 5 per cent on fabric. More efficiency can be brought in to the MMF eco manufacturing eco system with rationalising the duty structure, he said. The Minister assured his commitment towards taking all round efforts to boost textile and apparel exports to create more jobs and preparing a concrete working plan to improve yield of cotton as a top priority agenda, said Prabu.
Source: The Hindu Business Line
Q1 results preview: Q1FY25 (April-June) margins will be better for spinning companies, driven by improved demand and low-priced cotton inventory; margins for garment companies will remain under pressure; and margins for home textiles firms will improve due to raw material tailwinds, according to brokerage firm Elara Capital. Domestic demand remained modest during the period. Cotton price movement, local and export demand, and the disclosure of capex plans are all important indicators to follow.
Elara Capital, claimed in its quarterly preview (Q1FY25) of the textile industry that its universe of textile businesses may report revenue growth of 1.4% YoY and down 5.9% QoQ in Q1FY25E, led by volume increase from improved demand. The average realisation is projected to fall as raw material costs fall. The brokerage predicts Arvind Ltd to top the group, with the largest YoY gain of 4.7%. The brokerage's textile universe also includes KPR Mill and Vardhman Textiles. “We retain our positive stance on the sector in the long term. Our top pick is Arvind,” the brokerage said. The brokerage went about explaining that it expects spinners to be in an advantageous position and post somewhat greater margins as a result of lower-cost cotton procurement. It also expects garment businesses' margins to rise, driven by a strong increase in export orders as western retailers diversify away from China with restocking, while domestic demand remains modest in the April-June period (Q1 FY25). “During January-May 2024, India saw improved market share of US imports in cotton sheets and towels while market share declined in apparels. EBITDA may grow 3.6% YoY and down 14.9% QoQ, led by favourable cost structure compared to Q1FY24. APAT may improve 2.9% YoY and down 19.0% QoQ in Q1FY25E,” the brokerage said. Elara Capital stated that it anticipates Vardhman Textiles to record an EBITDA margin of 13.2% due to favourable input costs. KPR Mill's margin may be 18.2%, driven by volume increase in the garmenting industry.
Arvind Ltd
The brokerage anticipates that the replenishing of inventories for the spring/summer season in the US and EU countries would drive the garment volume to reach 9.6 million pieces, up 29.2% YoY. The factory strike's increased costs are expected to cause the textile margin to drop to 8.1% from 10.1% in Q1FY24. YoY growth in the Advanced Material Division section is anticipated to be 18%. The labor strike may cause a 171bp YoY reduction in the consolidated EBITDA margin to 8.0% due to cost disadvantages. The adverse effect of operational leverage is expected to cause APAT to decrease at a rate of 38.7% YoY.
KPR Mill Ltd
Elara projects that the textiles industry will expand 6.4% YoY due to increased yarn and clothing production. It anticipates 39.6 million articles of clothing in volume sales, up 5.1% YoY. The textiles segment’s EBITDA margin is expected to increase by 60bp year over year, driven by an increase in gross margin due to favourable input costs in the yarn sector.
Vardhman Textiles Ltd
The brokerage anticipates that the fabric category will rise by 30.4% YoY. Yarn volume is predicted to drop 3.3% YoY as a result of increased internal consumption. A 0.8% YoY reduction in revenue is expected due to declining realisation. Due to a better product mix and higher cotton prices, EBITDA margin might increase by 391bp year over year.
Source: Live Mint
A major rise in cotton yarn exports owing to lower domestic raw cotton prices, coupled with a small increase in textile demand from the US and European markets, has contributed to a humble recovery in the labor-intensive textile industry of the country, which has been struggling since the pandemic.
As per the official data from the Niryat Portal, exports of ready-made garments, cotton yarn, and fabrics from October 2023 to May 2024 totaled US $ 17.9 billion, in comparison to US $ 17.5 billion during the same period last year, marking a reversal of the falling trend. Yarn exports have seen a considerable 51 per cent growth in volume during this period. Nevertheless, industry experts caution that these early signs of recovery may not be sustainable without ample policy support. “Demand is still beneath pre-COVID levels. Moreover, fresh increases in cotton prices have counterbalanced the price benefit for textile manufacturers,” noted an industry observer. Bharat Boghra, Chairman of the Spinners Association (Gujarat) (SAG), emphasised the positive conditions for Indian cotton, such as better production in comparison to the US and Brazil and lower prices related to international markets, which have boosted demand. Yet, he highlighted concerns about continuing geopolitical uncertainties impacting consumer behavior and global demand dynamics. Ramakrishnan M, MD of Primus Partners, accredited the textile industry’s emerging recovery, citing stable domestic demand and growing e-commerce activities in Tier-2 and Tier-3 cities as contributing factors. Nevertheless, he pointed out challenges like global conflict, growing production costs (particularly freight charges), inflationary pressures, and passive consumer confidence affecting global demand. Bhavin Parikh, MD & CEO of Globe Textiles India, highlighted the positive impact of the “China+1” strategy and shifts in spending patterns on the industry’s revival. However, he noted a careful industry sentiment reflected in the stagnation of the order book cycle to over three months, indicative of unpredictability’s in global economic growth prospects. Lately, Textile Minister Giriraj Singh declared government considerations to comprise garments in the PLI Scheme for the Textile sector and renewed the Scheme for Integrated Textile Parks (SITP), setting a goal of US $ 50 billion in shipments from the textile industry for the present year.
Source: Apparel Resources
The Indian Texpreneurs Federation (ITF) has suggested to the Union Textile Ministry to consider policy support to tap into the opportunities presented by the China Plus One policy adopted by western buyers. Prabhu Dhamodharan, convenor of the ITF, stated that the delegation recently submitted a report titled “Opportunities & Challenges for Indian Textile & Apparel Sector” to Union Textile Minister Giriraj Singh. Currently, India’s monthly apparel exports amount to $1.5 billion, compared to $12 billion from China. The Indian apparel and textile sector should focus on scale, competitiveness, specialisation, integration, and market diversification, the report said. The government should support and encourage a “ready-to-cut dyed fabric” eco-system in India to make the apparel sector, largely composed of Small and Medium Enterprises (SME), more efficient and cost-competitive. To fulfil orders for large quantities of apparel, a semi-integrated and integrated manufacturing ecosystem should be developed. “To grab more market share from the current 2 % in the US manmade fibre (MMF) apparel market, which is valued at $35 billion, we need to create knowledge partnership with MMF specialised countries and do a similar exercise within Indian clusters,” it said. The ITF suggested that the government select five exporters from five major textile clusters and assist them in diversifying into non-traditional markets. Another area that needs focus is cotton yield, the report said. According to the ITF, the Minister has indicated that efforts would be taken to boost textile and apparel exports.
Source: The Hindu
A new event was announced, the Textiles Recycling Expo, and it is set for June 4–5 2025 in Brussels, Belgium. It is supported by EuRIC, Fedustria, ReHubs, the Textiles Recycling Association and Plastics Recycling World, and organizd by AMI. AMI is also organizing the Plastics Recycling World Expos in Europe, the U.S. and India, scheduled later this year. The Textiles Recycling Expo will focus on solving the issue of textile waste, including the recycling of fabrics, clothing, footwear, fibers and nonwovens.
Designed to foster collaboration and spark innovation, the Textiles Recycling Expo and its conference are free to attend. This decision is aimed at attracting a large international audience from across the complete supply chain, including leading recyclers, waste managers, textile manufacturers, clothing suppliers, retailers and other stakeholders.“New EU regulations and growing consumer pressures are driving the need for cross-industry collaboration to develop viable solutions to divert textile waste away from landfills,” says Andy Beevers, events director at AMI. “This new exhibition and conference provide a unique opportunity for the whole supply chain to get together to explore the recycling strategies and technologies that can meet these demands, and plan their investments accordingly”. The exhibition is an international showcase for innovative developments aimed at solving the issue of textile waste, including the latest sorting, shredding and recycling technologies. Exhibitors also include textile recyclers and fiber and fabric manufacturers using reclaimed materials. Companies that have already booked their stands at the event include: Aimplas, Carbios, Closeoop (DBT Fibre), MagnoLab, List Technology, New Retex, Pellenc ST, Picvisa, Reverse Resources, Stadler and Tomra.
Source: Specialty fabrics review
The Việt Nam Trade Office in Indonesia has alerted Vietnamese businesses to possible trade sanctions on textiles and garments. Indonesia’s textile industry is currently struggling, with a decline in export orders and factory closures leading to mass layoffs. Key sectors such as textiles, footwear, and electronics, which accounted for a significant portion of Việt Nam’s US $ 1.5 billion export turnover to Indonesia last year, are particularly at risk. The competitive landscape includes strong contenders from China, Malaysia, and Việt Nam, making these products vulnerable to trade defence measures. The trade office believes that Indonesia may extend these measures beyond Chinese products to include those from Việt Nam and other countries. In response to this potential threat, the trade office advises Vietnamese businesses and export associations to
Source: Apparel Resource
Cao Huu Hieu, general director of Vietnam Textile and Garment Group (Vinatex), said that the garment and textile export market was thriving, and most of Vinatex’s member companies had signed orders until the end of September and October and would continue to sign orders through to the end of 2024. “The garment and textile export turnover in the first six months increased by 5 per cent over the same period last year, of which the bright spot for Vietnam’s garment and textile exports was in the US market, when it rose to the top of garment export market share, surpassing China,” Hieu said.In 2924, Vinatex has targeted reaching VND18 trillion ($720 million) and $22 million in consolidated revenue and pre-tax profit, respectively, slightly increasing by 2 per compared to the previous year. In the first half of the year, the group’s revenue is estimated to be on target. According to the General Statistics Office, the industry’s production output increased by 4 per cent in May 2024 and .4 per cent in the first five months of the year. After 16 consecutive months of negative growth, the employment index in the garment and textile industry began to grow again in April 2024. Bui Van Tien, general director of Viettien General Garment JSC, said that Vietnam’s garment and textile industry had seen an order recovery from the first quarter of 2024 and improved orders in May and June. However, Tien warned that, “orders have improved, but the price level is still not stable, while currently, the pressure on shipping costs is even greater due to tensions in the Red Sea, causing business profits to shrink.” Local businesses are facing competition on price, which has not improved over the past two years according to Vinatex. Nguyen Hong Lien, deputy general director of Hue Textile and Garment JSC, said that although customers had made many transactions for the third quarter and some had even implemented programmes for the fourth quarter, they were still short of the forecast level.
The most difficult aspect of the market today is that delivery time is short, but the number and size of orders is increasing. If in 2023 the order size was small and diverse, by 2024 the orders have a scale of hundreds of thousands, and even over one million products, but the delivery time is very short. “To comment on the market in the last six months of the year, almost all customers agree that it is difficult to give specific numbers like the first half of the year. Therefore, businesses also need to build new scenarios to help stabilise production management if the market suddenly reverses compared to the first half of 2024,” Lien said. Meanwhile, the Vietnam Textile and Apparel Association said the industry is facing many risks in the supply chain. Businesses have had to increase investment to meet the requirements of brands on greening, extended producer responsibility, environmental, social, and governance, and digital transformation. According to the association, the Vietnamese garment and textile industry in 2024 is projected to recover slowly. This is mainly attributed to declining demand in the international market. The industry’s target is to export goods worth $44 billion this year, which is quite challenging.
Source: Vir.com
Bangladeshi and Chinese companies yesterday signed 18 memorandums of understanding relating to investments in different sectors of Bangladesh. Chinese companies have showed interest in investing in Bangladesh's textile, electric vehicle, solar power, fintech, and technology sectors, according to a statement from Bangladesh Securities and Exchange Commission. Under an MoU worth $50 million, Bangladeshi mobile financial service company Nagad will forge a partnership with Huawei Technologies to build a digital financial platform.
A $20 million investment deal was signed for the "Bangladesh Capital Market Digital Transformation Project" between Dex Bangladesh Tech Ltd and Huawei Technologies. Deshbondhu Group of Bangladesh signed an MoU worth $400 million with Chemtex and China Chemical CNCC to establish a polyester staple fibre and other man-made fibre textile mill on 33 acres of land in Mongla Economic Zone. The MoUs were signed on the sidelines of the "Summit on Trade, Business and Investment Opportunities between Bangladesh and China". Bangladesh embassy in Beijing, Bangladesh Investment Development Authority, the SEC, and China Council for the Promotion of International Trade organised the event at the China World Summit Wing of Shangri-La in Beijing. Speaking at the summit, Prime Minister Sheikh Hasina said now is the time for Bangladesh and China to explore new areas of further collaboration in trade and investment to create a prosperous future for both nations, reports UNB.
"Our shared vision for economic growth, technological advancement, and sustainable development forms the cornerstone of our bilateral relations," she said. Hasina, now on an official visit to China, invited the Chinese businesses to visit Bangladesh, explore opportunities, and experience the warmth and hospitality of Bangladeshis. "You will find in us all the support and assistance you need. Let us work together to build a stronger, more prosperous, and more connected world. "The PM said, "We are committed to addressing trade imbalances and creating a more equitable trade relationship." Hasina said Bangladesh is keen on exporting more products, including textiles, garments, leather goods, jute products and agricultural produce, to China. “We welcome Chinese investments in our export-oriented industries, which will help us diversify our export basket and reduce trade deficits," she said. The premier encouraged Chinese companies to form joint ventures with Bangladeshi firms. She also invited Chinese companies to establish R&D centres in Bangladesh, leveraging Bangladesh's skilled workforce and academic ingenuity.
Hasina called upon the Chinese business community to consider investing in infrastructure; energy, including renewable energy; and logistics in Bangladesh. She said that climate-resilient smart farming opens opportunities for collaboration. The premier said Bangladesh plans to establish three special tourism zones where Chinese firms can invest. She also urged Chinese investors to explore portfolio investments in Bangladesh, as the SEC is working to further develop the country's capital markets.
"We have made significant progress in developing a robust bond market. We are on the brink of introducing derivative products, which will further diversify and widen our financial markets," she said. "China has been significantly contributing to our infrastructure projects, technological advancements, and overall growth of our economy." She said Bangladesh offers one of the most liberal investment regimes in the world, and BIDA provides a number of services to foreign investors under one roof. "We are establishing 100 special economic zones [SEZs], each equipped with state-of-the-art facilities."
Bangladesh is also developing five country-specific economic zones to foster closer economic ties with the key partner nations, the PM added.
OTHER MOUS
China Road and Bridge Corporation and Ningbo Cixing Company Ltd signed an MoU on the investment framework agreement in Bangladesh's Chinese Economic and Industrial Zone. Billion10 Communications Ltd and CHTC (HengYang) Intelligent EV Company Ltd signed a deal on manufacturing electric vehicles.
The Bangladeshi firm signed another MoU with Ningbo Sun East Solar Co Ltd to set up a solar farm in Sylhet. It also made a deal with HeSheng (Hoshine) Silicon Industry Co Ltd for investment in Bangladesh's renewable energy sector.
Billion10 also signed an MoU with Zhongke Guorui (Zhuhai) New Material Technology Co Ltd for investment in Bangladesh's waste lubricant oil recovery and refining industries.
EB Solution Ltd and Hongji Intelligent Transport Co Ltd signed a deal to invest in the Dhaka City Mobile Project. The Bangladeshi company signed another deal with Ningbo Shering New Energy Technology Ltd for investment in Bangladesh's smart cold chain logistic solutions sector. Under an MoU on technical and financial investment collaboration, $20 million will be invested in Bangladesh's waterways and road transport. The deal was signed between Intraco Refueling Station PLC and Shijiazhuang Enric Gas Equipment Co Ltd. Zibo Jinhuateng Paper Machinery Co Ltd will invest in the paper machinery sector in Bangladesh jointly with Nitol Niloy Group. Chinese firm Zhengzhou Dongfeng Mid-South Enterprise Company will invest in TBR Tyre projects in Bangladesh in collaboration with Nitol Niloy. Chinese company Shandong Sunite Machinery and Nitol Niloy signed an MoU to invest in Bangladesh's Aerated Autoclave Concrete (AAC) Block. Chinese firm Daliam Huahan Rubber and Plastic Machinery will invest in Bangladesh's rubber machinery sector with Nitol Niloy. ZP Technology (Anhui) Co Ltd will invest in producing lithium batteries and electric vehicles in Bangladesh jointly with Nitol Niloy.
ROHINGYA REPATRIATION
During a meeting with the National Committee of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, Hasina sought Chinese assistance in repatriating Rohingyas to Myanmar.
Chairman Wang Huning of the CPPCC, who led a delegation in the meeting, said they would discuss the matter with Myanmar and play a role of facilitator. "We will make our highest efforts to initiate Rohingya repatriation through holding discussions with Myanmar," he said. Briefing reporters after the meeting, Foreign Minister Hasan Mahmud said different bilateral issues, including Rohingyas; reducing the trade gap; the celebration of the 50 years of bilateral relations; and the contact between Awami League and Chinese Communist Party came up for discussion.
'CUT INTEREST RATES OF LOAN'
Hasina yesterday asked the Asian Infrastructure Investment Bank (AIIB) to further cut the interest rates on its loan for Bangladesh. She made the request when the president of the Beijing-based lender, Jin Liqun, along with high officials of AIIB paid a courtesy call on her. The AIIB officials said Bangladesh is one of its biggest borrowers and the bank has given Bangladesh a special concession in interest rate. Financing infrastructure, river dredging, and climate-change resilience came up for discussion.
PM LEAVES FOR HOME TONIGHT
Wrapping up her visit, Hasina will leave Beijing tonight and reach Dhaka in the wee hours of tomorrow, foreign ministry sources said. She was earlier scheduled to leave Beijing on Thursday morning.
Source: The Daily Star
The monthly inbound cargo volume at the US’ major container ports is on the rise, despite numerous supply chain challenges, according to the Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates. Ben Hackett, founder of Hackett Associates, stated that the latest figures reflect the broader impact of earlier shipping attacks in the Red Sea. These incidents have had a significant effect, surpassing initial expectations due to the insufficient capacity to offset the longer voyages required to avoid the affected region. Additionally, there is growing political support for higher and broader tariffs on imported goods, and concerns over the lack of a new contract with East Coast and Gulf Coast dockworkers are causing a shift in some cargo to West Coast ports. These factors collectively drive up shipping costs, ultimately affecting consumer prices.
In May, the US ports covered by the Global Port Tracker handled 2.08 million twenty-foot equivalent units (TEU), representing one 20-foot container or its equivalent. This figure was up 3 per cent from April and up 7.5 per cent year-over-year (YoY), marking the highest volume since 2.26 million TEU in August 2022. The total includes estimates for the ports of New York and New Jersey, which have not yet reported their TEU counts for May, as per NRF.
While June’s numbers are yet to be reported, the Global Port Tracker projected that the volume rose to 2.1 million TEU, a 14.5 per cent increase year-over-year. The forecast for July stands at 2.21 million TEU, up 15.5 per cent year-over-year; August is expected to see 2.22 million TEU, up 13.5 per cent; September at 2.1 million TEU, up 3.5 per cent; October at 2.05 million TEU, down 0.5 per cent; and November at 1.96 million TEU, up 3.5 per cent.
The first half of 2024 is anticipated to total 12.04 million TEU, marking a 14.4 per cent increase from the same period last year. In comparison, imports during 2023 totalled 22.3 million TEU, a 12.8 per cent decrease from 2022.
These import numbers coincide with the NRF's forecast that 2024 retail sales, excluding automobile dealers, gasoline stations, and restaurants to focus on core retail, will grow between 2.5 per cent and 3.5 per cent over 2023.
“Lulls between supply chain challenges seldom last long, and importers are currently looking at issues including high shipping rates, unresolved port labour negotiations and continuing capacity and congestion issues from the ongoing disruptions in the Red Sea,” said NRF vice president for supply chain and customs policy Jonathan Gold. “Despite all of that, we’re experiencing the strongest surge in volume we’ve seen in two years, and that’s a good sign for what retailers expect in sales. Consumers can rest assured that retailers will be well-stocked and ready to meet demand as we head into the back-to-school and holiday seasons.”
Source: Fibre2fashion
