Recycled PET on the decline
Recycled polyethylene terephthalate (R-PET) prices in Asia fell to a record low and may continue trending down with importers in China opting to stay out of the market amid domestic economic weakness.
Sharp fall in crude futures
Crude oil futures fell to multi-month lows on both sides of the Atlantic in early August, while global oil demand growth is expected to increase by 90,000 bbl/day over previous estimates, the Organisation of Petroleum Exporting countries (OPEC) said recently.
Yuan devaluation to hit textile industry
The devaluation of Chinese currency yuan will have an adverse impact on India´s textiles exports and clothing, which is facing sluggish growth due to recessionary conditions in global markets. The surprise move by China to devalue its currency is a threat to the pace of India´s exports, according to analysts.
Fears over cotton pile-up in India
The Cotton Association of India fears that India may be piling up huge inventory of cotton just like China, if the Cotton Corporation of India (CCI) does not take measures to offload its stock swiftly. Maintaining the cotton output at the last estimated level of 38.27 million bales (a bale is 170 kg), Dhiren N Sheth, President, CAI, says the Corporation had procured about 8.7 million bales from farmers as part of the Government's minimum support price commitment.
China to start clearing cotton stockpiles?
China will start selling its massive cotton stockpiles this year, in a move likely to depress demand as the country's mills hold off buying in anticipation of sales of discounted fibre. Market rumours have been hinting that China was preparing to release some of its holdings, which have swelled to around 10 million tons more than 40 per cent of world stocks.
Cotton output to fall, mill-use to rise
The projection for world production in 2015/16 is 111.3 million bales, which represents an 8 million bale decrease (-6.7%) relative to the 119.3 million bales harvested in 2014/15. The forecast for world mill-use in 2015/16 is 115.3 million bales
Cotton prices to remain subdued
Cotton prices in India are expected to remain subdued in the near future. Coming to the domestic scenario, prices are likely to trend in line with the international markets as domestic prices have plunged below the international levels offering no triggers for upside movement.
Call to speed up cotton sales
The Cotton Association of India (CAI) has placed the cotton crop for the season 2014-15 beginning on 1st October 2014 at 396.00 lakh bales of 170 kg each. The projected Balance Sheet drawn by the CAI for the year 2014-15 estimates total cotton supply at 465.90 lakh bales while domestic consumption is estimated at 310 lakh bales thus leaving an available surplus of 155.90 lakh bales.
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