Textile Cotton Fabric Exporter

2 December 2008 - The European Union clothing market would fall 2.5% in the next year after already declining 1% in 2008, according to the Paris-based IFM, the French Fashion Institute. The German and Spanish markets would be hardly hit while UK would more resist. Sourcing trends may also be modified by the economic recession to the detriment of the Mediterranean rim. Price pressure is now being felt which could boost clothing chains of hard discounters on EU's market, in addition.

2 December 2008 - The currencies of a large number of low-cost countries started more obviously falling in the last month, offering some potential relief to the global clothing trade. The Chinese renminbi and the Indian rupee however stayed unchanged while the Pakistani rupee even rose. While the fall of the British pound is a clear blow for UK's importers, a continued increase in the dollar may support US imports in the next year.

2 December 2008 - Polyester prices are no more falling in China, in line with a slight rebound in PTA prices. Cotton prices are also recovering, therefore offering room for a stabilization in PSF prices. Inventories are also at relatively normal levels. Demand from the textile industry remains extremely weak, however, while crude prices started again plummeting below US$50 on Monday.

1 December 2008 - Cotton prices sharply rebounded in the last week, in line with a sudden recovery of equity and commodity markets. Physical demand however remained very flat, as textile production was indicating new signs of weakness in Asia. Governments in China, India and Pakistan may increasingly purchase cotton lint in order to support prices, therefore artificially raising raw material costs of textile industry and therefore depressing textile production and cotton consumption.

1 December 2008 - Prices are apparently more stable in the Asian polyester pipeline although paraxylene sharply rebounded in the past week. Other markets ignored the wave of optimism on equity and commodity markets. Skepticism is still dominating the China's polyester industry over any sign of short-term rebound. Prices may even further decline in the near term in line with a possible fall in crude oil futures.

1 December 2008 - Polyester fiber and yarn prices are now declining in Pakistan, in line with a low level in demand from downward processors. The recent reduction in cotton prices and lower PSF import prices are also putting pressure on the market, our Pakistan correspondent reports. Rising uncertainties should result in lower prices in the near future.