Textile Cotton Fabric Exporter

6 January 2009 - The euro seriously rose in December, giving some room to eurozone importers while the British pound dramatically fell, therefore depressing UK's clothing import market. The decline of the dollar in December should also further limit US apparel imports in the near term. Exporters in India and Pakistan finally benefited from a sharp fall in their currencies in 2008, our statistical tables are indicating. China's renminbi no more rose since last June in addition while the Vietnamese dong seriously fell.

6 January 2009 - US imports from China are not expected surging after quotas were definitively eliminated, effective from January 1st. Some more pressure was however felt in the last months of 2008 at US borders, in most important categories. As reflected by our statistical tables, quota fill ates remained lower than a year ago, nevertheless.

6 January 2009 - Cotton yarn prices significantly fell in the past two weeks in China, reflecting the low level in market activity in this period of the year. With cotton prices rising in line with a governmental buying campaign, the margins of spinning mills are currently falling with a reduction in yarn output in sight. Polyester and viscose yarn prices were unchanged at the same time as raw material costs may be more stable over the coming period.

6 January 2009 - Polyester prices started falling in China, as a result of a similar decline in raw material costs of polyester fiber producers. A very low demand ahead of Chinese new year is also explaining the retreat in prices. A second attempt in only two months for raising polyester prices therefore failed, reflecting the lack of activity on this market.

5 January 2009 - Cotton prices further surged in the past week in New York amid very low trading volumes in the last days of the year. The fall of the US dollar however found a bottom, and this may put and end to the current rally. Prices also surged in Pakistan where textile activity is apparently recovering. Indian prices are clearly on the decline by contrast, although a minimum price was set by the government. In China, prices are slightly rising, stimulated by continued state intervention on the market.

5 January 2009 - Polyester intermediate prices began declining in the last week in Asia, reflecting a low level in demand and a surprising fall of paraxylene prices. The recent rebound in prices in the polyester pipeline has apparently ended. Although a series of Asian producers have shut down facilities, new production lines are expected coming on stream this year, especially in China. This should maintain prices at their currently low level.