Mr. Ashwani Choudhary
Vice President (Marketing)
textiles & yarn manufacturing and trading
1.2mn meters of fabric per month and 200 MT/M yarn for embroidery application
In 35 countries
What is the current scenario of natural and synthetic textiles in the global market, and how is it going to fare over the next couple of months?
The global textile market has been passing through a lean and tough phase for the past sometime. The reasons are multifold and difficult to explain by simple statistics based on supply and demand, though prediction of growth or contraction on the basis of statistical data is much common and widely circulated and accepted norm today.
However, things have changed drastically in recent past with the advent of internet and high speed communication, leading to very fast information sharing and high level interconnectivity of economies within region and economies spread around the globe.
Hence, past statistical data and future growth mathematical trends need to be superimposed with localized, regional and inter-regional factors like politics, policies, demography and nature. All these factors are very dynamic and spontaneous in nature and have tremendous effect on the local and regional economic growth or contraction, which in turn has effect on the global economy as a whole depending on the size of the regional economy.
Both natural and synthetic textiles go hand in hand with each contributing equally to the consumption in overall textile market, and cotton and polyester being the major contributors of natural and synthetic textiles, respectively.
Current statistics and data indicate that there is good production of natural textile fibre, namely cotton and this is further supported by availability of good stocks levels. Which way the prices of cotton would move in future, would heavily depend upon China’s cotton policy, which will have bearing on the price movement of synthetic textiles and yarns as well.
In the synthetic textiles chain, the crude oil prices are currently being supported by ongoing conflict in Egypt, Syria and embargo on Iran and may see some correction when there is a peace in the region.
Purified terephthalic acid (PTA), which is one of the most important raw materials in synthetic textile polyester manufacturing chain, is currently over supplied and hence will continue to be soft for some time.
Moreover, the two major economies – Europe and America - have not recovered fully from 2008 financial crisis and the consumption in these economies remains to be sluggish and hence leading to poor growth or less demand of textiles, but intra-Asian textile trade will keep the momentum.
With holiday season on the horizon, coupled with aforementioned situation, the textile market seems to be devoid of luster and would maintain current trend for next couple of months, with in between spark of sudden uptrend, driven more by sentiments than real demand unless some drastic change takes place.
Published on: 19/11/2013
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.