Fabricating the Future: Textile and Apparel Market Trends

Welcome to the latest edition of the Texpro newsletter! In this issue, we delve into the market trends shaping the textile industry.

Stay informed with industry insights, expert opinions, and the latest news to keep you ahead in the ever-evolving world of textiles and apparels.

From June 2023 to October 2023, diesel prices in Turkey steadily increased. In the last quarter of 2023, prices fluctuated, peaking in October before slightly declining in November and December. Diesel prices began rising again in early 2024, with a significant increase from December 2023 to February 2024, reaching the highest price in the period at 43.06 TRY. From March 2024 to May 2024, prices stabilized, maintaining around 42.00 TRY in March and slightly decreasing to 40.22 TRY by May.

From 2015 to 2023, the key markets for Japan's nylon yarn exports by volume were China, the Philippines, South Korea, Thailand, and Vietnam. Thailand was the dominant destination for Japan's nylon yarn exports in 2015, 2016, and 2017. However, starting in 2018, there was a sharp decline, with imports dropping to approximately 4,000 thousand Kgs by 2020. This was followed by a gradual recovery towards 2023. This decline was largely due to Thailand increasing its nylon yarn imports from China. Japan's exports to China remained relatively low and stable through the initial period, with a notable dip in 2020. This dip can be attributed to the trade disruptions caused by the COVID-19 pandemic, a trend observed across all importing countries. Despite this, exports to China rebounded to higher levels in the subsequent years. The Philippines exhibited a stable import pattern, establishing itself as a consistent trade partner for Japan's nylon yarns. Trade volumes are returning to pre-COVID levels, indicating a recovery in demand. Both South Korea and Vietnam demonstrated similar trends in their import volumes, reflecting a steady growth over the years. Major Takeaways: Thailand was the dominant market early in the period, but its share decreased significantly post-2018. The Philippines, Vietnam, and South Korea are becoming increasingly important markets for Japan's nylon yarn exports. Over time, Japan's nylon export markets have diversified, with no single country dominating in the later years as Thailand did in the earlier period. These insights highlight the dynamic nature of Japan's nylon yarn export markets and suggest a strategic shift towards a more diversified export base. (Nylon Yarn HS Codes considered: 540211, 540219, 540231, 540232, 540245, 540251, 540261, 550911, 550912)

Lyocell & Modal Market Trends: April to July 2024 Over the past few months, we've seen some notable trends in Lyocell and Modal prices across China, India, and Pakistan: Lyocell Prices: China: Prices dropped from $1.94/kg on April 1 to $1.84/kg by July 1. India: Prices stayed relatively stable, starting at $2.22/kg on April 1 and ending at $2.31/kg by July 1. Pakistan: Prices varied more, starting at $2.24/kg on April 1, peaking at $2.68/kg on May 6, and dropping to $2.41/kg by July 1. Modal Prices: China: Prices slightly fluctuated, starting at $2.84/kg on April 1 and ending at $2.82/kg by July 1. India: Prices were stable, starting at $2.54/kg on April 1 and rising slightly to $2.56/kg by July 1. Pakistan: Prices saw more changes, starting at $2.97/kg on April 1, peaking at $3.21/kg on May 6, and ending at $3.15/kg by July 1. Chinese production capacity has increased, putting pressure on prices, although demand is gradually rising, especially from home textile producers.

The jute fibre exports (HS Codes 530310 and 530390) of Bangladesh have consistently been higher compared to India. The most notable peak occurred in Q3 2021, when Bangladesh's exports exceeded 70 million USD. Until 2021, Q4 typically saw the highest exports each calendar year. However, this trend reversed significantly in 2022 and 2023. India’s exports have remained relatively stable, with slight fluctuations around 10 million USD. The moving average for Bangladesh shows an upward trend until 2022, followed by a slight decline, indicating a potential decrease for the next two quarters based on historical data. India’s moving average also shows a slight downward trend, reflecting a stable yet slightly declining performance. While Bangladesh is a dominant player in the jute export market with a stronger market presence compared to India, India's stable export values suggest a smaller but consistent market share. To maintain and grow its market share amidst global competition and economic fluctuations, Bangladesh may need to innovate and improve efficiency. Strengthening supply chain resilience and exploring new markets could help counter the recent decline. For India to improve its market share, focusing on enhancing product quality, competitive pricing, and tapping into niche markets will be crucial. Addressing domestic challenges and promoting jute use in new industries could also support growth. The increasing global emphasis on sustainable and eco-friendly products could boost jute demand. Both neighboring countries could benefit from promoting jute as an alternative to synthetic materials. In summary, while Bangladesh currently leads in jute exports, both countries face opportunities and challenges in sustaining and growing their market positions. Future performance will be influenced by global economic trends, sustainability demands, and strategic initiatives by their respective governments and industries.

India's Industrial electricity rates have decreased by 4.88% since last quarter. Industrial electricity rates have increased by 4.4% in four quarters. In Q1 2024 the rates are lower than last year's average by 3.28%. The rates have increased by 11.85% from Q2 2022.

Significant Increase in Down Prices: A Market Overview From Q1 2021 to Q2 2024, the prices of white duck and white goose down have shown remarkable growth. White duck down prices increased from $54.9/kg in Q1 2021 to $72.34/kg in Q2 2024, a rise of approximately 31.8%. Meanwhile, white goose down prices surged from $89.92/kg to $161.26/kg over the same period, representing a substantial 79.4% increase. In the first half of 2024 alone, the upward trend continues with white duck down prices climbing from $65.25/kg in Q1 to $72.34/kg in Q2, reflecting a 10.9% increase. Similarly, white goose down prices rose from $139.76/kg to $161.26/kg, marking a significant 15.4% increase.

Trends and Insights: Over the past five years, goose down prices have soared by 90%, while duck down prices have increased by 32%. The recent surge in prices is driven by two key factors:

? Seasonal demand for winter garments, leading to increased shipments to Western and domestic markets during summer.

? A robust rebound in apparel export markets, fueling higher demand and prices. Additionally, this price surge has led to an influx of down fiber imports, which might stabilize future price increases. However, down prices could peak as seasonal trends shift.