Industry Details

Cotton: In 2016, Bangladeshi importers of cotton and related products;

  1. Woven cotton fabrics: US$1 billion (up 50%)
  2. Woven fabrics (85%+ cotton): $925.9 million (up 60.8%)
  3. Cotton (uncarded, uncombed): $903.7 million (down -20.9%)
  4. Yarn (85%+ cotton): $778.5 million (up 90.3%)
  5. Woven fabrics (mixed): $560.9 million (up 1,079%)
  6. Woven fabrics (under 85% cotton): $257.6 million (up 532.3%)
  7. Yarn (under 85% cotton): $103.2 million (up 483.1%)
  8. Other woven fabrics: $15.1 million (down -85.2%)
  9. Cotton sewing thread: $1.8 million (down -87%)
  10. Cotton (carded, combed): $860,000 (down -96%)
Among these import subcategories, Bangladeshi purchases of woven mixed fabrics (up 1,079%), woven fabrics under 85% cotton (up 532.3%) and yarn under 85% cotton (up 483.1%) grew at the fastest pace from 2009 to 2016.

Cotton import on the rise

Bangladesh's cotton import will creep up to 7.1 million bales in 2017-18, further consolidating its position as the world's largest importer of the fibre, according to the United States Department of Agriculture.

In 2016-17, 7 million bales are expected to be imported. One bale equals 480 pounds or 218 kg, and the cotton year begins on August 1 and ends on July 31.

Local growers can only supply less than 3 percent of yearly demand, leading to the imports worth over $3 billion.

Bangladesh has overtaken China after the latter stopped sourcing for having ample stocks of its own.

The demand for the natural fibre is on the rise in Bangladesh as it is the only country that is still mainly dependent on raw cotton for making yarns and fabrics.

The other countries have shifted to other manmade fibres like filament, polyesters and viscose, as a result of which the global consumption of cotton is on the decline in recent years.

Currently, the ratio of cotton and manmade fibre use is 28:72 worldwide, with a pronounced tilt towards artificial fibres, due to its lower price, improved functionality and ease of use, according to International Textile Manufacturers Federation.

However, the ratio is not applicable in Bangladesh yet as more than 90 percent of the yarns and fabrics are made from natural cotton in the country.

“We are upbeat about the future trend as cotton consumption is rising from the spinners' end,” said Mehdi Ali, general secretary of the Bangladesh Cotton Association, adding that the demand for both yarn and fabrics is increasing every year.  The over 430 local spinning mills can supply nearly 90 percent of the yarn for the knitwear sector and 40 percent of the fabrics needed by the woven sector for higher consumption of cotton.

“Many may think that the recent slowdown in garment export will have a negative impact on cotton consumption but that is not true.”

Garment shipments have been declining in value but the volumes are increasing, he said. Since the volume is increasing, so is cotton consumption.

By the end of 2020, cotton consumption in Bangladesh will hit 7.9 million bales, Ali said.

Currently, Bangladesh imports 55 percent of its demand for cotton from India, thanks to favorable prices, geographical proximity, shorter lead time and the quality of the fibre.

“We are also looking for alternative destinations as it is not right to depend too much on one country,” Ali said, citing Africa, Australia and the US as the other options that are being looked at.

This month's USDA report mentioned of higher forecasts for both global production and mill use in the upcoming 2017-18 crop year.

There would be additional harvest of 1.5 million bales from previously forecasted 113.2 to 114.7 million, according to Cotton Incorporated.  The rise in the global production figure was primarily a result of heightened expectations of Pakistan, China and Mexico. Last week, cotton traded between 72 cents per pound and 73.2 cents per pound in the future market.

Bangladesh is the number 1 importer of Indian cotton and cotton products

Cotton consumption in Ready Made Garment (RMG) industry continues to rise on the strong performance of the sector. Bangladesh is depended on cotton import, as the country produces only one percent of the total need of cotton for making yarns and fabrics for garments. And Bangladesh imports its maximum necessary cotton from its neighbor country India. Though over the years China has been the biggest Indian cotton importer recently Bangladesh has surpassed China and has emerged as the largest Indian cotton importer, according to official data of India.

Directorate General of Commercial Intelligence and Statistics (DGCIS) shows that India’s exports of cotton and cotton products, such as yarn and fabric in 2016-17 Bangladesh touches $613.16 million in the first half of the current fiscal.

Global giants like the US and China have shifted their cotton imports away from India while Bangladesh is steadily importing more and more from India. Just few years ago, China imported cotton from India more than four times from Bangladesh.

US-based International Cotton Advisory Committee (ICAC) report said, year-ending stocks in China dropped 13% to 11.3 million tons in 2015-16 (marketing year that runs from October through September), as the government there sold over 2 million tons from its official reserves from May through September 2016. And the government is planning to begin sales from its reserves in March 2017 when the majority of the new crop will have been sold, the ICAC said.

 

Factory Data - Category Wise

Textile machinery shipment to Bangladesh increases in 2015
According to the 38th annual International Textile Machinery Shipment Statistics (ITMSS) results by the International Textile Manufacturers Federation (ITMF) that have been published recently and as per the figures in year 2015, shipments in some textile machinery segments saw a fall. Deliveries of new short-staple spindles fell by nearly 8 percent from 2014 to 2015. Shipped long-staple spindles and open-end rotors decreased by 61 percent and 6 per cent, respectively. The number of shipped draw texturing spindles fell by 26 percent and shipments for new circular knitting machines by 6 per cent year-on-year. In contrast, deliveries of shuttle-less looms increased by 14 percent in 2015 and shipments of flat-knitting machines rose by 52 percent. The 2015 survey has been compiled in cooperation with over 140 textile machinery manufacturers, representing a comprehensive measure of world production. The report covers six segments of textile machinery. This number does not include the numerous Chinese companies that are represented by the so called ‘District.’ Therefore, the amount of participating companies is likely to be around 200.

Spinning machines saw a decline
Shipments of new short-staple spindles fell by nearly 8 percent year- on-year in 2015, the second decrease in a row. The level of short staple spindles declined to about 9 million spindles, the lowest level since 2009. Most of the new short staple spindles (92 percent) were shipped to Asia, whereby shipments fell by 7 percent year-on-year. Thereby China, the world’s largest investor of short-staple spindles, experienced a decline of 26 percent, whereas deliveries to Bangladesh, Indonesia and Vietnam rose by 97 percent, 45 percent and 31 percent, respectively. All of the five largest investors for short-staple spindles in 2015 originate from Asia. Including China these are India, Viet Nam, Bangladesh and Indonesia.

Shipments of open-end rotors too fell by 6 percent to a level over 383,000 rotors in 2015. About 81 percent of worldwide shipments of open-end rotors were destined for Asia. Thereby, deliveries to Asia increased moderately by over 2 percent to nearly 312’000 rotors. In contrast, regions such as North America and Western Europe recorded annual percentage declines of 47 percent and 60 percent, respectively. Shipments to China, the world’s largest investor of open-end rotors increased in a big way by around 66 percent in 2015. The world’s second and third largest investors in 2015 were India and the USA.

Texturing machines shipments fall
Global shipments of single heater draw-texturing spindles (mainly used for polyamide filaments) fell by nearly 82 percent from over 6’500 in 2014 to nearly 1’200 in 2015. With 65 percent Asia is the region where most of the single heater draw-texturing spindles were shipped to, followed by Eastern Europe with 32 percent and South America with nearly 3 percent.

Weaving sees a spurt
Worldwide shipments of shuttle-less looms increased by 14 percent to nearly 82,000 units in 2015. Thereby, shipments of water-jet and rapier/projectile shuttle-less looms increased by 24 per cent to nearly 30,000 looms and by 17 percent to close to 32,000. In contrast, the deliveries of air-jet looms fell by over 1 percent to a level of nearly 20,000 looms.

Not surprisingly, the main destination of shipments of all shuttle-less looms (air-jet, water-jet and rapier/projectile) in 2015 was Asia with 93 percent of worldwide deliveries, of which 39 percent were water jet looms and 37 percent rapier/projectile looms. In Europe and North America 75 percent and 25 percent of shipments were for rapier/projectile looms, while the share of water-jet looms was only 8 percent and 2 percent, respectively.

Circular & Flat knitting sales dip
In 2015, global shipments of large circular knitting machines fell by 6 percent to a level of 26,700 units. Also for this category Asia is the world’s leading investor. 88 percent of all circular knitting machines were shipped to Asia in 2015. With 53 percent of worldwide deliveries China is the single largest investor. India and Bangladesh rank second and third with 6,500 and 3,100 units, respectively. Year 2015 was a very good year for the segment of electronic flat knitting machines as global shipments grew by 52 percent to 70,100 machines, the highest level since 2011. Not surprisingly, Asia received the highest share of shipments (93 percent). China remained the world’s largest investor for flat knitting machines in 2015. Thereby, Chinese investments increased from 19,000 units to 35,500 units.

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