TexPro Trends: Unveiling the Future of Textile Industry

Welcome to the latest TexPro newsletter, delivering insightful trends and valuable perspectives throughout the textile-apparel value chain.

The monthly trend reveals significant fluctuations in Indonesia’s viscose rayon fabric (HS Code: 540810) export market, characterized by distinct periods of growth and decline. This indicates a volatile market since 2023. Exports in May have decreased by approximately 62% compared to the same month in the previous year. These fluctuations can be attributed to several factors, including global demand and market conditions, raw material availability and costs, exchange rate volatility of the Rupiah against the USD, competitor activity, and geopolitical and environmental factors, among others.

Market Trends in Responsible Wool Standard (RWS) Wool Pricing in South Africa Over the past six years, the Compound Annual Growth Rate (CAGR) for Responsible Wool Standard (RWS) wool prices in South Africa has been -3.82%. In 2024, the price of Responsible Wool Standard (RWS) wool in South Africa stood at approximately 170.31 ZAR per kilogram. This represents a notable decrease from 206.94 ZAR per kilogram in 2019. The wool market faced significant challenges in 2020, with a 23% downturn driven by reduced demand from major markets like China and the broader impacts of the COVID-19 pandemic on trade and manufacturing. A stronger South African rand also contributed to reduced international demand, putting downward pressure on prices. The market saw a rebound after 2021, with prices rising as demand for wool products recovered and supply chains improved. Key factors included increased demand from China, reduced wool production in some regions, and a growing consumer interest in sustainable fibers. Currency fluctuations also influenced the competitiveness of South African wool exports. However, by 2024, prices began to fall again due to economic slowdowns, imbalances in global supply and demand, and market uncertainties. Factors such as reduced consumer spending, increased wool production, trade disruptions, shifts in consumer preferences, and local issues like changes in farming practices and environmental conditions all contributed to this decline.

Over the past five years, China's cotton imports have surged by 54%, while its cotton exports have decreased significantly by 65%. This shift can be attributed to increasing domestic demand for cotton, driven by the country's expanding textile industry, combined with higher production costs and competitive pressures in the global market, which have reduced China's export competitiveness.

The data on water costs for Bangladesh, China, and India from 2012 to 2023 reveals distinct patterns and trends across these countries. In Bangladesh, water costs initially increased from 2012 to 2020, reflecting a period of rapid economic growth and investment in infrastructure. This rise might have been driven by the need for improved water management systems and increasing demand.

However, from 2021 onward, there was a noticeable decrease in costs, which could be attributed to enhanced efficiencies or policy adjustments aimed at stabilizing prices. In contrast, China’s water costs have remained relatively stable over the years, with only slight fluctuations. This stability suggests effective management and ongoing investments in water infrastructure, which have helped control cost increases.

Regulatory measures and water pricing policies implemented by the Chinese government likely play a role in maintaining this stability. India, on the other hand, has experienced a consistent decline in water costs throughout the period. This downward trend indicates successful water management strategies or technological advancements that have reduced operational costs.

Additionally, government interventions, such as subsidies or policies aimed at making water more affordable, could be influencing the observed decrease in costs. Overall, the trends in water costs across these countries highlight the impact of economic growth, policy decisions, and management efficiencies on water pricing. Each country’s unique approach to handling water resources and infrastructure contributes to the variations in water costs observed over the years.