From the Sector

SUPPLY, DEMAND, & TRADE
The latest USDA report featured reductions to figures for both world production and mill-use for both the 2021/22 and 2022/23 crop years.  For 2021/22, the global production estimate was lowered -0.7 million bales (to 116.2 million) and global consumption was lowered -1.9 million bales (to 119.8 million).  For 2022/23, the global production forecast was lowered -1.2 million bales (to 120.7 million) and global consumption was lowered -1.6 million bales (to 119.9 million).

With the decreases in use exceeding the declines in production, figures for global ending stocks increased.  For 2021/22, the projection rose +1.1 million bales (to 84.0 million).  For 2022/23, the forecast increased +1.6 million bales (to 84.3 million).

At the country-level, the largest changes to 2021/22 production were for Brazil (-400,000 bales to 12.3 million) and Uzbekistan (-100,00 bales to 2.7 million).  The largest changes for the 2022/23 harvest were for the U.S. (-1.0 million bales to 15.5 million) and Brazil (-200,000 bales to 13.0 million).

It may be notable that there were no upward country-level revisions for mill-use in either 2021/22 or 2022/23.  The largest revisions for 2021/22 included those for China (-1.0 million to 37.0 million), Vietnam (-400,000 bales to 6.9 million), Bangladesh (-300,000 to 8.0 million), Pakistan (-100,000 bales to 10.9 million), and Uzbekistan (-100,000 bales to 2.7 million).  For 2022/23, consumption estimates were lowered for China (-500,000 bales to 37.5 million), India (-500,000 bales to 25.0 million), Bangladesh (-300,000 bales to 8.6 million), and Vietnam (-300,000 bales to 7.1 million).
The global trade forecast for 2022/23 was lowered -1.1 million bales (to 46.4 million).  The most significant changes on the import side included those for China (-500,000 bales to 10.0 million), Bangladesh (-300,000 bales to 8.5 million), and Vietnam (-300,000 bales to 7.2 million).  On the export side, the largest updates included those for the U.S. (-500,000 bales to 14.0 million) and Australia (+300,000 bales to 6.0 million).
 
PRICE OUTLOOK
Recent volatility was not limited to the cotton market.  A wide range of commodities lost significant value in June.  Between June 9th and July 5th (dates chosen unsystematically to describe the magnitude of declines), cotton fell -25% (NY/ICE December futures), corn fell -19% (Chicago Board of Trade, December contract), soybeans fell -17% (Chicago Board of Trade, November contract), wheat fell -25% (Chicago Board of Trade, December contract), copper fell -20% (London Metal Exchange, nearby), and Brent crude oil fell -12% (ICE, nearby).

The breadth of losses throughout the commodity sector suggests a sea change in investor sentiment for the entire category.  The effects of inflation, the withdrawal of stimulus, rising interest rates, and concerns about a possible recession could all be reasons explaining a reversal of speculative bets, and all could be contributors to the losses.  While the macroeconomic environment can be expected to continue to weigh on prices, there are also supportive forces for the market that are specific to cotton.

The current USDA forecast for U.S. cotton production is 15.5 million bales, and it may get smaller over time because of the severe drought in West Texas.  The current harvest figure is two million bales lower than the 2021/22 number and is equal to the five-year average for U.S. cotton exports (2017/18-2021/22).  On top of exports, the U.S. will need to supply domestic mills with 2.5 million bales.  The last time the U.S. had a severely drought-impacted crop (2020/21), the harvest was only 14.6 million bales.  In that crop year, the U.S. was able to export more than it grew because it had accumulated stocks in the previous year.  The U.S. is coming into the 2022/23 crop year with low stocks.  This suggests U.S. shipments may have been rationed.  Since the U.S. is the world’s largest exporter, this may lend some support to prices internationally.

Iluna Group is exhibiting at the upcoming Première Vision, from July 5-7, with the aim of promoting a new fashion that combines aesthetic research and environmental responsibility.
 
The key word of this new collection is “experimentation”: the search for new solutions that can offer consumers style, sustainability and well-being translates into innovative blends, natural dyes and smart prints.

This season, the Iluna team is introducing for the first time GOTS-certified organic cotton inside its gallons and allovers, to add a natural touch to its Green Label line. Among the smart ingredients chosen by Iluna Group are Renycle® and Q-Nova, both GRS-certified pre-consumer recycled polyamide yarns, in addition to premium recycled stretch ROICA™ EF by Asahi Kasei. The result is a comfortable and ultralight product that remains true to a high value of creativity and responsibility.

In terms of aesthetic innovation, explorations continue with a yarn blend of FSC-certified viscose and polyamide, resulting in striking new Textronic designs. The 3D effect embossed designs create a cloud effect that, combined with Lurex, shows unexpected glows.

Moreover, the continuous path through the new dimension of responsibility continues in several directions: developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in both look, performance and hands; experiments with 16 different natural dyestuffs; and continued investment in technologies that can ensure significant savings in water and energy consumption, including GREENDROP, the new GOTS-certified digital pigment printing system.

• Printing Expo Online is expanding again by doubling the size of Zone 2 with new exhibitors and feature zones making it one of the largest virtual trade shows in the world.

Visitors will be able to visit the new Zaikio underground catacombs that are accessible from several portals around the show. Click on a New York taxi, a London Phone Box or a funky Hot Dog Van and you will be transported into the Zaikio cavern environment where visitors will be able to watch application videos, arrange demos and sign up to this amazing new cloud-based platform.

Another addition to Zone 2 is the new Software Technology Centre (STC). This feature area will grow over time to show a wide range of software solutions that are available on the market.

Joining Printing Expo Online in the STC for the launch is EFI Fiery, who are showing their full portfolio of software solutions.

Design’N’Buy are also a new exhibitor in the STC with their all-In-One Web2Print software solution that helps users leverage technology, people and processes for the multi-fold growth of your printing business.

Also moving into the STC will be PrintIQ who offer the modern print shop a solution for businesses that need to be able to grow and scale as needed without slowing down or sacrificing quality.

Another new addition to the show is the introduction of the Global Print Trade Club. This initiate is free to all Print Service providers around the world and offers the opportunity to network on a global scale.

New to the exhibition is Kornit Digital with their multi storey showroom which will shortly be opening its doors where visitors will be able to view Direct to Garment and Direct to Fabric printing equipment, technical data, case studies, clothing designs and applications as well as visit the Kornit dedicated auditorium where live streaming content will be shown of Kornit Digital’s Fashion weeks as they happen throughout the year.

Another addition is the new application journey added to the Xeikon Innovation Centre at Printing Expo Online. Visitors will now be able to experience a virtual tour of a living room, kitchen, bathroom, and garage where Xeikon will show applications for commercial, label and Wall Deco products that can be produced on their digital print engines.

Printing Expo Online is open 24/7 365 days a year and has now welcomed over 60,000 visitors from all over the world and continues to grow not only its footprint and total visitor numbers, but also its relevance as an important resource tool for Print Service Providers from around the world that, for whatever reason, are unable to attend live events.

The ReHubs initiative brings together key European and world players to solve the European textile waste problem by transforming “waste” into a resource, and to boost textile circular business model at large scale.

This collaboration is set to turn the societal textile waste issue into a business opportunity and to fulfil the EU ambitions of the Green Deal, of the mandatory texile waste collection by end 2024 and the transition into Circular Economy.

In 2020 EURATEX launched the ReHubs initiative to promote collaboration across the extended textile value chain and considering all perspectives on chemicals, fibers making, textiles making, garments production, retail and distribution, textiles waste collection, sorting and recycling.

In June 2022 ReHubs completes a Techno Economic master Study (TES) which researches critical information on the feedstock (textile waste) data, on technology, organizational and financial needs to recycle 2.5 million tons of textile waste by 2030 and to effectively launch the ReHubs.

EURATEX’s ReHubs initiative plans to pursue fiber-to-fiber recycling for 2.5 million tons of textile waste by 2030
According ReHubs Techno Economic Master Study (TES), the textile recycling industry could generate in Europe around 15,000 direct new jobs by 2030, and increase need for nearshoring and reshoring of textile manufacturing.

The textile recycling industry in Europe could reach economic, social and environmental benefits for €3.5 billion to €4.5 billion by 2030
“Transform Waste into Feedstock” announced as first project supported by the ReHubs, and aiming at building up a first 50,000 tons capacity facility by 2024.

Europe has a 7-7.5 million tons textile waste problem, of which only 30-35% is collected today.  

Based on the ambitious European Waste law, all EU Member States must separately collect the textile waste in 2 years and half. While some countries are designing schemes to face the waste collection challenge, currently no large-scale plan exist to process the waste.

The largest source of textile waste (85%) comes from private households and approximately 99% of the textile waste was made using virgin fibers.

Euratex  assesses that to reach a fiber-to-fiber recycling rate of around 18 to 26 percent by 2030, a capital expenditure investment in the range of 6 billion € to 7 billion € will be needed, particularly to scale up sufficient sorting and processing infrastructure. The economic, social, and environmental value which could be realized, potentially total an annual impact of €3.5-4.5 billion by 2030.

Once matured and scaled, the textile recycling industry could become a profitable industry with a total market size of 6-8 billion € and around 15,000 direct new jobs by 2030.

Next steps of the ReHubs initiative

• A European textile recycling roadmap proposing Objectives and Key Results to recycle fiber-to-fiber 2.5 million of textile waste by 2030
• A leading collaboration hub with large players and SMEs from across an extended European textile recycling value chain
• A first concrete portfolio of 4 launching projects:
  - Transform textile waste into feedstock
  - Increase the adoption of mechanically recycled fibers in the value chain
  - Expand capacity by solving technical challenges for thermo-mechanical textiles recycling
  - Create capsule collection with post-consumer recycled products

The 1^st project addresses current sorting technologies which have limits to identify materials with sufficient accuracy for the subsequent circular recycling processes. The “Transform Waste into Feedstock” project will focus on further developing and scaling such sorting technologies. The project group led by Texaid AG aims on building up a first 50,000 tons facility by the end 2024.

Huntsman Textile Effects has released PHOBOTEX® R-ACE, a PFC-free durable water repellent (DWR) that makes it possible for mills and brands to deliver high-performance outdoor and extreme sports apparel and everyday wear while meeting stringent environmental standards and optimizing production flow.

PHOBOTEX® R-ACE delivers excellent water repellence on all types of fibers. In addition to its remarkable performance on synthetic fibers and blends, PHOBOTEX® R-ACE offers compatibility with resin finishing to ensure even application with unmatchable performance on cellulosic fibers. It offers rain and splash protection for garments that are water repellent and windproof, even under toughest conditions. Additionally, it repels everyday stains, such as mud, coffee, ketchup and juice, so that garments stay cleaner for longer. Textiles treated with PHOBOTEX® R-ACE are breathable, retain their soft handle and continue to look good and perform well through repeated laundering and drying.

PHOBOTEX® R-ACE meets current and upcoming industry standards. The new DWR is PFC-free and formaldehyde-free. It meets the bluesign® criteria (imminent approval pending) and will be published on the ZDHC Gateway with Conformance Level 3, and suitable for STANDARD 100 by OEKO-TEX® certified textile products. It also meets new bluesign® restrictions on 2-Butanone oxime in chemical products, which will come into effect in June 2022.

Suominen strengthens its capabilities in sustainable products by enhancing and upgrading one of its production lines in Nakkila, Finland. The investment is made in line with Suominen’s strategy and supports company’s vision to be a frontrunner in sustainability.

“As we foresaw in our strategy the market demand in Europe has changed remarkably towards more sustainable products. With this investment we respond to the increased demand for environmentally friendly products and also enhance our operational performance in terms of safety, quality and productivity,” says Petri Helsky, President and CEO of Suominen.

The total value of the investment is approximately EUR 6 million and the investment project will be completed in the second half of 2023.

This year, Intertextile Shanghai Home Textiles again joins forces with NellyRodi™, the renowned French agency for international forecasting, to present the design theme for 2023 – ‘ALIVE’ – together with three trends: HUMAN CAPITAL, ROUSING COMMITMENT and UNREAL REALITIES.

Nature is a keyword in HUMAN CAPITAL
This direction reflects how people want to reconnect with the environment by choosing a local approach, short supply chains, raw and natural materials, and traditional techniques. For instance, 100% plant-based materials, as well as metalised fringed jacquards and gold yarns are used to illustrate this concept.

Inspired by everyday basics and daily essentials, the trend uses a soft, luminous white palette mingled with muted and amber shades of vegetal dyes. Designs also incorporate figurative hand-drawings, archaic bestiary, stylised wildflowers and geometric patterns.

ROUSING COMMITMENT celebrates creative self-expression
The trend combines a lively play of mix-matching patterns and colours. This embraces the integration of neutral shades through touches of metallic silver and fluorescent colours to represent the urban life.

Foamback and other fabrics influenced by sports materials, as well as extravagant jacquards, silicon embossing and bouclé fabrics draw out feel-good factor of the theme. Prints using modern twists on traditional patterns, lettering plays, exuberant florals and bold geometrics, also deliver the desire to live freely by sharing joy and happiness with others.

The fantasy of UNREAL REALITIES
In order to push the limits of imagination, science and technology, consumers tap into digital realms to connect with other realities, augmented worlds and futurist utopias that draw out the potential of today’s technology. Metalised rainbow colours highlight the magic and wonder under this virtual reality theme, while surrealistic photoprint shapes, misty landscapes, blurry effects and fantastical nature adds a futuristic touch.

The theme adopts iridescent gleam of semi-transparent voiles, muslins, recycled synthetics and added pearly or glazed aspects. Soft, light meshes, honeycombed or blistered surfaces and cloudy seersuckers elevate the textures in the fabrics.

The trends are decided by a committee led by the NellyRodi™ Agency (France) and formed by top forecasters including Mr Vincent Grégoire (France), the agency’s Consumer Trends and Insights Director; Mr Shen Lei (China), Founder and Chief of Interior Architects Design; and Ms Tracy Jen (Taiwan, China), the Host of ‘Eremito’; as well as Ms Sakina M’sa, the beloved French fashion designer and entrepreneur.

In order to integrate exhibitor and industry resources more effectively, the organisers of Intertextile Shanghai Home Textiles have announced that the Spring and Autumn editions will be merged this year. The two fairs will now be held concurrently from 15 – 17 August 2022 at the National Exhibition and Convention Center.

Bemberg™ is teaming up with MagnoLab, a network of Biella-based companies apt to carry out projects related to sustainability and circular economy, to create and display T-shirts that combine environmental responsibility and aesthetic research at the 102nd edition of Pitti Uomo.

Bemberg™ is used in shirts, cocktail dresses, dust coats, coordinates, outerwear and more by international brands operating in the fashion and luxury industries. To demonstrate its journey and evolution in contemporary style, Bemberg™ has collaborated with MagnoLab to develop a project that resulted in contemporary cut I-shirts presented both in sheer and blends with other certified fibers, including GOTS cottons and RWS wools, capable of enhancing both the hand of the final garment and the performance of the yarn.

The project conceived for Pitti Uomo 102 stems from the spirit of Bemberg™ and fits perfectly into the philosophy of MagnoLab, whose mission is to carry out projects related to environmental responsibility through a joint and participatory approach of partners, and to create value by developing innovative products and processes with rapid testing cycles, according to a lean management model.

With the purchase of the latest technology, iSAVER® by Itema, in weaving machines, ISKO pushes the envelope of technological performance and sustainability, making further progress in product and process efficiency.

This decision is an additional, important asset in ISKO’s journey towards a genuine Responsible Innovation™. It is part of other crucial investments made by the company, aimed at further reducing its environmental impact, among which stand out R-TWO™50+ – a new denim generation made with a minimum of 50% pre- and post-consumer recycled blend – and the Green Machine – a pioneering technology providing a 100% post-consumer recycling solution that fully separates and recycles cotton and polyester blends at scale.

After an intensive process, a selection was made where ISKO focuses on the development of technical solutions that enable greater resource savings and more sustainable production methods, always with the protection of workers at heart.

As a result, ISKO’s Headquarters extend the company's long-term relationship with Itema,
strengthening the company’s position as the mill with one of the world’s largest denim capacities. The new rapier machines are enhanced by the iSAVER® technology, a breakthrough mechatronic innovation that eliminates the waste selvedge on the left side of the fabric, allowing for saving in energy and raw materials, cutting in half the cotton waste that typically results from the weft yarn. All types of ISKO’s innovative fabrics, with a multitude of different constructions and fiber mixtures, can now be produced using these advanced weaving technologies, with a special focus given to the R-TWO™ technology in terms of its sustainable credentials.

SHIMA SEIKI MFG. will participate in the ITM 2022 International Textile Machinery Exhibition in Istanbul, Turkey.

SHIMA SEIKI will exhibit a wide range of its products, including proposals in seam-free WHOLEGARMENT® knitting technology that offers an alternative to labor-intensive manufacturing in Turkey and other international markets. Featured is the flagship MACH2XS WHOLEGARMENT® knitting machine with original SlideNeedle™ on four needle beds and spring-loaded moveable sinkers with expanded patterning capability, the MACH2VS V-bed machine for producing WHOLEGARMENT® items using every other needle, as well as the compact SWG091N2 for producing smaller WHOLEGARMENT® items and accessories. A brand new proposal in V-bed WHOLEGARMENT® knitting will also be introduced in the form of the N.SVR183 machine. N.SVR123SP features a special loop presser bed that can produce hybrid inlay fabrics with both knit and weave characteristics. N.SVR123SP at ITM will feature the special i-Plating option, capable of alternating yarn colors in any pattern, producing jacquard-like designs using plain jersey stitch for even greater diversity in knit design. Meanwhile N.SSR112 offers industry-leading technology in an economical yet reliable package made in Japan. Also on display is the SFG20 glove knitting machine.

Demonstrations will be performed on SHIMA SEIKI’s SDS®-ONE APEX4 design system. At the core of the company’s “Total Fashion System” concept, SDS®-ONE APEX4 provides comprehensive support throughout the production supply chain, integrating production into one smooth and efficient workflow from yarn development, product planning and design, to production and even sales promotion. Especially effective is the way SDS®-ONE APEX4 improves on the design evaluation process with its ultra-realistic simulation capability, whereby virtual samples replace physical sampling, consequently reducing time, cost and material that otherwise go to waste. The same capability is present in APEXFiz™ subscription-based design software. Installed on personal computers, APEXFiz™ features the same functionality as SDS®-ONE APEX4, but with the added versatility to adapt to different work styles and business environments including teleworking and telecommuting. Digital prototyping using virtual samples on SDS®-ONE APEX4 and APEXFiz™ help to digitally transform the fashion supply chain for realizing sustainable manufacturing. APEXFiz™ will be shown along with SHIMA SEIKI’s yarnbank™ digital yarn web platform that further enhances the realism of virtual samples.