From the Sector

• Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

Their study reviewed the regional patterns of China’s cotton textile industry development and identified growing geographic separation between cotton production and textile manufacturing since the 1990s using data from Chinese sources. The study investigated spatial patterns of demand for imported cotton by analyzing lists of Chinese companies applying for a share of the import quota from 2016 to 2022. Multiple regression analysis was used to control for potentially confounding influences when investigating whether companies in coastal provinces were more likely to use imported cotton than similarly sized companies in other regions.

Textile manufacturers — the main consumers of cotton — are concentrated in coastal and central regions where the share of China’s cotton production fell from over 50 percent to 10 percent during 2011–21. These geographic changes are a factor influencing global trade in cotton and textiles. Additionally, the use of forced labor in Xinjiang attracted more attention to the industry, prompting the United States and other countries to ban products produced in the region.

This study reviews the economic, geographic, and policy factors reshaping the industry and influencing the global trade of cotton and textile products. The study also examines data on Chinese companies applying for a share of China’s cotton import quota to gain insight about the demand for imported cotton.

China became the world’s largest producer, consumer, and importer of cotton soon after joining the World Trade Organization (WTO) in 2001. Despite adopting a tariff-rate quota (TRQ) system for cotton imports and issuing supplemental quotas in most years, the large number of cotton goods manufacturers that request shares of the quota suggests demand for imported cotton exceeds  the quota.

While the TRQ was intended to protect China’s cotton farmers, many farmers abandoned the labor-intensive crop as wages rose rapidly in many other industries and other crops produced higher returns. In response, officials encouraged cotton production in the relatively remote region of Xinjiang to prevent China from becoming reliant on imported cotton. Xinjiang growers receive a subsidy payment for cotton, and subsidies for machinery and seeds. A transportation subsidy induces textile manufacturers in eastern and central regions to purchase cotton from Xinjiang, which is about 2,200 to 2,900 miles from most of the country’s textile manufacturers. Financial support and other incentives encourage manufacturers to shift operations to Xinjiang.

Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. China imports about 20 percent of its cotton, and the United States is a chief exporter of cotton to China. While imported cotton is used in all provinces, manufacturers near the eastern seaboard show a greater propensity for imports. Nevertheless, in all regions, domestic cotton has the largest share of mill use.

Between 2016 and 2022, 1,581 companies applied for a share of the TRQ, and 265 companies applied in all 7 years. Most of these companies also applied for supplemental quotas issued with slightly higher tariffs. This large number of applicants suggests that imports could be even greater if quotas did not limit them. The operation of the quota application process is not public information, but data submitted by applicants suggests access to imported cotton is uneven. About 14 percent of applicants said imported cotton comprised over half of the cotton they used. Another 20 percent of companies requesting import quota did not use any imported cotton, suggesting that many applicants are unable to import. Textile manufacturers coped with limits on cotton imports by increasing their use of synthetic, chemical-based fibers or by importing cotton yarn. From 2000 to 2020, China’s yarn imports doubled from under 1 million metric tons to around 2 million metric tons with Vietnam supplying about 45 percent of that total in 2020.

The number of textile manufacturers in Xinjiang applying for a share of the cotton import quota rose from 37 to 68 between 2016 and 2022. However, imports constituted less than 2 percent of  the cotton Xinjiang applicants reported using—and 66 percent of them reported using no imported cotton—suggesting that applications from Xinjiang textile companies were often denied.
Analysis found that applicants in coastal provinces used more imported cotton than similarly sized applicants in other regions. Each location of a multi-plant company must apply separately for tariff-rate quotas. Textile manufacturers in Xinjiang that requested a share of the import quota included branches of some of China’s largest textile companies, but the analysis found that Xinjiang applicants used less imported cotton than similar manufacturing plants located in other regions. China’s role as a cotton importer appears to have peaked, while other countries are increasing their share of imports.

USDA baseline projections suggest that by 2030 Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey will together account for 47 percent of the world’s cotton imports while China will only account for 24 percent. The study cam be downloaded from the USDA website.

Cotton Incorporated published its monthly economic letter of August and shared new insights of the cotton prices:

Cotton prices continue to be caught between the two competing storylines that have been in play for the past several months.
On one side, there is the deteriorating global macroeconomic situation.  The International Monetary Fund (IMF) lowered its projection for global economic growth in both 2022 (3.2%) and 2023 (2.9%) in the updates released in late July.  Current IMF forecasts are significantly beneath those from January (called for 4.4% growth in 2022 and 3.8% growth in 2023) and April (called for 3.6% growth in 2022 and 3.6% growth in 2023).  The evolution in the macroeconomy was a likely factor contributing to the shift in investors’ outlook on the commodity sector, which led to a collapse in prices for cotton and a range of other commodities in June and July.

Beyond the weakening macroeconomic environment, there also may be factors associated with cotton supply chains that could affect demand during the 2022/23 crop year.  Downstream consumer markets for cotton can be viewed as more discretionary than other spending categories, such as food, energy, and lodging, that experienced some of the sharpest effects of inflation.  Given price increases for necessities, consumers may have less income to devote to apparel and home furnishings.

In the U.S., consumer spending on clothing has been flat for the past year.  However, it has been holding at levels that are 25% higher than they were in 2019.  If U.S. consumers pull back on clothing purchases, it may hit the market just as retailers have caught up with consumer demand after the onset of the shipping crisis.  In weight volume, the cotton contained in U.S. apparel imports was up 22% year-over-year in the first half of 2022.  Relative to 2019 (pre-COVID and pre-shipping crisis), the volume in the first half of 2022 was up 23%.  Given strong import volumes, if there is a dip in consumer demand, inventory could build both at retail and upstream in supply chains.  This could lead to cancelations, potentially all the way back to the fiber level, where contracts signed at prices higher than current values could be particularly susceptible.

Tight U.S. supply is on the other side of price direction arguments.  Cotton is drought tolerant, and that is why it can be viably grown in perennially dry locations like West Texas.  However, cotton requires some moisture to germinate and generate healthy yields.  West Texas has had very little rain over the past year, and drought conditions have been extreme.  As a result, abandonment is forecast to be widespread.  It remains to be seen exactly how small the U.S. crop will be, but the current USDA forecast predicts only 12.6 million bales in 2022/23 (-5.0 million fewer bales than in 2021/22).

Meanwhile, demand for U.S. cotton has been relatively consistent, near 18 million bales over the past five crop years (an average of 15.5 million bales of exports and 2.7 million bales of domestic mill-use).  A harvest of only 12.6 million falls well short of the recent average for exports alone, and U.S. stocks were near multi-decade lows coming into 2022/23.  All these statistics suggest shipments from the world’s largest exporter may have to be rationed in 2022/23.  If cotton is not readily available from other sources, the scarcity of supply from the U.S. could support prices globally.

Simultaneously, there is weakness from the demand side.  The market has struggled to find the balance between the weakened demand environment and limited exportable supply in recent months.  The conflict between these two influences makes it difficult to discern a clear direction for prices and suggests continued volatility.

INDA, the Association of the Nonwoven Fabrics Industry, announces online nominations are now open for the prestigious Hygienix Innovation Award™. The Award recognizes a new product or technology innovation in the absorbent hygiene and personal care sector that uses nonwoven fabrics in novel, technically sophisticated, uniquely creative and expansive ways. The Award will be presented at Hygienix™ 2022, Nov. 14-17 at The Roosevelt New Orleans Hotel, in New Orleans, LA.

Nominees will be selected from a broad range of new products or technologies that have been commercially available at most two years prior to Hygienix™ 2022. Nominees can include end product components, fabrication techniques, or products that use a nonwoven technology in manufacturing. Award categories include feminine care products, diapers, incontinence products, raw materials, equipment technology, reusable products or technologies, and composites or laminates that use nonwovens. Three finalists will present their innovations to over 450 participants at the eighth edition of Hygienix™, the premier event for the absorbent hygiene and personal care markets. The winner will be announced Thursday, Nov. 17.

Last year’s Hygienix Innovation Award™ was presented to Kudos for their Kudos Diaper Subscription Box, a disposable diaper featuring 100 percent breathable cotton touching baby’s skin.

The adidas TERREX HS¹ is one of the first knitted products to be made in part with Spinnova technology. At least 30% of the fabric in this mid-layer hiking hoodie comes from wood-based SPINNOVA® fibres (other fibres)* and 70% from cotton (organic).

Adidas is committed to helping End Plastic Waste via a three-loop strategy that consists of using recycled materials, materials that can be made to be remade and in the case of Made with Nature, products created in part with natural ingredients, such as the adidas TERREX HS¹.  

The first product to emerge from this partnership, the adidas TERREX HS¹ mid-layer is a piece of multi-functional gear that works on the trails and then rolls up into its hood for easy storage or to create a pillow on longer adventures. It was designed using UNITEFIT – an all-gender fit system created with a spectrum of sizes, genders, and forms in mind.

Made in part with Spinnova technology , a minimum of 30% of the fabric in the adidas TERREX HS¹ comes from wood-based SPINNOVA® fibres (other fibres)* that are made by grinding wood pulp with water into a paste and then spun into a textile fibre.

The product also works with the material’s natural color. Since no dyeing or bleaching is applied, in turn this uses less water compared to the standard dyeing process.

* (Rayon) in US, (New type of cellulose fibre) in China

ROICA™, Asahi Kasei's premium stretch fiber manufacturer, strengthens its presence in the high fashion segment thanks to its established network of partners, who will present their latest innovations - activated by ROICA™ - at the upcoming edition of Milano Unica, taking place at Rho Fiera Milano from 12th to 14th July 2022.

Going more in depth in the offers of ROICA™ partners for this season of Milano Unica, they are:

• Cifra, which presents its innovative garments for men and women, combining fashion and function. Base layers, tops, leggings and jumpsuits are made with natural yarns, or recycled pre- and post-consumer yarns in combination with ROICA™ EF, the sustainable recycled stretch yarn able to complete proposals that offer design, performance and responsibility. The design of the garments, created in Cifra's design office, offers a perfect shape with body mapping technology that creates dedicated ventilation zones, for a feeling of comfort and freshness as well as an innovative aesthetic impact.
• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Maglificio Ripa, which presents the Splash collection for summer 2024, developed in two major themes, united by the same focus on sustainability that results in the use of recycled pre- and post-consumer polyamide and polyester yarns including ROICA™ EF for the sustainable recycled stretch fiber. The first theme encompasses printed, 3D jacquard fabrics, ennobled by innovative processes that move the bottoms for an organic and sometimes irreverent final look. The second theme embodies a cocoon spirit, enveloping like a caress, soft as a hug.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Piave Maitex, whose orientation is, as always, to present new products with the right  balance between technological innovation and aesthetic look, between fashion and comfort, proposals that include sustainable fabrics made in recycled polyester,  polyamide and the sustainable recycled stretch fiber ROICA™ EF, three-dimensional and optical, perforated, plush effects, made by prioritizing technical functionalities such as waterproofness, breathability, transfer and moisture management, opacity and anti-UV as well as anti-abrasion.
• Sitip, which is one of the premium partners, together with ROICA™, for the creation of the first Scott Racing Team’s responsible biking uniform. This year, the evolution of research and development has also led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF sustainable, stretch and certified recycled yarns.

ROICA™ strengthens its presence in the apparel segment thanks to its established network of partners, who will present their latest innovations at the upcoming Première Vision.

ROICA™ partners are the “artists” and “heartists” of premium stretch in fabrics: because they have at heart all the values for which ROICA™ stands for. These partners presenting at Première Vision are:

• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Innova Fabrics, which recently enhanced its smart offering by launching the RF (Residual Free) line, with the goal of reducing the impact of microplastics derived from the fashion industry. This is made possible by mixing two responsible ingredients, SENSIL® BioCare by Nilit and ROICA™ V550 by Asahi Kasei, which give birth to both sporty and casual fabrics.
• Inplet, which enriched its production of smart elastic and rigid knitted fabrics with three new products: a powernet fabric in 77% polyamide RECO and 23% ROICA™ EF with good recovery; a net fabric in 55% polyamide RECO and 45% ROICA™ EF characterized by a soft hand and good elasticity; and a 79% polyamide and 21% ROICA™ V550 good power, good recovery and a soft touch.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Tessitura Colombo Antonio, which in its new A/W 23-24 collection expands its proposal of regenerated lace from the ECO-LACE line: new designs inspired by fashion trends using ROICA™ EF. Also, in its BIODEGRADABLE line it uses ROICA™ V550 for the realization of new designs. The new MICROMODAL line uses ROICA™ V550; the effect of this lace range is softness, elegance and relief effect.

Since 85 years, Riri Group is a point of reference for the creation of details of style providing fashion brands with accessories, including zippers, buttons, metal components, and fashion jewels. Fashion is necessarily a reflection of social changes, cultural turmoil, popular aspirations, and the needs of the final customer: from these assumptions comes Riri Group’s FW 23-24 collection. The newly released collection presents two dynamic paths to explore the needs of the market targeting self-expression through style: Extreme Outverse and Fluid Glamour.

EXTREME OUTVERSE: Accessories for accessing multidimensionality
Art, space travels and the metaverse experience provide the inspiration for transparent and glossy digital prints, laser markings, use of colored paints, use of jacquard ribbon and iridescent lurex, invisible button caps, PVD finishes (rainbow, matt black), reverse coated nylon zips.

FLUID GLAMOUR: Redefine infinitely (elegance) standard
Fluid Glamour expands the processes of representing the individual in an elegant interpretation of its complexity. This concept of fluidity and uniqueness meets the new frontier of the space tourism race and intergalactic style to create futuristic atmospheres and sculptural silhouettes: rhinestones and black stones developed by Amom, wool yarns, jacquard, and a variety of tapes – metallised genuine leather and eco-leather, GOTS-certified cotton and GRS-certified recycled polyester, knitwear, white with silver lurex – that reflect the space exploration and dark desert landscapes.

The international eco hub C.L.A.S.S. brings its next generation Smart Shop’s offer to the 10th edition of the Future Fabrics Expo from the28th to the 29th of June 2022 in London.

Since 2018, C.L.A.S.S. has been offering the access of the top of its Material hub innovations to small and new generation of designers and brands through its Smart Shop, the online store of smart materials. C.L.A.S.S. intent at FFE is to share the unique values of its design driven, conscious, high-tech materials, in order to start synergies with an audience characterized by the interest in responsible innovations, the main expertise of CEO and founder Giusy Bettoni and her team.

C.L.A.S.S. offers smart solutions – from 1 meter to max 50 meters - for the contemporary wardrobe which include all the different expressions of textile ingredients: natural, transformed, innovative and back in the loop materials, giving everyone the possibility to create design, innovative and yet responsible products in line with their new generation of contemporary values.

Among the conscious, yet technological materials which will be presented at Fabrics for Future there are Bemberg™ by Asahi Kasei, Albini’s organic and scientifically traceable cotton, Re.VerSo™ recycled wools, NewLife™ recycled polyester and Maeba International’s Back in The Loop fabrics.

Archroma launches Smartrepel® Hydro SR liq, a new PFC-free* technology for the repellence of water-based stains.

The innovation has been developed in line with the principles of “The Archroma Way to a Sustainable World: Safe, efficient, enhanced, it’s our nature”.

Smartrepel® Hydro SR liq is the latest addition to a range of micro-encapsulated, highly biodegradable, non-PFC based technology offering durable water repellency to all cotton and synthetic fibers, and their blends.

The new Smartrepel® Hydro SR liq has been specifically developed for soil repellent finishes aiming to offer protection against water-based stains such as coffee, red wine and ketchup, in applications such as home textiles, table clothes upholstery, car seats and interior textiles.

The new grade offers the signature Smartrepel® high performance standard: a symbiosis of water protection, soil repellence, breathability and durability – with the soft hand-feel that is sought after by consumers.

The Smartrepel® product range supports the increasing adoption of eco-advanced materials and production processes by textile producers and brand owners adhering to standards such as ZDHC, bluesign and Oeko-tex.

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.