KELHEIM, Germany — January 29, 2016 — Kelheim Fibres, a manufacturer of viscose specialty fibers, has completed the next step in the development of infrared (IR)-reflecting fibers.

During the last months, the incorporation of mineral IR-reflecting particles has been tested in several spinning trials. Different levels of these particles were integrated into the fiber’s core, thereby preserving the fiber’s inherent properties, rather than being added as a topical finish using additives based on titanium oxide or other metal-based compounds. The effects of the new method are permanent and cannot be washed out.

The trials showed that the new fiber delivers a level of IR-activity that could be proven in measurements of the Total Solar Reflectance Value (TSR). Visible light is reflected by 90 to 95 percent, while in the near infrared range, a reflectance of up to 90-percent is reached, depending on the wavelength spectrum. This proves a clear benefit in the reflectance of direct sunlight, where the fiber is capable of providing a cooling effect, for example by protecting the human body from outside radiation.

At the same time, the fiber may also be used in warming applications, where the thermal radiation emitted from the body is reflected by these particles back to the body, reducing the cooling effect and keeping the person warm. In the mid IR-range an increase of reflectance of about 20 percent of m-IR radiation was achieved in tests compared to normal viscose.

The fiber can be used for both textile and nonwoven processes, where the fabric can either protect against outside influences or reflect the IR-radiation back to the inside source. “Comfortable feel-good clothes and functional special clothing are just two obvious applications for our new IR fiber,” says Dr. Daniela Bauer of Kelheim Fibres’ R&D team. “The level of loading can be adapted according to the requirements of the final product, which provides high versatility. As a next step, the fiber will be tested for its effectiveness in various end-applications in cooperation with our partners.”

Posted January 29, 2016

Source: Kelheim Fibres GmbH

LIVERPOOL, United Kingdom — January 29, 2016 — NY futures drifted slightly lower this week, as March gave up 73 points to close at 61.36 cents.

It was yet another week of indecision in the cotton market, as a potentially bullish supply situation continues to be overshadowed by uncertainty about the Chinese reserve policy and the global macro environment.  Although the market came under renewed pressure when it broke below short-term support on Tuesday, the damage was kept under control and buying finally resurfaced again today.

The tightening supply picture continues to keep bullish hopes alive, as global output is now widely expected to fall below 100 million bales this season, which would be the lowest since 2003/04 and over 20 million bales less than a year ago. While our own number is a shade below 99 million bales, Cotlook has an even lower estimate at just 97.5 million statistical bales. By contrast, the USDA is still at 101.6 million bales, but we have a feeling that this number might have to be scaled back over the coming reports.

This disappointing global production number is the result of both lower acreage and lower yield. While global harvested acreage was around 10% down from last season, yield suffered an 8% drop compared to a year ago. This is somewhat unusual, because El Niño years typically produce fairly decent crops.

Interesting too is that the year-on-year decline in production happened all across the globe, with not one major producing area showing an increase. The biggest drop, according to our own numbers, occurred in China (-6.5 million bales), followed by Pakistan (-3.5 million bales), the US (-3.4 million bales), India (-2.1 million bales), Turkey (-0.6 million bales), Central Asia (-0.5 million bales), Brazil (-0.4 million bales) and West Africa (-0.25 million bales).

Global mill use has seen a decline as well, but not nearly to the same degree as production. While our own number is at 107.8 million bales, Cotlook is a little more downbeat at 106.6 million bales. The USDA is once again quite a bit higher than the consensus and has mill use still at 110.9 million bales, mainly due to a more optimistic number for China.

Even though there are some differences between the Cotlook and USDA numbers, when we look at just the spread between production and mill use, both organizations arrive at nearly identical production gaps for the current season. While Cotlook has a production gap of 9.1 million bales, the USDA is at 9.3 million, and our own numbers show an 8.9 million bales deficit.

As a result ending stocks outside China are estimated to be drawn down by somewhere between 4 and 6 million bales, which could make the second half of the season quite challenging for mills. The quality mix is not nearly as great as in previous years and we therefore believe that premium grades with decent staple lengths are starting to disappear first, then medium grades and if nothing else is available, even the less desirable recaps will find takers. Most of the premium grades around the globe have already transitioned from growers to merchants and now exist as basis-longs on their books, waiting to be sold to mills down the road.

While mills are still in a hand-to-mouth buying mode due to the uncertain economic outlook, we would recommend to lock up better grades now, because they might not be available anymore four or five months from now!

Last week we commented on the composition of the certificated stock, which we didn’t think was very desirable because the majority was made up of 1.1/32 and 1.1/16 staple cotton. We were therefore a bit surprised by the more than 25,000 bales in de-certifications this morning. This means that the certified stock has been cut in half this month, from 64,000 bales on January 1st to just 32,000 bales today.

Our guess is that these de-certs were part of the 31,000 bales in 2014 cotton, which was assessed an extra 200-point crop year penalty at the beginning of this year. Nevertheless, this sends a signal that some of the certified stock seems to be cheap enough near 60 cents. Furthermore, with the US crop yielding less than 7 million bales of tenderable grades this season, it will become increasingly difficult to replace the withdrawn bales as we move into spring and summer.

We believe that the US dollar will become an important factor in determining commodity prices over the coming months. Capital flight from all over the globe, favorable interest rate differentials and the apparent strength of the US economy were some of the reasons for the dollar’s extraordinary strength over the last couple of years. However, we feel that this bull run by the greenback is getting long in the tooth!

With the exception of the jobs number, nearly all of the US economic data has been quite negative lately, suggesting that the US might actually be at the brink of a recession. The selloff in the stock market has added further fuel to this argument. So far the Fed has been hanging its somewhat hawkish hat on the ‘encouraging’ jobs picture, but we feel that it is just a matter of time until that changes as well and the Fed has to concede defeat.

Once that happens and Fed policy once again becomes accommodative, it will in our opinion reverse the bullish dollar trend. This in turn would put support under all dollar denominated assets, including cotton!

So where do we go from here? We feel that the cotton market wants to go higher, but won’t be able to do so until the Chinese reserve policy has been decided. Markets don’t like uncertainty, and right now we have plenty of it. Nevertheless, there is no denying that premium grade supplies are tight and will only get tighter in during the second half of the season. We therefore recommend booking needed supplies without any further delay, if desirable on-call, and then fix the price on a break, possibly after the Chinese policy announcement. We wouldn’t be surprised if the Chinese news turned into a “sell the rumor/buy the fact” event that offers a great buying opportunity!

Posted January 29, 2016

Source Plexus Cotton Ltd.

SUZHOU, China — January 28, 2016 — Americhem Inc., a global provider of color and additive solutions for plastics and man-made fibers, celebrates the 10th anniversary of its Suzhou, China, plant.

“We are proud of our growth in ten years,” said Stanley Teoh, Americhem’s vice president and managing director for the Asia Pacific region. “What started out as an empty lot in Suzhou Industrial Park became our first plant in the region, and we have since doubled the plant size and capacity.”

Americhem’s presence in China began in 2004, when a representative sales office opened in Shanghai. The staff in the early years helped build demand for Americhem products, which were initially supplied from the company’s U.S. plants. The Suzhou plant construction also commenced in 2004 and was dedicated in 2006 with a Chinese grand opening ceremony featuring a traditional lion dance.

Other milestones include Americhem China’s first trade show, the 2006 ShanghaiTex exhibition, which brought together industry leaders from throughout the Asia Pacific region. The plant was certified to the ISO 9001 quality management system in 2008 and was subsequently accredited to the ISO 13485 medical device standard in 2015.

The growth of the business in the Asia Pacific region picked up to the point where a major expansion of the Suzhou plant took place in 2014. The expansion doubled the size of the plant and allowed Americhem China to add manufacturing lines, including those used to manufacture the products of Americhem’s sister company, Infinity LTL Engineered Compounds, in China.

“This 10th anniversary is a major accomplishment for our company,” said John Deignan, president of Americhem. “What started as a brand-new facility in the heart of industrial China has grown into the substantial business we see today. I can’t wait to see what happens in the next ten years and beyond.”

Posted January 28, 2016

Source: Americhem