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Related Keywords: affect Bangladeshi spinning sector, Bangladesh Textile Mills Association, break into local yarn market, cheaper rates, fall in consumption in China, largest cotton using country, lower prices of raw cotton, narrow profit margins, no hedging facility and warehousing system, purchase cotton at higher prices, supply raw material

The fall in consumption in China, the largest cotton-using country in the world is likely to affect the Bangladeshi spinning sector in two ways. Firstly, the slide in consumption will lower the prices of raw cotton worldwide further, which will also narrow the profit margins in Bangladesh. Secondly, other countries will break into the local yarn market as they will be able to supply the raw materials at cheaper rates.

Related Keywords: big-ticket items, black market, Chinese companies, North Korean manufacturers, produce export bound apparel, supply raw material, toll processors

The North Korean manufacturers are known as toll processors and use specialized equipment to produce export bound apparel for the Chinese companies, which supply the raw material. These contracted manufacturers have been found selling some of their finished products at bargain prices in the tightly-controlled country's black market, according to sources inside and outside North Korea.

Apparel such as coats are sold by the manufacturers without the knowledge of the Chinese companies and made from raw material skimmed off from the companies.