Cotton yarn prices have continued rising in the last seven days in India, according to weekly survey, and whatever the fall of cotton prices over the same weekly period. Spinners need to restore their margins which have been sharply reduced by the surge of cotton prices in April.
Cotton yarn prices have been surprisingly raised in different market locations in India.
100% cotton yarn prices have for instance climb another rupee per kilo or 0.4% in Tirupur (Tamil Nadu) whatever the decline of cotton prices.
On India’s domestic cotton market, the benchmark indicator Shankar-6 has fallen 400 rupees per candy or 0.9% in the last seven days.
However, spinners may wish taking into account the higher prices of cotton fibers which they have previously purchased.
Cotton prices have surged in April, and yarn prices have been far from following the rise of material costs at spinning mills.
As a result, gross margins have declined and yarn producers could be long in taking into account the current fall of cotton prices.
Yarn export prices have also risen in the last two weeks, although cotton prices have dropped and the rupee has eventually declined.
Cotton yarn prices may be expected however declining on the international market, in line with a sharp fall of cotton prices in the last days in New York.
Polyester fiber prices are also declining in China, which could eventually pressure the fiber prices and spun polyester prices in India.
Source: Emergingtextiles
