Yarn price offers have eventually been lowered in the past seven days in India, according to the latest results of our weekly survey in Punjab, Maharashtra and Tamil Nadu. Cotton fiber prices are no more declining however, and margins could return to lower levels at spinning mills. India’s cotton production is expected rebounding in the coming season, with cotton use slightly rising.
Spun yarn prices are eventually declining in India, in line with a sharp fall of cotton prices in the past weeks.
The Shankar-6 has dropped 3.9% in four weeks before stabilizing in the current period.
The same market indicator has gained 100 rupees per candy in the last seven days or 0.2%.
The Indian rupee has begun recovering against the US dollar in the meantime with Shankar-6 prices rising 1.3% in dollar terms.
On local markets, cotton yarn prices have lost one rupee per kilo in the latest weekly period.
Although it is a slight decline, prices had not dropped for weeks due to the previous surge of material costs and the need for spinners to restore their falling margins.
On the polyester spun market, prices have dropped 2 rupees in Punjab. Acrylic yarn prices have recently surged, due to a sharp increase of fiber prices in China.
According to first forecast by the US Department of Agriculture (USDA), India’s cotton production could rebound in the coming season, rising 11.8% fro the current season.
Cotton use would only climb by 2% and exports would rebound with a jump of 7.2%.
10-year data are below available, showing that India’s production and use have stopped really rising with exports declining in volume terms.
Above forecast for the coming season still needs to be confirmed.
In the past years already, cotton output has eventually been much lower than expected due to pests or lack of water.
India could increasingly import cotton over the long term, as a result, with US brands increasingly imposing to use US cotton in addition, for marketing purposes.
Source: Emergingtextiles
