Cotton yarn prices haves stopped declining on the domestic market in India, immediately after cotton fiber prices have begun sharply rebounding in the last week. Confronted with a new fall of their margins, spinners could even raise their offers in the coming period, amid rising uncertainties.
Cotton fiber prices have sharply rebounded in India, in line with a similar recovery of cotton futures in New York.
The benchmark Shankar-6 variety has gained 1,400 rupees per candy in a single week or 3.1%, regaining most of the lost ground in the previous weeks.
From their level four weeks ago, prices have only very slightly dropped, as a result.
The move toward lower cotton yarn prices could therefore be short lived on Indian domestic market.
Spinners have stopped reducing their price offers for 100% cotton in order to preserve their margins.
Cotton prices could rebound to even higher levels due to a lack of fibers in the country and a rise of international prices, with still a few months to go before the new crop will reach the market.
On the spun polyester market by contrast, spinners have slightly lowered their prices for poly-cotton, poly-vicose and 100% polyester, with differences depending on markets and counts.
Uncertainty now clearly prevails as demand from China is not expected recovering in the short term.
Source: Emergingtextiles
