Spun yarn prices are falling across the board in India after polyester fiber prices have been sharply lowered in only three weeks. 100% polyester has heavily dropped and 100% cotton has also been cut in Tirupur, Ludhiana or Bhiwandi, although cotton prices have stayed firm.
Spun yarn prices are now more obviously falling in India, over a weakness of demand and significantly lower polyester staple fiber prices.
Benchmark 1.4D PSF price has been reduced from 102.50 to 96.50 rupees per kilo at the start of the current month before being further lowered to 90.50 rupees by mid-June.
As a result, polyester fiber prices have lost 11.7% in three weeks, in line with the sharp fall of PSF prices in China.
With import prices significantly declining and the rupee remaining firm against the renminbi, polyester producers have been forced lowering their offers.
In Tirupur, 100% PSF yarn prices have dropped 6 rupees per kilo in the last week or 3.9%.
They have plunged by 7.5% in four weeks only.
Weaving yarns have similarly fallen in Bhiwandi.
Margins may improve at spinning mills if prices are kept unchanged in the coming weeks, which is far from certain.
On the cotton yarn market, prices have also dropped although cotton fiber prices have not moved, by contrast with PSF prices.
In Ludhiana and Tirupur, cotton yarn prices are down 2 rupees from a week earlier, with weaving yarns even falling 5 rupees in Bhiwandi.
Poly-cotton prices are also sharply declining across India, whereas demand is far from recovering.
Such a fall of yarn prices could however boost the export sales in the coming period, although spinners are confronted with much higher cotton prices than competitors when converted in US$ terms.
Our below tables offer a comprehensive view of first quarter Indian exports of cotton yarns per market destination.
Source: Emergingtextiles
