Cotton yarn prices have stayed unchanged in the past week in India where cotton fiber prices are now bottoming out over a sharp increase of Chinese demand. Other yarn prices have dropped in Tirupur and Bhiwandi as a resuult of a weak demand whereas being frozen in Ludhiana.
Cotton yarn prices have stayed frozen in the last week in India, as cotton prices were remaining very firm.
State-run CCI (Cotton Corporation of India) has continued buying large quantities of cotton in order to support market prices at official minimum levels previously set by the government.
Higher cotton prices
Demand from China is also rebounding, as 25% additional tariffs are still imposed on US origin.
The recent fall of the India rupee and the rise of the renminbi against the US dollar have boosted Chinese demand.
The looming end of trade negotiations between Beijing and Washington could however result in a shift in Chinese cotton buying from India to the United States.
In the meantime, spinners will need to maintain their yarn prices at current levels in order to keep minimum margins.
By contrast with 100% cotton yarns, most other spun yarn categories have experienced a slight decline in price offers in the last week.
Falling blended yarn prices
In Bhiwandi for instance, 100% polyester, polyester-cotton and polyester-viscose have dropped 1 rupee per kilo (-0.5% to 0.7%).
In Tirupur, poly-viscose has even fallen 2 rupees (-1%).
In Ludhiana, prices have stayed unchanged.
Source: Emergingtextiles
