Cotton and poly-cotton yarn export prices are sharply rebounding in India, due to a recovery of Chinese demand now offsetting the fall of shipments to Pakistan. Cotton fiber prices are also recovering over state buying and a similar rebound of sales to China.
Yarn export prices have surged in the last two weeks in India whereas domestic market prices were stable or further dropping.
30s combed cotton FOB India has gained 5 cents per kilo or 1.7% after already rising 13 cents in the previous week.
Polyester-cotton is also climbing to higher levels, with 30s (65/35) being up 10 cents this week after already surging 15 cents a week earlier, therefore rising 7.5% in two weeks.
This sharp rebound of yarn export prices is mostly due to a surge in demand from China where foreign yarns are now more competitive than domestic products.
The recent rise of the yuan has lowered import prices in yuan terms.
In addition, international cotton prices have recently fallen whereas domestic cotton prices in China were slightly rising week after week.
The effective ban of Indian shipments to Pakistan has not depressed yarn export prices, as a consequence.
Cotton prices are also rebounding in India, over a similar recovery of Chinese demand after lunar year holidays.
The benchmark Shankar 6 has risen 1,000 rupees per candy in only two weeks, reflecting the new market trend.
State-run CCI has also bought large quantities of cotton to support prices above their official minimum levels.
Source: Emergingtextiles
