Cotton yarn prices have been further raised in the past seven days in India, as a result of a new jump of cotton fiber prices. Margins are falling at spinning mills and downward textile and apparel producers are protesting.
Cotton yarn prices have continued rising in the last week in India.
With cotton fiber prices further surging, spinners have been forced to raise their price offers in order to limit the fall of their margins.
Downward cotton yarn processors are however unable to pass the full rise of their material costs on to their customers and sales could therefore suffer at spinning mills.
In Tirupur (Tamil Nadu), cotton yarn prices have been raised by two rupees per kilo, having gained 4 rupees in four weeks or about 2%.
In Bhiwandi (Maharashtra) like in Ludhiana (Punjab), cotton yarn prices have also climbed by 2 rupees in the last week
This is till a slight increase compared with the jump of 7.8% of cotton prices in only four weeks.
India’s cotton production is expected to fall this year and with the season now ending, cotton availability is declining whereas spinners try to accumulate stocks.
The state-run CCI (Cotton Corporation of India) has begun selling inventories which had been previously accumulated for maintaining prices above official minimum levels.
Indian cotton is now much less competitive on export markets, especially after the rupee has recently rebounded.
Yarn export prices have been raised due to both rupee and fiber increases.
Open end prices have for instance gained 10% with 10s at 2.23$ FOB.
Ring spun prices are also rising with 20s at 2.87$, and 30s combed between 3.05$ and 3.10$.
In addition to cotton yarn prices, polyester-cotton prices have also begun bottoming out on the domestic market, being up 2 rupees in Bhiwandi for example.
Source: Emergingtextiles
