Cotton yarn prices have been again raised by Indian spinners, although very slightly by contrast with the surge fo cotton prices in the past weeks. The Cotton Association of India (CAI) has further lowered its forecast for India’s crop this season.
Cotton yarn prices have been further raised in India, in line with the rebound of cotton prices in the past weeks.
In Tirupur (Tamil Nadu), 30s combed cotton knitting has risen 1 rupee per kilo, being up 5 rupees in three weeks, or 2.2%.
In Bhiwandi (Maharashtra), 40s combed cotton weaving has been up 1 rupee also, rising 4 cents in three weeks (+1.7%).
Cotton prices have more sharply increased in the meantime, with benchmark Shankar 6 surging 7.2% in four weeks.
Margins are therefore falling at spinning mills and production could be lowered, as a result.
Cotton prices have possibly reached their limit in the past days with the rally giving signs of weakness over a possible fall of demand.
India’s exports of cotton fibers and yarns are less competitive on foreign markets, especially in China where Pakistani suppliers benefit from the weakness of their currency.
By contrast, the Indian rupee has remained strong over a new wave of foreign financial investment in Indian equities.
Export prices of Indian cotton yarns have been raised at Chinese borders, with rival suppliers also forced to increase their offers after international cotton prices have rebounded in the last weeks.
In India, the Cotton Association of India (CAI) has further lowered its estimate for the cotton output in the current season (Oct 2018-Sep 2019) at only32.1 million local bales of 170 kilos each, down from 32.8 million a month earlier and 36.5 million in the last season.
Imports would therefore surge from 1.5 million to 2.7 million bales and exports would fall from 6.9 to 4.7 million bales.
Source: Emergingtextiles
