Cotton yarn prices have been once again slightly raised in the last week, with cotton fiber prices however surging in the meantime, and gross margins plunging at spinning mills, consecutively. Cotton yarn exports may also be expected suffering after sharply increasing in 2018, as reflected by our 5-year export data per destination available in the below report.
Cotton yarn prices have been again slightly raised in India, reflecting the current rise of cotton fiber prices.
In Tirupur (Tamil Nadu), 30s combed cotton has been up one rupee per kilo or 0.4%, actually rising 6 rupees or 2.7% in the past four weeks from 225 to 231 rupees.
Poly-cotton has also been raised by one rupee or 0.5%, increasing by 5 rupees or 2.6% in the past four weeks.
In Bhiwandi, 40s cotton weaving has similarly gained one rupee or 0.4%, up 5 rupees or 2.1% in four weeks.
In Ludhiana, 30s combed has also risen one rupee but 30s carded has not moved by contrast.
Such a slight increase of cotton yarn prices will only slightly limit the current fall of margins at yarn plants in India.
Spinners are expecting cotton prices to continue rising over latest forecast announcing a significant fall of cotton output this season.
Farmers are therefore expected being satisfied ahead of general elections, whereas spinners are struggling on the domestic and export markets.
India’s cotton yarn exports had however sharply risen in volume terms in the last year after falling in 2017, as reflected by our below tables.
This is mostly due to a rebound in shipments to China, up 16.8% in volume terms after falling 21.3% in 2017.
Exports to Bangladesh have also surged in 2018 after dropping in the previous year.
Demand from Pakistan has eventually plunged after surging in 2017.
Shipments to North Korea and Vietnam have sharply increased, however accounting for a small share of total exports of cotton yarns from India.
Source: Emergingtextiles