Spun yarn prices have continued rising in the last seven days in India, whatever the lack of demand from export markets in the current period. If polyester fiber prices have been raised, cotton fiber prices are pressured by a rise of cotton imports from other origins.
Yarn prices have further risen in the last seven days in India.
In Bhiwandi, 40s combed cotton weaving has climbed by two rupees per kilo or 0.8%, at 240 rupees.
In Tirupur, cotton ring hosiery has also gained two rupees or 0.9%, at 224 rupees.
In Ludhiana, prices are similarly up 2 rupees for 30s combed cotton ring knitting.
Poly-cotton prices have even been raised by 5 rupees in the meantime.
Prices are supported by a rebound of PSF prices at the start of February.
On the cotton market by contrast, fiber prices have continued remaining weak, over a lack of demand.
Daily arrivals are falling but rising imports may depress the domestic market.
Buying of foreign cotton should be boosted this season by a fall of Indian output.
The Cotton Association of India (CAI) has further cut its production estimate by 500,000 local bales of 30 kilos each to 33 million bales.
On the other hand, cotton exports could be boosted by continuously rising demand from Bangladesh where cotton yarn capacities are being further expanded.
An expected trade agreement between China and the United States in the coming days could result in Chinese demand shifting to the US production.
In addition, according to India’s Confederation of Indian Textile Industry (CITI), cotton yarn exports from India are confronted with a 3.5% import tariff on China’s import market by contrast with a duty-free access for Chinese yarn imports from Vietnam.
Source: Emergingtextiles
