Supported by the depreciation of the Indian rupee and strong foreign demand, Indian cotton yarn prices remain firm. At present, China’s demand for Indian cotton yarn has rebounded significantly, mainly due to the sharp drop in the price of Indian cotton yarn in US dollars, which further boosted China’s demand for Indian cotton yarn.
According to statistics, in the past seven days, the price of S-6 cotton has been slightly reduced by 100 rupees to 46,800 rupees/kandy, a decrease of 0.21% and an increase of 24.8% over the same period last year. The price of cotton yarn in Punjab Province fell by 1 rupee cumulatively to 226 rupees/kg, a decrease of 0.4%. The price of 30S pure cotton knitted yarn remained stable at US$3.08/kg.
In terms of exports, since July, the export price of Indian cotton yarn has dropped by 90 cents, a drop of nearly 25%. In the past seven days, the export price of 30S pure cotton combed yarn has dropped by 10 cents to US$2.8/kg, a decrease of 3.5%. The CNF price of 32S pure cotton yarn exported to China fell by 4 cents to US$2.75/kg, and has fallen by 14 cents in the past four weeks.
According to Indian official data, India’s cotton yarn exports to China increased by 51% year-on-year from April to August, and the export value more than tripled. Exports to Vietnam unexpectedly showed a low level of growth.
The Indian market believes that international demand this year will be a strong support for Indian cotton prices to remain high, even if India’s cotton production increases significantly. It is understood that with the continuous increase in the minimum support price MSP this year and favorable monsoon conditions, India’s cotton planting area has increased significantly, and cotton production will be significantly increased. As the current market price is still higher than the MSP minimum support price, CCI acquisition has not yet started.
Title: India’s cotton yarn exports to China increased by 51% year-on-year from April to August