In the week of December 8-14, yarn prices in India remained stable. Affected by the invalidation of some large-denomination banknotes, India’s cotton sales progress was significantly lower than the same period last year. According to statistics, the average daily purchase volume of Indian seed cotton in December did not exceed 150,000 bales (25,500 tons), which was lower than the 200,000 bales (34,000 tons) in the same period last year.
Due to tight cotton supply, Indian cotton prices are higher than the same period last year. On December 6, India’s domestic S-6 quotation was 38,800 rupees/kandi, a year-on-year increase of 15.5%; the export price was 73.48 cents/pound, a year-on-year increase of 13.54%. Although Pakistan has recently lifted its ban on imports of agricultural products from India, it is expected that Indian cotton exporters will have difficulty fulfilling their contracts due to tight domestic supply in India.
The price of polyester staple fiber in India increased by 2 rupees/kg to 80 rupees/kg (US$1.17/kg) in December, and prices are expected to continue to rise in the future. The price of cotton yarn in India remains relatively stable. The depreciation of the RMB has a certain impact on the export of Indian cotton yarn. At the same time, China’s establishment of factories in Vietnam will also affect the export of Indian cotton yarn to the Chinese market. Indian cotton yarn prices remain stable
