In the past week, the prices of cotton yarn and blended yarn in India have followed the decline of cotton prices. The price of cotton yarn has dropped by 2 rupees/kg, and has dropped by 5 rupees/kg in the past four weeks, a decrease of 2.3-2.6%.
That week, the price of Indian cotton (S-6) fell by 2 rupees/kg, the price of polyester staple fell by 1.5 rupees/kg, a decrease of 1.7%, and the price of viscose short fiber fell by 1.5 rupees/kg. There was no change in fiber prices, while blended yarn prices fell by 1 rupee/kg. As mill profits continue to decline, yarn output may decrease in the future. However, the decline in international cotton prices may stimulate textile mills to import foreign cotton, which will improve the profits of spinning mills.
India’s cotton yarn exports picked up in January, with a year-on-year growth of 12.3% in volume terms. Exports to China are stable and exports to Bangladesh continue to surge.
