In the past week, Indian cotton yarn prices have fallen due to lack of demand, especially in the export market. The price of blended yarn fell by 1.7%, with a cumulative decline of 4.5% in the past four weeks, and a cumulative decline of 15.5% in the past three months. The price of pure cotton yarn fell by 2% in a single week, and the price of 30-count combed yarn fell by 12% in the past three months.
Currently, India’s cotton yarn export demand is sluggish, and China purchases very little. In July, Indian cotton yarn exports to China dropped by 80% year-on-year, and Pakistani yarn clearly had the upper hand. Pakistan’s duty-free exports to China and the sharp decline in the Pakistani rupee exchange rate stimulated Pakistani yarn exports to China.
Indian yarn mills are trapped in a vicious cycle of high domestic cotton prices. On the one hand, high prices will eat up profits. On the other hand, if cotton prices fall in the past few weeks, Indian yarn exports will decline. will be bigger. At present, the Indian rupee has begun to fall sharply, but the RMB exchange rate is also falling, and Indian yarn exports are almost helpless.
