Spun Yarn Prices in IndiaMonthly Report
18 September 2007
Cotton yarn prices remained mostly stable in the past weeks in India, in line with a lower seasonal demand. Fine count prices however climbed. Polyester-cotton and polyester-viscose yarns more significantly increased. Production and exports are steadily rising, as reported by our India Correspondent.
Cotton yarn prices have remained almost steady in September.
Textile production for the festive season is at a very advanced stage and demand for inputs is almost over, resulting in price stability in the market.
Cotton and cotton yarn exports have also begun improving.
While prices of commodity yarns have been stable, there have been reports of fluctuations in fine yarn prices.
This has not been due to higher demand, but because of artificial shortages created by stock hoarding in the market.
This has resulted in prices of some of the finer yarns increasing as much as Rs 10-15 a kg within a week.
However, with demand for the festive season almost at an end, the prices are getting back to normal levels.
Spun yarn prices over the last one year have remained fairly steady, as per a report recently released by the Ministry of Textiles.
Cotton hank yarn prices on a weighted average rose 3.457% between August 2006 and August 2007.
However, most other yarn prices remained stable.
Cotton cone yarn prices rose 0.85%, cotton hosiery yarn prices rose 1.10%.
Polyester viscose blended yarn prices fell 2.17% and polyester cotton blended yarn rates were down 2.75% during the period.
Production up in April-July 2007
Cotton yarn production has increased by 7.56% to 980.58 million kgs during the first four months of 2007-08, compared with production of 911.66 million kgs during April-July, 2006-07.
100% non-cotton yarn production was up 4.24% to 124.39 million kgs during the period.
However, blended yarn production was slightly lower by 0.01% to 212.79 million kgs during April-July 2007-08, as compared to the corresponding period of the previous year.
Domestic delivery of spun yarns in April 2007 was 5.78% higher than in April 2006 at 238 million kgs.
Growth in cotton yarn deliveries was up 8.54% to 178 million kgs in April 2007, as against 164 million kgs in April 2006.
Exports improve
Spun yarn exports have begun picking up after a short lull.
Exports of polyester-viscose yarns during April-June 2007 rose 24.35% while exports of polyester-cotton yarns grew 40.76%.
Polyester spun yarn exports were up 110.18% during the period. The improvement in spun yarn exports is expected to further stabilize prices in the Indian market which has previously witnessed discount of yarns meant for the export market, depressing prices and margins.
Cotton prices move up slightly
Cotton prices of some of the varieties have also moved up slightly.
This is due to better export orders which the industry is now able to fulfill as the rupee-dollar rates are improving.
For the new crop season, the government has fixed the minimum support price for the two basic varieties of cotton, medium staple length relating to F-414/H-777/J-34, and long staple length relating to H-4/H-6 varieties.
The minimum support price for the medium staple varieties has been fixed at Rs 1,800 a quintal and that for the long staple length, at Rs 2,300 a quintal.
Meanwhile, there is not much domestic buying in cotton, as the industry awaits the arrival of the new cotton.
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