In the past week, domestic cotton yarn prices in India have remained strong, while export quotations have continued to fall due to insufficient demand. It is currently too early for India’s 2017/18 new cotton to be launched. Domestic cotton prices are expected to remain strong in the next two months under the support of short-term supply shortages.
India’s 30-count pure cotton yarn export quotation rebounded slightly to $2.95/kg from the low of $2.90/kg last week, but 30-count blended yarn (65/35) fell to $2.65/kg, which was the same as a year ago. The level is about the same.
The import price of cotton yarn in the Chinese market continues to decline, especially Indian yarn continues to fall due to high prices. Data show that in April, India’s cotton yarn exports to China decreased by more than 75% year-on-year in terms of quantity. India’s total cotton yarn exports fell by 37.4% that month. Demand in China and Bangladesh is very sluggish, but Indian yarn exports to Pakistan continue to rise. Neighboring countries have become the third largest market for Indian yarn exports.
Currently, India’s domestic cotton supply is tight, and yarn production is affected by insufficient power supply. Indian yarn export prices continue to fall due to lack of demand
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