In the past week, the prices of cotton yarn and polyester-cotton yarn in India have fallen slightly, and the price trend is consistent with that of raw materials. The Indian government intends to strongly support cotton prices in the new year, which is detrimental to domestic yarn companies.
At present, Indian yarn prices have further stabilized, and the trend of polyester-cotton yarn has become weaker. Cotton yarn and polyester-cotton yarn fell by 0.5% and 0.6% respectively. At the same time, both cotton and chemical fiber prices have fallen, so it is not surprising that yarn prices are lower.
Analysts believe that a large amount of Indian cotton will be launched in the new year, which will put greater pressure on domestic cotton prices. S-6 has fallen rapidly in recent days. However, after the start of the new year on October 1, the government’s price protection will come into effect, so the yarn mills will once again fall into the dilemma of rising domestic prices, rising raw material costs and falling international prices. It is understood that declining operating profits have led to the closure of a large number of yarn production capacities.
In addition, India’s cotton imports have soared, and U.S. cotton has become popular in India after losing China. Polyester staple fiber prices may also be supported by rising cotton prices, prompting textile and apparel manufacturers to switch to cheaper products, and recycled fiber sales may increase significantly in the coming months.
