China’s demand slows, yarn printing/exports decline by %

According to a report by India’s “Business Standard” on April 2, due to a sharp drop in exports to China, India’s total cotton yarn exports are expected to decline by 15% in 2014/15 (normally China’s exports account for about 1% of total exports) 40%). A report released by the Federal Ministry of Textiles shows that in the 2013/14 fiscal year, cotton yarn exports were 1.303 million tons; in the first nine months of the 2014/15 fiscal year, cotton yarn exports were only 891,000 tons, compared with 946,000 tons in the same period of the previous fiscal year. It fell by 6%, and then the decline became more obvious. China’s export volume has plummeted, and even if it boosts shipments from other regions, it still cannot increase profit margins, causing the stock prices of cotton yarn companies to plummet.
It is expected that economic recovery will not come soon, and domestic and foreign demand must be made up from non-traditional markets. At the same time, the development of China’s domestic cotton yarn industry has slowed down, and cotton yarn exports to China have dropped by 20%. Exporters are trying to make up for the losses in the Chinese market through exports to other countries and regions. Exports to Sri Lanka, Bangladesh, and Vietnam have increased slightly in recent months. India has signed a US$300 million order with Vietnam, including cotton yarn.
D.K. Nair, secretary-general of the Confederation of Indian Textile Industry (CITI), said, “Exports of cotton yarn to China have slowed down in the past two years. This is because China’s labor force is shifting from manufacturing (such as the textile industry) to high-return service industries (such as the textile industry). Engineering design and other industries) transfer. Although the export of cotton yarn products to other countries has increased, it is difficult to make up for the decline in exports to China. Therefore, we expect the industry as a whole to decline.” Experts predict cotton yarn exports in the 2014/15 fiscal year It will drop by 15% to 1.15 million tons.
At present, Cotton Corporation of India is buying large amounts of cotton at the minimum support price. Cotton prices have increased by 10% in the past two months, but cotton yarn prices have remained flat. Textile manufacturing companies still face profit pressure due to rising cotton prices. Apparel exporters have taken advantage of low spinning prices to increase exports and expect profits of US$16.75 billion in the 2014/15 fiscal year, slightly higher than US$15 billion in the same period last year.