In the past week, due to the epidemic blockade, many textile mills have remained closed. The decline in demand has caused Indian yarn prices to continue to fall.
Currently, domestic cotton yarn demand in India continues to be under pressure. Cotton prices have fallen sharply in a few weeks. The decline has increased in the past week. S-6 fell by 2.5% in a single week. It has fallen 5.4% in four weeks.
Cotton Association of India (CAI) officials said on Tuesday (May 5) that due to the current blockade and concerns that cotton consumption will decrease, the Indian cotton year will end at the end of September this year. Carryover stocks will increase, and cotton prices in India have fallen by 12-15% recently.
CAI said that due to factory closures, India’s cotton consumption has decreased by 3-3.5 million bales, so CAI will lower its cotton consumption forecast for this year. India’s cotton export target for this year is 4.2 million bales. Currently, 3.2 million bales have been shipped, and the remaining 100 bales will be shipped from May to September.
CAI said that the current price of Indian cotton is 10-12% lower than that of the international market. Once the blockade is lifted, demand from Indian textile mills will improve. Bangladesh, Vietnam, China The demand for Indian cotton will also be huge. Some inquiries have been received from Bangladesh, Vietnam, and China. Once the blockade is over, inquiries will increase significantly.
