In the past week, affected by the decline in domestic cotton prices and demand, Indian cotton yarn prices have fallen across the board. As yarn prices fall, India’s cotton yarn export competitiveness is expected to increase.
That week, domestic cotton yarn prices in India generally fell by 1-2 rupees/kg. Falling cotton and chemical fiber prices and weak demand led to shrinking profits of yarn mills. The continued decline in floral yarn prices will eventually restore the competitiveness of Indian cotton yarn exports.
That week, the export price of Indian cotton yarn rebounded by 10 cents/kg, and the FOB price of 30-count combed yarn rose to US$2.55/kg, an increase of 4.1%. The price of polyester-cotton yarn also increased by 5 cents to US$2.35/kg.
The rebound in the RMB exchange rate has also stimulated China’s cotton yarn imports. In September, India’s cotton yarn exports to China rebounded month-on-month, but still fell sharply year-on-year.
At present, Indian cotton companies have not started to purchase new cotton in large quantities. The reason may be due to lack of funds. The income of Indian cotton farmers will also be reduced, and the output will drop next year, thus stimulating cotton imports. .
