Cotton yarn exports: Knotty now, nice later

China, the largest importer of Indian cotton yarn, has reduced imports

China, the largest importer of Indian cotton yarn, has reduced imports. from that country are either negotiating prices with exporters here or waiting for the prices to fall.

It is expected the arrival of the new cotton crop in the next month would lead to a decline in prices.

According to data from the Directorate General of Foreign Trade, registration of exports declined to 104.91 million kg in August, compared with 139.74 million kg in July.

For the benchmark 30's combed variety of cotton yarn, export prices rose to as high as $3.85 a kg. However, due to weak demand from and the fact that cotton prices have moderated in the domestic market, yarn exporters cut the export price to $3.64 a kg. Some yarn manufacturers have cut prices further, as the market is extremely competitive.

"Currently, domestic demand for cotton yarn is weak and Chinese buyers are aware of it. Therefore, they are taking advantage of the situation and pushing exporters to bring down prices," said S P Oswal, chairman and managing director of Vardhman Group, an integrated textile company.

In the past year, China has reduced its cotton imports from India. However, it has increased cotton yarn imports, as cotton yarn production is India is cheaper and production of yarn in China has fallen due to the rising wages in that country.

"Due to the high prices, many domestic buyers have put their cotton yarn on hold, waiting for prices to fall further. Even domestic players find the current price of cotton yarn high," said Bharat Malkan, a Mumbai-based cotton yarn trader.

The industry, however, says the lull on the export front is temporary.

image
Business Standard
177 22
Business Standard

Cotton yarn exports: Knotty now, nice later

China, the largest importer of Indian cotton yarn, has reduced imports

Sharleen D’souza  |  Mumbai 

China, the largest importer of Indian cotton yarn, has reduced imports. from that country are either negotiating prices with exporters here or waiting for the prices to fall.

It is expected the arrival of the new cotton crop in the next month would lead to a decline in prices.

According to data from the Directorate General of Foreign Trade, registration of exports declined to 104.91 million kg in August, compared with 139.74 million kg in July.

For the benchmark 30's combed variety of cotton yarn, export prices rose to as high as $3.85 a kg. However, due to weak demand from and the fact that cotton prices have moderated in the domestic market, yarn exporters cut the export price to $3.64 a kg. Some yarn manufacturers have cut prices further, as the market is extremely competitive.

"Currently, domestic demand for cotton yarn is weak and Chinese buyers are aware of it. Therefore, they are taking advantage of the situation and pushing exporters to bring down prices," said S P Oswal, chairman and managing director of Vardhman Group, an integrated textile company.

In the past year, China has reduced its cotton imports from India. However, it has increased cotton yarn imports, as cotton yarn production is India is cheaper and production of yarn in China has fallen due to the rising wages in that country.

"Due to the high prices, many domestic buyers have put their cotton yarn on hold, waiting for prices to fall further. Even domestic players find the current price of cotton yarn high," said Bharat Malkan, a Mumbai-based cotton yarn trader.

The industry, however, says the lull on the export front is temporary.

RECOMMENDED FOR YOU

Cotton yarn exports: Knotty now, nice later

China, the largest importer of Indian cotton yarn, has reduced imports

China, the largest importer of Indian cotton yarn, has reduced imports
China, the largest importer of Indian cotton yarn, has reduced imports. from that country are either negotiating prices with exporters here or waiting for the prices to fall.

It is expected the arrival of the new cotton crop in the next month would lead to a decline in prices.

According to data from the Directorate General of Foreign Trade, registration of exports declined to 104.91 million kg in August, compared with 139.74 million kg in July.

For the benchmark 30's combed variety of cotton yarn, export prices rose to as high as $3.85 a kg. However, due to weak demand from and the fact that cotton prices have moderated in the domestic market, yarn exporters cut the export price to $3.64 a kg. Some yarn manufacturers have cut prices further, as the market is extremely competitive.

"Currently, domestic demand for cotton yarn is weak and Chinese buyers are aware of it. Therefore, they are taking advantage of the situation and pushing exporters to bring down prices," said S P Oswal, chairman and managing director of Vardhman Group, an integrated textile company.

In the past year, China has reduced its cotton imports from India. However, it has increased cotton yarn imports, as cotton yarn production is India is cheaper and production of yarn in China has fallen due to the rising wages in that country.

"Due to the high prices, many domestic buyers have put their cotton yarn on hold, waiting for prices to fall further. Even domestic players find the current price of cotton yarn high," said Bharat Malkan, a Mumbai-based cotton yarn trader.

The industry, however, says the lull on the export front is temporary.
image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
Tata Motors-DVR 311.65 10.83
Mahindra CIE 212.40 9.46
Tata Motors 458.20 8.95
Lycos Internet 19.90 8.45
Claris Lifescien 218.20 8.07
> More on BSE Gainers
Company Price() Chg(%)
Tata Motors-DVR 314.50 11.74
Mahindra CIE 213.80 10.21
Tata Motors 459.65 9.12
Grindwell Norton 678.85 7.55
Canara Bank 206.40 7.00
> More on NSE Gainers
Company Price() Chg(%)
Tree House Edu. 59.70 -15.62
Rolta India 71.80 -8.30
GVK Power Infra. 4.71 -7.65
Hitachi Home 1293.95 -7.59
Dynamatic Tech. 2492.65 -6.84
> More on BSE Gainers
Company Price() Chg(%)
Tree House Edu. 59.50 -16.02
GVK Power Infra. 4.65 -8.82
Rolta India 71.75 -8.54
Hitachi Home 1285.30 -7.96
Vaibhav Global 239.50 -7.44
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard