Business Standard

Cotton yarn exports: Knotty now, nice later

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

Related News

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 markets 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.

Read more on:   
|
|
|

Read More

Mentha oil down 0.6% on profit booking

Mentha oil prices fell 0.6% to Rs 864.70 per kg in futures trade today on profit booking by speculators at existing higher levels amid increased ...

Quick Links

 

Market News

I don't foresee a rise in milk prices in the near term: R S Sodhi

Interview with MD, Gujarat Cooperative Milk Marketing Federation

Markets edge higher ahead of GDP data

The BSE Sensex closed up 52.72 points, or 0.19%, at 28,438.91

Cotton exports to decline 45% this year on lower demand from China, Bangladesh

With lower exports estimates, India will have surplus cotton leading to steep fall in prices this year

Karnataka sugar mills unlikely to meet Nov 30 deadline on payment of arrears

A majority of the mills, say their owners, are deep in debt and, hence, are unable to borrow any fresh money from banks or financial

Today's picks- 27 November 2014

Nifty, Bank Nifty, BHEL, HCL Technologies & Hindustan Unilever

Back to Top