Initial demand came from exports predominantly Europe , Bangladesh which led to a forming up of Rs 5 to 7 per kg
In past two weeks domestic demand has picked up substantially . HomeTextile’s and Knits were already doing well . Now has come the Turn for denim . Denim demand in domestic improved drastically in last 2 weeks and most of denim makers came almost together for buying yarn as their stocks were dried up . This has led to increase in openend prices by rs 10 to 15 per kg and in ring by about Rs 10 to 15 per kg depending on count Overall all yarn prices have gained by more then Rs 15 per kg ( us 20 cents per kg ) from the bottom levels witness one month ago
One of leading domestic denim maker in terms of capacity confirmed they are running at full capacities . Another smaller one said that while in June they were running at 25% capacity now they have touched almost 80% in July and will be at full capacity in September . Dispatches are moving and new orders are coming .
The “Corona pandemic” and “ work from home “ culture has resulted into good demand for knits and denim which have been the preferred choice of wearing as people are dressing more informally these days . Ladies dress materials specially rayon has also witnessed good demand . Suiting and Shirting and formal wear remains more under pressure now but with All India opening up I belive this area should also witness a reosonable demand pre Diwali . While today’s situation is one of a shortage in yarn maybe we may soon also witness a period of shortage in fabric as pre Diwali demand may outpace the weaving / finishing capacities . This then would be much awaited by the textile industry feeling under the Corona crises