PRICE REPORT | Yarn Price

Yarn export up after partial opening

Published: July 7, 2020
Author: TEXTILE VALUE CHAIN

Basic textiles comprising fibres, spun and filament yarns shipment plunged 30-35% YoY in May 2020, both in terms of US$ and INR worth US$341 million or INR2,562 crore, accounting for about 1.8% of total merchandise exported from India during the month. The sharp decline was mainly due to the nationwide lockdown in April and showed improvement in May after some restrictions were lifted during the month.

We have again intentionally refrained from analyzing year on year comparison (May 2020 with May 2019) since May 2020 continued to be abnormal with values low and outliers to the trend. However, there was a sharp improvement in shipment during May and is apparent that cargoes that were held in April were released in May. It is also most likely that June 2020 will extend similar performance as key industrial states are still under lockdown.

Spun Yarn

Spun yarns shipment totaled 76 million kg worth US$199 million or INR1,492 crore. China re-emerged as the largest market for spun yarns, topping both in terms of volume and value. Bangladesh followed about 18% of total value.

Cotton yarn export was 64 million kg worth US$168 million (INR1,262 crore). These were shipped to 72 countries at an average price of US$2.63 a kg, down US cents 28 from previous month and US cents 54 from a year ago. China was the top cotton yarn market, followed by Bangladesh, Vietnam, Egypt and Portugal.

100% man-made fibre yarns exports of 5.16 million kg, comprised 1.82 million kg of acrylic yarn, 1.81 million kg of polyester yarn and 1.40 million kg of viscose yarn. Viscose yarn was worth US$3.9 million or INR29 crore exported at an average price of US$2.79 per kg in May to 20 countries. Polyester spun yarns export was worth US$4 million and exported to 30 countries at average unit price of US$2.22 a kg. USA was the largest importer of polyester yarn, followed by Turley and Italy.

Blended spun yarns worth US$17.4 million were exported in May, including 4 million kg of PC yarns and 1.4 million kg of PV yarns. Egypt was the largest importers of PC yarn from India followed by Algeria while Turkey was the largest importer of PV yarns from India followed by Iran.

All kinds of filament yarns shipment totaled 28 million kg, valued at US$38 million or INR287 crore.

Cotton

Cotton fibre shipment in May was at 391 thousand bales worth INR609 crore or US$81 million. This takes the total export to 42 lakh bales worth US$1,111 million in the first eight months of 2019-20 marketing season. Bangladesh was the largest market for Indian cotton export during May, followed by Indonesia and China.

Export price realisation averaged INR92 a kg or US cents 55.41 per pound during May. This was much lower compared to Cotlook A index, the global spot price benchmark and slightly lower than domestic spot price for benchmark Gujarat Shankar-6. During the month, Cotlook averaged US$65.85 per pound and Shankar-6 at US cents 59.08 per pound, making Indian cotton more competitive in global market.

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