YnFx ExportWatch Report – August 2016
India’s overall export drops in july
India’s merchandise export in July 2016 was valued at US$21.69 billion (INR145,770 crore), down 6.8 per cent (1.6 per cent lower in INR terms) compared to the levels in July 2015. Total exports for the period April-July 2016-17 was down 3.6 per cent at US$87 billion (INR528,731 crore, up 1.6 per cent) over the same period last year. Imports in July 2016 were valued at US$29.5 billion (INR197,932 crore) and were 19 per cent lower (14.5 per cent lower in INR terms) over the level of imports in July 2015. Cumulative imports for the period April-July 2016-17 was at US$113.99 billion, down 16.3 per cent (INR763,687 crore, down 11.8 per cent) over the same period last year.
Crude oil imports declined 28.1 per cent in July 2016 and 25 per cent drop during April-July 2016-17. In similar comparison, non-oil imports were 15.8 per cent lower in July 2016 and 13.4 per cent lower in April-July 2016-17.
As a result, trade deficit for April-July, 2016-17 was at US$26.99 billion, which was lower than the deficit of US$45.98 billion in April-July, 2015-16.
Indian textile sector may get hurt by TPP
Textile and clothing sector accounts for roughly 5 per cent of India’s GDP, 15 per cent of its industrial output and export earnings and provides livelihood to 55-60 million people directly or indirectly. India not a party to the Transpacific Partnership Pact (TPP) comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US. Thus, the TPP is likely to hurt India’s trade with its most important partner— the US.
As US is a key export destination it will have serious implications for India’s textile and clothing sector especially post-Brexit turmoil in Europe, as it will further increase India’s dependency on US markets.
Associations sign MOU with Afghanistan to boost Direct export of fabrics
Synthetic and Rayon Textile Export Promotion Council (SRTEPC), apex body of Indian textile industry and Southern Gujarat Chamber of Commerce and Industry (SGCCI) have jointly signed a memorandum of understanding (MoU) with a delegation from Afghanistan for boosting direct export of polyester fabrics and made-ups from India, especially from MMF hub in Surat to Afghanistan. Afghanistan is a fast emerging market for textiles and India currently has negligible direct trade with Afghanistan and majority enter this market through third countries.
The MoU was signed during the Afghanistan delegation’s recently visit at Source India 2016 held on August 13 and 14.
Bangladesh pays more for indian yarn than China
Spun yarn exports in July 2016 plunged 36.1 per cent in volume terms while it was down 36 per cent in value terms. Spun yarn (all kinds) shipments were at 81.3 million kg worth US$237 million or INR1,575 crore, implying per unit realisation of US$2.91 per kg which was up US cents 13 from previous month and unchanged as compared to July 2015.
Indian spinners were confronted with a fall of their margins and found it difficult to compete on the international market. Chinese imports of cotton yarn from Vietnam in July have continued to soar due to receding yarn prices there to the detriment of Indian and Pakistani exporters. With yarn imports declining from China, Bangladesh became the largest importer of spun yarns from India in terms of value in July. Bangladesh imported spun yarns worth US$286.64 million with average unit price realization at US$3.10 a kg while China imported at an average unit price of US$2.57 a kg during the month.
| A. Spun Yarn Exports – By Port | ||||||
| ‘000 Kgs | Rs crore | Mln US$ | ||||
| Jul-15 | Jul-16 | Jul-15 | Jul-16 | Jul-15 | Jul-16 | |
| Mundra | 14,633 | 20,848 | 264.2 | 384.4 | 41.78 | 57.82 |
| Tuticorin Sea | 16,839 | 12,707 | 349.8 | 282.2 | 55.33 | 42.45 |
| JNPT | 21,113 | 12,293 | 379.1 | 231.3 | 59.97 | 34.79 |
| Ludhiana ICD | 19,034 | 7,306 | 346.8 | 140.0 | 54.87 | 21.05 |
| Madras Sea | 22,557 | 7,092 | 381.8 | 130.7 | 60.40 | 19.66 |
| Pipavav | 7,173 | 5,414 | 125.8 | 101.9 | 19.90 | 15.33 |
| Mandideep | 1,743 | 2,855 | 33.7 | 58.9 | 5.33 | 8.86 |
| Krishnapatanam | 1,293 | 1,991 | 21.9 | 36.4 | 3.46 | 5.48 |
| Marripalam ICD | 3,019 | 2,194 | 49.4 | 36.0 | 7.82 | 5.41 |
| Cochin Sea | 4,947 | 1,182 | 111.7 | 33.5 | 17.68 | 5.04 |
| Petrapole Road | 1,457 | 1,378 | 36.5 | 32.1 | 5.77 | 4.82 |
| Kattupalli | 1,872 | 1,320 | 30.0 | 23.9 | 4.74 | 3.59 |
| Vizag Sea | 1,253 | 1,293 | 19.2 | 19.6 | 3.04 | 2.95 |
| Nagpur | 1,663 | 1,165 | 26.8 | 19.0 | 4.24 | 2.86 |
| Hyderabad ICD | 936 | 631 | 17.2 | 11.8 | 2.72 | 1.78 |
| Tuticorin ICD | 563 | 346 | 16.1 | 9.8 | 2.55 | 1.48 |
| Ahmedabad ICD | 977 | 440 | 17.6 | 8.2 | 2.78 | 1.24 |
| Delhi TKD ICD | 4,973 | 692 | 91.6 | 6.4 | 14.49 | 0.97 |
| Calcutta Sea | 45 | 63 | 3.4 | 5.0 | 0.54 | 0.75 |
| Delhi Air | 60 | 42 | 2.2 | 1.6 | 0.35 | 0.24 |
| Bombay Air | 12 | 20 | 0.3 | 0.7 | 0.05 | 0.10 |
| Madras Air | 7 | 10 | 0.4 | 0.4 | 0.06 | 0.06 |
| Ankleshwar | 128 | 23 | 2.4 | 0.4 | 0.38 | 0.06 |
| Pithampur ICD | 74 | 21 | 0.9 | 0.3 | 0.14 | 0.04 |
| Tondiarpet ICD | 874 | 12.37 | 12.8 | 0.2 | 2.02 | 0.036 |
| Ahmedabad Air | 0.4 | 0.03 | 0.01 | |||
| Grand Total | 127,244 | 81,338 | 2,341.4 | 1,574.7 | 370.41 | 236.87 |
In July 2016, 83 countries imported spun yarn from India, with Bangladesh at the top accounting for 18.2 per cent of the total value with imports rising 23.9 per cent in terms of volume YoY and climbing 21.5 per cent in value YoY. China became the second largest importer of spun yarns in July and accounted for around 18.17 per cent of all spun yarn exported from India. Export to China plunged 74.8 per cent in volumes and 74.5 per cent lower in value. Peru was the third largest importer of spun yarns, which saw volume surging 96.8 per cent while rose 93.1 per cent. These three top importers together accounted for around 42 per cent of all spun yarns exported from India in July.
Cotton yarn export was at 63.2 million kg in July with 74 countries importing yarn worth US$186.6 million (INR1,241 crore). The average unit price realization was at US$2.95 a kg, up US cents 17 from previous month and up US cents 4 from the same month a year ago.
China was the largest importer of cotton yarn from India in July, followed by Bangladesh and Peru. The top three together accounted for more than 50 per cent of cotton yarn with combined volume at 33.7 million kg worth US$93.8 million. Peru, Turkey, Tunisia, Brazil and Greece were among the fastest growing markets for cotton yarn, and accounted for 9.1 per cent of total cotton yarn export value. Ten new destinations were added for cotton yarn export, of which, Bulgaria, Syria, Cote D’Ivoire and Honduras were the major ones.
Twelve countries did not import any cotton yarn from India, including Cambodia, Djibouti, France, Oman and Algeria. They had imported yarns worth US$1.39 million in July 2015. In July 2016, significant deceleration was seen in export to China, Canada, Chile, Ukraine and Australia.
Combed cotton yarn accounted for 61.8 per cent of cotton yarn exported in July with volumes at 39.1 million kg worth US$125.5 million. Carded yarn export was at 19.25 million kg. Their respective unit value realization was US$3.21 per kg and US$2.60 per kg. Open ended yarn export was at 3.5 million kg at an average price of US$1.60 a kg.
China cutting yarn imports, more from India
China, a top importer of India yarns, particularly cotton, has significantly reduced its sourcing in recent past. However, India continues to be the major supplier of yarns for China. China has simultaneously reduced yarn imports from the World over the past one year. In July, India’s cotton yarn exports to China plunged 75 per cent year on year both in terms of shipment and value. During the month, shipment was just 17 million kgs valued at US$285 million as against 66 million kgs worth US$1,118 million. This significant drop is likely to impede Indian exports in coming months since China has trained its eye on Vietnam goods.
In 2016, China’s cotton yarn imports dropped 30 per cent year on year to 960 million kgs worth US$2,430 million. In similar comparison, import from India declined 49 per cent to US$560 million for 231 million kgs. In June 2016, total import were at 159 million kgs (US$400 million) as against
216 million kgs in July 2015 (US$593 million). Comparatively, import from India was 34 million kgs (US$82 million) in June 2016 as against 62 million kgs (US$169 million). From Vietnam, yarn imports into China in June 2016 stood at 52 million kgs (US$133 million) as against 46 million kgs (US$130 million) in July 2015. Thus, imports from India fell and those from Vietnam rose, partially covering the reduction from India.
| China Cotton Yarn Import (US$ mln) | ||||
| Total | India | Vietnam | Pakistan | |
| Jul-15 | 593 | 169 | 129.7 | 106.1 |
| Aug-15 | 563 | 181 | 127.8 | 92.1 |
| Sep-15 | 575 | 192 | 128.8 | 105.8 |
| Oct-15 | 451 | 146 | 111.3 | 83.8 |
| Nov-15 | 409 | 110 | 108.0 | 73.2 |
| Dec-15 | 476 | 133 | 122.1 | 84.8 |
| Jan-16 | 409 | 110 | 108.7 | 62.6 |
| Feb-16 | 287 | 76 | 64.2 | 66.2 |
| Mar-16 | 485 | 103 | 144.1 | 87.5 |
| Apr-16 | 423 | 95 | 137.8 | 66.6 |
| May-16 | 427 | 94 | 135.5 | 65.5 |
| Jun-16 | 400 | 82 | 132.6 | 62.8 |
Price-wise, Pakistan was the cheapest supplier of cotton yarn for China, followed by India and then by Vietnam. (See graph below). The average import price for all cotton yarn into China was US$2.51 per kg. The same for Pakistan was US$2.14 a kg, India US$2.40 a kg and US$2.55 for Vietnam in June 2016. The same in July 2015 was US$2.75 a kg (Total), US$2.28 a kg (Pakistan), US$2.72 a kg (India) and US$2.83 a kg (Vietnam). Thus. It is apparent the although prices have dropped over the period, Vietnam prices continued to be remain the highest and Pakistan the lowest.
| B. Fibre Exports – By Port | ||||||
| ‘000 Kgs | Rs crore | Mln US$ | ||||
| Jul-15 | Jul-16 | Jul-15 | Jul-16 | Jul-15 | Jul-16 | |
| Mundra | 13,745 | 8,031 | 137.8 | 93.9 | 21.79 | 14.12 |
| JNPT | 34,560 | 6,533 | 332.7 | 61.4 | 52.64 | 9.24 |
| Petrapole Road | 7,686 | 3,028 | 79.8 | 38.4 | 12.63 | 5.77 |
| Pipavav | 3,194 | 1,127 | 32.3 | 12.6 | 5.11 | 1.90 |
| Nagpur | 727 | 1,299 | 5.5 | 8.8 | 0.87 | 1.32 |
| Ankleshwar | 1,665 | 703 | 18.9 | 8.5 | 2.99 | 1.27 |
| Ludhiana ICD | 907 | 847 | 8.9 | 7.5 | 1.40 | 1.12 |
| Tuticorin Sea | 40 | 170 | 0.7 | 4.4 | 0.11 | 0.66 |
| Marripalam ICD | 20 | 0.3 | 0.05 | |||
| Cochin Sea | 0 | 37 | 0.0 | 0.3 | 0.00 | 0.05 |
| Calcutta Sea | 18 | 24 | 0.2 | 0.1 | 0.04 | 0.02 |
| Bombay Air | 1 | 4 | 0.0 | 0.0 | 0.00 | 0.01 |
| Ahmedabad Air | 2 | 0.0 | 0.00 | |||
| Grand Total | 62,546 | 21,822 | 616.9 | 236.2 | 97.59 | 35.53 |
Manmade fibre yarns export rises
100% man-made fibre yarns export was at 6.75 million kg in July, comprising 2.70 million kg of polyester yarn, 3.08 million kg of viscose yarn and 0.78 million kg of acrylic yarn. Polyester yarn exports were up 5.7 per cent in value while viscose yarn exports value surged 41 per cent during the month. Acrylic yarn exports saw a drastic plunge of 36.2 per cent in July. Unit price realization was down US cents 12 a kg for polyester from a yea
r ago and that of viscose yarn was up US cents 8 a kg. Acrylic yarn unit price realization was down US cents 6 a kg year on year basis.
Polyester spun yarns were exported to 50 countries in July aggregating US$6.07 million with unit price realization averaging US$2.25 a kg. A total of 2.70 million kg was exported, of which, 19.6 per cent was shipped by Turkey alone. Twelve new destinations were found for polyester yarn this July, of which, Saudi Arabia, Peru, Syria, Ecuador and Guatemala were the major ones.
Viscose yarn export was valued at US$9.50 million or INR63.2 crore and volume at 3.08 million kg, implying average unit price realization of US$3.08 per kg. They were exported to 27 countries with Iran at the top worth US$2.25 million. It was followed by Belgium with imports worth US$1.96 million. Both these markets accounted for 45.1 per cent of all viscose yarn exported in July. Brazil, Algeria, Bangladesh and Colombia were the fastest growing markets for viscose yarns while Turkmenistan, Syria, Australia, Germany and United Arab Emirates were the new major markets. Pakistan, Guatemala and Argentina were the major ones among the 10 countries that did not import any viscose yarns during the month.
Blended yarns export falls in july
Blended spun yarns export was worth US$32.4 million in July, down 9.9 per cent YoY while volumes edged down 2.6 per cent at 11.3 million kg. During the month, 5.4 million kg of PC yarns was exported worth US$14.5 million. Another 4.3 million kg of PV yarns valued at US$11.1 million were exported. Acrylic/cotton yarn prices were down 17.3 per cent YoY. In July, 1.3 million kg of other blend of yarns were exported worth US$5.84 million.
Bangladesh and Egypt were the largest importers of PC yarn from India in July followed by Argentina. Latvia, South Africa, Australia, Australia and Guatemala were the fastest growing markets for PC yarns while South Korea significantly reduced its import of PC yarns from India. Djibouti and Lebanon were among the 8 countries that did not import any PC yarns from India during July. Chile was the major destination among the 5 new markets found in July.
In July, US$11.1 million worth of PV yarns were exported from India with volumes at 4.3 million kgs. Turkey continued to be largest importer of PV yarns from India followed by Iran with total volume at 2.6 million kg worth at US$6.6 million. Honduras and Romania were the new major markets for PV yarn while 7 countries did not import any PV yarn during the month, including the major ones like Tunisia, Poland and Madagascar.
| C. Filament Exports – By Port | ||||||
| ‘000 Kgs | Rs crore | Mln US$ | ||||
| Jul-15 | Jul-16 | Jul-15 | Jul-16 | Jul-15 | Jul-16 | |
| JNPT | 31,386 | 25,251 | 347.7 | 261.0 | 55.01 | 39.26 |
| Nagpur | 2,252 | 3,618 | 20.6 | 30.0 | 3.26 | 4.51 |
| Tuticorin ICD | 469 | 449 | 19.6 | 18.6 | 3.10 | 2.80 |
| Mundra | 387 | 477 | 7.7 | 10.3 | 1.22 | 1.55 |
| Tuticorin Sea | 133 | 136 | 3.2 | 3.9 | 0.50 | 0.59 |
| Pipavav | 124 | 120 | 3.1 | 3.7 | 0.48 | 0.56 |
| Ahmedabad ICD | 82 | 119 | 1.7 | 2.6 | 0.27 | 0.39 |
| Bombay Air | 69 | 56 | 2.2 | 2.1 | 0.34 | 0.31 |
| Madras Sea | 225 | 16 | 3.7 | 1.5 | 0.59 | 0.22 |
| Ludhiana ICD | 22 | 18 | 0.8 | 0.7 | 0.12 | 0.11 |
| Madras Air | 7 | 8 | 0.4 | 0.5 | 0.06 | 0.07 |
| Petrapole Road | 10 | 11 | 0.3 | 0.3 | 0.05 | 0.05 |
| Ahmedabad Air | 5 | 8 | 0.2 | 0.3 | 0.04 | 0.04 |
| Delhi TKD ICD | 68 | 21 | 1.8 | 0.3 | 0.28 | 0.04 |
| Cochin Sea | 10 | 0.2 | 0.03 | |||
| Ankleshwar | 39 | 15 | 0.4 | 0.2 | 0.07 | 0.03 |
| Kattupalli | 2 | 0.1 | 0.01 | |||
| Delhi Air | 0 | 1 | 0.0 | 0.0 | 0.00 | 0.00 |
| Calcutta Sea | 8 | 0.1 | 0.02 | |||
| Grand Total | 35,288 | 30,336 | 413.5 | 336.2 | 65.42 | 50.57 |
Filament yarns export continues downtrend
In July, all types of filament yarns export aggregated 30.3 million kg, declined 14 per cent YoY while value was down 18.7 per cent to US$50.6 million. Filament yarns include polyester, nylon, polypropylene and viscose filament yarns and were exported to 75 countries during the month. More than 89 per cent of filament yarns were of polyester, of which, DTYs were the largest at 72.4 per cent.
During the month, 29 million kg of polyester filament yarns were exported worth US$45.1 million. Brazil and Turkey continued to be the major importers of polyester filament yarns, followed by Bangladesh. The three together accounted for 49.2 per cent of polyester filament yarn exports. Brazil was also major importer of polyester DTYs and Turkey was major importer of PFYs.
| D. Exports by Mode of Shipment | ||||||
| ‘000 Kgs | Rs crore | Mln US$ | ||||
| Jul-15 | Jul-16 | Jul-15 | Jul-16 | Jul-15 | Jul-16 | |
| Spun yarn | 127,244 | 81,338 | 2,341.4 | 1,574.7 | 370.41 | 236.87 |
| Sea | 125,707 | 79,888 | 2,302.0 | 1,540.0 | 364.17 | 231.64 |
| Road | 1,457 | 1,378 | 36.5 | 32.1 | 5.77 | 4.82 |
| Air | 80 | 72 | 3.0 | 2.7 | 0.47 | 0.40 |
| Filament | 35,288 | 30,336 | 413.5 | 336.2 | 65.42 | 50.57 |
| Sea | 35,196 | 30,252 | 410.4 | 333.1 | 64.93 | 50.10 |
| Air | 81 | 74 | 2.8 | 2.8 | 0.44 | 0.42 |
| Road | 10 | 11 | 0.3 | 0.3 | 0.05 | 0.05 |
| Fibre | 62,546 | 21,822 | 616.9 | 236.2 | 97.59 | 35.53 |
| Sea | 54,857 | 18,790 | 537.0 | 197.8 | 84.96 | 29.76 |
| Road | 7,686 | 3,028 | 79.8 | 38.4 | 12.63 | 5.77 |
| Air | 3 | 4 | 0.03 | 0.03 | 0.01 | 0.01 |
Sri Lanka was the major importer of nylon filament yarn in July with volumes at 51,000 kg worth US$0.38 million. In value terms, USA and Japan were the other largest markets for nylon filament in July, worth US$0.31 million.
Polypropylene filament yarns were exported to 16 countries in July with volumes at 219,000 kg worth US$0.43 million. Kenya was the major importer of PP yarns. Tanzania and Poland were the other major importers of PP filament yarns in July.
Around 872,000 kg of viscose filament yarns were exported in July to 21 countries from India valued at US$3.6 million. During the month, 178,000 kg of VFYs were exported to Japan. It was followed by Germany and Czech Republic.
Cotton export declines again
Cotton fibre export was at 13.1 million kg or 77,330 bales (of 170 kg each) in July which declined 72 per cent YoY and was valued at US$23.9 million, down 67.7 per cent. Bangladesh and Vietnam were the largest importers of cotton with combined volumes at 64,537 bales amongst the 19 countries that imported cotton from India.
Exports of manmade fibre were at 8.7 million kg, worth US$11.7 million. These included ASF, PSF, VSF and PPSF. USA and Bangladesh were the largest importers of PSF during July while Iran and Pakistan were the major importer of VSF, in similar comparison. Vietnam was the dominant buyer of ASF.
Similar report on Fabric is under preparation
While this report is dedicated to fibres, filaments and spun yarns, we are in the process of preparing a separate report covering all kinds of fabric exported from India. Like this report, it will provide in-depth analysis and statistics of fabric exported from 33 ports in India accounting for 90% of total volume and value of export. We shall be glad to offer early bird discount for this report. To know more call us on 022-66291104, 66291141.
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