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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