16 March 2016
Yarn prices are staying very firm in India where cotton prices have begun decreasing, however. Demand for cotton yarns is weak from domestic and foreign markets. Our comprehensive review of Indian yarn prices covers the domestic markets in Ludhiana (Punjab) and Indore (Madhya Pradesh), with a wide range of products and counts, including cotton yarns (carded and combed), polyester spun, polyester-cotton, polyester-viscose and polyester-acrylic. Export market prices are also available for both cotton and polyester-cotton.
Yarn prices have remained very firm in the last days in India whatever the current decline of cotton fiber prices.
In Indore, 30s knitting was up 1 rupee per kilo or 0.6%. Prices are however unchanged from their level four weeks ago.
In Ludhiana, cotton yarn prices have stayed stable whereas polycotton was rising in line with the sharp increase of polyester fibers in the last weeks.
Demand for yarns is limited in the current period in India where stocks have reached relatively high levels.
Yarn exports remain depressed due to a fall of China's demand in the last six months.
With exports accounting for about 32% of Indian cotton yarn production, the decline in foreign demand is expected depressing prices at home.
Cotton fiber prices have been kept very firm in the last months due to low level of arrivals from the new crop, down about 20% from the same period last year.
Ginners have refrained from offering larger quantities in anticipation of higher prices later this year.
With limited warehousing facilities however, and the need to sell before the next monsoon, cotton arrivals have begun rising on local markets in India.
Spinners are mostly looking for quality cotton and ready to import from foreign countries if it is not available at home.
The fall of cotton prices on the international market could also pressure Indian prices, ahead of sales from official reserves in China.
Cotton yarn export prices have declined 14% in dollar terms over the last three quarters of 2015 from a year earlier, resulting in a fall of 8% in rupee terms.
More data are available on a daily and monthly basis about the Yarn Market Prices: