Spun yarn export price falling, export to China reviving

Export price of spun yarns have been falling since June 2014 and continued into December. Close to 135 million kg of spun yarns were exported worth US$398 million or Rs 2,470 crore. Compared to last year, volumes were up 9 per cent while earnings in US$ term fell 4 per cent implying a 12 per cent fall in unit price realization, as the Rupee appreciated 0.6 per cent against the US$ in the comparable months. Overall unit price realization averaged US$2.95 /kg was, down US cents 3 from previous month and US cents 39 from December 2013.

91 countries imported spun yarn from India with China being the largest. It accounted for 37 per cent of India’s total spun yarn exported in December. Shipment ot China increased 28 per cent from last year while value was up 9 per cent YoY to US$148 million. Bangladesh, the second largest importer of Indian yarn, accounted for 10 per cent of all spun yarn exported from India, has reduced imports from India by 10 per cent in value and 3 per cent in terms of volumes.

Egypt emerged as the third largest importer of spun yarns in December, pushing down Turkey and South Korea which have slowed imports from India. Vietnam remains the fast emerging market for Indian spun yarns. In December it was ninth largest yarn importer for India. Its im-port increased 194 per cent by volume and 180 per cent in value. Turkey’s imports increased 22 per cent in November while Vietnam’s imports grew 19 per cent.

Cotton yarn worth US$335 million (Rs.2,075 crore) was exported to 85 countries with volumes totaling 113 million kgs. The unit price realization averaged US$2.96 a kg, down US cents 3 from previous month and US cents 45 down compared to same month a year ago. China and Bangladesh together accounted for 55 per cent with combined volume at 66 million kg worth US$184 million. While exports to China increased 9 per cent from last year, they declined 11 per cent to Bangladesh.

Vietnam continued to be the fast growing major markets for Indian cotton yarn in December. Egypt and South Korea, the third and fourth largest export markets, saw imports declining 10 per cent and 18 per cent respectively in December.

Courtesy: Fibre and Yarn Exports, India Report, January 2015