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Related Keywords: cotton yarn exports, high cotton prices, largest importer of yarn from India, low arrivals, lower demand from China, put pressure on profitability, set to hit spinners, spinners have to cut down on capacity utilisztion, under pressure

Cotton yarn exports are under pressure due to lower demand from China, the largest importer of yarn from India. Moreover high cotton prices due to low arrivals are set to hit spinners.

Jayanta Roy, Senior Vice-President, and Group Head, ICRA, said that the fall in export demand for cotton yarn is a major challenge for spinners as the industry has been exporting a third of yarn produced for the last four years.

Related Keywords: China’s yarn imports, cotton yarn exports, cotton yarn imports, Indian yarn shipments to China, India’s spun yarn exports, largest importer of spun yarns, Vietnam’s yarn exports, yarn export from india, yarn export value, yarn export volume

India’s spun yarn exports in September 2016 declined 30.2 per cent in volume terms while it was down 24.3 per cent in value terms. The average per unit realisation was down US cents 3 a kg from previous month and up US cents 24 a kg as compared to September 2015.

China’s yarn imports from Vietnam surged 34% in September from a year earlier whereas Indian shipments to China were down 56%, and imports from Pakistan have lost 30%.

Related Keywords: cotton yarn exports, decline, India, South India Mills Association

Cotton yarn exports in India declined by 11.58 per cent in terms of value and 4.44 per cent in terms of volume during April - June this year compared to the same period last year.

Cotton yarn exports to China, being the major consumer has declined.

China import
China imported 149.66 million kg of cotton yarn during the first three months of last financial year (2015-2016) and it dropped to 99.09 million kg during the same period this year. The decline in exports started in April 2014.

Related Keywords: cotton yarn exports, Spun yarn exports, spun yarn import in china, yarn export from india

Spun yarn exports maintained its growth tempo in August 2015. After rebounding in June and Jul, export grew 21.5 per cent in volume terms while the rise in value term inched up 3 per cent. In August, spun yarn exports (all kinds) shipments were at 117 million kg worth US$335 million or INR2,135 crore, implying per unit realisation of US$2.86 per kg. This was US cent 6 down from previous month and down US cents 50 from August 2014. It was also the lowest of many months. Meanwhile, the Rupee depreciated 6 per cent against the US$ in the comparable months.

Related Keywords: canvas, cotton yarn exports, Knitwear, Pakistan textile exports, ready made garments, silk and synthetic textile, tarpaulin, tents, textile products

Pakistan textile exports have increased by one percent during the first seven months of current fiscal year against the exports of same period of last year. The textile products that witnessed increase in trade included yarn other than cotton yarn export of which increased by 24.86 percent, by going up from $20.987 million this year.

Exports of knitwear also increased by 10.19 percent from $1.306 billion last year to $1.44 billion this year, while exports of bed wear increased by 0.08 percent from $1.254 billion to $1.255 billion.

Related Keywords: cotton and cotton yarn exporters, cotton yarn exports, cumbersome clerical work, Southern India Mills Association, transaction cost

Southern India Mills Association (SIMA) welcomed the government’s decision of bringing cotton yarn exports, a manufactured goods under free list by removing the mandatory registration.

T Rajkumar, Chairman, SIMA, said that the mandatory registration had been causing hardships for the cotton and cotton yarn exporters, besides affecting the image of the Nation in the global market .

The industry has been suffering during the last four years due to unwanted procedures and transaction cost.

Related Keywords: Confederation of Indian Textile Industries, cotton yarn exports, Dollar appreciation, Indian cotton spinners, stocks pilling, Vardhaman Group

Indian cotton spinners have started to witness stocks pilling up due to weak demand from China, the largest importer of India’s cotton yarn. Cotton yarn exports this fiscal in the month of April declined to 99.92 million kilograms compared to 115.96 million kilograms during the same time last year. The fall has continued even after April, according to data released by Directorate General of Foreign Trade.
 

Related Keywords: cotton yarn exports, cotton yarn industry, EBITDA margins

CARE Research looks ahead to EBITDA margins of cotton yarn industry improving in FY14. However, the industry’s net margins would be constrained by the rising interest cost (due to burgeoning debt) and depreciation (due to additional capacity addition) but would remain higher than the margins reported in FY13.

Yarn is mainly imported by the countries which are involved in making the finished product i.e. fabric. The key export destinations for India include China, Bangladesh, Hong Kong, Peru, Korea, Turkey and Europe.