In the past week, Indian cotton yarn and polyester/cotton yarn export prices have rebounded sharply, as China’s demand recovery has offset the decline in demand in Pakistan. At the same time, Indian cotton prices began to recover under the acquisition of CCI and the increase in China's exports.
Domestic cotton yarn prices in India continued to decline steadily. The FOB price of 30 combed yarns continued to rise by 5 cents, or 1.7%, after rising 13 cents in the previous week. The price of blended yarn continued to climb. The price of 30 blended yarns this week continued to rise by 10 cents after rising 15 cents in the previous week. The cumulative increase in two weeks has reached 7.5%.
The reason for the large increase in cotton yarn export prices is that the competitiveness of imported yarns in China has increased, China’s demand for imported yarns has increased, and the rise in the RMB exchange rate has also reduced import costs.
In addition, the international cotton price has fallen recently and China's cotton prices have continued to rise slightly. Therefore, India's suspension of cotton yarn exports to Pakistan has not caused cotton yarn export prices to fall.
Driven by the increase in import demand after the Chinese New Year, Indian cotton prices have also rebounded. The S-6 price has risen by Rs 1,000 in two weeks. CCI has acquired a large amount of cotton to support domestic prices.