The fall in FOB per unit export price of spun yarns is apparently arrested in January. The month saw close to 115 million kg of all kinds of spun yarns exported from India worth Rs 2,470 crore or US$398 million, implying per unit realisation of US$2.98 per kg. This was US cents 3 higher than the realisation in December 2014. However, it was US cents 38 lower from January 2014. Compared to last year, shipments were down 13 per cent while earnings in US$ term fell 23 per cent implying a 11 per cent fall in unit price realization, as the Rupee depreciated 0.6 per cent against the US$ in the comparable months.

During the month, 89 countries imported spun yarns from India with China continuing on the top. It accounted for 31 per cent of India’s total spun yarn exported in January. However, this was 29 per cent lower than the value of export last year while shipment volumes declined 19 per cent YoY. Bangladesh remains as the second largest importer of Indian yarn, accounting for 13 per cent of all spun yarn exported from India. It has also reduced imports from India by 11 per cent in value and 3 per cent in terms of volumes. Egypt also remained the third largest importer of spun yarns in January, pushing down Turkey and South Korea which have reduced imports from India.

Chile, Yemen, Uganda, Australia and Venezuela were the fastest growing markets in January for Indian spun yarn exports. However, they together accounted for only 1.2 per cent of total exports. Among losers, Oman, Botswana, Denmark, Slovakia and Serbia & Montenegro did not import any yarns from India while Hungary, France, Russia, Djibouti and Ukraine have reduced their imports from India considerably in January this year compared to their levels last year.

Honduras, Cuba, El Salvador, Panama and Paraguay were the major new destinations for Indian spun yarns, together importing US$1.13 million worth of spun yarns in January.

China has again reduced its imports of cotton yarn from India in January after showing strong urge in December. In January, although China was the largest importer of India cotton yarn, export to that country fell 29 per cent in terms of value and 19 per cents in volume shipment. Only 39.5 million kg of cotton yarn was exported to China worth US$105 million at an average price realization of US$2.67 on an average. Totally, cotton yarn worth US$280 million (Rs.1,750 crore) was exported to 75 countries with volumes totaling 113 million kgs. The average unit price realization was US$2.99 a kg, up US cents 3 from previous month and US cents 43 down from the same month a year ago. China and Bangladesh together accounted for 51 per cent with combined volume at 52 million kg worth US$145 million.

Venezuela, Lithuania, Romania, Kenya, Chile, Ecuador, Lebanon, Algeria, Finland and Norway were the fastest growing markets of Indian cotton yarn in January. Their imports from India more than doubled from previous year. However, they formed just one per cent of total cotton yarn export value.

In January, man-made fibre spun yarn exports inched was up both in terms of volume and value. During the month, a total of 6.87 million kg of man-made spun yarn were exported, comprising 2.24 million kg of viscose yarn, 2.41 million kg of polyester yarn and 1.74 million kg of acrylic yarn. Polyester yarn exports were up 2.9 per cent in value while viscose yarn export was down 7.4 per cent during the month. Unit price realization was down US cents 18 for viscose and US cents 23 for polyester from a year ago. Acrylic yarn export jumped 53 per cent to US$6.35 million kg, while unit price realization jumped US cents 38 to US$3.65 per kg.

COURTESY: Fibre and yarn Exports - India Report