Spun yarn exports declined sharply in July 2009 after June showing signs of revival. While the decline in June only 14% compared to 44% in the past 5 months, the fall in July was back to over 20%. During the month, exports declined by 22% in terms of value 13% in terms of volume in comparison with the numbers in the corresponding month a year ago. About 45 million kgs of spun yarn was exported valued at US$123 million during July 2009 as against 61 million kgs and US$188 million last year. The overall unit price realization averaged US$2.72/kg as against US$3.09/kg last year, implying a 10% fall. The Indian Re has depreciated by 14% during the 12-month period.

The fall in yarn exports was in line with the overall trend in India's foreign trade. Exports fell 28.4% to US$13.62 billion, posting a decline for the 10th straight month, as major global markets continued to reel under the economic downturn. While exporters continue to face payment problems, difficult clients and shrinking orders in the global market, there are some hopes that situation would improve by the end of this year. The optimism is based on expectations of an increase in orders ahead of Christmas and New Year and an improvement in the European economy. The sops announced in the Foreign Trade Policy worth Rs 2,200 crore are also expected to boost demand.

China officially known as the People's Republic of China was established on 1 October 1949. It is located in the east on the Asian continent on the western shore of the Pacific Ocean; the People's Republic of China has a land area of about 9.6 million sq km, and is the third-largest country in the world, next only to Russia and Canada. It is across four time zones. Beijing, the capital, is located in the Eastern 8th Zone; "Beijing Time" is the standard for the whole country. From north to south, the territory of China stretches from the center of the Heilong River north of the town of Mohe to the Zengmu Reef at the southernmost tip of the Nansha Islands, covering a distance of 5,500 km. From east to west, the nation extends from the confluence of the Heilong and Wusuli rivers to the Pamirs, covering a distance of 5,200 km.

With a land boundary of about 22,800 km, China is bordered by Korea to the east; Mongolia to the north; Russia to the northeast; Kazakhstan, Kyrgyzstan and Tajikistan to the northwest; Afghanistan, Pakistan, India, Nepal, Sikkim and Bhutan to the west and southwest; and Myanmar, Laos and Vietnam to the south. Across the seas to the east and southeast are the Republic of Korea, Japan, the Philippines, Brunei, Malaysia and Indonesia. China's mainland coastline measures approximately 18,000 km, with a flat topography, and many excellent docks and harbors, most of which are ice-free all year round.

Crude prices soften
Crude oil prices declined in July 2009 from its June levels. WTI spot price lost US$4 per barrel averaging US$65.84 per barrel. Europe Brent price declined 5% to US$65.99 per barrel. In Asian market, crude oil prices averaged US$65.65 per barrel, down 4.5%. Mirroring this, naphtha price plunged 3% and averaged US$577 per ton. Compared to a year ago, naphtha was cheaper by 40%.

Polyester Chain
Paraxylene prices increased during the month. Paraxylene prices averaged US$1,040 per ton FOB Korea partly reflecting the lower production in Japan where operating rates were cut by a major producer. Downstream PTA prices surged 8% to US$887 per ton FOB Korea. In the ethylene/MEG chain, prices increased by almost 20%. Their respective averages were US$1,001 per ton Korea and US$688 per ton FOB Korea.