Blended yarn price in India sinks due to weak INR

In India, polyester-cotton yarn prices dropped in third week of August as cost support eased while polyester-viscose yarn prices were up on firmer fibre cost. 30s (65/35) PV yarn prices in India inched up INR1 a kg, however, was down US cents 3 on the week due to weak INR in Indore market. PC 30s (52/48) prices fell further US cents 6 a kg in Ludhiana market.

In China, the devaluation of the Renminbi did not result in a similar jump of yarn prices. Sellers have inventories of yarn imports which have been purchased at a stronger Yuan. In addition, they could be forced to reduce their margins and avoid any price increase in Yuan terms. In Qianqing, PC (65/35) 32s and 21s yarn prices were both up US cent 1 a kg on the week.

In Pakistan, poor exports were reported, although prices were 2-3 per cent down from previous month. Cotton fiber prices stopped falling over a lack of supply after recent rains, margins of blended yarn makers have further declined, as a result. In Pakistan, 24 PC (52/48) and 30s carded yarn prices rolled over in Faisalabad market.

Courtesy: Weekly PriceWatch Report