China has started buying more spun yarns from India, June exports rebound

Spun yarn imports from India have rebounded in the past month in China, reveals the latest “ YnFx – Fibre and yarn Exports – India Report. Yarn export to China was extremely sluggish since May 2014 falling year on year and saw some rebound in May 2015. In June 2015, exports jumped 105 per cent in volume and 80 per cent in value.

The sudden rise in can be attributed to relatively higher domestic prices compared to imported goods. The other factors include firm cotton prices and the prevailing State cotton reserve policy. In case of Indian prices, the FOB unit price averaged US$2.71 a kg for all type of cotton yarns in June as against US$3.52 per kg a year ago. In similar comparison, cotton yarn prices in Shengze for 32s cotton were at US$3.30-3.37 per kg as against US$3.90 a kg a year ago.

From India, all kinds of spun yarn exports rebounded significantly in June although overall merchandise export declined for the seventh consecutive week. Yarn export grew sharply in volume terms while the rise in value term was close to double digit. The growth particularly emerged from the doubling of imports by China from India. However, unit value realization continued to decline year on year but has been lingering in the range of US$2.90-3.00 per kg on an average.

In June, 83 countries imported spun yarn from India with China topping and accounting for 40 per cent in the total. Shipment to China Shipment to China doubled in terms of volume and up 82 per cent in terms of value YoY. Bangladesh, the second largest importer of spun yarns, ac-counted for 11 per cent of all spun yarn exported from India. However, export to Bangladesh declined 1 per cent in volumes and 10 per cent in value. Egypt continued to be the third largest importer of spun yarns, with volume and value both down YoY. These three top importers together accounted for more than half of spun yarn exported from India in June.

India did not export any yarn to Cambodia, Bulgaria, Eritrea, Slovakia, Mauritania, Hungary and Zimbabwe in June, but acquired four new markets including Honduras, Paraguay, Singapore and Kuwait. They together imported US$1.90 million worth of spun yarns.
Romania, Norway, Philippines, Argentina, Malawi, New Zealand and Hong Kong were among the fastest growing markets in June, by more than doubling their import from India. However, they together accounted for only 3.6 per cent of total exports. Uruguay, Venezuela, Tanzania, Czech Republic and Virgin Islands (US) almost halved their imports from India compared to their levels a year ago.

Courtesy: YnFx – Fibre and yarn Exports – India