China reduces spun yarns import from India, volume down 32.9%

During December 2015, 88 countries imported spun yarn from India, with China accounting for 27.8 per cent of the total value with imports plunging 32.9 per cent in terms of volume YoY and declining 39.5 per cent in value YoY. India’s overall spun yarn exports in December were down by 11.5 per cent YoY in volume terms and declined 18.8 per cent in value term. Unit price realization was up US cent 1 a kg from November 2015 and down US cents 24 a kg from December 2014.

The Indian yarn industry is currently confronted with a sharp drop of Chinese demand, resulting in excess supply.

In China, yarn import prices in December were less significantly high in yuan terms, with benchmark 32s cotton being however offered at the same price level than on the domestic and import markets. The fall of the renminbi offered some support to domestic producers after import prices were raised in yuan terms in the last weeks. Since import yarn prices were high and domestic yarn prices were declining, China’s yarn imports from India remained extremely depressed in December, by contrast with the surge in the same period a year ago.

Average import price continued declining in December, partly due to a Chinese demand increasingly shifting to lower counts and qualities. Yarn producers were also trying to reduce their inventories before the new year holidays and were ready to negotiate prices.

Spun yarn imports from Pakistan surged 89.36 per cent YoY in terms of volume and up 58.8 per cent in terms of value in December, since the cotton production there was sharply down in 2015. Demand from Pakistan was also rising due to lack of supply in the neighbouring country.

India’s spun yarn export to Egypt declined 12.5 per cent in terms of volume and value by 22.8 per cent.

Further, cotton yarn exports from India were down 12.6 per cent in terms of volume YoY while fell 20 per cent in terms of value.

Portugal, Turkey, Thailand, Belgium and South Africa were among the fastest growing markets for cotton yarn, and accounted for 7.1 per cent of total cotton yarn export value. Nine new destinations were added for cotton yarn export, of which, Singapore, Costa Rica, Paraguay, Mozambique and Estonia were the major ones.

Nine countries did not import any cotton yarn from India, including Chile, Panama, El Salvador, Syria and Mexico.

Courtesy:YnFx – Fibre and yarn Exports – India