Indian yarn export prices drop significantly in 2015

Spun yarn export earnings continued to decline (year-on-year) for the thirteenth consecutive month in May 2015 while volume shipment growth remained on positive territory for some months now. In May 2015, all kinds of spun yarn exports were up 2 per cent in terms of volume but down 11 per cent in terms of value as FOB per unit price fell 12 per cent. Volumes were at 101 million kg worth US$300 million or INR1,890 crore, implying an average unit realisation of US$2.97 per kg. This was down US cents 42 or 12.4 per cent from May 2014. Meanwhile, the Rupee depreciated by about 6 per cent against the US$ in the comparable months.

Cotton yarn worth US$250 million (INR1,590 crore) was exported in May with volumes at 84 million kg. The average unit price realization was at US$2.99 a kg, down US cents 45 down from the same month last year.

Unit value realization on export of yarns made of 100 man-made fibres declined sharply in May particularly that of polyester yarn. Total volume too declined during the month in comparison with the export in the same month a year ago. In May, 5.77 million kg of man-made spun yarn were exported, comprising 2.61 million kg of polyester yarn, 1.80 million kg of viscose yarn and 1.30 million kg of acrylic yarn.

Polyester yarn exports were down 4 per cent in value while viscose yarn export was down by a whopping 35 per cent during the month. Acrylic yarn export too declined 19 per cent in May. Unit price realization was down US cents 19 for viscose and US cents 42 for polyester from a year ago. Acrylic yarn unit price realization fell US cents 22 year on year.

Viscose yarn was exported to 22 countries in May with exports valued at US$5.2 million or INR33 crore and volume at 1.80 million kg, implying average unit price realization of US$2.91 per kg. This was US cents 2 lower than realized in April and US cents 19 lesser than a year ago. Belgium remained to be the single largest importer of viscose yarn worth US$1.60 million followed by Iran with imports worth US$0.90 million.

Export of blended spun yarns aggregated US$32.6 million in May (down 1 per cent YoY) with volumes at 10.9 million kg (up 4 per cent YoY). This compares much better than the performance in 100% cotton and 100% manmade fibre yarns sectors. In May, 6.7 million kg of PC yarns worth US$18 million and 2.5 million kg of PV yarns valued at US$7.4 million were exported. Their respective unit value realizations were US$2.71 a kg and US$2.89 a kg, down US cents 31 and US cents 10 in order.

Courtesy: YnFx – Fibre and yarn Exports – India