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Spun yarn export prices remain intact in INR term although down in US$

YarnsandFibers News Bureau 2016-06-27 13:50:00 – Mumbai

Spun yarn exports declined by 4.6 per cent in volume terms and 12.1 per cent in value terms in May 2016. Total shipments were at 101.5 million kg worth US$276.5 million or INR1,830 crore, implying per unit realisation of US$2.72 per kg which was up US cents 6 from previous month and down US cents 24 as compared to May 2015. In INR term, the FOB values per kg of yarn export was INR180 per kg. Fibre wise the FOB realization for cotton yarn was INR179 per kg, viscose yarn INR203 per kg, polyester yarn INR146 per kg, PC yarn INR177 per kg and PV yarn INR178 per kg.

Over the past two years, FOB realization averaged INR189 per kg in 2014-15 and INR181 a kg for 2015-16. The first two months of 2016-17, they averaged INR178 a kg. While there is marginal reduction in INR realization over the observed period, the same in US$ terms has fallen from US$3.16 a kg in 2014-15 to US$2.79 a kg in 2015-16 and further to US$2.69 a kg during April-May 2016-17. This implies that FOB realization has fallen 6% in INR and a whopping 15% in US$ terms. A large part of this fall has come from currency depreciation. In April 2014 the Rupee was pegged at INR59.8 per US$ and the same stood at INR66.8 in May 2016, a depreciation of close to 12% between the two points. The other fall has come from falling raw material cost.

Between April 2014 and May 2016, cotton prices were down with some volatility in between. Shankar-6 pegged at INR41,200 per candy (356 kgs) in April 2014 have fallen to INR40,500 by end May 2016, implying a fall of about 12%. Even coarser variety of cotton, Bengal Deshi was cheaper by 14% during the period, now pegged at INR33,200 per candy. Moving to manmade fibres, PSF is cheaper by 20% and ASF by 30%. Only VSF prices were up by 6%.

In May 2016, 89 countries imported spun yarn from India, with China accounting for 25.6 per cent of the total value with imports declining 30.1 per cent in terms of volume YoY and plunging 38.5 per cent in value YoY. Bangladesh, the second largest importer of spun yarns, ac-counted for around 16.7 per cent of all spun yarn exported from India. Export to Bangladesh rose 38.9 per cent in volumes and 28.5 per cent higher in value. Egypt was the third largest importer of spun yarns, which saw volume rising 9.8 per cent while value inched up 1.3 per cent. These three top importers together accounted for around 48 per cent of all spun yarns exported from India in May.

COVERAGE

The Fibre and Yarn Export – India report covers data collated from 26 ports in India which accounts for 85% of cotton yarn and 60% of non-cotton yarn (excluding sewing threads) exported from India. This report is released between 20-23 of the month covering data of preceding month with data for corresponding month of previous year.

Courtesy: YnFx – Fibre and yarn Exports - India

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