Vietnam's rising share in China's yarn market impacts Indian yarn exports

YarnsandFibers News Bureau 2016-03-22 11:29:00 – Mumbai

India’s spun yarn exports in February 2016 were up by 22.8 per cent in volume terms while it declined 17.3 per cent in value terms. Spun yarn (all kinds) shipments in February 2016 were at 158 million kg worth US$307.9 million while the average unit price realisation was down US$0.95 a kg as compared to the same month last year.

Chinese demand for Indian yarn has been reduced due to rising imports from Vietnam which is the second largest yarn exporting country to China. Also, China restricted foreign yarn imports since domestic prices were lower than import prices after taking account of import tariffs and taxes there. However, the fall of cotton yarn exports from India to China was partly offset by a rise to other destinations, like Bangladesh.

In February 2016, 87 countries imported spun yarn from India, with China accounting for 27.4 per cent of the total value with imports edging down 1.3 per cent in terms of volume YoY and plunging 45.3 per cent in value YoY. Bangladesh, the second largest importer of spun yarns, accounted for around 17.8 per cent of all spun yarn exported from India. However, export to Bangladesh surged 178.2 per cent in volumes and 16.4 per cent in value.

Egypt was the third largest importer of spun yarns, which saw volume rising 3.3 per cent and value declining 5.3 per cent. These three top importers together accounted for more than 50 per cent of all spun yarns exported from India in February.

Further, cotton yarn export was at 139.3 million kg in February with 74 countries importing yarn from India in February 2016. The average unit price realization was down US$0.83 a kg from previous month and US$1.06 a kg down from the same month a year ago.

China was the largest importer of cotton yarn from India in February, followed by Bangladesh and Egypt. The top three together accounted for more than 57 per cent of cotton yarn exported from India.

Pakistan, Turkey, Poland and Thailand were among the fastest growing markets for cotton yarn, and accounted for 9.1 per cent of total cotton yarn export value. Eleven new destinations were added for cotton yarn export, of which, Honduras, Finland, and Bulgaria were the major ones.

Twelve countries did not import any cotton yarn from India, including Dominican Republic, Panama, Côte d'Ivoire, Mozambique and Czech Republic. In February 2016, significant deceleration was seen in export to France, Syria, Slovenia, Chile and Brazil.

Courtesy:YnFx – Fibre and yarn Exports - India

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