Yarn export declines in June, Vietnam emerging market for cotton yarn

Entering the so called lean season for textiles, export of spun yarns deepened in June after falling 9.9 per cent year on year in May. In June, exports declined 14.5 per cent in similar comparison. About 85 million kg of spun yarns were exported worth US$292 million or Rs 1,725 crore. While volumes were down 14.6 per cent unit value realisation remained flat as the Rupee depreciated just 4.5 per cent against the US$ in the comparable months. Overall unit price realization averaged US$3.45 /kg was same as in a year ago but up US cents 9 from previous month.

Spun yarns were exported to 86 countries in June. China continued to be the largest buyer of Indian spun yarns accounting for 24 per cent, but imported almost half the volumes of June 2013. In June, imports were worth US$71 million down 51 per cent on the year. Bangladesh followed, with a share of 13 per cent of all spun yarn exported from India. During the month, export to Bangladesh increased 38 per cent.

Vietnam is fast emerging importer of India spun yarns and was the third largest importer in June. During the month, its import increased five folds to close to 5 million kg worth US$17.50 million or Rs 103 crore, compared to the levels in June 2013. In the past three months it imported yarns worth US$50 million with volumes at 14 million kg. Its major import consists of 32/1 cotton yarns.

In June, cotton yarn worth US$239 million (Rs. 1,410 crore) was exported to 72 countries with volumes totaling 68 million kgs. This implies unit price realization of US$3.52 a kg on an average, US cents 2 up compared to same month a year ago and US cents 7 up from last month. Combed cotton yarn accounted for 63 per cent of the all cotton yarn exported during the month with volumes at 38 million kgs. Carded yarn export was at 22 million kg. Their respective unit value realization was US$3.89 per kg and US$3.12 per kg. Open ended yarn export was at 5.3 million kg at an average price realisation of US$2.19 a kg.

Export of spun yarns made of man-made fibre reversed the moderation seen in recent months. In June, manmade fibre yarn exports were up 13 per cent in value terms. A total of 6.55 million kg were exported, comprising 2.35 million kg of viscose yarn, 2.99 million kg of polyester yarn and 0.58 million kg of acrylic yarn. Polyester yarn exports increased 10 per cent while viscose yarn exports were up 24 per cent during the month.

Blended spun yarn exports aggregated 10 million kg valued at US$33 million, mainly comprising 5.4 million kg of PC yarns worth US$16 million and 3.5 million kg of PV yarns valued at US$10.8 million. Egypt was the largest importer of PC yarn from India followed by Turkey at a distant. Turkey was also the largest importer of Indian PV yarns in June, followed by Iran and Pakistan.

Courtesy: YnFx ExportWatch Report