Exclusive news from China Cotton Network: In the past week, due to the rebound in Indian cotton prices, the recovery of textile and apparel export demand, and the decline in yarn production caused by the epidemic, Indian cotton yarn prices continued to rise.
Last week, the number of confirmed cases of COVID-19 in India fell for the third consecutive week, with the number of new cases falling back to the level of early April. However, the epidemic has not eased in some parts of the country.
As export demand for cotton yarn and clothing increases while cotton stocks remain low, Indian cotton prices continue to rise.
That week, Indian cotton yarn prices rose for the second consecutive week, but some coarse-count yarns saw limited gains or remained stable. Export prices of combed yarn increased on demand. Due to the concentrated demand, the delivery period can only be arranged after mid-August.
The rise in cotton yarn prices in India is mainly due to the following reasons:
First, as of April In the middle of the year, factory operating rates dropped significantly, and inventories of factories and traders dropped significantly. Second, the epidemic caused transportation interruptions, which affected supply. Third, cotton prices rose at the end of the year, driving up cotton yarn prices. In May, Indian cotton prices rose by more than 3,000 rupees per kander; fourth, textile and clothing export orders gradually increased after Europe and the United States lifted their blockades.
It is understood that as the epidemic in India stabilizes, international buyers who had previously transferred orders to other countries have regained their confidence and begun to purchase Indian products again. Tamil Nadu, which accounts for the largest share of India’s textile and apparel production, has seen a decline in new confirmed cases since last week. However, the growth rate of confirmed cases is still rising in some parts of western India.
Export orders for cotton yarn and clothing may be delayed as demand increases rapidly after the epidemic eases. Due to the difficulty in delivering goods on schedule, exporters are currently not very interested in signing new contracts.
Affected by the epidemic, most people work from home and mainly wear knitwear, resulting in increasing orders for knitwear/casual wear in India’s domestic and overseas markets. Order growth for woven apparel was relatively modest.
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