India Cotton Yarn Exports Are Expected To Recover From The Start Of China'S Cotton Reserves.

Despite the increased demand in Bangladesh, India's overall export of cotton yarn in the current financial year is not satisfactory due to the sluggish demand in China.

However, the price of China's cotton reserves is 25% higher than India's domestic price, and India's cotton yarn exports are expected to revive.

The price of Rupee on the first day of China's cotton auction is about 51000-56000 rupees / Kandeh, much higher than that of 42000 rupees in India. So China's reserve cotton price is much higher than that of India.

Although stored cotton has been stored for five or six years, the quality has also declined.

It is still actively shooting storage to meet the demand for cotton blending.

However, because of the high price, India's cotton yarn, even with a 3.5% tariff, is expected to increase exports to China.

India's Cotton Textile Export Promotion Association (Texprocil) expects that India's cotton yarn exports will grow positively this year after a sharp decline last year.

Meanwhile, demand for cotton yarn has also started to recover in India's domestic factories. In recent 2-3 weeks, the price of domestic yarn in India has risen by 5-7%.

Since 2017, the price of cotton yarn in India has been changing along with cotton prices, but it will be delayed for 1-2 months.

At present, the spot price of S-6 has risen to nearly five months high, and this year the cumulative increase has exceeded 10%.

It also rose to a new high of 79 cents.

In the year of 2016/2017, fourth days after the rotation of the reserve cotton mills, the textile enterprises have made a round of praise to solve the problem of raw materials. The storage cotton wheel has opened up a large online supermarket for the vast textile enterprises, and the online shopping and pportation under the line are busy.

For cotton prices, Jiangsu Dafeng several textile business executives admitted that this round of paction price is somewhat high, from the current market situation, there are signs of high opening, so that some small and medium-sized textile enterprises "daunting", and have a look at the mentality.

A general manager of a cotton spinning mill in Yancheng, Jiangsu, said that because the price of reserve cotton is slightly higher, the company will postpone the purchase of storage for a week.

The near future

The price rise is obvious, and even closer to the mainland cotton. Therefore, more textile enterprises in the mainland can only choose cotton reserves.

In the face of the situation of high price reserve cotton trading, textile enterprises expect that this year's reserve cotton prices will take the route of "high or low" or "high Kaiping".

Judging from the round out trading situation, the rise in paction price has been callback from the third day.

Since the rise of domestic cotton prices in India in October 2016, export demand for cotton yarn in India has been depressed, and overseas buyers are waiting for prices to fall.

However, buyers now realize that cotton prices in India are not falling, so they start ordering cotton and cotton yarn in India.

In recent weeks, the overall demand for cotton yarn has been restored in India.

At the same time, India textile factory urged the government to extend the export tax rebate of 2% cotton yarn.

According to the rating agency's report, due to the poor market demand in the first few months and the enhanced substitution effect of chemical fiber, India's cotton yarn production in the financial year 2016/17 is expected to decrease by 5-7%, to 3 million 936 thousand tons.

Other market demand for cotton yarn in India will maintain a good momentum.

In 8-12 months of 2016, India's cotton yarn exports dropped from 987 thousand and 200 tons in the same period last year to 872 thousand and 200 tons.

For more information, please pay attention to the world clothing shoes and hats net report.