Weak demand for cotton yarn in India may improve profit next year

Last week (July 19-July 26), Indian cotton yarn prices remained unchanged, while polyester fiber and viscose fiber prices rose again.　　According to statistics, the prices of polyester staple fiber and viscose fiber in India last week increased by 3 rupees/kg and 1 rupees/kg, respectively, by 2.3% and 0.6%. In the past four weeks, the price of 100% polyester yarn has risen by about 8%. The price of polyester-viscose blended yarn has risen by 2 rupees/kg from last week and has increased by 3.4% in the past four weeks.　　 It is understood that the stability of cotton yarn prices in India is mainly due to weak market demand. At the same time, due to the decline in demand from China, India's cotton yarn exports have continued to decline in the past few months. According to official Indian statistics, India’s cotton yarn production fell by 6.7% in May, while cotton yarn inventories also declined. As India's cotton production is expected to rebound sharply, cotton prices will likely fall sharply next year, and the spinning profits of textile mills will also increase.　　 At present, the implementation of GST in India continues to disrupt the market, but there are signs that in order to support small producers and traders, GST rules may be partially revised. Article Keywords: 　Cotton Yarn India