According to Indian media reports, with the recent increase in inventory, Indian cotton yarn prices have fallen from the high point at the beginning of this year. Due to the current weak demand, yarn prices will continue to fall after May 1.
According to Indian traders, almost all yarn prices have dropped by at least 10 rupees/kg due to lower demand due to the second wave of the COVID-19 epidemic. Output at textile mills has fallen, affecting yarn sales.
The past six months have been a good time for Indian spinning mills as last year’s lockdown resulted in a severe shortage of cotton yarn supply and demand for yarn in domestic and international markets Strong, so the spinners are doing well. However, the recent resurgence of the coronavirus outbreak has led to renewed lockdowns in many areas, forcing many textile mill workers from other states to return to their villages.
The South India Textile Industry Association said that due to excess supply, warp yarn prices have fallen by 30 rupees per kilogram recently. Demand for weft yarn is also declining due to closure of factories in Maharashtra. Prices may fall further from May 1st.
Traders said that the current situation is completely opposite to the strong domestic and foreign demand and rising prices from January to March this year. The overall market demand is declining, and exporters are busy cleaning up. Inventory rather than purchase ingredients. The second wave of the epidemic has affected yarn sales in the past 15 days and inventories have increased. Currently, the factory is arranging vaccinations, and the situation may improve once the process begins.
The closure of ginneries across the country has forced cotton growers to wait to sell their produce, the Cotton Association of India said. Although more than 90% of this year’s cotton has been sold, farmers still have some unsold cotton, hoping to sell it when prices rise from April to August. </p
