Come November and Indian spinners will be in an advantageous position to compete with Pakistan in the Chinese market. Cotton prices are expected to cool off post-Diwali which will bring down yarn prices by at least 10% thus helping spinning mills to make further headway in China, which is one of the largest importers of Indian cotton yarn.
Talking to ET, Saurin Parikh, secretary, All Gujarat Cotton Ginners Association, said, "cotton prices are now hovering around 44,000 per candy. Rains have delayed the crop this kharif. We are expecting prices to climb down to 42,000 per candy by the end of November or early December. This will also push down yarn prices. Yarn exports to China will start picking up around that time as buyers will get yarn at a cheaper price."
Chinese buyers began negotiating business with Indian yarn exporters in August when the Indian rupee was hovering around 68-69 against the dollar. Buyers were also aware that demand for yarn in the domestic market which gave them a further chance to renegotiate prices.
But spinners are hopeful that the situation will change from next month. "There is no duty on cotton yarn imports in China. Therefore, it is an important market for India. Pakistan is also an important exporter to China. They export yarn of lower counts. India does not produce much of lower count yarn. But definitely there is a competition between India and Pakistan to get a greater pie of the Chinese market," he said.
At present, both Pakistan and India are selling cotton yarn at a price of $2.85-$3.4 per kg.
Source:- economictimes.indiatimes.com
No comments:
Post a Comment