Indian cotton yarn prices soar, short-term supply

    Since 2021, India's cotton prices have increased by more than 13% in total, and nearly 10% in February. Driven by the rise in cotton prices and the demand for yarn at home and abroad, cotton yarn prices also rose sharply.

   According to Indian exporters, 30 Combed Yarns in India have increased by 30-40% in recent weeks, from 245 rupees / kg in January to 274 rupees / kg. At present, the demand for cotton yarn in India is good, and some cotton mills have sold their output for two months. Now if you want cotton yarn, you can only wait until the end of April or may. If you are lucky, you may buy it from the manufacturers that still have stocks in March.

   At present, India's textile mills are basically producing at full capacity. The demand for yarn will increase from December 2020, forcing the mills to produce at full capacity. However, the price of yarn has also increased significantly. The Textile Mills Association of South India said that the increase of Indian yarn was less than that of cotton, and the yarn price also dropped a few days ago. 40 combed yarns have dropped from 300 rupees / kg to 275-285 rupees / kg.

The Textile Exporters Association of India said that in addition to panic purchases triggered by increased domestic demand, export demand also pushed up cotton yarn prices, which are expected to rise again from March. At present, China's purchase of Indian yarn is very large, 15-20% more than before. Bangladesh, Peru and Brazil are also importing Indian cotton yarn, and the current export demand ranges from 16 to 60. For small and medium-sized mills, due to the promise of a lower price, even if the price rises by 5 cents, buyers will be forced to purchase cotton yarn from other places.

    Our yarn has soared, and our downstream production has a lot of resistance.