New Year begins Indian cotton yarn is about to rise
Sep 25, 2019
Abstract: A well-known cotton yarn exporter in India recently analyzed that in the fourth quarter of 2016, Indian cotton yarn exports stopped falling after a few months of sluggishness, and market demand returned to normal levels. Driven by the reduction in production and exports from domestic factories, Indian cotton yarn prices were firm at the end of October. If it is not monetary policy that disrupts the market order, Indian cotton yarn prices will definitely continue to strengthen. At present, domestic retail sales in India are restored to 80% before the monetary policy, the future
A well-known cotton yarn exporter in India recently analyzed that in the fourth quarter of 2016, Indian cotton yarn exports stopped falling after a few months of sluggishness, and market demand returned to normal levels. Driven by the reduction in production and exports from domestic factories, Indian cotton yarn prices were firm at the end of October. If it is not monetary policy that disrupts the market order, Indian cotton yarn prices will definitely continue to strengthen.
At present, India's domestic retail sales return to 80% before the monetary policy, and will slowly recover in the next month. It is understood that some informal clothing companies are still adapting to new policies. The tight capital has led to slow production progress and yarn purchases are very light. In recent days, garment factories have begun to increase production in order to meet the market demand after the New Year, and cotton yarn prices have begun to strengthen. Despite this, cotton yarn price increases are not expected to be only 2-3%, because once this level is exceeded, export demand will decrease.
For the next stage of the market trend, the following points deserve market attention:
1. Influenced by monetary policy, Indian clothing consumption has dropped by 50%, but now it has recovered to the previous 80%, and will become normal in the next month.
2. In 2016/17, the area of cotton planting in India decreased by 12%. If the yield is increased, the output is expected to be the same as that of the previous year, and it is still at a historical low. Due to the low inventory at the beginning of the year, Indian cotton prices are expected to increase by about 20% year-on-year.
3. Cotton yarn stocks in circulation channels are at historically low levels, which is usually the biggest factor in price increases.
4. At present, all Indian cotton yarn buyers are required to ship immediately because they are not in stock.
5. Due to operating losses, factories in India and Pakistan have low operating rates and market supply is also decreasing.
6. The huge loss of the factory indicates that the reason for raising the price or reducing the production is very sufficient, and it will not be sold at a reduced price.
