Yarn export continue to surge on low base, China going better

Yarn export (shipment) in May totaled 131 million kg (up 76%) worth US$413 million (up 75%) implying an average unit value realization of US$3.15 per kg, slightly lower by 2 cents compared to last year. Mean-while, the INR against the US$ was weaker at INR66.28 this may which augured well for exports. China was the largest buyer of spun yarns, topping both in terms of volume and value.

Cotton yarn export was at 107 million kg worth US$345 million (INR2,285 crore). 88% above previous year’s level. 77 countries imported cotton yarn at an average price of US$3.21 a kg, US cent 1 more than previous month and down US cents 9 from a year ago.

China continued to increase its import of cotton yarn from India by almost three folds in volume and value terms. It was followed by Bangladesh with volume and value both rising 15% over the year, but appear to have slowed down. In April it had clocked a growth of 45%. Egypt and Peru were the other major importers, almost doubling their imports from India. South Korea was the fifth largest destination. 10 countries did not import any cotton yarn from India as they had imported yarn worth US$0.84 million last May. However, they were replaced by 12 other countries which imported yarn worth US$1.22 million.

Tanzania, Nepal, Ukraine, Bulgaria and Tunisia were among (other than China) the fastest importers of cot-ton yarn in May while Cote D’Ivoire, Netherlands, Bahrain, Russia and United Arab Emirates significantly reduced their imports compared to last year.

100% man-made fibre yarn export continued to surge both in volume and value in May. MMF yarn ex-ports comprised 5 million kg of polyester yarn, 2.5 million kg of viscose yarn and 1.6 million kg of acrylic yarn. Polyester yarn exports rose 66% in value while viscose yarn exports value increased 45% during the month. Acrylic yarn exports were up 6%.

Polyester spun yarn were exported to 43 countries at average unit price of US$2.44 a kg. Turkey was the largest importer of polyester yarn, followed by Brazil and Egypt. Although unit price realization fell com-pared to last month, it was significantly up from last year.

Viscose yarn worth US$8.4 million or INR55 crore was exported at an average price of US$3.34 per kg. Iran emerged as the top importer worth US$1.90 million, followed by Belgium and Turkey. Bangladesh was the fourth largest importer of viscose yarn during the month.

Blended yarn worth US$45 million were exported in May, up 39% YoY in value terms. During the month, 7.9 million kg of PC yarns was exported worth US$22 million while 4.8 million kg of PV yarns were exported worth US$142 million

Bangladesh. Colombia and Egypt, were the largest importers of PC yarn from India while Turkey was the single largest importer of PV yarns from India followed distantly by Pakistan.

However, delay in refunds under the Goods and Services Tax continue to trouble exporters despite government’s claim that it has been doing everything required to streamline the process. The refund mechanism is not been functioning smoothly even though the GST is completing a year.

In May 2017, textiles exports had declined 30% in volume and 17% in value under the adverse impact of demonetisation. Further, exports were also impeded by the newly launched GST regime in July.