Yarn export surged 36% in July as prices fall

Yarn export surged 36% in July as, basic textiles comprising fibres, spun and filament yarns shipment surged 29-41 YoY, both in terms of US$ and INR worth US$553 million or INR4,127 crore, accounting for about 2.3% of total merchandise exported from India during the month. The sharp increase was mainly led by sharp increase in fibre export, particularly cotton and spun yarns. But this largely reflect goods which could not be shipped in lockdown months of March to May.

On a cumulative basis, exports were still down 21% in the first four months of 2020-21, compared same period a year ago. The first two months were under strict lockdown and production suffered as a result. Globally, most markets were also under restrictions, hence orders were either cancelled or postponed.

Spun yarns shipment totaled 129 million kg worth US$318 million or INR2,373 crore. They were 36% higher than July 2019 in terms of volume and 13% up in terms of US$. Bangladesh was the largest market for spun yarns in July with value up 172%, followed by China (112%). These two markets accounted for more than 45% to total yarn shipment during the month.

Cotton yarn export was 107 million kg worth US$264 million (INR1,970 crore). These were shipped to 74 countries at an average price of US$2.48 a kg, down US cent 1 from previous month and US cents 61 from a year ago. Bangladesh was the top cotton yarn market, followed by China, Vietnam, Egypt and Peru. A lower price helped boost export during the month. Volume was up 75% while value in US$ increased just 38%.

100% man-made fibre yarn export of 7.83 million kg, comprised 2.83 million kg of viscose yarn, 2.10 million kg of acrylic yarn and 1.2.79 million kg of polyester yarn. Viscose yarn export was worth US$6.9 million or INR51 at an average price of US$2.43 per kg in July. Iran was the largest market followed by Bangladesh. Polyester spun yarns export was worth US$5.61 million and exported at an average unit price of US$2.01 a kg. Turkey was the largest importer of polyester yarn, followed by USA and Brazil.

Blended spun yarn export were worth US$35 million in July, including 10.2 million kg of PC yarns and 2.68 million kg of PV yarns. Egypt was the largest importers of PC yarn from India followed by Bangladesh while Turkey was the largest importer of PV yarns from India followed distantly by Iran.

All kinds of filament yarns shipment totaled 54 million kg, valued at US$68 million or INR504 crore. Nylon exports continued to show strong increases in July while viscose showed sharp decline (51%). Polyester filaments export was down 32% during the month.

Source: Fibre To Yarn Export Statistics – India report