Interviews
Global fibre industry sailing on volatility boat
10 Feb '10
9 min read
Mr Sanjay Jain, Mktg Mngr, PT Embee Plumbon Textile-Indonesia, narrated- “We feel the market is extremely volatile now. It will take at least one more year before stability is restored. Because of the recession in year 2009, many weak companies went out of business disturbing the equilibrium. Apart from that we see no real recovery in market.In fact industry may see more volatility in the rest of the year in all segments “
He also foretold that current quarter (Jan 2010 to March 2010) will prove to be good for his company. However, he also admitted that it would be difficult for him to predict any thing for next quarter as economic downturn has not relieved industry from its clutches, and situation can continue for another year.
Cotton fibres industry also seems to be sailing in same boat of volatility. When interviewed, Mr Arun Kapoor, MD, Mixwell International- an Indian cotton fibre company, expressed-“Cotton yarns prices are expected to decline in near future as there is resistance on current prices of cotton yarns. Secondly, the prices of raw cotton have now started falling due to large arrivals of raw cotton. In the months of November and December, the inventories of cotton yarns were very low and as demand started picking up the prices started rising rapidly.”
He also foresees polyester yarn prices to turn affordable to some extent in the months to come, as the prices of raw material will be affordable. “The prices of Polyester yarns have been rising gradually in past 2-3 months and now it seems that it will stabilize in few weeks and in next couple of months it will turn easier to some extent,” he aspires.
Mr Kapoor also stated that the textile industry is now recovering gradually from the economic crisis. According to him, it will take a year for full recovery.
Drawing a closer picture of Cotton fibre market in India, Mr Pradip Gupta, MD, Art Yarn Export, remarked- “Cotton fiber has increased by 30 percent due to international crisis. India has surplus cotton but ginners and stockiest are playing role and making artificial shortage due to which prices are going up and traders and industry are facing problems. Soon situation will turn around and will cause cotton prices to go down drastically and again industry will suffer. We feel 10 percent correction willcome in cotton fiber in next months and then it will be steady.”
Regarding polyester and viscose, Mr Gupta finds it to be monopoly items of Reliance and Grasim. He sees no policy at all regarding prices of these items as he observes sudden sharp increase in prices and sudden decrease too. He accredits fiber suppliers to be causing India to be no more competitive in synthetics yarn. In addition to this, in his stance textile industry in India is under economic constraints since beginning, and he assumes it will tarry further until Government policies on cotton fiber exports is banned or at least restricted.
He also foretold that current quarter (Jan 2010 to March 2010) will prove to be good for his company. However, he also admitted that it would be difficult for him to predict any thing for next quarter as economic downturn has not relieved industry from its clutches, and situation can continue for another year.
Cotton fibres industry also seems to be sailing in same boat of volatility. When interviewed, Mr Arun Kapoor, MD, Mixwell International- an Indian cotton fibre company, expressed-“Cotton yarns prices are expected to decline in near future as there is resistance on current prices of cotton yarns. Secondly, the prices of raw cotton have now started falling due to large arrivals of raw cotton. In the months of November and December, the inventories of cotton yarns were very low and as demand started picking up the prices started rising rapidly.”
He also foresees polyester yarn prices to turn affordable to some extent in the months to come, as the prices of raw material will be affordable. “The prices of Polyester yarns have been rising gradually in past 2-3 months and now it seems that it will stabilize in few weeks and in next couple of months it will turn easier to some extent,” he aspires.
Mr Kapoor also stated that the textile industry is now recovering gradually from the economic crisis. According to him, it will take a year for full recovery.
Drawing a closer picture of Cotton fibre market in India, Mr Pradip Gupta, MD, Art Yarn Export, remarked- “Cotton fiber has increased by 30 percent due to international crisis. India has surplus cotton but ginners and stockiest are playing role and making artificial shortage due to which prices are going up and traders and industry are facing problems. Soon situation will turn around and will cause cotton prices to go down drastically and again industry will suffer. We feel 10 percent correction willcome in cotton fiber in next months and then it will be steady.”
Regarding polyester and viscose, Mr Gupta finds it to be monopoly items of Reliance and Grasim. He sees no policy at all regarding prices of these items as he observes sudden sharp increase in prices and sudden decrease too. He accredits fiber suppliers to be causing India to be no more competitive in synthetics yarn. In addition to this, in his stance textile industry in India is under economic constraints since beginning, and he assumes it will tarry further until Government policies on cotton fiber exports is banned or at least restricted.
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