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Yarn prices on an ascending trend
Jul '10
Yarn prices have again surged, registering an increase of about 6 percent in just a week, along with hike in cotton prices, informed experts of textile industry.

During the end of last week, the extensively used 30-count yarn, which is utilised in making knitwear goods, was being traded at $3.70-3.75 per kg. A week before last, the price was $3.50-3.55 per kg.

However, a record high in prices of yarn was recorded in May this year, when the 30-count yarn was being traded at $4.50 per kg, owing to dearth in supply of yarn and the price rise of cotton in world market.

More over, last week, 80-count yarn was being sold at Tk 17,000-19,000 per 100 pounds. Around a month back, the rate was Tk 16,000-17,500, inform experts. They also said that, 60-count yarn was traded in the range of Tk 15,000-18,000 per 100 pound, which was a hike from Tk 15,000-16,000, a month back.

However, senior members of the textile industry aver that, growing yarn prices might disturb the export growth, as exporters can barely make profits, with increased priced. More so, the apparel industries are already suffering from a dive in production, owing to acute gas and power crisis.

However, industry experts are preparing themselves to bounce back, as the biggest garment supplier, China, is losing its global buyers to Bangladesh. Increased yarn prices will adversely affect the export growth.

A number of reasons have been attributed to increased yarn prices, such as low supply of yarn, dearth in power and gas, which keeps spinning mills from utilizing their full production capacity, and the rising prices of cotton in world market over the period of last couple of months.

While the price of cotton was 60 cents a few months back, currently it is being traded at $1.01 per pound in the domestic market. Around all this, experts inform that, the yarn market continues to remain stable as against its previous increased prices.

Above all, the raw cotton imports from India are yet to officially re-start. Indian government had imposed a restriction on raw cotton exports in April 21.

Fibre2Fashion News Desk - India

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