Interviews
Mill contract offers slip to between 2-7 days
25 Mar '11
2 min read
Raw cotton and synthetic fibre prices have been on an upward curve since the last few months. This has also led to a spurt in prices of yarns and fabrics. Raw cotton prices have more than doubled, while synthetic fibre prices have risen by 35-40 percent in the period.
This is leading mills to offer sales contracts to buyers lasting from two days and in a few cases like Suryajyoti mills; seven days. Cotton prices have also become extremely volatile in the last few fortnights, which is also bringing in changes in durations of offers.
“Almost all the leading companies are adopting same tactics. Whatever prices we are quoting, will be valid only for next two days. The way prices are changing everyday, nobody wants to take a risk. There is a lot of fluctuation in cotton prices, which ultimately affects the entire textile value-chain", said Mr Mitesh Shah, VP Finance - Mandhana Industries.
Arun Agarwal, Director - Suryajyoti Spinning Mills informed, “Not a day. We give atleast a week. Cotton prices are going up that is why yarn prices are also going up. In fact as of date, yarn prices are still lower, when compared to cotton prices, so we expect yarn trends to move higher”.
“The market is very volatile and it is very difficult to predict current as well as future price trends, due to which, we have reduced the confirmation time. Though it is still risky, we have to give a weeks time to our buyers”, he added by saying.
This is leading mills to offer sales contracts to buyers lasting from two days and in a few cases like Suryajyoti mills; seven days. Cotton prices have also become extremely volatile in the last few fortnights, which is also bringing in changes in durations of offers.
“Almost all the leading companies are adopting same tactics. Whatever prices we are quoting, will be valid only for next two days. The way prices are changing everyday, nobody wants to take a risk. There is a lot of fluctuation in cotton prices, which ultimately affects the entire textile value-chain", said Mr Mitesh Shah, VP Finance - Mandhana Industries.
Arun Agarwal, Director - Suryajyoti Spinning Mills informed, “Not a day. We give atleast a week. Cotton prices are going up that is why yarn prices are also going up. In fact as of date, yarn prices are still lower, when compared to cotton prices, so we expect yarn trends to move higher”.
“The market is very volatile and it is very difficult to predict current as well as future price trends, due to which, we have reduced the confirmation time. Though it is still risky, we have to give a weeks time to our buyers”, he added by saying.
Fibre2fashion News Desk - India
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