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From: Emerging Textiles
2 November 2007 -- The strong rise in the Indian rupee and the euro against the US dollar is putting pressure on Indian exporters on the international yarn market. Orders are increasingly shifting to Pakistan and other sources while some severe crisis is looming for Indian spinning and knitwear industries. Viscose yarn prices did not change on the international market in October, although strong pressure from buyers was felt.
The international cotton yarn market is currently driven by the recent surge in the Indian rupee.
Such a rise in the domestic currency of global leading exporters is making sales much more difficult for Indian traders.
Customers are strongly resisting any new rise in the prices, if based on rupee's sharp increase.
Depressing demand
Orders are increasingly shifting from India to Pakistan although domestic cotton prices are currently climbing in this country.
The rise in the euro is also depressing demand from Europe where yarn processors are confronted with lower export levels to outside the eurozone.
Cotton yarn prices were higher at the end of October in US$ terms but orders were lower as a consequence, according to our sources in India.
The rupee increased by 14% in only eight months and this may force shutting down 1 million spindles.
In the Indian knitwear capital of Tirupur, a severe textile crisis is looming.
Viscose yarns unchanged
On the spun viscose yarn market, strong pressure is now being felt from buyers after prices significantly increased in the past months.
Yarn prices did not decline in October, however, reflecting the high level in viscose fiber prices.
Demand for viscose ring heavily fell as buyers rejected any new rise in prices.
For a series of products, no agreement was reached for coming deliveries, for instance with polyester-viscose yarns from Indonesia.
In addition to our usual tables, we below give a few rates for yarns spun from organic cotton.
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