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All calculations in business has changed as cotton turn double in cost

Recently industry has experienced a huge price hike of cotton yarn. From market observer’s side current price hike is unusual & abnormal. Mainly the hike of cotton lint in the international market caused this unusual hike of cotton spun yarn prices. Since March, 2009 the price of basic cotton fiber increased by 80 % to a 15-year high of 90 cents (59 pence) per pound. Huge demand in China is one of the main reasons. But now it has touched one dollar per pound.

Again, the global market started getting volatile following poor harvest in major cotton growing countries including Ukraine and the USA this year.

The prices of yarns started to rise in our domestic market soon after the restrictions on the export of the raw cotton fiber by India recently. India, the world’s second biggest cotton exporter, stopped cotton exports last month to alleviate their domestic prices, which surged more than 25 percent since October because of poor harvests and expectations of higher demand.

Bangladesh buys 30 percent of its cotton needs from India transported by land. Because of these policies taken by India, not only Bangladesh but also the importers of Pakistan and China also face problems due to lint shortage in their respective countries. India’s restrictions on cotton shipments ultimately hiked the yarn prices in Bangladesh.

In April, 2010 yarn price was so unstable that manufacturers were selling 30-count yarn at $4.20 per kilogram, up from $3.60 per kg 15 days ago.

By the end of last month, the cotton yarn price stood at US$ 4.10 a kilogramme (kg) in the international market and $4.80 a kg in the domestic market. The price of yarn was around $2.0 a kg a year back.

This swift yarn price hike severely affected our knit wear manufacturers, since this industry is fully depended on the local spinners. As the difference of yarn price between India and Bangladesh is 40- 60 cents, manufacturers are facing hard time to compete with other countries in the international market.

CURRENT PRICE STATUS OF FIBER,2010
A. Cotton Fibers Price in US Dollar per Pound
Growth Staple Grade Mar’10 Apr’10 May’10
CIS -Uzbek 1.1/8 Good Midling(GM) 94.20-95.25 95.20-96.25 98.50-101.75
CIS -Uzbek 1.1/8 Strick Midling(SM) 93.50-93.75 94.70-95.70 97.90-98.70
US Crop GC31-3-36 Easter Memphis 98.00-99.00 99.40-99.75 98.50-99.00
India 29 mm Sankar 6 85.15-86.25 86.55-87.26 90.25-91.25
India 31 mm MCU-5 90.00-91.25 92.20-93.26 92.00-92.25
India 30 mm Organic 98.50-110.00 99.50-111.05 100.50-115.00
Turkey 31 mm Organic 108.15-110.00 109.25-115.05 118.25-120.00
Pakistan 1.1/8 1503 78.20-79.50 79.50-79.55 88.25-89.50
Pakistan 1.3/32 1467 75.25-76.35 76.35-76.35 78.25-80.25
B. Man-Made Fibers
Growth Staple Grade Mar Apr May
PSF 38 mm 1.4 D, Semi-dull 1.45-1.48 1.35-1.40 1.50-1.55
VSF(Black) 38 mm 1.2 D, Bright 3.20-3.55 3.10-3.47 2.85-2.95
VSF(White) 38 mm 1.2 D, Bright 2.95-3.15 2.85-3.05 2.55-2.65
Modal 38 mm 1.2 D, Bright 3.40-3.60 3.30-3.50 2.90-3.00

knit_yarn_price_statusknit_blended_yarn_price_statusmelange

1. Export Market
Count Mixing Ratio

Prime

Jamuna

JK

Cotton Carded Yarn:

16K

100% Cotton

3.20-3.25

3.20-3.25

3.20-3.30

20K

100% Cotton

3.25-3.30

3.25-3.30

3.25-3.35

24K

100% Cotton

3.35-3.45

3.35-3.45

3.35-3.50

30K

100% Cotton

3.55-3.55

3.45-3.65

3.55-3.65

Cotton Combed Yarn:

16C

100% Cotton

3.50-3.55

3.20-3.25

3.20-3.30

20C

100% Cotton

3.55-3.60

3.25-3.30

3.25-3.35

30C

100% Cotton

3.85-3.85

3.75-3.95

3.85-3.95

40C

100% Cotton

4.75-4.85

4.75-4.90

PC Yarn:

16PC

65%Poly+35% Cot

3.80 -3.90

3.85 -3.90

3.80 -3.90

20PC

65%Poly+35% Cot

3.90-4.00

3.90-4.00

3.90-4.10

30PC

65%Poly+35% Cot

4.00-4.15

4.00-4.16

4.10-4.15

30PCW

50%Poly+50% Cot

4.00-4.15

4.00-4.16

4.10-4.16

45PCW

65%Poly+35% Cot

4.50-4.60

4.50-4.60

4.50-4.65

Rotor Yarn(Terry + Denim):

6K

100% Cotton

2.00 – 2.15

2.00 – 2.15

7K

100% Cotton

2.10 – 2.25

2.10 – 2.25

8K

100% Cotton

2.20 – 2.40

2.20 – 2.35

9K

100% Cotton

2.20 – 2.40

2.20 – 2.35

10K

100% Cotton

2.20 – 2.40

2.20 – 2.35

16K

100% Cotton

2.30 – 2.50

2.30 – 2.45

20K

100% Cotton

2.55- 2.60

2.50- 2.55

KNIT FABRIC PRICE(US$/kg) FOR PERIOD OF APRIL – MAY,2010

Sl No.

Type of Fabric

GSM

USD/Kg

Avg Col

White

Black

Royal

1

Single Jersey

140-150

5.20

4.50

5.40

5.80

2

Single Jersey with Lycra

180-190

7.15

6.60

7.50

7.80

3

Interlock

190-200

5.80

5.10

6.10

6.40

4

Interlock with Lycra

230-240

7.80

6.30

8.00

8.50

5

Pique

160-170

5.70

5.05

6.20

7.00

6

Pique with Lycra

200-210

7.70

6.35

7.90

8.50

7

Rib

180-190

5.60

5.15

6.30

7.00

8

Rib with Lycra

220-230

6.80

6.00

6.75

6.50

Note: CIS= Commonwealth Independent Countries,
PSF=
Polyester Staple Fiber,
VSF=
Viscose Staple Fiber

Sources: Greenfibers, Green Field , Prime Fibers,
Wellcot, Fibertex, Grace International and Mya Traders

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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