Cotton yarn prices move suddenly and powerfully forward in international market in the previous weeks, more than 8 percent increase experienced in a 4-week observation. This report covers current yarn prices of Bangladesh, including cotton carded, cotton organic, melange, carded slub, cotton-polyester 60/40 and open end.
The 30s carded cotton is now sold at $3.44 per kilo, representing a 2.38% increase within one week and an 8.86% surge over the past five weeks in Bangladesh market. Almost all yarn price has risen in Bangladesh by 7 to 12 cents in a single week and by over 20 cents on average over five weeks, exception is the price of mélange.
However, the buyer did not give the up-charge during the recent changed, rather than buyer is demanding products with reducing minimum 5% for the reorders. Mr. Saroar, Merchandiser Manager & Marketing of Tua-ha Textiles Ltd said to the Textile Today, “Last few weeks we are purchasing all types of yarn with 6 to 7 percent higher price specially cotton. On the other hand the retailers are not willing to give any upcharge for that changed. Also, the spinning mills did not deliver the goods on time to show lots of clauses.” “It’s like ‘To pour water on a drowned mouse’,” he added.
The 30s and 20s cotton-polyester is now sold at $ 2.85 per kilo, representing a 2.40% increase within one week and an 4.91% surge over the past five weeks in Bangladesh market. Almost all yarn price has risen in Bangladesh by 5 to 8 cents in a single week and by over 15 cents on average over five weeks.
Last ten years, cotton consumption has also more than doubled, success over 1.5 million metric tons, and the current cotton season 2017-18 (August-July) could see a rise by 10.8% of cotton consumption, according to latest data from the US Department of Agriculture (USDA). Bangladesh has increased 60% mills in the period of 2006-2016 to fulfill the potential demand. Last 10-year period, cotton imports have increased by 101.4%, projected at 1.58 million metric tons this season.
Indian cotton traders have cancelled their shipments to Bangladesh due to domestic factory’s demand and they claim the reason is pest contaminations. Bangladesh imports more than 50% of its natural fibers from India, whereas cotton prices are risen 15% in India last six weeks. The Indian cotton traders are focusing on the local market in this curial moment, which is increasing production cost of Bangladesh millers.
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