Spinners see revival as China buys 6,000 tonnes of yarn
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January 15, 2024 Ahmedabad: The textile industry has been grappling with low demand for almost a year but is now optimistic. This is mainly due to decreased inventory across the value chain, China buying 6,000 tonnes of cotton yarn in the last month and seveSpinning mills in Gujarat are running at about 80% capacity and anticipate steady demand in the next few months as well.
The domestic market has also seen demand improve in the last month as cotton prices have stabilized. Gujarat has 125-odd spinning mills and with installed capacity of more than 45 lakh spindles. Jayesh Patel, senior vice-president of the Spinners ’ Association Gujarat (SAG), said, “Cotton prices are stable at around Rs 55,000-55,500 a candy and market yard arrivals of cotton have been good. Yarn prices are at Rs 235-237 per kg (30 count) and while still a bit high, we have seen export orders coming in. China has bought around 300 containers (about 6,000 tonnes) of yarn in the last month. Most of this is being supplied from Gujarat. Many global brands have also started placing orders.”
Patel added that the entire textile value chain has seen low demand mainly due to inventory piling up. As inventory levels fall, demand has revived. “There is a liquidity problem in the market, but we hope that the situation will return to normal soon.” Bharat Chhajer, former chairman of PDEXCIL, said, “There is a revival in demand in the domestic market for the last month as well. Traders in Ahmedabad have been buying grey fabric with confidence because of the improving demand scenario. Cotton prices have also seen some stability, and this has pushed demand.”
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