A major crisis stares in the faces of cotton spinners of Italy with continual drop in the demand for spun yarn.
Though January 2006 registered marginally higher cotton yarn output on INS index (2000=100), at 60.1 against 53.7 achieved in December 2005, yet, it sank by 18.6 percent for the year-on-year basis making it the lowest production for the month of January.
Cheap yarn imports, especially from India are adversely affecting domestic markets.
Yarn imports from that country soared 42.2 percent to reach 25428 tons in 2005, grabbing a share of 123,000 bales that could have been satisfied by local sourcing.
Turkey, Egypt, Syria, and Pakistan were other chief exporters of cotton yarn to Italy.
Demand from the Italian weavers has also slowed down resulting a 7.1 percent decline in 2005 and over 18.4 percent slide in January 2006 recorded for fabric production.
However, a ray of hope lies in the knit sector where the output represented a slight improvement in January.
marketing@alchempro.com
