India's BCI yarn prices fall 35% since May 2022 due to weak demand

The 40 combed BCI yarn has decreased by 38.8 per cent since the first week of June 2022, falling from ₹463 per kg to ₹283 per kg by the end of October 2023. In the last month alone, its prices have eased by around 2.5 per cent, as the product was priced at ₹293.5 per kg in the last week of September 2023, according to data obtained from Fibre2Fashion’s market insight tool TexPro. 

Similarly, 30 combed BCI yarn, which was traded at ₹435 per kg in the first week of June 2022, decreased to ₹278 per kg in the last week of October 2023. This represents a fall of 36.1 per cent since June 2022. However, its prices have remained steady over the last two months. 

The FOB price of 40 combed BCI cotton was at $6.19 per kg in the first week of June 2022, which dropped to $3.55 per kg in the first week of this month. Hence, the FOB price of the product slipped by 42.6 per cent in the last one and a half years. Nonetheless, an upward trend was observed in the last week. The prices had fallen to $3.50 per kg in the last week of October 2023 but improved to $3.55 per kg this week, as per TexPro. 

It appears that the demand for sustainable yarn has been severely hit in the last one and a half years, as the textile industry is facing challenging times due to economic slowdowns in most developed economies. Normally, sustainable BCI yarn commands a 10-15 per cent premium over ordinary cotton yarn. However, lower demand and stiff competition throughout the entire textile value chain have diminished the appeal of sustainability. 

ALCHEMPro News Desk (KUL)