India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
"The prices of textile products continued to gain traction in November 2020, led by a healthy festive domestic demand and an incremental export demand. Cotton prices inched up by 2-4 per cent on a month-on-month basis and were even higher on a year-on-year basis during November 2020. The incremental demand from spinning mills coupled with a higher demand for cotton seeds amid a continued supply deficit led to the rise in cotton prices," Ind-Ra said in the November 2020 edition of its credit news digest on the country's textile sector.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Cotton Corporation of India continued its market procurement during the current crop season. The spread of international cotton over domestic cotton remained steady during October-November 2020.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Meanwhile, domestic cotton yarn production continued to grow both m-o-m and y-o-y at 3.3 per cent and 2 per cent, respectively, on back of a high export demand. However, the increase in raw material costs was lesser than yarn prices, resulting in higher gross margins for sector players during 2QFY21-3QFY21. "Exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21 upon the execution of winter season orders by key importers," the report said.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Man-made fibre (MMF) production increased by single digit y-o-y during September 2020, on back of a recovering demand. The price of polyester staple fibre (PSF) rose 7 per cent m-o-m, despite a fall in crude oil prices during November 2020. "While the segment is witnessing a delayed recovery over 2QFY21-3QFY21, large players with a healthy balance sheet size have increased their exports, leading to a substantial rise y-o-y in export volumes during September 2020," the report added.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Cotton to PSF spread decreased by ₹3 per kg m-o-m in November 2020, however remained higher by ₹3 per kg y-o-y. "The lower spread was led by a higher-than-expected increase in PSF prices compared with cotton prices. The spread has thus supported polyester demand with a likely switch to MMF from cotton in the near to medium term," according to the report.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Due to an incremental demand because of the festive season and opening of retail stores and malls, cotton cloth fabric prices gained momentum during October 2020.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
Wholesale Price Index for apparel prices remained weak during October 2020, led by a weak domestic demand and disruptions in exports. Ind-Ra said it continues to expect apparel prices to remain benign in 2HFY21, leading to inventory liquidation.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
While India’s apparel exports increased y-o-y during September-October 2020, it reduced 30 per cent y-o-y in October 2020 on account of strained 1QFY21 shipments. The agency expects apparel and readymade garment exports to fall 22-25 per cent y-o-y in FY21.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
On the home textiles front, players continued to witness a steady recovery over October-November 2020, led by high hygiene and wellness consumption across the US and EU territories. Players in segments such as bed sheets, towels, advanced textiles have reported capex to increase the operating capacity. The agency continues to expect a healthy and sustained demand improvement for home textile players in their export markets, led by the restoration of retail store inventories.
India's yarn sector is likely to benefit from an improved competitive situation with consolidation in the sector because of the liquidity crunch being faced by several small and mid-players, according to an India Ratings and Research (Ind-Ra) report. Yarn exports increased substantially y-o-y in September 2020 and are likely to moderate during 3QFY21.#
ALCHEMPro News Desk (RKS)
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