Thread exports decreased by 20% due to the impact of the corona virus
Chennai: the coronavirus has reduced yarn exports to China almost to zero. The country, which imports more than a quarter (27%) of India's cotton yarn, seems closed to the yarn business.
Exporters said that so far February has seen a 20% to 30% drop in total exports due to inactivity in China.
“Compared to January, there is a 40% drop in total exports and almost zero exports to China. However, there is a demand from Bangladesh and Vietnam that generally import yarn from China. So the situation has been saved a bit, ”said Arun Jhajaria, director of Salona Cotspin.
As a result of low demand, cotton yarn prices have fallen 3% - 4% to 185 rupees to 200 rupees per kilogram, for export quality in the last 10 days. After the lunar new year, the Chinese are ahead to buy the thread, but exporters add that the business has not yet picked up.
In fiscal year 2020, yarn exports have already been reduced by 9% for the period from April to January. The industry saw an improvement in exports since November after a fall of up to 39%. We saw a resurgence of exports in November and December and now, with the factories closed, we expect to see a drop in exports again, said KV Srinivasan, president of the TEXPROCIL industrial body.