Financial Daily from THE HINDU group of publications
Wednesday, Sep 03, 2003
Financial Daily from THE HINDU group of publications Wednesday, Sep 03, 2003 |
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Industry & Economy
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Textiles Spinners cut yarn rates for Sept deliveries G. Gurumurthy
Coimbatore , Sept. 2 LOOKING for greater liquidity, major cotton spinners have reduced yarn rates for September deliveries by Rs 3-4 per kg. This was in response to the continued flat yarn market that stretched to both export and domestic markets over the past two months, industry sources said. The current rate cut on yarn for this month's delivery has been effected by almost all the major players who are keen to liquidate the yarn spun out of high-cost raw cotton, the sources told Business Line. The spinners are keen to reduce their stocks in time so that they can prepare themselves for the new cotton season, which promises to bring sufficient raw cotton at cheaper prices. With the yarn export market continuing to remain barren, these spinners look at the domestic market for greater liquidity. The prices for yarn shipments from India continued to be under pressure, with importers seeking to quote rates below $2.25-2.27 per kg (for 30s combed)and $2.55/2.60 per kg for 40s combed varieties. Export enquiries too remained dull, though initially it was expected that the yarn shipments would receive support from September onwards. It is said the enquiries may not pick up before October/November, coinciding with India's domestic cotton crop arrivals. In the face of a promising domestic cotton crop for the 2003-04 season, the new crop for the forward deliveries for October is being quoted lower by some 20 per cent over the current prices. For the major exporting mills, the new crop, to be available at 50 cents per pound, would be a competitive price as it would get them their cotton at around Rs 20,500 per candy. As against this, the imported cotton price for the September-October crop (old crop) itself is quoted at 60 cents. At this rate plus the 10 per cent customs duty, the total cost will work out to Rs 24,600 per candy for imported cotton.
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