India's cotton consumption decreased significantly, and yarn prices continued to fall

In the last week, Indian yarn prices continued to fall. This year, India's cotton consumption is expected to decrease by 15%, while cotton production will increase, so cotton and yarn prices may fall significantly.

In that week, the price of Indian cotton yarn continued to fall, with 30 knitting yarns falling by 8% in three months. In recent weeks, Indian cotton and chemical fiber prices continued to fall, and the profits of cotton mills shrank significantly.

Although India's business activity has recovered slowly, the demand for clothing in western countries is still very weak. However, many garment factories in India began to produce masks, hoping to export them to the United States and Europe in large quantities as soon as possible. At present, the Indian government is worried about the insufficient supply of domestic masks and temporarily prohibits the export of masks. Once the government order is cancelled, India will immediately start exporting in large quantities.

Affected by the epidemic, India's cotton consumption is expected to decline significantly this year. According to the forecast of the US Department of Agriculture, India's cotton consumption is expected to decline by nearly 15% this year.

At present, India's domestic cotton price has been artificially raised by the acquisition of Indian cotton companies, resulting in a decline in the competitiveness of Indian cotton yarn in the international market. India's cotton price is expected to fall sharply due to an 18% increase in cotton production this year, and cotton farmers and CCI will start to sell inventories.