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26 Automation for Spinning Mills
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Pak-China FTA dents Indian cotton

yarn exports
Slight growth expected in cotton

consumption amid slowing economy
India’s exports of cotton yarn have declined 38.8% turn, led to a drop in prices.
during the six months (April to September), with
June being the worst affected month in the last five China’s free trade agreement (FTA) with Pakistan
years. Exports this year stood at 422 million kgs from April this year is seen as one of the major
valued at $1.27 billion compared to 654 million kgs factors for the drop in India’s cotton yarn exports to
valued at $2.08 billion in the same period last year. China, which is among India’s top markets.
Slight growth, a mere 0.3 percent, in cotton price of cotton was lower than the previous season’s
consumption is expected to continue in the There is an import duty ranging from 3.5% to 5% on
ending average of 88 cents per pound.
Quantity-wise, exports of cotton yarn have declined
upcoming season, but global economic indicators cotton yarns imported from India into major
every month from 90 million kgs in April 2019 to 67
and continuing trade conflicts are dragging down the markets like China, EU, Turkey and South Korea as
After a 99.5 cent per pound price at the start of the
million kgs in September 2019. The export quantity
industry’s multi-year winning streak, said the against imports from competing countries like
season, prices fell throughout the year. Global area
of 59 million kgs in June 2019 was the lowest
under cotton decreased by 1percent to 32.6 million
International Cotton Advisory Committee’s (ICAC) Bangladesh, Cambodia, Pakistan, Indonesia and
monthly export in the last five years. As a result of a
annual review. hectares. Global yield decreased slightly by 2 percent
decline in exports this year, the supply of cotton Vietnam which enjoys benefits of zero duty in these
to 790 kg/ha but remained above the ten-year average
yarn has increased in the domestic market and in markets.
According to the report by the ICAC, the global of 776 kg/ha. As a result, global production decreased
cotton consumption will continue the recovery it by 3 percent to 25.7 million tonnes.
began in the 2012-13 season, but the consumption AGV SPINNING CAN TRANSPORT
in 2019-20 will only increase by a mere 0.3 percent According to ICAC, weakening economic growth - FREE NAVIGATION
this year over the previous year. The consumption in amidst trade issues set the environment for a
2019-20 season is projected to reach 26.2 million decrease in consumption with a near 1 percent loss - SELF CHARGING
Fall in US apparel imports from China
tonnes globally. to 26.2 million tonnes. With consumption exceeding - MODULAR GRIPPER SYSTEM
production, global ending stocks for the season
The ICAC cited global economic conditions as the decreased by 2 percent to 18.3 million tonnes. - CONSTANT USE
Pakistan booked second-highest growth
reason for the slow pickup. It said that global - ADAPTED TO WORKER´S
economic growth had slowed to the lowest levels in As ending stock levels in China lowered, the ratio of ENVIRONMENT
decades and global trade disputes remain stocks held in China and stocks held outside of
unresolved, this has led to uncertainty for China inverted with 52 percent of global stocks now
In terms of individual supplier countries, just four of
The volume of US apparel imports fell for a second
manufacturing and investment activities. being held outside of China. Trade in cotton lint
the top-ten recorded a year-on-year increase in
consecutive month in September as additional increased by 2 percent to 9.2 million tonnes with the
tariffs on clothing imports from China kicked in and
shipment volumes in September, with Cambodia
For the cotton sector, which has been buoyed in USA, Brazil, West Africa and Australia leading in
booking the highest growth at 25.59%. China – the
the back-to-school season came to an end. Growth
recent years by the thriving textile industries of East global exports. Watch our Product Video
in shipment volumes from Cambodia surged during
Asia and Southeast Asia, the recently revised IMF largest supplier of apparel to the US – saw the
largest decline in shipments at 13.16% year-on-year
the month, while China booked the largest decline
forecasts of a global synchronised slowdown are The ICAC said that new uncertainties had emerged in
– a milestone that adds to the suggestion that US
to 1.17bn SME, with imports from the country down
expected to stall growth for the region’s addition to the usual risks facing agriculture.
13.3% month-on-month from the 1.35bn SME
buyers are continuing to explore alternative sourcing
manufacturing activities and demand for consumer Following several years of relatively calm market
options amid the ongoing trade war with the US.
recorded in August.
goods, the ICAC added. conditions, world agricultural markets today face
mounting risks, including policy uncertainty from
The latest figures from the Department of
Pakistan booked the second-highest growth with a
The ICAC said that global stocks at the start of the trade tensions. Open, transparent and predictable
Commerce's Office of Textiles and Apparel (OTEXA)
16.09% surge to 50m SME. Indonesia recorded the
2018-19 season were 1 percent higher than the trade is important for the cotton market and its role
show the volume of US apparel imports from all
only other rise with shipments up 3.18% to 94 SME.
previous season at an estimated 18.7 million tonnes. as an important commodity in the global economy,
sources fell 6.8% month-on-month in September to
At 84 cents per pound, the international reference the ICAC concluded. For more information please contact:
2.59bn square metre equivalents (SME). The Mexico, meanwhile, reported the second-highest MR. UWE LENKEIT
figures also show a 4.34% decline in volume decline at 8.53% to 59m SME. El Salvador, India Phone.: +49 (0)5941 604-267
against the same month last year and a 2.1% drop and Honduras all also reported declines at 4.96%, eMail: uwe.lenkeit@neuenhauser.de
in value terms year-on-year to US$7.77bn. 0.65%, and 0.62% respectively.
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