BusinessLogrBusinessLogr
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Reading: Mills spin a woeful yarn in 2015
Share
Aa
BusinessLogrBusinessLogr
Aa
  • Home
  • Stocks
  • Finance
  • Business
  • Company
  • Economy
  • Industry
  • Investing
  • Car News
  • Contact Us!
Follow US
© 2023 BusinessLogr News Network.
BusinessLogr > Industry > Mills spin a woeful yarn in 2015
Industry

Mills spin a woeful yarn in 2015

deep
Last updated: 2015/12/29 at 5:32 AM
deep Published December 29, 2015
Share
2 Min Read
SHARE

Overcapacity is the biggest problem. Mills were burdened with high inventory after spinning mills added capacity since 2012. Photo: Mint

The year 2015 failed to bring cheer for cotton spinning mills. Yarn prices remained sticky through the year, after tumbling 8-15% from January 2014, across various grades. The festive season, when demand normally inches up, was lacklustre too. Add to this, mills in the south that spin almost half the yarn in the country were affected by heavy rains in Tamil Nadu over the last six weeks that hampered trade and logistics.

These were the domestic woes. The scene has not been rosy on the export front too. Prerana Desai, vice-president (research) at Edelweiss Agri-services and credit, points out that weekly exports in the fourth week of November recovered from the lows recorded in the previous week at 15.4 million kg. But exports slumped back in the first week of December, as exports to the top four destinations—China, Bangladesh, Egypt and the US—were anaemic.

Overcapacity is the biggest problem. Mills were burdened with high inventory after spinning mills added capacity since 2012.

Simultaneously, China’s demand for Indian yarn reduced as Chinese buyers shifted to imports from Vietnam and Indonesia. According to Southern India Mills’ Association, Vietnam’s trade in international markets has risen by 29% so far in 2015 and Indonesia’s by 10% at a time when India’s fell by about 14%.

The only silver lining is that cotton prices both internationally and in local markets are subdued. This would ease the pressure on margins.

Click here for enlarge

Meanwhile, in the entire gamut of cotton textiles, apparel sales have improved, which over a longer term may help yarn demand in domestic markets. This explains why the stock prices of select integrated mills have run-up.

Further, given the high inventory since June, some mills have cut back production, which should bring down surplus stock and carrying costs for mills.

The game changer for mills will be heightened demand for yarn in global markets that will improve pricing power and profitability.

[“source -livemint”]

You Might Also Like

FedEx Office Expands Same Day Delivery to 1,800 American Cities

What is Visme and How Do I Use It for Business?

Link Building Lessons from the Real Estate Industry

Shamita Shetty: None of my best friends are from the film industry

Google Web Designer HTML5 Tool is Updated

TAGGED: Mills spin a woeful yarn in 2015
deep December 29, 2015
Share this Article
Facebook Twitter Email Print
Share
Previous Article Flexi-staffing: no temporary phenomenon this
Next Article Revenue warning: Investors still prefer TCS

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • find a loan shark on craigslist
  • bmo harris express loan payment
  • bmo harris bank express loan pay

Most Viewed Posts

  • 20 Fitness Franchises: Planet Fitness and Beyond
  • Choosing the Right Legal Structure For Your Business
  • find a loan shark on craigslist
  • bmo harris express loan payment
  • bmo harris bank express loan pay

Recent Posts

  • Effortlessly Plan Your Loan Payments with TitleMax Loan Payment Calculator
  • Suncoast Loan Payment: Simplifying Your Repayment Process

© 2023 BusinessLogr News Network.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?