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Cotton Interlining Is Hard To Fall In The Coming Future
Mar 09, 2017

Cotton Interlining is hard to fall in the coming future

It is because that demand to pick up the price of cotton yarn is difficult to fall in India. 

Although Bangladesh demand increased, but due to the sluggish demand in China, India's cotton exports this fiscal year, the overall poor. However, China's cotton prices are 25% higher than the domestic price of India, India cotton exports are expected to recover.

March 6th, the first day of China's cotton reserves auction price discount rupee is about 51000-56000 rupees / Kandeh, much higher than the 42000 rupees in India, we can see that China's reserve cotton prices significantly higher than the spot in India.

Although the reserves of cotton has been stored for five or six years, the quality has declined, but Chinese companies are still actively filming to meet the needs of cotton. However, due to the high price of cotton yarn in India, even though 3.5% of the tariff is still expected to increase exports to china. India Cotton Textile Export Promotion Council (Texprocil) is expected this year, India cotton exports experienced a sharp decline last year after the positive growth.

Meanwhile, the domestic demand for cotton yarn factory in India has begun to recover, the recent 2-3 weeks, the domestic yarn prices in India rose by 5-7%. Since 2017, the price of cotton in India cotton prices change, but will delay 1-2 months. At present, S-6 spot price has risen to nearly five month highs this year has exceeded the cumulative increase of 10%, the international cotton prices also rose to 79 cents high.

Since the October 2016 India domestic cotton prices, cotton export demand in India is always in the doldrums, overseas buyers are waiting for the price to fall. However, now buyers are aware of India cotton prices can not fall down, so began ordering India cotton and cotton yarn. In recent weeks, the overall demand for cotton yarn in India has been restored.

At the same time, India textile mills urged the government to extend the 2% cotton yarn export tax rebate. Rating agencies report said that due to poor market demand in the first few months, the role of chemical fiber substitution increased, 2016/17 fiscal year cotton production in India is expected to reduce 5-7%, 3 million 936 thousand tons. Other market demand for cotton yarn in India will maintain a good momentum. 2016 8-12 months, India cotton exports from the same period last year dropped 987 thousand and 200 tons to 872 thousand and 200 tons.

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