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Japan pays highest price for Indian cotton yarn

During February 2015, India exported 53.3 million kg of spun yarn to China and 14.9 million kg to Bangladesh. Of these, 53.2 million kg and 13.2 million kg respectively were cotton yarn. Among the 73 countries to which cotton yarn was exported in February 2015, Jordan paid the least and Japan paid the highest price.

However, such a wide variation may have occurred due to size of the volume, quality differentials, deliverability, and other technical aspects. But for China and Bangladesh, these qualifications are assumed to be neutral since the cargo-mix could be the same on an average.

Although China was the largest importer of Indian spun yarns, especially cotton yarn, it paid much lower than the second largest importer, Bangladesh. China was the largest importer of 32/1 cotton yarn. Export of 30/1 yarn to Bangladesh stood at 3.15 million kg and the same to China was 1.80 million kg.

Buyers in China are negotiating aggressively taking advantage of volume, which appears lacking in buyers from Bangladesh. Overall, higher volumes do have the advantage of getting equilibrium in cotton yarn pricing. In February 2015, China imported cotton yarn at 48 cents lower than Bangladesh.

 
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