"Demand for Indian yarn in China has been growing substantially from last October. However, there continues to be pressure on prices. “In short-term, we expect the market to consolidate with an increase in business between suppliers of consistent quality and direct manufacturers in China. In long term, we are sure importers will increase their sourcing from India owing to better business culture adopted by leading Indian suppliers,” believes N Ravindranathan, Joint Director, Texprocil."

Demand for Indian yarn in China has been growing substantially from last October. However, there continues to be pressure on prices. “In short-term, we expect the market to consolidate with an increase in business between suppliers of consistent quality and direct manufacturers in China. In long term, we are sure importers will increase their sourcing from India owing to better business culture adopted by leading Indian suppliers,” believes N Ravindranathan, Joint Director, Texprocil.

Strategies to survive and succeed

Global yarn production is on the rise over the past three years, owing to various regional agreements and rules of origin restriction. However, in the present scenario of doubtful TPP and other regional agreements, it will be survival of the fittest in the entire textile sector in general and spinning sector in particular.

He explains, “Yarn import into China has declined only marginally over the last year compared to previous two years. Big change is India and Pakistan are losing market share to Vietnam in supplying to China due to tariff advantage, investment by Chinese companies in Vietnam. Apart from Bangladesh, some African and South American countries are emerging as major consumers of Indian yarn. India is already a top supplier of yarn to more than 25 countries in the world.”

He says, increase in import volumes from Vietnam and Indonesia owing to tariff advantage is not a major concern. Quality conscious yarn importers in China are keen to source more and more yarn from India. “If you see month on month import into China, it can be observed that there is a declining trend in import from Vietnam and market share of India is gradually increasing,” he avers.

Expectations from Yarn Expo

Indian exporters of yarn are continuously exploring marketing opportunities in textile conversion centres around the globe to overcome fluctuations in raw material prices and related disruption in export to China. China being the single largest importer of yarn, any fluctuation in import volumes in to China affects the entire value chain around the world. “We need to have a very reliable market research to monitor demand supply situation on real time basis,” he says.

“We, at Texprocil, facilitate expertise in international marketing for the advantage of Indian manufacturers and exporters. We undertake various studies to enhance the competitive strength of Indian manufacturers and primary market research in unexplored markets so as to balance loss of business in some countries,” points out N Ravindranathan.

Indian exhibitors are looking forward to meet Chinese customers at the Fair to get a feel of present market condition and business prospect over the next six months’ period. There are no expectations of spot booking at the Fair. It’s more a meeting point with international buyers.