Yarn prices have spiralled back up, marking a rise of around 6 percent in a week on the back of a cotton price hike, industry insiders said.
The widely consumed 30-count yarn, used for knitwear products, was selling at $3.70-$3.75 per kg yesterday. The price was $3.50-$3.55 per kg a week ago, they said.
The yarn price hit a record high in May this year when the 30-count yarn was selling at $4.50 per kg due to a shortfall in yarn supply and the price hike of cotton in the international market.
A yarn trader in Pabna said yesterday that 80-count yarn was selling at Tk 17,000-Tk 19,000 per 100 pounds. The rate was Tk 16,000-Tk 17,500 a month ago.
The trader also said 60-count yarn was selling at Tk 15,000-Tk 18,000 per 100-pound, up from Tk 15,000-Tk 16,000 a month ago.
The upward trend in yarn prices will hamper export growth, said the outgoing president of Bangladesh Knitwear Manufacturers and Exporters Association, Fazlul Hoque.
"We can hardly make any profit when the prices of yarn go up." The garment industries suffer from a production shortfall due to acute gas and power crises, he added.
"It's time for a rebound in exports as the largest apparel supply country, China, is losing its international buyers to Bangladesh. The higher prices of yarn will hamper export growth."
Abdul Hai Sarker, president of Bangladesh Textile Mills Association, said the yarn price started rising because of a poor supply of the item. "Also spinning mills can't utilise their full production capacity due to power and gas crises."
The prices of cotton increased in the international market over the last few months, he said.
Cotton now sells at $1.01 per pound in the local market, while the price was 60 cents a few months ago.
"But, the yarn market is still stable compared with the previous higher prices."
He said import of raw cotton from India is yet to resume officially. The Indian government imposed a ban on export of raw cotton in April 21.
Source: thedailystar.net
