After more than a year the prices of yarn started rising because of rising trend of garment work orders from the international clothing retailers and brands.
-30 carded yarn offering @ $3.20 – $3.30 per kg
-30 carded sold @ $3.00 – $3.10 per kg
-In some cases 30 carded yarn was sold even $2.90 per kg as the demand was low from the buyers.
The prices of yarn started rising over the last two weeks because of higher demand from the buyers.
The demand for yarn is rising as the inflow of work orders from the international clothing retailers and brands is increasing in the country with easing of inflationary pressure on the western consumers.
*International economic situation and supply of clothing items*
•The sudden rise in demand for yarn means that the international supply chain is rebounding as the inflation scaling down in the western world. Overview:
-The Russia Ukraine war is still going on and it still uncertain when and how the war will end
-The inflation declined significantly in the USA and European Union.
oThe euro area annual inflation rate was 5.5 percent in June 2023, down from 6.1 percent in May. In 2022: 8.6 percent
oThe European Union annual inflation was 6.4 percent in June 2023, down from 7.1 percent in May. In 2022: 9.6 percent
oThe US Inflation Rate is at 3.18 percent compared to 2.97 percent last month and 8.52 percent last year. This is lower than the long term average of 3.28 percent.
•The National Retail Federation (NRF) the largest retail federation of the USA in March issued its annual forecast, anticipating that retail sales will grow between 4 percent and 6 percent in 2023.
-Retail sales will reach between $5.13 trillion and $5.23 trillion this year.
-The 2023 figure compares with 7 percent annual growth to $4.9 trillion in 2022.
The 2023 forecast is above the pre-pandemic, average annual retail sales growth rate of 3.6 percent.
•The demand for local yarn and fabrics has been increasing also because of maintaining strict lead time set by the international clothing retailers and brands.
•The lead time is reduce from 90-120days, now just 45-60days, even 30days
COTCO (According to Textile Today)