Textile industrial news

Bangladesh: new crown virus causes panic yarn price soars

Fears novel coronavirus caused panic buying in the past month and the price of domestic yarn in Bangladesh rose sharply, according to industry sources.

Mussel Ahmed, Secretary of the Bangladesh Textile Mills Association, said 30 yarns now cost between $2.95 and $3 per kilogram, up 11% from a month ago. Ahmed said yarn prices have been on the rise since October because of increased demand from garment manufacturers. He added that the outbreak of the virus was further pushing up prices.

However, the primary textile sector, including spinning and weaving, has not been affected because the supply chain is still intact. Ahmad said garment manufacturers need not worry because local mills and spinning mills are ensuring an uninterrupted supply of yarn and fabrics.

The BGBA said that novel coronavirus has increased yarn prices by 15% over the past month. As the international cotton price has not increased, there is no reason for the yarn price to increase in the local market. If yarn prices rise further, the buyer will not give us higher prices for our clothing products, and Bangladesh will lose its competitiveness in the international market.

The Bangladesh garment manufacturers and Exporters Association (bgmea) last month sought special financial assistance from the central bank to avoid any negative impact of the coronavirus on the garment supply chain. It is reported that 46% of bgmea's raw materials are from China. In a letter to the Bank of Bangladesh, Bangladesh garment manufacturers said that the supply chain of fabrics and other raw materials has been seriously affected by the outbreak.

In fiscal year 2018-19, imports from China amounted to US $13.63 billion, of which US $5.02 billion was textiles. Given the dependence of the clothing industry on China's raw materials and the potential for the epidemic to continue, this could have a fatal impact on the industry, as supply chains will be paralysed.