Textile Sphere Weekly News Update- 23rd to 29th Dec 2024

Textile Sphere Weekly Roundup – 23^rd Dec 2024 to 29^th Dec 2024

1. Exploring the Potential of Hemp in Indian Textiles

At an industrial interaction in New Delhi, Union Minister of Textiles Giri Raj Singh and Dr. Romesh Khajuria, Chairman of WWEPC, underscored the potential of industrial hemp and allied fibers in revolutionizing India’s textile sector. The event emphasized blending hemp with wool, highlighting its sustainability and global demand. Plans for hemp farming pilots in Uttarakhand were unveiled to boost farmer incomes and eco-friendly practices. With proposals for MoUs with South Korean delegates, the initiative aims to foster knowledge sharing, technology transfer, and investments. Events like Bharat Tex 2025’s hemp pavilion and sustainable fashion showcases are set to position India as a global leader in sustainable textiles.

2. Sanathan Textiles IPO Soars with 31% Premium Listing

Sanathan Textiles made an impressive market debut with its shares listing at ₹422, a 31% premium over its IPO price of ₹319. The IPO saw overwhelming demand, subscribed 36.9 times, raising ₹550 crore. Funds will be used for debt repayment, subsidiary investments, and other corporate purposes. The company, specializing in polyester, cotton, and technical textiles, serves a diverse clientele, including multinational corporations. With a revenue of ₹2,957 crore and a profit of ₹134 crore in FY24, Sanathan Textiles continues to grow as a key player in the textile industry, reflecting investor confidence in its business potential.

3. China's Cotton Output Climbs to 6.164 Million Tonnes

China’s cotton production rose by 9.7% in 2024, reaching 6.164 million tonnes, driven by increased planting areas and higher yield efficiency. Xinjiang, the top-producing region, expanded its cotton plantation by 3.3%, while other areas like the Yangtze and Yellow River basins reported declines. The yield per hectare surged by 7.8%, reflecting advancements in cultivation techniques. This growth consolidates China’s position as a global cotton production leader, ensuring its continued influence in the global textile supply chain.

4. ICE Cotton Prices Rebound Amid Speculative Buying

After hitting a month-low, ICE cotton prices recovered as speculative buying and mill activity spurred demand. The March 2025 contract settled at 69.06 cents per pound, with triple-digit gains across early contracts. Stabilized grain markets and favorable pricing also supported the rebound. Open interest fell as mills capitalized on the attractive price range, while speculators increased net short positions. Cotton prices followed the upward trend in grain markets, reflecting renewed optimism despite challenges. The market’s recovery highlights strong buyer sentiment and its interconnection with broader commodity trends.