Bangladesh's garment export competitiveness is expected to improve and garment export orders are expected to increase as cotton prices in the international market and yarn prices in Bangladesh's local market drop, the Daily Star reported.
On June 28th, cotton prices per pound were between 92 cents and $1.09 on the futures market. Last month it was $1.31 to $1.32.
On July 2nd, the price of commonly used woolen yarns was $4.45 to $4.60 per kilogram. From February to March this year, the price was $5.25 to $5.30.
When the price of cotton and yarn is high, the cost of garment processing plant will rise, and the order of international retailers will slow down. Some forecast said that the international market cotton price drop, may not continue. The local spinning enterprises in Bangladesh mostly bought enough cotton to use until October this year when the cotton price was high. Therefore, the effect of cotton price decline will not appear until the end of this year.