Demand declines in the Middle East and North Africa Decline in exports of Bangladesh jute yarn

Jute is a local specialty in Bangladesh. Bangladesh ranks first in the international jute market and exports about 350,000 to 380,000 metric tons per year, accounting for about 80% of the total international demand. The export revenue of Bangladesh jute yarn during the first nine months of fiscal 2010 to 2011 was US$381 million, which was a 43% increase from the same period last year.

The Bangladesh jute yarn is one of the raw materials for the carpet manufacturing industry in the Middle East, North Africa and Turkey. The import and export volume of jute yarn in 3 places accounted for 66% of Bangladesh’s total export volume. It is the top 3 exporter of Bangladesh jute yarn.

However, North Africa earlier because of high unemployment and political factors. The local people’s demand for non-essential goods also gradually declined with political uneasiness, so carpet sales declined.

Turkish carpet manufacturers have also reduced their production. The export volume of jute yarn in Bangladesh fell sharply in the past three months due to the political riots in the Middle East and North Africa, so the current price is between 1,100 and 1,150 US dollars per metric ton, which is about 30% lower than last year.

In addition, officials of the Bangladesh Jute Mills Corporation in Bangladesh also stated that the demand for some jute products has begun to slow.

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