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Yarn prices continue to fall in Chinese markets
Nov '11
The prices of pure cotton yarn, polyester/cotton (P/C) yarn and rayon yarn continue to fall in Hebei, Shandong and Henan provinces of China.

The decline in price of pure cotton yarn is due to a drop in spot price of cotton during the past few days. For example, the price of cotton grade 328 has dipped to 19,300-19,400 yuan/ton, which is 400-500 yuan/ton lower than the price of state purchase.

As a result, downstream textile manufacturers are adopting a cautious approach before procurement. Since spinning mills are facing increased pressures of cotton yarn stocks, most yarn producers are slashing prices to promote sales. Currently, the mainstream price of pure cotton yarn C32s is in the range of 27,000-28,000 yuan/ton.

The price of P/C yarn has also continued to fall due to the impact of the decline in prices of polyester and cotton staple fibres. At present, the mainstream price of T63/C35 32s yarn is around 20,500-21,000 yuan/ton.

The sharp fall in the price of rayon yarn is due to a rapid decline in the price of viscose staple fibre and weakening of downstream market for rayon items. The price of R30s is currently in the range of 22,000-22,500 yuan/ton.

Fibre2fashion News Desk - China

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