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Downward trend continues in Chinese yarn markets
Nov '11
Downward trend is continuing in yarn markets of Hebei, Shandong and Henan provinces of China.

Spot price of cotton is witnessing a downward trend in Hebei, Shandong and Henan provinces. Overall cotton textile chain is weak. Orders taken at the Canton Fair were not satisfactory. Thus, there is no good news to boost the cotton yarn market.

Currently, there is increased level of pure cotton yarn inventory with mills. This is also pushing the prices downward. At present, the mainstream price of cotton yarn C32s is in the range of 26,500-27,000 yuan/ton, while the price of higher quality yarn is in the range of 27,500-28,000 yuan/ton.

The price of polyester/cotton (P/C) yarn continued with its declining trend owing to a dip in the prices of cotton and polyester staple fibres. Currently, the mainstream price of CT63/C35 yarn 32s is 20,500-21,000 yuan/ton, while the price of lower quality yarn is 20,000 yuan/ton.

Similarly, the price of rayon yarn is also maintaining a downward trend. It is because the price of viscose staple fibre is continuing to fall and the downstream market of rayon yarn products is shrinking. The decline in trade volume of rayon yarn is, in turn, accelerating the decline in price of viscose staple fibre. At present, the mainstream price of rayon yarn R30s is 22,000-22,500 yuan/ton, while the price of higher levels is 23,000 yuan/ton.

Fibre2fashion News Desk - India

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