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Unsold yarn & fabric stocks pile up in Chinese markets
Feb '12
Currently sales of yarns and fabrics have clearly declined in the Chinese domestic market in recent days, mainly due to slowdown in demand from their downstream sector.

According to the latest survey conducted by the Monitoring System of National Cotton Market, current sales rate of national yarn and fabric is only 92.5 percent, which is even lower than the level in 2008 financial crisis period.

At the same time, sales rate of fabric is even worse at 81.3 percent, down 16.3 percentage points from the rate of 97.6 percent averaged in the last three years.

Even a one percent decline of sales rate will directly reflect in inventories. Current national fabric inventory has increased by 25 days compared with the average level of the past three years.

This is the highest level since 2008. High stocks at consumer end will prevent cotton price from moving higher in the near future.

Fibre2fashion News Desk - China

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