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Huge imports of yarn pose risks to Chinese spinners
20
Apr '12
Prices of cotton yarn imported from overseas markets were quoting at a lower price than those supplied by Chinese domestic textile players in the second-half of 2011.

This prompted many knitting and weaving factories to import yarn from other countries. Large volumes of cotton yarn of 16s and 21s counts were imported in that period.

This however, put brakes on operating capacities of Chinese yarn producers and even put survival at stake of many spinners.

Prices of other yarns made from chemical fiber, wool, silk and linen and other raw materials also showed volatility following the trend set by cotton prices during the same period.

This has posed great risks to operations of the entire textile industry value chain and its impact could lead to closures of textile units.

Fibre2fashion News Desk - China

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