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Rayon yarn prices decline in Chinese markets
Jun '12
The prices of rayon yarn in Chinese markets dipped in the first fortnight of June, mainly owing to relatively weak market of viscose staple fibre (VSF).

The price of rayon yarn 30S decreased to 19,500 Yuan/ton during the first half of the current month from 20,300 Yuan/ton during second-half of May. Similarly, the price of rayon yarn 40S declined from 21,600 Yuan/ton to 21,300 Yuan/ton.
During the fortnight, the prices of knitting yarn, too, declined sharply. Spinners incurred loss and had to reduce production and cut consumption of staple fibres.
On the other hand, cotton yarn market remained flat during the first half of the current month. Prices of pure cotton yarn J32S and J40S remained in the range of 29,300 Yuan/ton and 31,000 Yuan/ton, respectively.
Pure cotton yarn market remained relatively light owing to continuous adjustment of cotton market. There was wait-and-watch attitude and transactions were less.
In view of decreasing cotton prices in China’s domestic market, the prices of pure cotton yarn are expected to show a weak consolidation trend in the short term. Rayon yarn and pure polyester yarn markets are also expected to display a weak consolidation phase.

Fibre2fashion News Desk - China

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