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Supply of cotton yarn & fabric exceeds demand in China
Mar '13
Chinese cotton market is currently witnessing a stable market, a rarity in recent years. As a result, downstream producers are purchasing cotton with a peaceful mind only as per their immediate requirement.
However, the total supply of cotton yarn and cotton fabric is greater than demand, leading to fierce market competition, and traders are facing difficulty in selling low-grade products.
At present, the mainstream price of cotton yarn C32s is 26,000 yuan/ton in main producing provinces of Shandong, Hebei and Henan, while the prices of higher grade cotton yarn are in the range of 26,500-27,500 yuan/ton.
Meanwhile, the prices of polyester staple fibre have continued to fall, and have impacted prices of downstream products. The mainstream price of T63/C35 yarn 32s is 19,500 yuan/ton, and the prices of higher grade polyester/cotton yarn are around 20,000 yuan/ton in major provinces. Some polyester/cotton yarn manufacturers have also introduced promotional offers.
The prices of viscose staple fibre also show a declining trend, which is making the already subdued market of rayon products even more deserted. Currently, the mainstream price of rayon yarn R30s is 19,000 yuan/ton or lower, while prices of higher grade rayon yarn are in the range of 19,000-19,500 yuan/ton in major producing provinces.

Fibre2fashion News Desk - China

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