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Rayon yarn market remain sluggish during March
Apr '08
Rayon yarn market remained sluggish during March, with poor trade value. However, inverntories at enterprises increased significantly with price concession acitivties.

During March beginning, CY R30 price declined from 25,525 yuan to 24,500 yuan per ton, showing a downfall of 4.02 percent.

On March 30 typical rayon yarn product 30s in Qianqing market fell from 24,000 yuan, of the previous week, to 23,300 yuan per ton. Wholesale price of 30s offered by large companies dropped from original 23,500 yuan to 22,800 yuan per ton, representing a decline as big as 700 yuan per ton with in a week.

Rayon yarn 40s and 50s price were slightly better than 30s, the week drop stood for 500 yuan per ton.

Market analysts believe there are several major reasons for such drop in price and trade volume.

Firstly, VSF market prices from upstream sector continued to fall. At the beginning of the month, central market price of general VSF 1.5 D was at a high level around 21,100 yuan per ton, but, by the month end, VSF market price plummeted to 20,000 yuan per ton. Prices quoted by some factories even fell below the mark of 2000 yuan per ton.

Secondly, orders from lower reaches were less, market demand was poor, procurement initiative for rayon yarn appeared listless.

Fibre2fashion News Desk - China

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