Paul Reinhart Inc released the market report for China:
ZCE closes a staggering 11.2 % lower at 11070 RMB/tons and making new contract lows. Also, physical prices have lost further ground, but to a lesser extent, down only 3 % from the previous week.
It seems that the government's decision to increase their purchases for the state reserve does not yet have the desired effect, most likely due to their tight requirements, excluding the majority of the bales produced in China.
Polyester prices came under even more pressure than cotton this past month, depreciating about 30 % versus cotton's 12 %.
This could force some textile factories to change their cotton/polyester blend and thus put further pressure on cotton prices.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
