Daily worldwide cotton market report

09 Jun '09

4 min read

Egyptian apparel exports to the US market are ignoring the recession, with a surge of 15% in US$ terms over the first quarter. This is mostly due to the duty-free programme benefiting local zones and recently expanded to upper Egypt. Thanks to these QIZs, the low-cost country became a leading supplier of denim pants to the US market.

Raw material costs of polyester producers fell in the past weeks in India, with staple fiber prices also declining as a result. Filament prices were mixed with POY prices being reduced while textured yarn prices were raised, thanks to stronger demand from weavers, our India Correspondent reports.

Polyester prices more sharply fell in the last seven days, reflecting a series of depressing factors in the Far East, including lower demand and raw material costs. Polyester consumption may however be stimulated by a larger price difference between cotton and PSF.

Prices were more evidently falling in the polyester chain on Monday, reflecting a new decline in demand for polyester fibers in China. New paraxylene and PTA capacities are also depressing the market while glycol is now sliding, on its turn. The polyester chain continues ignoring the sharp rise in crude oil prices.

Cotton prices last week fell in New York, mainly due to a rebound in the US$ which depressed commodity markets. Physical demand was also weaker on the international market with the cotton yarn trade slowing down in Asia. In addition, cotton prices could sharply decline in the next season, according to the ICAC.

Ghulam Rabbani & Co.

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