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Yarn sales turn bearish as spring festival approaches
11
Jan '10
Cotton yarn prices rose sharply in early December, but turned stable during mid and late December. Cotton carded yarn 32s was quoted at 21,130 per ton by the end of December, up 600 Yuan per ton compared with the end of the previous month and the rise was higher then the rate of increase of cotton prices for second consecutive.

Operating conditions of textile enterprises were relatively stable, some enterprises had bought more cotton inventories in earlier times, and they held relatively ample cotton stocks. After the issue of cotton import quotas, some enterprises were active at purchasing foreign cotton, while some other enterprises felt the price of overseas cotton was too high to buy.

As Spring Festival approaches, textile enterprises have entered traditional off-season; yarn sales are beginning to show weakness gradually. Polyester staple fiber prices stood at 9,600 Yuan per ton by the end of December, down 500 Yuan per ton from the end of the previous month, while viscose staple fiber price too was down 50 Yuan per ton from the end of the previous month.

Fibre2fashion News Desk - China

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