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Yarn & fabric production indices up in 2010
May '10
China's national scale enterprises achieved yarn output of 2.25 million tons in April 2010. From January to April in 2010, the yarn production reached 7.91 million, up 18.7 percent year on year. Among them, April output of cotton yarn scored 1.73 million tons and totaled to 6.08 million tons, up 17.85 percent year on year in the first four months of 2010.

April output of cotton-blended yarn registered 219,960 tons, and cumulated to 748,804 tons from January to April, up 13.19 percent year on year. April output of chemical fiber yarn reached 305,513 tons, and stood at 1.07 million tons from January to April, up by a staggering 28.27 percent year on year.

In Shengze market, the average increase in prices of cotton yarn reached 500-700 Yuan / ton last week. Carded yarn 32s for weaving was offered at 24,900 Yuan / ton in mainstream by the weekend, up 600 Yuan / ton from the previous week.

Carded yarn 40s was offered at 26,500 Yuan / ton, up 500 Yuan / ton from the previous week, combed yarns too rose by around 700 / ton. Ex-factory price of 32s combed yarn stood at 28,500 Yuan / ton. Cotton fabric output reached 1.09 million tons from January to April, an increase of 20.48 percent year on year.

Market conditions appeared more stable. But as weather gets warmer, knitted fabrics and shirting fabrics will become seasonal products, due to which demand will increase. Sales of all kinds of knitting yarn and combed yarn are good. On the other hand, high cotton yarn prices have compelled many downstream textile enterprises to shift their demand to polyester/cotton and polyester yarn.

Chinese textile exports recorded US $14.547 billion in April 2010, a growth of 32.19 percent from the previous month, and an increase of 16.44 percent year on year. With global economic recovery, external market demand, in particular, demand for apparel and home textile products in the United States market is increasing.

The European crisis has created great uncertain risks to global economy; the world economy may ultimately once again get into a recession quagmire, if the debt crisis further spreads, which could have a far reaching impact on the current recovery progress in exports from the textile and clothing sector.

Fibre2fashion News Desk - China

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