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Cotton yarn prices flare-up in September
Oct '10
The cotton yarn market drastically changed colours in September, from the weak and dull state, witnessed in July and August. Cotton yarn prices flared-up in early September, driven by an increase in cotton prices.

Cotton yarn prices shot up exponentially especially during the mid-Autumn Festival holiday period. During this period, cotton yarn prices rallied by 2000-2500 Yuan / ton, in just three days, greatly surprising traders and weaving factories.

The market was slow in digesting the flare-up in prices and downstream market adopted a wait and watch attitude in face of such a rally, due to which trade volumes were small.

In the recent days, mainstream offers for 32s cotton knitting yarn in Shaoxing and Xiaoshan stood at around 30,000-31,000 Yuan / ton, 40s yarn was quoted around 31,500 Yuan / ton,

Mainstream offers for 32s combed were around 34,500-35,000 Yuan / ton, 40s combed was quoted at 36,000-36,500 Yuan / ton and 60s combed stood at 42,000-42,500 Yuan / ton. The cumulative increase was around 4000 Yuan / ton in general from that in August.

Although cotton market has relatively touched a record high in recent times, new cotton will gradually come into the market and the state has also released another 400,000 tons of cotton reserves, due to which, market is expected to temporarily stay stable.

Fibre2fashion News Desk - China

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