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Cotton & yarn prices climb steeply in Nov
10
Dec '10
Cotton and cotton yarn prices continued to rise in November under the impetus of dual impacts from domestic inflationary pressure and a larger gap in cotton supply, both prices set record highs; the pace increase of cotton yarn price was larger than cotton price in November.

High price in cotton and cotton yarn were inevitably transferred to clothing and textile products, and created significant impact on inflation too.

Monitoring shows that the average cotton price stood at 28,442 Yuan / ton in November, up by 14.93 percent from the previous month, monthly increase slowed down, year-on-year increase rose 98.76 percent, and both the price and the annual increase set record highs.

Cotton yarn price also set a new record high in November. The monthly average price of cotton yarn 40s was 32,450 Yuan / ton, the monthly average price of cotton yarn 32s was 39,083 Yuan / ton, representing an increase of 26.03 percent and 21.27 percent, respectively, from the previous month, and up 95.36 percent and 98.69 percent, respectively, year on year.

Considering the influence of the rise in prices of raw materials, fuel, energy power and other costs, the overall profits of the textile sector as a whole are expected to decline.

Fibre2fashion News Desk - China

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