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Rise in MMF prices traced back to rapid run up of cotton
05
Jan '11
The price increases we felt in Q4 2011 for most of the major synthetic fibers could be traced back to a rapid run up in the price of cotton, causing increased demand for other fibers and creating a market where speculation drove prices higher.

Cotton prices rose from an August 2010 daily range from 86 - 94c/lb to a peak of $1.72/lb in 2nd week of November and then retreated back into the $1.40s and $1.50s until mid December when prices rose again peaking at $1.86/lb on Dec 21.

We can expect cotton to remain at high prices at least until the next Northern Hemisphere crop is in sight (Q3 2011) and there will either be a confidence that stocks will improve or that supply will continue to be tight.

The ICAC forecast is for production to increase 9% in 2011/12 season which will lead to a better inventory situation, but obviously the harvest is strongly influenced by weather conditions.

The Synthetic Yarn and Fiber Association is a non-profit organization comprised of individuals affiliated with the synthetic yarn and fiber industry. Representation in the industry includes fiber producers, texturizers, knitters, weavers, and dyeing & finishing personnel. Additionally, raw material suppliers, equipment manufacturers, and service providers related to the industry are valuable contributors to the organization.

Synthetic Yarn and Fiber Association


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