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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