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Sharp rise in cotton drives yarn prices higher

30
Nov '09
The release of national reserve cotton in the third round, failed to curb the flare up of cotton prices in the market. On the first day of auction, bids had touched new highs, which resulted in prices of various categories of cotton in the open markets, to soar.

The developments in the cotton market have also led to a sharp increase in prices of cotton and blended yarn. Cotton yarn prices have risen by 10-15 percent in the last few days and in the process kept pace with cotton prices.

32s count cotton yarn is quoting between 19,800-21,500 Yuan per ton and 40s is being sold between 20,800- 22,500 Yuan per ton.

Although the demand for polyester and cotton blend yarn is somewhat slow, some manufacturers increased yarn prices, due to increase in prices of raw cotton and polyester. T65/C35 45S is being sold between 17,600-18,800 Yuan per ton.

Other than cotton, demand for strand rayon yarn is also on the upside. Good demand from knitted garment factories is driving the prices of rayon market and coupled with price increase in prices of viscose fiber, R30S/2 rayon yarn is quoting at 23,500 Yuan per ton.

Fibre2fashion News Desk - China


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