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China Yarn Market Daily(14 Apr 2011)

2011-4-15
Description Price Change
CY OEC10 25,000 0
CY C32 36,000 0
CY JC40 43,600 -100
CY T32 19,550 -50
CY R30 29,100 -200
CY T/C45 30,000 -100

Market review
Cotton yarn market remained weak. The market prices of combed cotton yarn 40s were at 43000yuan/mt while high-grade cotton yarn 40s was offered at 39500yuan/mt. Mills were active to sell goods, but trading volume was still subdued.

Polyester yarn prices tended steady in weakness. The market prices of polyester yarn 32s for knitting were at 19500-19800yuan/mt in Jiangsu and Zhejiang, and for weaving at 19000yuan/mt.

Polyester/rayon yarn prices tumbled slightly with sluggish sales. The market prices of medium-to-long twisted polyester/rayon 65/35 yarn 50s/2 produced in North China were at 32400yuan/mt while the mainstream price of siro spun polyester/rayon 65/35 yarn 32s for knitting in Jiangsu was at 25000yuan/mt, ex-work. With weak feedstock prices and slack demand, polyester/rayon yarn prices may continue to drop in weakness.

Polyester/cotton yarn prices presented weak in Hunan and Hubei. The mainstream price of polyester/cotton 65/35 yarn 32s was at around 27000yuan/mt, ex-work. Traded price could be discussed.

Downstream Market
In China Textile City, the trading volumes increased to 6.50mln meters. The sales of shirt fabric for men were favorable and the sales volume to Fujian and Anhui increased.

Outlook
Both cotton futures and spot markets kept dropping trend, which restrained yarn market to some extent. Currently, yarn inventory stayed at high levels and mills with tight funds had to focus on selling goods. In short time the inventory would still be consumed slowly and the market would continue to stay in weakness.

$1=CNY6.53

CY OE10....Cotton open end yarn 10S
CY C32.....Cotton carded yarn 32S
CY JC40....Cotton combed yarn 40S
CY T32.....Polyester yarn 32S
CY R30.....Rayon yarn 30S
CY T/C45...Polyester/Cotton yarn 45S (65:35)

Source:CCFGroup
 
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