Cotton yarn prices have begun rising in India whereas further climbing in Pakistan and staying frozen in China. Cotton prices could now stop rising on domestic markets over a slowing down fiber use.
Cotton fiber prices have continued rising in the past week in India before stabilizing in the past days.
Spinners have begun raising their prices in order to limit the fall of their gross margins at yarn plants.
However, downward processors may reject any new increase of yarn prices, as already observed on the international market.
The jump of Indian export prices has been accelerated by the rebound of the rupee, but customers are reluctant in accepting a rise of their material costs in the current period.
In Pakistan meanwhile, cotton prices have not moved but yarn prices have been again raised, in line with a strong demand from downward processors.
Home textile exports have surged over a fall of the rupee at the end of last year, boosting yarn use in the country.
Cotton yarn export prices are not rising by contrast, as a clear sign that the international market is not accepting higher offers.
In China, cotton fiber prices have continued very slightly rising, but cotton yarn prices are not moving.
Seasonal demand is climbing, and yarn production is also increasing at the same time.
Market participants are still waiting for the end of trade negotiations between the US and China before accepting to accumulate larger inventories.
On the polyester front, prices are fully frozen everywhere, reflecting a low level in activity this year..
The viscose market prices could stop dropping, after Chinese fiber production has been lowered.
Source: Emergingtextiles
