Cotton fiber and yarn prices are moving into different directions in China, India and Pakistan amid relatively low volatility levels, nevertheless. Polyester fiber and spun yarn prices are slightly dropping in China whereas viscose fiber prices are rising in Pakistan.
Cotton prices are now receding in China where official sales from state reserves will resume in May.
Additional import quotas have been previously allocated to spinners with the market therefore benefiting from ample supply levels.
Cotton yarn prices have not moved and should stayed unchanged in the coming period, or slightly decline.
On the cotton market in India, the rally is now losing steam and prices may slightly decline in the coming period, offering larger margins to yarn producers.
The rebound of cotton prices has actually depressed demand from spinners confronted with a fall of their margins.
In Pakistan, cotton prices have slightly increased with cotton yarn prices being also raised.
Spinning mills are benefiting from strong demand, as the country enjoys duty-free access to China in addition to the recent fall of its currency.
On the polyester market, fiber prices are slightly dropping in China where spun yarn prices have immediately followed the same direction.
Prices have stayed rather unchanged in India and Pakistan.
On the viscose market, fiber prices have risen in Pakistan meaning that spun yarn prices could be raised where viscose is used.
Prices are much more stable in India.
Source: Emergingtextiles
