Textile fiber prices are now declining in China, and yarn price offers could rapidly follow the same downward trend. Demand is not expected to rebound in the coming period, with fiber and yarn prices therefore expected declining.
Spun yarn prices have not yet moved in China, back from the May Day weekend.
The fall of polyester staple fiber prices has not been transmitted yet to price offers of poly-cotton or 100% polyester yarn producers.
As a consequence, margins have improved at spinning mills, in theory.
Prices may however be expected to fall in the coming period, as yarn processors will require spinners to lower their offers, in line with the decline of their material costs.
On the cotton yarn market, the fall of fiber prices has not yet been transmitted to cotton yarn prices, similarly.
Cotton fiber prices have begun declining after the official announcement that sales from state reserves would resume as of May 5th.
The daily quantities offered to spinners and traders are lower than last year, meaning that cotton prices should not be too significantly affected.
On the viscose market, the VSF prices has been lowered and yarn prices should rapidly follow, as previously experienced on the market.
Demand is too weak from yarn processors for resisting any decline in price offers when raw material costs have dropped.
Source: Emergingtextiles
