Spun yarn prices have begun dropping across the board in China, in line with a decline of fiber prices. Spinners are forced immediately lowering their offers, being confronted with high inventory levels after a disappointing peak season.
Yarn prices have begun tumbling in China, over a sharp fall of cotton prices on the international market and a significant decline of polyester prices at the same time.
In Qianqing (Zhejiang), cotton yarn prices have for instance dropped 100 to 250 yuan per metric ton in a few days.
Spun polyester prices have lost 150 to 250 yuan after polyester fiber prices have decreased by 120 yuan in a single week.
Spun viscose prices have also fallen over a drop of VSF prices.
Yarn producers are not able to resist and are immediately lowering their offers in line with the decline of fiber prices.
The peak season in China has been very disappointing for spinners, still confronted with a high level of inventories and a weakness in demand from weavers and knit apparel producers.
The US decision to sharply raise import tariffs, including on a series of Chinese textile products has triggered the fall of yarn prices.
If additional tariffs would be extended to Chinese apparel, yarn prices could even plunge to much lower levels.
Operating rates have already been lowered in the last weeks in China.
The yarn futures have plunged in Dalian before rebounding, as a clear sign of a high level in current uncertainties and of looming price volatility.
Source: Emergingtextiles
