Yarn prices are now clearly falling in China, on both domestic and import markets. The sharp decline of cotton and polyester fiber prices in the last seven days has depressed demand, as buyers expect yarn prices will further decline in the coming period.
Spun yarn prices have begun sharply falling in China, after fiber prices have started significantly sliding in the last days.
In Qianqing (Zhejiang), cotton yarn prices have dropped 100 to 300 yuan per metric ton (-0.4% to -1.4%) whereas 100% PSF yarns were losing 250 to 550 yuan (1.5% to 4.1%).
Polyester-cotton and poly-viscose yarn prices have also declined in the meantime.
The cotton market indicator has fallen 464 yuan per ton, or more than 3% in a single week, a very sharp drop by historical standards.
The polyester indicator has even tumbled by 380 yuan, or 4.5%, in seven days.
Viscose fiber prices have followed, although less clearly dropping.
Lower yarn import prices
The decline of domestic yarn prices is now pressuring import prices.
With everyone anticipating a new decrease of yarn prices in the coming days, demand is very weak.
Large quantities have been previously accumulated at consigned warehouses in China with no need to further import yarns.
Import prices have lost about 3 cents per kilo in the last seven days, consecutively.
The sharp decline of the Chinese currency is limiting the drop in yuan terms.
As a result, domestic prices could rapidly become more competitive than foreign yarns from Vietnam, India, Indonesia or even from Pakistan.
Source: Emergingtextiles
