Yarn prices are now falling across the board in China, over a sharp decline of fiber prices, including cotton, polyester and viscose. Yarn processors are waiting for the end of the price decline, further pressuring prices as a result, amid surging yarn inventories at spinning mills.
Spun yarn prices are falling across the board in China, whatever the type of fiber being used at spinning mills.
Demand is extremely depressed and inventories are reaching record level at yarn plants.
Price offers are therefore being lowered after fiber prices have tumbled in the past two weeks.
Cotton yarn futures have dramatically declined, with the nearby contract losing 860 yuan per metric ton in a single week in Zhengzhou, or 4.3%, having lost 13.4% in four weeks only.
In Qianqing (Zhejiang), yarn prices are down between 300 and 500 yuan depending on fibers and counts.
Cotton fiber prices had begun stabilizing in the past week before further receding in the past two days.
PSF prices are losing ground day after day.
Demand for yarns is obviously waiting for the end of the decline of fiber prices.
Seasonal demand being depressed from downward processors, there is no need to accumulate stocks, meaning that prices could continue falling in the coming period.
Uncertainties over the US-China relationship is also depressing cotton prices at Chinese borders.
Yarn imports are no more competitive with domestic production and import prices consecutively falling.
