100% polyester yarn prices have been lowered in China, after staple fiber prices have declined. Cotton yarn futures have suddenly dropped, reflecting a lack of confidence in market prospects, as cotton yarn imports prices are further falling in yuan terms.
Cotton yarn futures have suddenly dropped in the last week in China, over a lack of confidence about the level of demand in the coming period.
The seasonal peak usually experienced in March and April is relatively disappointing, according to Chinese spinners.
Yarn producers have no room for lowering their prices, whereas being confronted with increasingly competitive foreign products.
The price difference between domestic and foreign cotton yarns has widened again in the past week, after taking account of currency conversion and taxes.
Lower VAT rates are boosting demand in addition.
The decline of polyester staple fiber prices has been immediately transmitted to yarn offers which have been lowered by 100 yuan per metric ton in Qianqing.
With crude oil prices surging at the same time, polyester chain prices could however find a strong support as the chemical industry will possibly lower its production levels.
By contrast, the viscose fiber and spun yarn prices have remained very stable in the last seven days in China.
Source: Emergingtextiles
