Viscose fiber and spun yarn prices have continued dropping in China with VSF however stabilizing in the past days. Cotton fiber and yarn prices are no more moving, but they could rebound after inventories will have been digested.
Cotton yarn prices have stayed unchanged in the past days in China, in line with a similar stability of cotton fiber prices.
The country is actually digesting its cotton inventories, as demand from spinners is continuously increasing, before reaching a seasonal peak.
Prices may move upward after cotton stocks will have dropped enough for triggering positive anticipations.
The end of US-China negotiations in the coming period could also result in a jump of cotton and yarn prices.
Cotton yarn import prices are being raised in dollar terms, however unchanged in yuan terms as a consequence of the current rise of the Chinese currency.
On the viscose market by contrast, prices are heavily falling over too large inventory levels at fiber plants.
100% viscose yarn prices have lost 300 yuan per metric ton in the last seven days or 1.7%.
The market indicator has declined 4.8% in four weeks whereas the fiber price indicator was sliding 9.3%.
Margins have risen at spinning mills as far as viscose is being used.
Yarn prices could further drop in the coming period as a result, although fiber prices may have now stabilized.
Source: Emergingtextiles
