Cotton yarn import prices have been raised in dollar terms in China, however dropping in yuan terms, due to the rise of the Chinese currency. Domestic yarns are less competitive, with imports being therefore potentially boosted.
Yarn import prices have begun rising in China, at least in US$ terms.
In line with the current surge of yarn prices on the international market, import prices have gained about 2 cents per kilo (0.7%) whatever their origin.
Prices have been up 2 to 7 cents over the past 4-week period.
With the renminbi rising however, import prices have slightly dropped in the past seven days in yuan terms.
As a consequence, domestic yarns are less competitive and imports could further increase in the coming period as far as the Chinese currency does not fall.
Cotton yarn prices are frozen on the domestic market, being supported by strong seasonal demand.
By contrast, viscose and poly-viscose prices have fallen in line with the recent decline of viscose fiber prices.
VSF prices have however begun bottoming out this week in China, after inventory levels have dropped to lower levels.
The rise of viscose fiber prices should be relatively limited, yarn price offers returning to higher levels.
Source: Emergingtextiles
