Spun yarn prices are no more moving in China. Yarn import prices are further rising in dollar terms, however dropping in yuan terms favoring demand for foreign yarns. Cotton yarn imports from Vietnam have slowed down in the last year whereas Indian shipments were rebounding.
Spun yarn prices have remained relatively flat in the past seven days in China.
Viscose fiber prices have no more moved, resulting in viscose spun yarn prices being frozen.
Polyester fiber prices have however bottomed out, meaning that polyester spun prices could very slightly rise in the short term.
By contrast, cotton yarn import prices have surged 4 cents per kilo or 1.5%, being up 8 to 9 cents in four weeks or 3.2%.
Such a rise is due to the rebound of the Indian currency and the sharp increase of Indian cotton prices, both factors resulting in higher cotton yarn export prices.
The continuous rise of cotton prices in New York is also boosting yarn prices, whatever their origin.
The recent rebound of the renminbi has more than offset the rise of US$ prices, with yuan prices even slightly declining in the past weeks.
China’s yarn investment in Vietnam
China’s cotton yarn imports have risen 8% in dollar terms in the full last year, after already gaining 7.2% in 2017.
In five years, imports have however dropped 13%, with the level of the renminbi and the volatility of yarn prices affecting these data.
In addition, Vietnam has clearly replaced India as the leading supplier of cotton yarns on China’s market, reflecting the Chinese investment in new spinning mills in the country.
Vietnamese plants can import cotton at international price levels whereas cotton imports are limited by tariff quotas in China.
In the last year however, China’s cotton yarn imports from India have rebounded (+ 19%) whereas Vietnamese shipments were rising at a lower pace (+5%).
Source: Emergingtextiles
