Cotton yarn prices could be expected declining on Asian markets after cotton fiber prices have started dropping on domestic and international markets. Demand could remain relatively shy, over surging uncertainties triggered by US tariff threats.
Cotton fiber and yarn prices are now clearly declining in Asia, after the New York’s cotton market has begun tumbling in the past days.
The announcement by president Trump that the US could slap additional tariffs on Chinese products has fully depressed financial and commodity markets.
The cotton market is directly affected, as China was expected buying large quantities of US cotton.
In India, cotton prices had already started declining in the past two weeks without however triggering a similar fall of cotton yarn prices until now.
In Pakistan, cotton prices have also dropped with cotton yarn prices no more rising or even declining for certain counts.
In China, cotton yarn prices have begun decreasing after the announcement that official sales from cotton state reserves would resume as of May 5th, therefore triggering a slight fall of cotton prices.
Although cotton yarn prices could now be expected to fall everywhere, a last-minute trade agreement between the United States and China would immediately reverse these trends.
On the polyester market by contrast, fiber and spun yarn prices could now more obviously decline.
In China, the market looks relatively depressed amid a record level of production which is resulting in lower prices.
Other markets should more or less rapidly follow the global polyester leader, as usual.
Source: Emergingtextiles
