Cotton and polyester fiber rices have tumbled in China, with spinners being forced lowering their price offers for a very wide range of their products. In Pakistan by contrast, cotton yarn prices have been raised while they were eventually lowered in India. Polyester fiber and spun yarn markets could resist downward market trends in India and Pakistan.
The cotton and polyester markets are currently tumbling in China, over a weakness of demand from downward processors in textile and clothing industries.
With domestic retail sales slowing down or even declining and apparel exports sharply falling, demand for fibers and yarns has been much lower in volume terms than in the past years, amid rising inventories at spinning mills.
Cotton prices have experienced a very unusual decline on China’s domestic market with the benchmark indicator losing 5.8% in four weeks.
Cotton yarn prices are also lowered as a result, as spinners try to digest excess inventories.
Yarn production can be expected falling in the coming period, as margins have already reached very low levels in the past months.
In Pakistan by contrast, cotton yarn prices have been further raised.
The rupee has experienced a new and sudden fall in the last days however, resulting in lower yarn prices in dollar terms.
In India by contrast, cotton prices have no more dropped and spinners have been forced to lower their cotton yarn offers, after raw material costs have previously declined.
On the polyester market, China is experiencing a sharp fall of staple fibers resulting in lower price offers for poly-cotton, poly-viscose and 100% PS yarns.
India and Pakistan have not yet been affected by the fall of Chinese market.
Fiber and yarn prices could however fall in India, although a current jump in polyester use may also support PSF prices.
In Pakistan, import prices will be supported by the fall of the rupee, offering a similar support to domestic PSF prices.
Source: Emergingtextiles
