Cotton fiber and yarn prices are mostly rising in the current period in China, India and Pakistan, whereas the polyester market stays stable and viscose heavily falls, with slight differences depending on products and locations, however.
Cotton prices have continued rebounding in the past days in India where the crop is possibly much lower than expected.
Prices have jumped above minimum levels and state-run CCI has stopped purchasing cotton, as a result.
The spinning mills have not yet really raised their offers and their margins are returning to lower levels.
Yarn export prices are already surging at the same time in India, due to the current rise of the rupee, in addition to the rebound of cotton prices.
In Pakistan, cotton prices have stayed very firm in the last days, even climbing further before returning to their initial level a week earlier.
Cotton yarn prices have been raised by spinners benefiting from a strong demand from domestic home textile producers, but also from Chinese buyers interested by specific products like siro yarns.
In China, cotton fiber and yarn prices are staying very firm in absence of state-run cotton sales from official reserves.
The textile production is currently rebounding and therefore supporting yarn prices.
On the viscose market by contrast, fiber and yarn prices are everywhere further falling, as excess inventories in China have depressed the Asian markets.
Over the long term, viscose fiber use could be lower than expected a few years ago and the market will find it difficult to absorb new capacities.
Source: Emergingtextiles
