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China Yarn Market Daily(5 May 2011)

2011-5-6
Description Price Change
CY OEC10 24,750 -50
CY C32 35,050 -50
CY JC40 42,250 -100
CY T32 19,450 -50
CY R30 28,450 -50
CY T/C45 29,150 -50

Market review
With Shandong Weiqiao cutting cotton purchasing price and yarn offer constantly, the prevailng price of cotton yarn slipped further. Trading volumes were still subdued while wait-and-see atmosphere tended heavier. In Jiangsu and Zhejiang, cotton yarn sales present dull and prices kept dropping. The market prices of high-grade cotton yarn 32s were at 36000-36800yuan/mt while open end cotton yarn 10s were at 25000-26000yuan/mt. Suppliers were active to sell goods. In Hutang yarn market, the mainstream price of combed cotton yarn slipped to around 42000yuan/mt.

Compared with cotton yarn, polyester/cotton yarn market presented tolerable. The mainstream price of weaving CVC 60/40 yarn 322s in Shandong was at 30000yuan/mt, ex-work while siro spun CVC 60/40 yarn 32s for knitting was offered at 32000-33000yuan/mt in Jiangsu, ex-work.

In Dalang, Guangdong, the operating rate of downstream weavers stayed at only 20-30%. The prices of rayon yarn for sweater tended weak. Traded price of rayon yarn 30s/2 was at 28500yuan/mt by cash.

Downstream Market
In China Textile City, the trading volumes increased to 6.79mln meters. The sales of chiffon and light spinning fabirc were favorable and the sales volume to Guangdong and Fujian increased.

Outlook
As cotton market still presented weak, as well downstream demand kept sluggish, yarn market would still mainly keep consolidating in short time.

$1=CNY6.50

CY OE10....Cotton open end yarn 10S
CY C32.....Cotton carded yarn 32S
CY JC40....Cotton combed yarn 40S
CY T32.....Polyester yarn 32S
CY R30.....Rayon yarn 30S
CY T/C45...Polyester/Cotton yarn 45S (65:35)

Source:CCFGroup
 
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