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Will Grey Fabric Market Launch New Round of Rise?


http://www.texnet.com.cn  2010-09-07 10:47:11  来源:CCFGroup 收藏
Recently, cotton grey fabric market trends up a little. Price shows a sign of hiking. Actually, some mills have lifted their offers, especially those for descriptions that experienced notable price decline previously, like fine cloth 90×88 and middy twill. Asking rate cited by some mills has ticked up by 0.20yuan/m.

Recently, price of Shannxi and Jiangsu-origin fine cloth (true selvage) JC60S×JC60S 90×88 64" 1/1 recovers from earlier 6.00-6.05yuan/m to 6.20yuan/mt. In Zhili, Zhejiang Province, offer of cotton yarn knaki C21S×21S 108×58 63" 3/1 rising from former 8.60-8.70yuan/mt to current 8.90-9.00yuan/m.

CCFGroup holds that, although some mills lift price, an “across the board” price hike on grey fabric market has yet to materialize.

On the one hand, recent growth in grey fabric value is only a retrieve to previous level, a correction of earlier over-dipping, instead of a real rise. Current offer is still below former high level.

At present, price of some carded cotton yarn gains 200-300yuan/mt, mainly products that had sharp downturn in value. Situation is more or less same with grey fabric. Take fine cloth 90×88 as an example. Highest price of fine cloth (true selvage) JC60S×JC60S 90×88 64" 1/1 is once at 6.60yuan/m. For now, offer is only at 6.20yuan/mt after rally.

On the other hand, grey fabric sales are still recovering, with orders and offtake still below the level before slack season and far from the prime in H1, 2010. Furthermore, after the golden era in the first half year, it is difficult for price to further advance given its already high level at present. Therefore, unless concrete bullish impact shows up, it is not very likely that price of cotton yarn as well as grey fabric hikes across the board.

Notwithstanding the conclusion above, CCFGroup considers that, with slack season going to its end and better demand, more market players will expect an uptrend on grey fabric market. So in the future, a regain in price is inescapable.

($1=CNY 6.78)
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文章关键词: Grey Fabric  Price 
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