Yarn Market Daily (Sep 7, 2010)

Domestic Market
More and more market players held that cotton yarn price would hike. Currently, price of medium/low end products, as well as products whose price dropped sharply earlier began to edge up. In past slack season, spinners liquidated cargoes at low price to alleviate inventory pressure. For now, demand recovers and cotton yarn price began to regain. For spinners of large scale, previously, they only lowered price slightly, some of whom even held price flat. As a result, this round of price-lifting seemed not to affect them much.

In Changyi, Shandong Province, sporadic orders for cotton yarn 32S, open end cotton yarn 10S and 16S increased, with market price of open end cotton yarn 16S (with raw cotton) at 18500yuan/mt.

In Hutang, Jiangsu Province, those spinners not forced down ran their units at full capacity. Some carded yarn spinners had price-lifting intention. Price of quasi-high-grade cotton yarn 32S was at 26300yuan/mt.

In Jiangsu and Zhejiang, polyester yarn price breached one after another high level. Market price of polyester yarn 32S for knitting was at 17600yuan/mt, with some offered higher at 17900-18000yuan/mt.

Separately, price of polyester yarn was at high level, with polyester 32S for knitting at 17500yuan/mt (prevailing price), whose spots availability was tight.

In Shaoxing, traded price of carded cotton yarn followed up gradually. Market price of medium-high grade high quality cotton yarn 32S was at 27700yuan/mt.

($1=CNY6.80)

China Yarn Index:
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)