China Yarn Market Daily(15 Nov 2010)

As at weekend a big scale plant in Shandong continued to drop cotton purchasing price by 2000yuan/mt, along with the substantial drop of cotton futures, some textile enterprises had declined offers and became active to sell goods. Currently the market prices of cotton yarn 32s for knitting from medium and small scale plants were at 43000-44000yuan/mt while offers from big plants remained at 46000yuan/mt. The prices of combed cotton yarn 40s from big plants were at 49000-50000yuan/mt while from medium and small plants at 47500-48000yuan/mt. In later period, high prices might decline gradually.

Cotton yarn prices in foreign market remained firm last week, but moved up slowly due to the declining international cotton prices. In Taiwan, the prices of open end cotton yarn 10s were at 580$/bale, equal to about 26000yuan/mt, after tax. Besides, although Pakistan and India cotton yarn prices tended to be stable, the prices were still higher than the same grade cotton yarn prices in domestic market.

$1=CNY6.63