Yarn Market Weekly (Dec 11-17)

Date	CY OE10	CY C32	CY JC40	CY T32	CY R30	CY T/C45
13-Dec	24000	35500	43200	18300	30600	30100
14-Dec	24000	35400	43200	18100	30500	30000
15-Dec	24000	35300	43100	18000	30250	29800
16-Dec	23900	35200	43000	17900	30050	29700
17-Dec	23900	35100	43000	17700	29800	29500
Average this week	23960	35300	43100	18000	30240	29820
Average last week	24400	36080	43800	18580	31480	30520
Change	-440.0	-700.0	-700.0	-580.0	-1240.0	-700.0

This week, the transactions remained limited. Downstream plants and traders held heavy wait-and-see sentiment and prices of cotton yarn, polyester yarn and rayon yarn continued to keep downtrend. The dropping prices of rayon yarn speeded up, ranking the top of these products.

Cotton Yarn

Cotton market recovered again this week and the average price of cotton type 329 rebounded to 27500yuan/mt. However, cotton yarn market did not follow to recover and textile enterprises with increasing inventories of 20-30 days continued to reduce offers and focused on selling goods. Downstream orders were mainly for short time and small volumes while large orders had not appeared. In transactions, buyers purchased cautiously and cut offers substantially. In face of the dull sales, some big scale plants depended on export sales to decrease pressure while medium and small plants had to reduce production. The prevailing prices of cotton yarn 32s was at 35000yuan/mt, high-grade at 36500-37000yuan/mt and high-grade cotton yarn 40s at 39000yuan/mt. The market prices of combed cotton yarn 40s were at 42000-42500yuan/mt with sufficient spots. Compared with ring spun yarns, the sales of open end cotton yarn kept tolerable and the market prices of mid-grade open end cotton yarn 10s were at 24000yuan/mt. Currently the price trend of cotton is not clear and downstream plants mainly hold wait-and-see stances, so the sales of cotton yarn will be hard to recover. If cotton prices can not hike obviously, the weak cotton yarn market will continue.

Polyester Yarn

Polyester staple fiber prices kept dropping this week and the average price of PSF 1.4D*38mm was at 12400yuan/mt low. Polyester yarn prices continued to collapse with sluggish sales. The market prices of polyester yarn 32s for knitting in Fujian and Guangdong were at 17000yuan/mt, pre-tax, and in Jiangsu and Zhejiang at 17500-18000yuan/mt, after-tax, declining by nearly 1000yuan/mt from last week. And the prices of T30S for weaving were at 17000yuan/mt with limited transactions. In addition, polyester/cotton yarn market also presented weak and the prices of siro-spun polyester/cotton 65/35 yarn 32s for knitting in Fujian and Guangdong were at 24000-25000yuan/mt while the mainstream price in Jiangsu and Zhejiang were at 27000-27500yuan/mt. The weak market is supposed to be hard to change and plants will continue to focus on selling goods.

Rayon Yarn

Viscose staple fiber prices speeded up to collapse and the average price of VSF 1.5D*38mm dropped to 24800yuan/mt. Rayon yarn prices continued to tumble substantially with limited new orders and plants were active to sell goods at lower prices. Therefore, the price gap between offers and traded prices enlarged further. The market prices of rayon yarn 30s for knitting were at 30500yuan/mt while transaction prices were at only 29500yuan/mt, even 28000yuan/mt low. The offers for rayon yarn 30s for weaving were at 29000-29500yuan/mt while transaction prices were at 28000-28500yuan/mt. Downstream with limited confidence remained reluctant to purchase and held wait-and-see stances. In addition, polyester/rayon yarn prices also kept downtrend and the prices of polyester/rayon 65/35 yarn 50s/2 were at 30000yuan/mt while dyeable polyester/rayon 65/35 yarn 50s/2 were offered at 31500yuan/mt.

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)