China Yarn Market Daily (Mar 15, 2011)

Description	Price	Change
CY OEC10	26350	0
CY C32	38700	-200
CY JC40	46200	-200
CY T32	20500	-100
CY R30	32850	-150
CY T/C45	31700	-200

Market review
Yarn market continued to keep weak and mills were active to cut prices in order to sell goods.

Shandong Weiqiao cut purchasing price for cotton, which affected cotton yarn market further. The market prices of cotton yarn 32s for knitting was at 39000-39500yuan/mt in Zhejiang and at 38500yuan/mt in Guangdong while the prevailing price of combed cotton yarn 40s stayed at 47000-48000yuan/mt.

Rayon yarn prices tended weak. The market price of open end rayon yarn 30s was at 34000yuan/mt while vertex spun rayon yarn 30s was offered at 34500yuan/mt. In addition, polyester/cotton yarn prices tumbled. Polyester/cotton 65/35 yarn 45s for weaving is offered at 29500yuan/mt, ex-work.

Downstream Market
In China Textile City, the trading volumes increased to 5.17mln meters. The sales of printed warp knitting fabric were favorable and the sales volume to Hunan increased.

Outlook
Yarn mills with large inventory pressure and tight funds may have to reduce offers further in order to sell goods and get cash. Downstream demand will continue to play an important role.

$1=CNY6.57

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)