China Yarn Market Daily (21 Mar 2011)

Market review
Today the overall yarn market remained weak and prices continued to drop.

Cotton yarn sales were limited and prices tumbled further. The makret prices of cotton yarn 32s were at 39000yuan/mt while the prices of high-grade cotton yarn 40s were at 42000yuan/mt. Mills with high inventory were active to sell goods.

Chemical fiber yarn sales were also weak and prices tended stable in weakness. The market prices of polyester yarn 32s for knitting in Jiangsu and Zhejiang were at 21000yuan/mt and for weaving at 20300yuan/mt. Polyester yarn market continued to see divergence in different regions.

Downstream Market
In China Textile City, the trading volumes decreased to 4.15mln meters. The sales of curtain fabric and window gauze for decoration were favorable and the sales volume to Fujian and Guizhou increased.

Outlook
Due to the slack sales and weak prices, yarn mills may continue to cut prices in orders to decrease high inventory and get cash.

$1=CNY6.56

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)