China Yarn Market Daily(31 Mar 2011)

Market review
Trading atmosphere of the overall yarn market still tended weak. Most mills with limited confidence were in face of increasing inventory and subdued orders.

Polyester/cotton yarn prices kept declining in Shandong. The lower price of CVC 50/50 yarn 40s for weaving was at 31300yuan/mt.

Rayon yarn prices weakened further. The mainstream price of siro spun rayon yarn 30s for knitting produced in Xinxiang was at 31000yuan/mt while a big plant in Jiangsu quoted at 34000yuan/mt, ex-work.

Downstream Market
In China Textile City, the trading volumes increased to 5.71mln meters. The sales of heavy checked flannelettes and polar fleece were tolerable and the sales volume to Fujian increased.

Outlook
Yarn inventory increased further, which would be unfavorable for the market. In short time, the dropping trend is predicted to continue.

$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)