China Yarn Market Daily (06 Apr 2011)

Market review
Trading atmosphere of yarn market had not recovered yet and prices continued to keep weak.

Cotton yarn prices still tended to tumble. The market prices of cotton yarn 32s for knitting were at 36000yuan/mt while the prices of high-grade cotton yarn 32s were at 37800yuan/mt.

Rayon yarn prices continued downtrend with increasing inventory. The market prices of rayon yarn 30s for knitting produced in Xinxiang had declined to around 30000yuan/mt.

Polyester/cotton yarn prices were also weak. The mainstream prices of polyester/cotton 65/35 yarn 32s for weaving were at around 26500yuan/mt.

Downstream Market
In China Textile City, the trading volumes decreased to 5.61mln meters. The sales of curtain fabric and window gauze for decoration were tolerable and the sales volume to Guangdong increased.

Outlook
Yarn inventory increased further, which would be unfavorable for the market. Though prices have dropped sharply, sales remained slack. In short time, the dropping trend is predicted to continue.

$1=CNY6.56