China Yarn Market Daily(19 Apr 2011)

Market review
Cotton yarn sales remained unsmooth. The market prices of combed cotton yarn 40s for knitting were at 42500yuan/mt while high-grade cotton yarn 40s was offered at 37800yuan/mt, ex-work.

Polyester yarn prices in Shandong and Hebei weakened further. The mainstream price of CVC 50/50 yarn 32s for weaving was at 29000yuan/mt.

Downstream Market
In China Textile City, the trading volumes increased to 6.37mln meters. The sales of curtain fabric and window gauze for decoration were favorable and the sales volume to Guangdong increased.

Outlook
The dropping trend of yarn market tended to slowed down, but the overall market remained weak. Yarn mills with high inventory and tight funds were still active to sell goods, but trading volumes remained subdued due to the slack demand. In short time, the market is predicted to keep consolidating in weakness, consuming inventory.

$1=CNY6.53

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)