Fabric Market Morning Express (Oct 28, 2010)

Recent the sales of wide fabric for bed keep good and prices continue to climb up. With the support of previous orders, plants in Weifang, Nantong, Xi’an and Nanyang are busy on work with smooth sales and rising prices. The quotations of T65/C35 45S×45S 110×76 98" dyed fabric are at 14.5yuan/m, C40S×40S 133×72 98" dyed fabric (rapier) at 17.5yuan/m and C40S×40S 133×72 98" dyed fabrifc (jet) at 18.7yuan/m.

The current rising prices of cotton fabric are pushed by the tight supply and rising prices of feedstock obviously. It is analyzed that the main reasons of tight supply in fabric and grey fabric market are as follows:

1. Plants were influenced by the brownouts and emission limitation in previous term.

2. As feedstock prices kept rising, medium and small scale plants with enlarging risks had to reduce production or even stop producing.

3. Some suppliers with bullish sentiment were not eager to sell goods.

4. The foreign demand and domestic demand kept good while plants dare not to receive orders.

The reasons above mainly lead to the situation of "tight supply, cash transaction and hiking prices." In short period, the gap between supply and demand remains hard to be solved and high prices in cotton fabric market will continue.

$1=CNY6.70

source:CCFGroup.com