Fabric Market Morning Express (Nov 10, 2010)

Recently, with the support of favorable demand and the hiking prices of cotton yarn, cotton fabric prices keep surging trend. The increment of thick products such as canvas and drill is large at 2-3yuan/m. The offers for OEC21S×21S 108×58 58" dyed fabric produced in Shandong are lifted up to 17yuan/m, C20×16S 128×60 58" dyed fabric produced in Zhejiang at 19.8yuan/m and C21S/2×10S 72×40 58" dyed fabric produced in Jiangsu at 20yuan/m. Some high-priced transactions have been done due to the tight supply.

In Shandong, Zhejiang, Jiangsu and Hubei, most spinners, printing and dyeing enterprises and fabric suppliers keep tolerable operating rate and smooth sales. But they are in shortage of feedstock.

It is analyzed that the tight supply is caused by mainly three reasons. Firstly, plants rarely build inventory in order to avoid risks. Secondly, restrained by the emission and power limitation, plants decline outputs. Thirdly, Suppliers with bullish sentiment are reluctant to sell goods. In later period, the situation of tight supply will continue.

$1=CNY6.65

source:CCFGroup.com