Yarn Market Morning Express (Dec 15, 2010)

Cotton yarn market remains weak with decreasing prices and increasing inventories. The market prices of high-grade cotton yarn 32s are at 38000-38500yuan/mt while the prices of combed cotton yarn 40s are at 42000-43000yuan/mt. Plants mainly focus on selling goods and transaction prices could be discussed much lower. In addition, rayon yarn prices continue to speed up to drop by 500-1000yuan/mt. The prices of rayon yarn 30s for weaving produced in Xiaoshan and Shaoxing are at 29000-29500yuan/mt while the prices of rayon yarn 30s for knitting produced in Xinxiang are at 30500yuan/mt and higher at 31000yuan/mt with limited orders.

In Shandong and Jiangsu, cotton yarn prices tend to be stable and transactions increase slightly in some plants. The operating rate of downstream spinners also recovers somehow. In Hutang, domestic orders remain weak while foreign orders are favorable. In Changyi, the operating rate of spinners maintains at around 50%. The mainstream prices of high-grade cotton yarn 40s produced in medium and small plants are at 38500yuan/mt, ex-work while in some big plants are at 40000yuan/mt. The prices of low-grade open end cotton yarn 10s are at 20000yuan/mt.

$1=CNY6.66

source:CCFGroup.com