China Yarn Market Daily(24 Feb 2011)

Market review
After surging for several days, the overall yarn markets began to step into stability.

Cotton yarn sales remained limited and transactions were still slack. The prices of　cotton yarn 32s for knitting were at 41000yuan/mt. Mills began to hold wait-and-see stances. The demand for open end cotton yarn was better and the prevailing price of open end cotton yarn 10s was at 26500-27500yuan/mt.

Rayon yarn prices still kept firm and in some regions continued to move up. The market prices of rayon yarn 30s for knitting in Shaoxing were raised to 34500yuan/mt while open end rayon yarn 30s was offered at 35000yuan/mt. In addition, polyester/rayon yarn prices kept steady with slack transactions. The prices of siro-spun polyester/rayon 65/35 yarn 32s for knitting were at 28000yuan/mt, ex-work.

Downstream Market
In China Textile City, the trading volumes increased to 2.73mln meters and the sales of curtain fabric and window gauze for decoration were smooth and the sales volume to North China was large.

Outlook
As cotton prices stopped rising, yarn market also tended stable. Currently, the market was supported with feedstock prices but without favorable downstream demand. If the demand recovers in short time, the market may continue to keep firm. But if the demand remains slack, the market will face to be adjusted somehow.

$1=CNY6.58

source:CCFGroup