VSF price of the week went down, with a luster lack sale. Now the mainstream price is offered by 19500CNY/t, with the strike price around 19300CNY/t, in compare with that of last week, the price dropped 300CNY/t. Now many plants have put forth a monthly settlement policy, yet the turn over is till not large. Downstream procurement is of too cautious. The production and consumption rate of VSF is insipid.
For the double influence from both downstream and upstream, VSF market is dull. On upstream, the end consumption demand is hard to enlarged, with plants down regulated lint cotton acquisition price. Downstream rayon yarn price are mostly in deficit run, with a low turn over, and the market performance is insipid, price increase hard, thus curbed VSF price increase.
On upstream, lint cotton price is still weak. During the long holiday, for lint cotton price dropped universally, oil plants are mostly in deficit production, some even chose to stop production. For a weak sale, quotations are down regulated one after another. In addition, lint cotton amount of the market is limited. The double factors marks lint cotton price stays in stalemate. Now short plush velvet mainstream price was offered at 5100CNY/t, while long plush velvet price was offered at 5300CNY/t. In compare with that of last week, the price has dropped down by 200CNY or so. As for cotton pulp, its turn over in the week is low, with most pulp plants are carrying out previous orders. On Wednesday, an cotton pulp conference was opened in Zhengzhou city, short plush velvet guide price was settled at 12000CNY/t. Such a price has not form a support to cotton pulp. Now cotton pulp in Xingkiang area was traded at 11300CNY, with a popular , and the strike price was around 11000CNY/t, which was 400CNY dropped in compare with that of last week.
On downstream market, cotton turn over is low, mainly due to the financial curb in the weaving plants, cotton price slightly went down. Now the third grade cotton price was offered at 19850CNY/t in China market, in compare with that of last week, the price was 122CNY dropped. Rayon yarn turn over is insipid, with an increasing stock pressure. According to the reflect of some plants, rayon yarn profit is mere, just catch the line of profit and loss. Plants reflect a transformation of cotton yarn or poly cotton yarn is likely. Now 30S for machine weaving is offered at 23000CNY/t, rayon yarn production and consumption is low, machine weaving 30S is offered at 23500CNY, comparing with that of last week, the price was 500 CNY dropped.
To sum up, some yarn plants are expected to covering shortage, in addition with the monthly settlement policy put forth, VSF turn over is expected to increase. But for the wait and see mood of the downstream buyers, VSF price is still hard to increase by large, and it is still expected to consolidate at a low price level.
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