Yarn prices were stable to down across India, China and Pakistan

Cotton yarn offers were unchanged amid poor sales volume in the week ended 12 June 2015. During the week, viscose yarn prices were range bound due to sluggish sales while spun polyester yarn prices dropped a bit on low demand.

In China, cotton yarn markets were largely static, with discounts available on firm deals and transactions withered further. Spinning mills were managing to lower the production cost while downstream buyers held bearish outlook. Thus, offtake volumes continued to remain poor. 32s cotton yarn in Shengze market remained flat at US$3.32-3.38 a kg while 21s were at US$3.14-3.20 a kg. Cotton yarn prices declined in India by about INR2 per kg on average during the week. In Ludhiana, prices declined four weeks ago and are 4 per cent lower this week. Meanwhile, cotton prices remained subdued in the week due to weak domestic demand. 30s combed for knitting was down INR1.50 to INR181 a kg (US$2.83 a kg, down US cents 3) in Ludhiana while carded rolled over at INR162.50 a kg or US$2.54 a kg. In Pakistan, yarn prices moved up reflecting the hike in cotton prices. In Faisalabad, 30s carded yarn for weaving gained PakRs15 to PakRs.1,275 per 10 pound or US$2.78 a kg, up US cents 3 on the week.

Spun polyester yarns prices in China remained range bound during the week and transaction volumes were low. Mainstream offers rolled over previous week’s numbers for 32s while 45s saw moderate transaction. Some yarn makers reduced run rate during the wheat harvesting season. In Shengze, offers for 32s and 45s were also steady at US$1.99 a kg and US$2.19 a kg, respectively. In India, polyester prices had fallen in early June after surging in H1 May and this reflected in the fall in polyester yarn prices across markets in the week ended 12 June. 30 knitting yarns were down INR2 at INR136 a kg or US$2.12 a kg, down US cents 3, in Ludhiana market while they fell INR3 in Indore to INR149 a kg or US$2.33 a kg. In Pakistan, spinners are seeing sharp drop in their margins for producing 100 per cent polyester yarn since their prices have almost remain static for a long period. 30s spun polyester was pegged at US$2.16 a kg and 60s at US$3.49 a kg.

Spun viscose yarn prices weakened in China and India as upstream viscose fibre cost moderated slightly. In Jiangsu, compact siro-spun 40s yarn was traded at US$3.36 a kg, down US cents 6 on the week while spun rayon weaving yarn 30s in Xiaoshan rolled over at US$2.75 a kg. In India, 30s viscose spun prices were down INR1 at INR184 a kg or US$2.87 a kg, down US cents 3 in Indore market.

Blended yarn prices did not move in China as demand slowed down during the week. This is usual in this part of the year. Polyester-viscose prices slightly declined in Qianqing market. In India, cotton and polyester fibre prices were down in the past two weeks, resulting in a fall in blended yarn prices this week. Both PC and PV yarns prices were down INR2 on the week. Polyester prices were also revised down in early June. In India, PC 30s (52/48) were down INR2 to INR173 a kg (US$2.70 a kg, down US cents 4 on the week) in Ludhiana market. Similarly, 30s (65/35) polyester-viscose yarn were also down similarly to INR161 a kg (US$2.51 a kg, down US cents 4). In Fujian, polyester-cotton 21s and 32s (65/35) yarn were traded at US$2.88 a kg and US$2.96 a kg, respectively.

Courtesy: Weekly PriceWatch Report and Daily Textile Prices Service