August yarn prices are a mixed bag in Asia
Cotton yarn market again lost ground, and participants were holding bearish expectations over the future trends amid sluggish sales
In the week ended 15 May 2015, cotton yarn markets showed signs of weakness. In China, sale/ production ratios reported fell at some spinning mills in China while outlook turned even gloomier given the increase in inventory levels. Prices were unchanged due to a lack of demand from downward processors. In Shengze, 32s cotton yarn was pegged in the range of USD 3.37-3.44 a kg, while 21s was at USD 3.29-3.36 a kg.
Prices in India were seen easing in line with cotton fibre prices while the same in Pakistan moved up. In India, 30s combed for knitting was down INR2 a kg on the Ludhiana market. 30s carded cotton yarn for weaving in Pakistan was priced at USD 2.82 a kg while combed was quoted at USD 3.16 a kg.
The sluggish demand in further downstream has started taking its toll on polyester market sentiment. Polyester spun yarn prices were stable to firm in China, and deals were concluded in small volumes due to lack of substantial demand. While most yarn makers kept running at stable rate, demand remained was sluggish as inventory with fabric makers piled up. In Shengze, offers for 32s spun polyester were around USD 2.06 a kg, while 45s was at USD 2.21 a kg. In Qianqing, 32s offers were hiked US cents 4 from last week to USD 2.10-2.13 a kg.
In Pakistan, polyester yarn prices mostly rolled over on stable raw material pricing with 30s pegged at USD 2.12 a kg. Prices in India reflected the recent hike in PSF prices at the beginning of this month. 30s yarn for knitting were up INR0.50 a kg in Ludhiana market while they were up INR2 in Indore market.
Viscose spun yarn prices were flat in China and volume off-take was slower than expected, exerting downward pressure on market sentiment. Yarn makers did not support the recent hike in VSF prices and kept their offers flat. In Jiangsu, compact siro-spun 40s yarn was traded steady at USD 3.44 a kg while weaving yarn 30s in Xiaoshan was quoted at USD 2.75 a kg.
Viscose yarn price in India rose in local currency reflecting the recent hike producers’ prices for VSF early this month. 30s viscose spun prices inched up INR1 a kg in Indore market while the same for weaving in Bhiwandi was quoted at INR193 a kg.