Far from further declining, China spun yarn prices began recovering from their recent decrease. While a large series of quotations remained unchanged or slightly declined on domestic markets, other ones were clearly up depending on places and counts. .
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Average price of 32S carded yarns (100% cotton) rose no less than 500 yuan to 23,000 yuan per ton (US$2.78 per kilo) on Southwest market, for instance. .
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The same 32S yarn price was down 200 yuan (2 US cents) on Qianqing market. Compared with the high levels reached at the start of November, prices were down 1,700 yuan per ton in Qianqing while falling only 1,000 yuan on the Southwest market thanks to last week rebound of 500 yuan. .
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Cotton prices began also recovering in the past week, probably due to the spinners need to cover their short-term consumption. .
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Although production of cotton textiles is rising at a lower rate, there was no decline in China yarn and fabric output after cotton prices surged in October. .
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With production of cotton yarns further increasing, demand for cotton is not expected falling. Cotton spinners could be confronted with excess capacities and lower profits as a consequence of the high level in current costs. Prices of carded cotton yarns also rebounded in Pakistan while prices of combed yarns were down. Average price of 16S carded yarn even increased by 15 rupees per bundle (2 US cents per kilo) in Faisalabad.
Date:12/25/2003
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