Meanwhile, with the dramatically decrease of cotton prices in New York and sharply declining on physical markets, cotton yarn prices could also fall in the coming days and weeks. Prices are already down on China domestic markets while export prices of India cotton yarns also fell in the past two weeks. .
.
Cotton prices literally plunged in New York in the past seven days. The key March contract fell from 74.10 US cents per pound on 17 November down to 70.09 cents on 24 November, a 5.41% fall in only seven days. .
.
Prices are also plummeting on physical markets, again down between 0.5 and 2.50 cents on Monday. .
.
In China, cotton prices began sharply decreasing since the end of last week on the CNCE (China National Cotton Exchange). .
.
They again decreased between 250 and 300 yuan per ton on Tuesday after falling between 50 and 250 yuan on Monday.
In China, average price of carded 32 s cotton yarns rose from about 18,500 yuan per ton (US$2.28 per kilo) on September 19th up to 24,000 yuan (US$2.90 per kilo) by November 3rd. .
.
As a consequence, demand from downward processors dramatically fell. Far from surging, prices of cotton fabrics were slightly up while prices of apparel did not change at all. .
.
After surging in the first part of the year, China cotton yarn production began sliding. .
.
With cotton costs now declining, yarn makers will have more room for lowering their prices. Cotton costs usually account for 60% to 70% of their total costs. .
.
Prices of 32s cotton yarns last week decreased 1,000 yuan on China South western market as a clear sign of a possible fall in other quotes. Prices remained unchanged on Qiang Qing market at the same time. .
.
Since the recent rise in cotton yarn prices was actually not accepted by yarn consumers, yarn makers could be rapidly forced in lowering their prices. .As another sign of a possible reduction in prices, foreign demand for Indian cotton yarns suddenly fell in the past two weeks, according to Indian sources. .
.
After orders from Hong Kong and Korea surged in the previous weeks, importers stopped purchasing cotton yarns. .
.
As a result, export prices fell between 5 cents and 10 cents per kilo and domestic cotton prices immediately declined after surging in the previous weeks. Cotton prices are also depressed by the arrival of large quantities of the new crop, delayed for weeks by unfavorable weather. .
.
India yarn processors in hosiery and weaving industries are still waiting for a decrease in yarn prices. .
.
In Tirupur, a one-day hunger strike was even organised by spinners on Monday in order to protest against the recent surge in yarn prices
Date:12/4/2003
Source: