Viscose yarn price slips due to weak currency in China

In China, mainstream prices of 40s compact siro-spun yarn in Jiangsu were down US cents 3 a kg in the first week of January (due to weak Yuan) while 30s spun viscose in Xiaoshan fell US cents 5 a kg.

In China, spun viscose yarn prices stopped declining amid smooth liquidity. Offers for siro-spun yarn and compact & siro-spun yarn were unchanged on the week.

With previous stocks digested, some yarn makers saw sale/production ratios closer to 100% or slightly lower.

In Pakistan, business activities were slowing down on the domestic yarn markets due to a decline of yarn and fabric exports. 30s and 40s viscose yarn were stable in Karachi market.

Recovery in demand is however expected in coming weeks, as yarn processors will replenish inventories after they were reduced to low level at the end of the 2015.

In India, with VSF prices holding firm, viscose yarn prices generally firmed up on the week.

30s viscose spun yarn prices gained INR1 a kg on the week (up US cent 1) in Indore market.

Courtesy: Weekly PriceWatch Report

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