Cotton yarn prices softened across Asian markets due to persistent weak demand and falling cotton fibre prices. In China, mute demand led to shrinking sales and increasing inventory, which drove mills to cut operations and sell at discounts. In India, cotton yarn prices fell but marginally, with a decline of INR 1 per kg for certain counts in the last week of July.
In Pakistan, cotton prices reached their lowest in a year weakening the local yarn markets with limited trading activities recorded post Eid holidays. Polyester yarn prices sharply dropped with even a new price reduction at the start of the week in Pakistan. Prices continued to decline due to a lower level of import offers from China and also due to a sharp fall of cotton prices on the domestic market in July end.
In India, polyester yarn prices remained stable as PSF price did not move but could be lowered in early August. In China, spun polyester yarns in Shengze of Jiangsu were down, while transaction volume decreased somewhat.
As demand was slowing down from processors, upstream VSF prices have stabilised. However, the upward momentum has slowed down considerably over the week indicating void surges in near future since supplies are expected to enhance. In India, viscose yarn price moderated marginally although VSF prices were firm. In Pakistan, viscose yarn prices rolled over.
Courtesy: Weekly PriceWatch Report
