Global Spun Yarn Markets In Week of January 28

MUMBAI (Commoditiescontrol) – Cotton and PV yarn prices firmed up in India while cotton yarn markets in China continued mild correction. In Pakistan, coarser yarns were cheaper while finer were dearer, reflecting the government’s move to impose countervailing duty on subsidised yarn above 55NE imported from India.

Cotton Yarn
Cotton yarn prices continued the mild corrections in China as most players were preparing for Chinese Lunar New Year holidays, with spinning mills reporting 10 days’ worth of inventory. Market saw thin liquidity and most players adopted a wait-and-see stance ahead of the holidays. In Shengze, 21s cotton yarn prices rolled over at US$3.14-3.20 a kg while 32s prices were flat at US$3.28-3.32 a kg.

In India, cotton yarn prices were lifted supported by the jumps in cotton values, reflecting pressure faced by spinners in the current period. 30s combed for knitting were up INR3 or US cents 4 at INR205 a kg (US$3.01 a kg).

In Pakistan, coarser count cotton yarns were cheaper while finer counts were dearer as the government imposes import duty of import of yarn higher than 55NE count. Increase in cotton prices also supported the yarn prices. 10s carded cotton yarn declined PakRs2.50 or US cents 5 at PakRs83.50 per pound (US$1.78 a kg) while 30s carded gained PakRs5 to PakRs148 per pound (US$3.15 a kg, up US cents 11).

Polyester Yarn
Polyester spun yarn offers were stable on the week in China as producers mostly shut down units for Lunar New Year holidays, so transaction was quiet. In Shengze, offers for 32s polyester yarn were steady at US$1.82-1.85 a kg while in Qiangqing, 32s weaving yarn was offered at US$1.82-1.83 a kg.

In India, demand remained relatively weak as the demonetization process eliminated many small-sized yarn producers, whereas others may have found it difficult to operate, with production dropping at spinning mills. 30 knit polyester yarn prices rolled over at INR133 a kg (US$1.95 a kg) in Ludhiana market.

In Pakistan, PSF prices have been very stable in the past three weeks, supporting polyester yarn markets. 30s spun polyester was at PakRs120 per pound (US$2.55 a kg) while 60s was steady at PakRs134 per pound (US$2.85 a kg).

Viscose Yarn
Viscose yarn spinners gradually wrapped up their business in China, indicating growing holiday atmosphere. Offers for viscose yarn were generally mixed with some specs rolling over while some gaining. Offers for ring‐spun 30s weaving yarn in Xiaoshan were flat at 20.75 Yuan a kg (US$3.02 kg), while compact siro‐spun 40s yarn in Jiangsu was offered up at 24.60 Yuan a kg (US$3.58 a kg), up US cents 2 on the week.

In Pakistan, viscose yarn prices remained unchanged on Karachi market drawing support from stable VSF cost and rising cotton yarn prices. In Karachi, 35s viscose yarn was at PakRs141 per pound (US$3.00 a kg) while 40s was at PakRs165 a pound (US$3.51 a kg).

In India, growing export demand was supporting viscose yarn markets while stable VSF cost was maintaining spinners margins. Trading was recovering in yarn markets from the disruption of demonetization policy, which had left players cash crunched. 30s viscose spun knitting yarn gained INR2 to INR179 a kg (US$2.63 a kg, up US cents 2).

Blended Yarn
Blended yarn prices were seen gaining grounds owing to rising cotton and cotton yarn prices.

In India, a shift in demand was seen from cotton to poly-cotton and poly-viscose yarns which was expanding sales of blended yarn spinners. Prices of PV yarn were reacting to this change. In Ludhiana, 30s (65/35) PV warp yarns prices were flat at INR150 a kg (US$2.20 a kg) while PC 30s (52/48) prices inched up INR2 to INR175 a kg (US$2.57 a kg, up US cents 2).

In China, yarn markets were generally shutting down for Lunar New Year holidays while imports continued rebounding in recent months. In Qianqing, PC (65/35) 32s yarn prices rolled over at US$2.52 a kg while 45s PC combed yarn prices were stable at US$3.34 a kg, both down US cent 1 due to currency.

In Pakistan, spinning margins have not yet recovered, as raw material costs of yarn producers have surged in the meantime. The government’s package to textiles is helping yarn prices to stay firm. A possible rise in capacities and thereby excess supply could however weigh on yarn markets in future. 20s PC (52/48) carded yarn was traded at PakRs105 per pound or US$2.24 a kg on the Faisalabad market while 30s were at PakRs121 per pound or US$2.58 a kg. PV 30s yarn prices also rolled over at PakRs127 per pound or US$2.71 a kg.



(By Commoditiescontrol Bureau; +91-22-40015522)