8 August 2012
Yarn prices are now rebounding on the international market, being pushed up by strong textile fiber prices and a surge in Chinese demand for Indian yarns. Our monthly report offers a review of effective price deals settled between Asian sellers and their final customers in Europe and Latin America. Our statistical tables cover cotton, polyester, viscose and blended yarn prices.
Spun yarn prices began rebounding in the past month on the international market, due to a series of factors.
First, cotton prices have stopped falling on the international market and could now even start rebounding.
Polyester staple fiber prices are now surging in China after strongly falling until early July.
Viscose prices are similarly jumping to higher levels.
Second, demand for cotton yarns is increasing on the international market, after China accumulated very large stocks which are still stuck in domestic warehouses.
Chinese spinners are consecutively confronted with the very high level in domestic cotton prices which were artificially supported by Beijing.
As a result, yarn processors prefer importing their raw materials from other sources, and mainly from India.
Indian spinners are now taking advantage of a sharp rebound of demand from foreign markets, but also from their domestic customers.
Cotton prices are soaring in India, due to a delay in the monsoon and an expected fall in cotton production in the next season, starting from October 1st.
Indian yarn exporters have also benefited from a fall of the rupee in the last months, limiting the recent rise in yarn prices in US$ terms.
Demand from Brazil is also returning to stronger levels on the international market, while Turkish imports are still limited by safeguard measures imposed by Ankara.
European buyers have no choice but to accept higher prices, eventually, whatever the current fall of the euro resulting in higher prices in euro terms.