Views: 2 Author: Site Editor Publish Time: 2019-06-21 Origin: Site
2. Offers of cotton yarn tend stable, with increase in some varieties and regions.
With cotton price rising, offers of cotton yarn tend stable, but the trading price is hard to move up with high inventory. In fact, there are discounts in actual trading and some large spinners undersell frequently.
Even so, the prices of some varieties improve. For example, carded 40S for rapier in Nantong increased by 200yuan/mt after the surge of ZCE cotton futures, up by 200yuan/mt again later and was traded well. On the one hand, it decreased sharply in previous period and only approached 21,000yuan/mt delivered even after the rise. The cotton yarn mills still suffer large losses even if they purchase spot cotton and produce immediately. On the other hand, most producers are small and many of them shut down, leading to shrink of production. Thus, once the market improves, tight supply will appear.