6 October 2011
Yarn prices recovered on the international market, as a result of lower inventory levels and a decline in Indian yarn production. The new trend is closely reflected by our series of statistical tables, offering effective prices agreed on between exporters and yarn processors in importing countries. Coverage includes cotton yarns, polyester mélanges, viscose spun, polyester-viscose, vortex, etc.
Yarn prices finally rebounded on the international market in September.
This is mostly due to a fall of inventory levels in the previous period with yarn processors being therefore forced to fulfill immediate needs.
At the same time, spun yarn production also fell to very low levels in India after a series of plants have shut down facilities.
Faced with financial difficulties, a large number of Indian spinners were unable buying cotton again when demand began recovering.
Cash-strapped cotton buyers could not order needed fibers while dependent on longer term payments from their customers.
Eventually, yarn output is not recovering in line with the rebound in demand in India, with spun yarn prices therefore significantly rising.
The level in raw material costs remains relatively difficult to predict with cotton and polyester prices moving up and down, depending on weeks.
Yarn exporters are clearly happy with the new upward trend, although this is far from certain prices will continue rising in the coming period.