NEWS |
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Textile business stayed depressed in July
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In July, the rumor of an extended cotton auction the pace of reserve sales resulted in a slowdown of reserve activity and prompted cotton merchants to liquidate their stocks. Textile business wasin an off-season pattern. This, plus extremely high temperature, have caused some mills to take on holiday or reduce operation.
Cotton merchants expect market price to decrease further as the supply should increase with an extended auction. Sales howeverremain dull despite their aggressive offers. Some cotton traders are already facing loss. Nevertheless, the general bearish tone forced merchants to makea dditional concessions, especially for medium and low quality styles.
Domestic yarn sales was depressed in July dueto rising yarn imports. Yarn makers reported a growing yarn inventory. The grey fabric business was also depressed with a weakening price and a rising stock.
Textile market followed a weakness occurred in June. Lack of orders, slowing down sales ratio and marginal profit are all major challenges for Chinese mills. Reduced production due to high temperature has also keep mills buying hand-to-mouth, mainly from reserve auction. Some dyeing plants are forced to shut down with a strengthened control on environmental protection.
Man-made fiber price rose sharply. Prices inFujian averaged 8540 yuan/ton, up around 800 yuan from June. Polyester staplewas offered at 8750 in Sichuan, up 750 yuan. |
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