The general yarn market in China has shown some improvement over the past 6 to 10 days. The 32s-count carded cotton yarns averaged 19,045 yuan per ton during week ending August 10, which reflected a 70-yuan per ton increase from the previous week. 32s-count combed cotton yarn averaged 23,635 yuan per ton during the same period, reflecting a 55-yuan per ton increase. Local cotton yarn prices have consistently lagged behind that of cotton, but this has not been enough to significantly impact spinners´ profitability. Also, many of the smaller spinners continue to report a buildup in cotton yarn inventories. In Shandong, some spinners of the lower-count yarns have slowed operations due to the lack of profitability.

Source: Globecot