CNCIC Report: Cotton Fiber and Yarn Markets Stable
July 12, 2012 
The harvest and selling of new cotton was completed nationwide in China on July 6, according to the National Cotton Market Monitoring System, with the following results:
- 99.1% of the new cotton (sold) has been processed by gins, up 0.9 points year over year (YOY)
- 91.3% of the new cotton (processed, including cotton sold to the reserve system) has been sold, up 10.2 points YOY
- 99.3% of fresh cotton in Xinjiang has been ginned so far, up 1.2 points from the same time last year
- Sales progress is 94.5%, up 4.4 points YOY.
The cotton spot market in China has been stable for the last week. The price of cotton futures on the Zhengzhou Cotton Exchange (ZCE) was up slightly as the result of positive external markets. As of July 6, the CNCotton B Index for average price of standard lint cotton in eastern provinces was $1.31/lb, unchanged from last week but a decrease of 20.3% from last year. The average selling price of standard lint cotton in Xinjiang was $1.33, also same as last week, representing a drop 23.1% from last year.
The settling price of ZCE cotton futures contract for September 2012 was $1.32/lb, up 1.4% from last week, but down 20.1% from last year. The average price of the CNCE E-forward contract for September 2012 was $1.32/lb, up 1.2% from last week but down 16.3% from last year.
Yarn Market Also Stable
This week, with price of raw materials consolidated in a lower position, the price of cotton yarn in China remains stable. On July 6, among major varieties, the average price of open end 10S was $1.21/lb, unchanged from last week but down 25.9% from last year. The average price of polyester cotton yarn 45S was $1.44/lb, up 0.05% from last week but a decrease of 20.55% from last year. The average price of pure, cotton combed yarn 40S was $2.16/lb, down 0.07% from last week and 18.58% from last year. The average price of pure cotton carded yarn 32S was $1.80/lb, down 0.04% from last week and 17.4% from last year.
Grey fabric price indices (issued by related organization) showed that on July 6, the price index of CGC32 (pure cotton grey fabric) was $1 per meter, down 0.16% from last week and 11.33% YOY. The price index of CGR30 (synthetic cotton grey fabric) was 80 cents per meter, unchanged from last week but down 14.62% from last year. The price of CG JC40 (pure cotton combed) was $1.40 per meter, the same as last week and down 14.48% from last year. The price index of CGT/C45 (polyester cotton grey fabric) was 78 cents per meter, unchanged from last week but down 20.57% from last year. Finally, the price index of CGOE10 (denim) was $2.21 per meter, the same as last week but down 3.81% YOY.
Source: The China National Cotton Information Center (CNCIC)
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