CNCIC Report: Spot Price Down Slightly, Yarn Stable

By Jim.Robinson|May 3, 2012

According to the National Cotton Market Monitor System, as of April 27, harvest of new cotton had been completed nationwide; 98.3% of the seed cotton (harvested) had been sold, increased by 1.9 points YOY; 98.4% of the new cotton (sold) had been processed by gins, up 1 point YOY; 83.8% of the new cotton (processed, including cotton sold to the reserve system) had been sold, up 23.7 points YOY; Harvest and selling of new cotton in Xinjiang had been completed; Ginning progress reached to 98.3%, up 1.5 points YOY; Sales progress was 87.2%, up 13.2 points YOY.

This week, the cotton market in China was still sluggish. Because spinners were inactive in procurement, spot price was down a bit. Volatile price in ZCE cotton futures and CNCE E-forward markets was down. On April 27, average procurement price of seed cotton in eastern provinces was 8.14 Yuan per kg, same as last week. It decreased by 2.98 Yuan per kg, or 26.8% from last year. Average procurement price of seed cotton in Xinjiang was 8.50 Yuan per kg, same as last week. It decreased by 2.38 Yuan per kg, or 21.9% from last year. CNCotton B Index for average price of standard lint cotton in eastern provinces was 19,408 Yuan per ton, decreased by 24 Yuan per ton, or 0.1% from last week. It decreased by 7,623 Yuan per ton, or 28.2% from last year. Average selling price of standard lint cotton in Xinjiang was 19,986 Yuan per ton, same as last week. It decreased by 8,077 Yuan per ton, or by 28.8% from last year. Settling price of ZCE cotton futures contract May 2012 was 20,370 Yuan per ton, decreased by 260 Yuan per ton, or 1.3% from last week. It decreased by 5,920 Yuan per ton, or 22.5% from last year. Average price of CNCE E-forward contract May 2012 was 19,962 Yuan per ton, decreased by 85 Yuan per ton, or 0.4% from last week. It decreased by 5,941 Yuan per ton, or 22.9% from last year.

Cotton Yarn Price Stable

This week, cotton yarn price was generally stable with slightly increased volume of transaction. On April 27, among major varieties, average price of open end 10S was 18,000 Yuan per ton, down 0.28% from last week. It decreased by 28.43% from last year. Average price of polyester cotton yarn 45S was 21,330 Yuan per ton, down 0.28% from last week. It decreased by 26.57% from last year. Average price of pure cotton combed yarn 40S was 31,080 Yuan per ton, down 0.03% from last week. It decreased by 27.25% from last year. Average price of pure cotton carded yarn 32S was 26,080 Yuan per ton, same as last week and down 26.33% from last year.

Grey fabric price indices issued by related organization showed that on April 27, price index of CGC32 (pure cotton grey fabric) was 6.51 Yuan per meter, down 0.15% from last week and 17.8% YOY. Price index of CGR30 (synthetic cotton grey fabric) was 5.43 Yuan per meter, up 0.37% from last week and down 17.98% YOY. Price of CG JC40 (pure cotton combed) was 9.2 Yuan per meter, same as last week and down 18.08% from last year. Price index of CGT/C45 (polyester cotton grey fabric) was 5.22 Yuan per meter, same as last week and down 23.24% from last year. Price index of CGOE10 (denim) was 14.2 Yuan per meter, same as last week and down 4.05% YOY.