Cotton prices are showing signs of stabilizing in China, the world’s largest consumer of the product, says industry traders, boosting confidence in the cotton yarn market following a slide in prices early this year.
“We are not concerned about the cotton price drop in China as it is dropping globally, also in Pakistan. This means our costs are now lower,” said Syed Abedin Ahmed Rizvi, sales and marketing manager at Pakistan cotton yarn producer Indus Dyeing & Mfg Co Ltd as cited in a release by fair organizers at Yarn Expo Autumn 2014 in Shanghai, China.
“Despite the price drop, demand and consumption of cotton yarn in China is the same, so it is not affecting our business,” he said.
Farooq Saeed of Keywin Trading Ltd shared Rizvi’s view. “No matter the situation, everyone still needs to wear T-shirts and jeans. Price is not an issue; it is the relations with buyers that matters,” he said.
“While the cotton yarn market is bottoming out from a consolidation, the high-end fibre market is still resilient,” Saeed said.
Liangfeng He, manager of Ningbo Yinzhou Tengfeng Textile Co Ltd, said: “I have signed a seven-container contract for cotton yarns with a Thai supplier at the fair just now,” in a sign that the market remains healthy.
Yarn Expo Autumn 2014 saw over 18% more visitors passing through its doors compared to the last Autumn Edition. The expo is one of the platforms for yarn suppliers to tap into the global market.
A total of 7,098 visitors from 62 countries and regions came to source from nearly 150 yarn suppliers during the three-day event, held from October 20 at the Shanghai New International Expo Centre.
The top five visitor countries were Korea, Hong Kong, Japan, the United States and Taiwan.
