The US dollar dropped further against the Chinese yuan by 1.2% this week, relative to the week before, and continued to place upward pressure on the dollarvalue of Chinese staple fibres, yarns and fabrics.
YTD figures provided by China’s National Bureau Statistics show that cloth production in China dropped year-on-year in 2017 up to November. The difference in accumulated profits in November and October suggests recorded cloth production dropped steeply in November year-on-year, and relative to the previous month.
Pakistan cotton prices have moved positively due to tight supply in the market since early December, despite withdrawing tariffs on Indian imports. The cotton market in Pakistan faced a lot of challenges in addition to its devaluation of currency against the US dollar, but this week Karachi cotton prices remained stable relative to the week before, as prices stabilised.
India’s cotton output was attacked by bollworms in Maharashtra, leading to a downward revision in available supply. India was expected to account for 25% of global cotton production, according to the United States Department of Agriculture. According to the Cotton Association of India, more than a quarter of its production came from Maharashtra in the previous market year, so pest attacks and weak yields in the area could lead to upward pressure in global cotton prices.
Manmade Fibres
- US: Countervailing duties for polyester staple fibre imports benefit US producer
Cotton
- Pakistan: Karachi cotton prices positive YoY but stable WoW
Yarns
- Indian cotton prices dip marginally / Exported yarn prices stable WoW
Wool & Speciality Fibres
- EMI suffers biggest weekly fall in 2.5 years
- Coarse Crossbred Indicator up 2.9% at combined sale