Textile Cotton Fabric Exporter

31 December 2008 - The spandex market prices again fell in the last two weeks in China, being depressed by a new decline in raw material costs and a lack of demand from textile processors. Such a new drop in elastane prices is in sharp contrast with other fiber markets in China which were stabilized in the last weeks. This is a clear sign that spandex use is more sharply falling than for basic fibers like cotton and polyester.

30 December 2008 - EU bed linen imports continued rising in the first three quarters of the year, especially in US$ terms. China took a strong advantage of the removal in quotas while Pakistan further strengthened its leading position. Shipments from Bangladesh surged while still stagnating from India. The European market should be affected by the recession in 2009 but India and Pakistan will benefit from the removal of additional tariffs imposed by Brussels in 2004.

30 December 2008 - Polyester prices stayed unchanged in the last seven days in China, in line with more stability in raw material costs and cotton lint market. Demand is extremely low ahead of new year's day with a series of plants expected shutting down for a while. Prices should stay at the same level in the coming weeks, until after lunar year holidays by early February.

29 December 2008 - For the first time in months, the paraxylene market was disconnected from the oil market in the last week, experiencing a sharp increase in Asia while crude futures were declining in New York. This is a new sign that a significant reduction in Asian production will offer some support to prices in the near term. On the other hand, poor demand from downstream processors may rapidly limit any rise in prices, as already observed on the PTA market in the last week.

29 December 2008 - Cotton prices further rose in the last week in New York, being supported by the fall in the US dollar. Demand remains however extremely weak on the physical market, as reflected by the very small rise in the "A Index" in the past week, consecutively. There is no sign yet of a possible rebound in cotton prices in January. Domestic prices are still supported by state intervention in China, Pakistan and India.