Cotton yarn prices are mixed due to great divergences in cotton costs among the mills

The sharp fall of cotton price induced great divergences of cost among cotton yarn mills. At present, the cost of cotton stocks of the mills averaged at 18,000-19,000yuan/mt, some higher at 20,000yuan/mt or above 21,000yuan/mt and a few lower at 16,000yuan/mt or around.

From the figure above, the cost of producing carded 32S was 23,400-29,000yuan/mt. If the cotton cost is controlled within 17,000yuan/mt, gross weight and delivered, the mills could achieve profit. However, most mills are still at losses of 1,000-2,000yuan/mt with cotton costs of 18,000-19,000yuan/mt. The mills with higher cotton costs offered higher while those with lower costs focused on sales and priced lower. Current prevailing traded price of carded 32S ranged in 24,500-25,500yuan/mt with the one for knitting relatively higher. Lower prices were seen at 24,000yuan/mt or below