China’s forward imported yarn market remains sluggish and the Coronavirus (COVID-19) outbreak has worsened demand for imported yarns. Weavers are gradually returning to work, especially the large scale companies. But small and medium-sized weavers are still shut down. Besides restrictions on travelling, logistics has been impacted too, with delays in deliveries, transportation, resulting in stock accumulation. Trading will be dull for some more time.

Indian exporters are burdened with stocks due to few purchases from China in the past two months, and the recent reduction in orders from Bangladesh and Egypt. Judging from the price spread between the spot and the forward, the latter is much higher than the former, and buyers may be more cautious in purchasing. Vietnamese carded 32S for airjet increased and the Indian yarn price spread dropped.

The PFY market remained largely quiet. Only some companies revised down offers, and most leading companies sustained their pre-holiday price levels. Most market players retreated to the sidelines, so transactions failed to rise apparently. Meanwhile, for the downstream market, the traditional peak season of the textile industry in March to May is anticipated to be discounted when sales of winter wear and spring wear are dragged down by the epidemic and some exporting orders are transferred.