Yarn market overview in July & August 2023

Vietnam Yarn Market Overview:

Vietnam’s yarn exports are diversified with the main products in July accounting for the majority of types:

However, the price trend is still not better, prices of these types have been kept quite stable in the first week of August.

Ne 31,40 CM knitting waxed @3.39-3.59 FOB VN
Ne 20,30 CD knitting waxed @2.83-2.96 FOB VN
Ne 20,30 TCM65/35 knitting waxed/ weaving @2.04-2.16 FOB VN
Ne 10,16 weaving @2.18-2.26 FOB VN

Please refer the chart of PC prices:

Vietnamese spinning mills believe that there is still high demand for yarn in high peak season of August and September, but the market has not yet accepted the prices. A paradox is occurring where raw material prices are approximately equal to finished product prices.

Cotton price: accepted range 2.05-2.10$/kg CIF VN

PE price: accepted range 0.96-1.1$/kg CIF VN

Yes, it’s possible that the stable price trend could continue shortly, given the current circumstances. Various macro economy factors can influence price stability for our our textile industry, and it’s important to monitor the market closely for any potential changes.

Another noteworthy point regarding raw materials that can influence prices is the raw cotton inventory record of the factories:

Currently, the average yarn inventory for factories is around 33-40 days.

In contrast, the defaulted parties maintain yarn inventory for 3 months due to their large purchase quantities.

Overall orders remain limited, with minimal improvement. Some yarn mills reduced production due to high inventory, losses and financial pressures.

Enthusiasm for production remains low due to heavy losses and Vietnamese spinning mills continue to slow operations.

In the short term, the market is in a state of tension, waiting for world demand to recover.

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