Cotton Prices Surge In China After Spring Festival Holiday

Market News

Cotton Prices Surge In China After Spring Festival Holiday

During Chinese Spring Festival, ICE cotton futures broke through 90 cents/lb. On the first trading day after Spring Festival holiday (Feb 11-17), ZCE cotton futures and cotton yarn futures surged successively. May contracts of ZCE cotton futures rushed and breached 16,000yuan/mt. On the back of skyrocketing cotton, cotton yarn market saw an increase of 500-1000 yuan/mt in offers of cotton yarn mills. However, the market is hazy despite the rise of price. Very few transactions have been reported at the higher yarn price. Weavers did not see obvious increase in new orders during the holiday. Also, traders had heavily restocked before the Spring Festival holiday. While they adjusted their prices upwards due to the rise of ZCE cotton futures, no transactions were reported at the higher prices. If demand does not pick up in March, they may be forced to offer discounts.