Worsted Yarn: No Major Move Despite Weak Yen & Lower Wool Prices

The worsted yarn price for weaving has not shown a major change from last fall when 2/48s worsted wool yarn for weaving was about 1,100 yen/kg and 2/60s worsted wool yarn for weaving was 1,250 yen. (Products from Japanese-affiliated spinning firms operating in China. Prices are quotations) The exchange

has turned to a strong yen and wool market prices at unheard-of low levels have continued in recent years; however, wool market prices have not turned downward at this phase because of their failure to increase prices sufficiently when the yen was falling before that stage. There are some voices among spinners saying that "Yarn prices will move firmly," because the volume of yarn sales has been smooth.

With the proposal of "warm-biz" (wearing warmer clothes in the winter for energy saving) in September 2005, there was much hope for the recovery of demand. Actual moves were visible with a focus on jersey, but as far as weaving yarn is concerned, the situation was "Too late to manufacture spring/summer items for this season" partly because of the lead time problem. There were voices from trading firms saying that "There is not much warm-biz effect" and they pointed out that a rise in weaving yarn prices is in a difficult environment from the demand aspect.

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EMI & Yen Rate