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Open-End Vs Ring-Spun Pricing

A new program underway at N.C. State's College of Textiles uses

Yarn Market ResearchBy Erin Dodd and William Oxenham, Ph.D Open-End Vs. Ring-Spun Pricing A new progam underway at N.C. State's College of Textiles uses ATI pricing data to analyze and forecast production and pricing of open-end and ring-spun yarns. There have been several comments recently in the textile press regarding the differential pricing of ring-spun and open-end (rotor) yarn. Further concern has been expressed about the difference in yarn pricing associated with yarn count, and how this difference is influenced by the yarn type (ring-spun or open-end). Identifying Pricing TrendsA project currently underway at N.C. State Universitys College of Textiles, Raleigh, N.C., is investigating possible approaches to predicting future trends in yarn production in the United States. Various sources of data are being utilized, including data associated with yarn pricing, some of which has been obtained from back issues of ATI. Based solely on data from ATI, it is possible to clearly identify certain trends that are apparent in the figures that follow.Figure 1 shows a comparison of the prices for ring-spun and open-end yarns of the same count (18Ne) from 1984 to the present. The difference in yarn prices is also included (ring-spun yarn price/open-end yarn price), and it is clearly shown that the price difference has increased almost linearly over time.Indeed, while the price difference in October 1984 was 13 cents, the difference in January 2000 was 51 cents. This trend is also shown for other yarn counts for which prices were available.The reason for the increasing difference in prices is that while ring-spun prices showed a general increase (up to 1997), open-end prices either remained static or fell more rapidly than their ring-spun counterparts.Figure 2 compares the prices of 18Ne and 10Ne ring-spun yarns (again from 1984 to the present), with the difference in yarn price due to count also included. While there is considerable variation in price over time, it appears the difference in price between the finer and coarser yarn is increasing slightly.

 Figure 3 shows a similar exercise (comparing prices for 18Ne and 10Ne) for open-end yarns. While the effects are small, the data indicates that for open-end yarns, the difference in price between finer and coarser yarns is diminishing over the time period studied.While the analysis is based on historic data, making it risky to extrapolate to make future predictions, the findings are summarized as follows: The price difference between ring-spun and open-end is increasing. The price difference between finer and coarser counts is increasing for ring-spun yarns.The price difference between fiber and coarser count open-end yarns is decreasing.
Editor's Note: William Oxenham Ph.D, is professor, associate department head and graduate administrator in the Department of Textile and Apparel Technology and Management in the College of Texiles at N.C. State University.Erin Dodd is a graduate student at N.C. State's College of Textiles. She is completing her Master's degree and preparing to enter the Ph.D program in Textile and Apparel Technology and Management.

September 2000