According to feedback from some textile import and export companies in Guangdong, Jiangsu and Zhejiang, etc., since late June, weaving companies and cotton yarn middlemen in coastal areas have continued to rebound in inquiries and requests for imported cotton yarn. Vietnamese yarn, Indian yarn, Indonesian yarn, etc. Mainly, the yarn from Central Asia and Uzbekistan is also subject to the import ban on cotton products from the United States and the European Union, so the transaction is relatively deserted, and there is a phenomenon of selling goods at low prices.
A medium-sized weaving factory in Xiangshan, Zhejiang said that due to the recent large reduction in FOB/CIF quotations of carded 20-32S cotton yarn from Indian yarn mills and exporters, the company’s knitted textiles and apparel export markets are mainly the United States and the European Union (a small amount of Christmas products). Festival orders are expected to be placed in advance), so we started to place actual orders 1-2 months in advance to yarn mills (brands, large factories) in India and Vietnam that we have cooperated with all year round.
Why are weaving mills and fabric companies interested in signing contracts to purchase imported yarn? Industry analysis mainly has the following three reasons (the fluctuation of RMB exchange rate will not be discussed):
First, since mid-June, the inversion range between the RMB quotation of imported cotton yarn and the quotation of domestic cotton yarn has continued to narrow. For example, the price difference between C32 high-quality packaged bleached yarn produced in Vietnam and domestic yarn has been reduced to 1,000-1,200 yuan/ton; while the price difference of C32 packaged bleached knitting yarn from India has been reduced. The price difference with domestic yarn has also recovered to 1,500-1,700 yuan/ton, and the competitiveness of imported yarn continues to rebound.
Second, the U.S. ban on Xinjiang cotton has been fully upgraded since June 21, and other Southeast Asian and ASEAN countries are also involved (Xinjiang cotton is banned from exports to the U.S.). In addition, the European Union has followed the U.S. in banning Xinjiang cotton products from entering the market, so there are export orders Companies that may plan to export single-woven fabrics and fabrics to Europe and the United States have a rigid demand for imported cotton yarn.
Third, compared with imported cotton yarn, directly imported cotton yarn can be said to be “more, faster, better, and more economical”. Judging from the survey, the recent quotation price differences between Brazilian cotton, US cotton and inland warehouse Xinjiang cotton 3129B have reached 2000-2500 yuan/ton and 2500-3000 yuan/ton respectively, while the price difference between imported Indian/Vietnam cotton yarn and domestic yarn is concentrated. At 1,000-1,500 yuan/ton, it is obvious that purchasing imported yarn directly saves time and reduces costs.
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