According to feedback from some cotton yarn traders in Guangdong, Jiangsu and Zhejiang, etc., in the past week or so, unlike Vietnam, Indonesia and other producing countries, the quotations of carded and combed cotton yarns have been stable and strong, and cotton yarns produced in India and Pakistan have been shipped, bonded and customs cleared. Quotations have started to rise.
From December 29th to 30th, ICE cotton futures rebounded sharply, reaching a new high in a month. Indian domestic S-6 and other spot prices continued to rise sharply, and MCX futures/CCI auction floor prices were jointly raised. Factors such as the joint increase in the MCX futures/CCI auction floor price drove yarn mills and exporters to passively respond to the increase. , coupled with the accelerated return of orders from Europe, the United States, Japan, South Korea and other countries in the third and fourth quarters of 2021 to India, Vietnam, Bangladesh and other Southeast Asian countries that are gradually restoring production capacity/taking orders, some yarn mill orders have even been scheduled to May-June 2022. Due to concerns about large fluctuations in raw materials, exchange rate adjustments, rising sea freight and uncertain external policies, spinning mills have raised prices to cope with risks. In addition, some traders believe that the increase in the excise tax on textiles in India from 5% to 12% starting from January 1, 2022 will lead to the closure of about 100,000 textile units, so cotton yarn production will be greatly affected. This is also a continuous increase in Indian cotton yarn. s reason.
A large textile import and export company in Zhejiang said that although the recent port bonded + customs clearance cotton yarn inquiries and transactions have not improved much, the supply of high-quality, packaged and bleached C32S/C40S from Vietnam, India and other places is somewhat tight, and traders mostly come from Shandong, Guangdong and other ports transfer goods or purchase cotton yarn for immediate shipment. Regarding the reasons why the supply pressure of imported yarn from some origins and specifications in the internal market is slightly higher at the end of the year, industry analysis includes the following three points: First, since November, the cotton yarn market has shown a trend of “domestic yarn falling, imported yarn rising”, and the price difference between domestic and foreign cotton yarn has increased from ” “Front hanging” has been adjusted to “upside hanging” 300-700 yuan/ton. Therefore, the quantity of foreign yarn purchased by weaving mills and traders has dropped significantly, and the “incoming warehouse of cotton yarn in major ports is lower than the outbound warehouse”; secondly, in the past two months, China’s Not only did the sea freight on the route to Southeast Asia skyrocket, but cargo ships were tight. On the one hand, some cotton purchase contracts signed in the early stage were postponed due to the Indian cotton mills’ declining willingness to deliver goods. They did not enter the bonded warehouse as scheduled; on the other hand, Chinese buyers also did not Dare to place real orders easily, in addition to transportation problems, the sharp rise in cotton prices in countries such as India and Pakistan has also caused a significant increase in the phenomenon of “sitting on the ground to raise prices” and breach of contract. A weaving factory in Shandong reported that the C32 and C40S yarns produced in India/Pakistan/Vietnam shipped in October/November were mainly Indian cotton, American cotton, and Pakistani cotton with low indicators in the mid-to-late period. The yarn quality and stability It is on the low side, and the differences between batches are somewhat large. It is recommended that buyers directly inspect the factory at the port and purchase “bulk goods”.
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