According to feedback from some cotton yarn traders in Jiangsu, Zhejiang, Guangdong, Shandong and other places, the transaction price of domestic cotton yarn has continued to fall since November, while the quotations of cotton yarn from India/Vietnam and other places have continued to rise (shipping goods and bonded cotton quoted in US dollars). Coupled with the escalation of epidemic prevention and control in some areas, although the power cuts in most domestic provinces have been greatly alleviated in the past half month (the “double limit + double air” alert in Henan, Jiangsu and other areas has been lifted), weaving factories, The overall operating rate of garment enterprises has gradually recovered. However, due to the sharp narrowing of the price difference between domestic and foreign cotton yarns, the competitiveness of imported cotton yarns has declined. Port bonded, customs clearance, yarn inquiries and shipments from India, Pakistan, Vietnam and other origins are not smooth. Some mainly operate C20S-C40S Traders of high-quality, bleached knitted yarn were even deserted, with no customers placing orders to pick up goods for three or four days.
A textile raw material company in Shaoxing said that although the spot transaction of cotton yarn at the port has slowed down significantly in the past week or so compared with September and October, OE yarn and 40S yarn from yarn mills in Vietnam, India and other countries have Prices for carded/combed ring-spun cotton yarns and below are rising steadily (CIF, CNF quotes); coupled with the weakening of power restrictions, the supply capacity of domestic cotton yarns has accelerated, so inquiries and contract purchases of external cotton yarns have been suspended. A trading company in Foshan, Guangdong reported that due to the recent sharp rise in domestic cotton yarn prices in India, CNF/CIF quotations have also increased. The procurement contracts signed in July/August/September may face implementation difficulties. Some small and medium-sized Indian yarn mills have informed buyers that they are adjusting the contracts. Choose one of three options: price (additional attachments), contract cancellation, or 1-2 month delay in shipment.
From the survey, the price difference between India/Vietnam C32S medium and high-grade yarn and domestic yarn has shrunk to 100-300 yuan/ton on November 10-11. The CY2201 contract price is 800-1,000 yuan/ton higher than the spot price. It is difficult for traders to achieve basis sales for customs-cleared cotton yarn. However, the quantity of imported cotton yarn expected to arrive at Hong Kong for delivery in October/November is still relatively large (China imported 179,000 tons of cotton yarn in September , the industry predicts that October will show a slight decrease from the previous month but an increase from the same period last year). Therefore, the cotton yarn inventory at the port has not only stopped falling and rebounded, but it is also difficult to turn around in the short term. </p
