According to feedback from cotton yarn trading companies in Ningbo, Zhangjiagang, Qingdao and other places, affected by the continuous downward breakthroughs of the main ICE cotton futures contracts last week, the continued high level of cotton yarn inventories in major domestic ports, and the continuous appreciation of the RMB against the US dollar, Vietnam, India, The competitiveness of cotton yarn shipments from Pakistan, Uzbekistan and other origins has increased (FOB, CNF or CIF quotation); while the port customs clearance cotton yarn and bonded yarn have a strong atmosphere of price hikes by traders, and the quotations of OE yarn and C40S and below count cotton yarn are mostly weak. After stabilizing, it is very rare to follow ICE and Zheng Cotton to significantly reduce prices and sell goods.
Judging from traders’ quotations, the “inversion” range of imported cotton yarn and domestic yarn in C32 from May 15th to 17th was about 500-600 yuan/ton (not taken into account The difference between gross weight and net weight settlement, the actual price difference may be 200-300 yuan/ton or even the same). A light textile import and export company in Shaoxing said that the quotations of domestic and foreign cotton yarns are “upside down” and the quality indicators of high-count combed yarns of 40S and above in India, Vietnam, and Central Asia (mainly Uzbekistan) are not very stable. Therefore, overall, the prices of various cotton yarns in coastal areas are In the light textile market, inquiries and sales of imported combed yarn are slow, and the mood of both buyers and sellers is not high.
Why are Chinese weaving mills, fabric and clothing companies not enthusiastic about signing contracts to purchase imported yarn shipments? The industry summarizes the following points:
First, the spread of the COVID-19 epidemic in Southeast Asia is accelerating, and some countries have comprehensively upgraded prevention and control. There are great problems in yarn mill ordering, production, shipping, and delivery dates. Second, sea freight continues to soar and containers and cargo spaces are “hard to find”. On the one hand, the cost increase of imported yarn has completely offset the benefits of RMB appreciation; on the other hand, it is difficult to determine the contract performance period (the key depends on the epidemic situation) ); Third, yarn mills in India, Pakistan, Indonesia and other countries need to place orders for shipments 1.5-2 months in advance and the contract deposit ratio has increased (some brands and large-scale textile companies require a deposit ratio of 30%-50% or even full payment) ), due to the large variables such as the epidemic, exchange rate, and textile and clothing export situation, domestic yarn companies are very cautious in signing contracts for distant shipments. </p
