According to feedback from cotton yarn traders in the light textile markets in Guangdong, Jiangsu and Zhejiang and other places, due to the sharp increase in the prices of Zheng cotton and ICE cotton futures in the past two trading days, as well as the improvement in inquiries and purchase of goods by weaving mills, fabrics, and clothing companies, Driven by the pull of the market, the quotations of OE yarn, C40S and below count ring spinning generally have a tentative increase of 200-300 yuan/ton. Some spinning mills have seen prices rise by 300-500 yuan per ton due to low inventories of raw materials and gauze and ample capital flow. The discount range for old customers, large orders, and cash and spot purchases has been significantly narrowed, requiring repeated negotiations between buyers and sellers. However, the trading atmosphere for high-count carded and high-count combed yarns of 60S and above is still light. The quotations of yarn mills and traders in the light textile market have stabilized, and there is insufficient confidence in raising prices.
A light textile import and export company in Shaoxing said that in the past week, shipments of C40S cotton yarn from China, India and Vietnam have been relatively good, and the trading volume of Pakistan’s 8S-16S Siro spinning yarn has also reached a high level. Bottom rebound. As the quotations of Indian OE yarn, carded yarn and combed yarn fell slightly in both internal and external quotations, traders lacked the confidence to raise yarn prices. Regarding market rumors that a certain amount of textile and clothing orders from India, Myanmar, and Bangladesh have been returning to China due to various reasons such as the new coronavirus epidemic and social unrest since late March, middlemen in Zhejiang, Foshan and other places reported that recent inquiries, There are indeed signs of an increase in foreign orders, mainly for home textiles, bedding, jeans, T-shirts, etc. It remains to be seen how much support the production and sales situation of foreign trade companies and textile and clothing enterprises will receive this round. The reasons are as follows:
First, considering that there is great uncertainty about the epidemic situation and social problems in the above countries, most of the orders transferred from some Southeast Asian countries are “short, small and precise”, which has The characteristics of short production delivery time;
Second, orders are “changed” by enterprises in India, Bangladesh and other countries, making the order contract price with very thin profits uncompetitive. China Foreign trade, textile and clothing companies are likely to lose money and make money; in addition, even if European and American customers place orders directly with Chinese companies, they still need to increase the contract price, otherwise domestic trading companies and OEM companies will have difficulty digesting it;
Third, some of the returned orders from Europe, the United States and Japan prohibit the use of Xinjiang cotton products. Domestic companies need to purchase imported cotton, cotton yarn, gray cloth, fabrics, etc. to arrange production. If the order lacks sustainability, domestic textile and clothing companies will be less enthusiastic about accepting orders. Not high either;
Fourthly, the recent strong appreciation of the RMB is not conducive to textile and clothing exports and medium- and long-term foreign orders. According to statistics, in just two weeks, the exchange rate of offshore RMB against the U.S. dollar rose from a low of 6.58 to 6.48, an increase of 1.54%, which put “huge pressure” on foreign trade companies and export-oriented enterprises. </p
