According to feedback from cotton yarn trading companies in Jiangsu, Zhejiang, Shandong and other places, inquiries/transactions for imported knitting yarn, low-count ring spinning yarn and OE yarn have continued to pick up since early February. OE8S-OE16S yarn shipments have accelerated. Weaving companies in coastal areas, The willingness of middlemen to replenish their stocks has rebounded; however, the performance of high-count carded/combed yarns of 50S and above from India, Vietnam and other producing countries is still mediocre, and the demand rebound is not strong.
A large textile import and export company in Zhejiang stated that the Spring Festival holiday will have little impact on cotton yarn imports. It is estimated that the volume of imported yarn arriving at the port in January may be slightly more than 60,000 tons (a year-on-year decrease of more than 45%), which is higher than that in November 2022. In April and December, the proportion of Vietnamese yarn, Indian yarn, Pakistani yarn and Uzbekistan yarn was still at the forefront. On the one hand, since December 2022, the operating rate of yarn mills in India, Vietnam, Indonesia and other countries has continued to recover, and production capacity has increased significantly (according to statistics, as of now, the overall operating rate of Indian yarn mills has rebounded to more than 60%), and supply exceeds demand. The trend is obvious, and the export pressure of yarn mills and traders is increasing; on the other hand, with the comprehensive optimization of China’s epidemic prevention and control measures in December, cotton yarn consumption rebounded rapidly; coupled with the low cotton yarn inventory of most weaving mills and middlemen, All parties are strongly optimistic about China’s imported yarn market in 2023.
Judging from the quotations of some yarn mills in India, Pakistan and Vietnam, compared with the general increase in domestic cotton yarn prices by 500-1,000 yuan/ton after the holidays, the price increases of imported yarns, regardless of FOB/CNF quotations or port clearance cotton yarn quotations, are relatively low. For example, Vietnam The quotations of yarn and Uzbekistan yarn are both stable and relatively strong, and yarn mills and exporters are more cautious in raising prices; while Indian carded/combed yarn has rebounded in domestic cotton prices, downstream orders have picked up, and the Indian rupee has shown an appreciation trend against the US dollar since January. Supported by other factors, the intensity and magnitude of quotation increases are stronger than those of cotton yarn from other origins.
A cotton yarn company in Hutang, Changzhou believes that due to the sharp year-on-year decline in cotton sales in India and Pakistan in 2022/23 (output may still be overestimated); coupled with the slowdown in the pace of interest rate hikes by the Federal Reserve in 2023, the global economic recession and textile and clothing consumption Concerns about decline have significantly weakened, and the trend of European and American orders tilting towards Southeast Asia has not changed. Therefore, in the first half of 2023, yarn quotations from India, Pakistan, and Vietnam are in a state of “easy to get up and difficult to get off”. Therefore, for fabric factories with rigid demand and receipt of traceability orders, Or traders should place orders as early as possible to avoid missing the opportunity to restock.
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