According to feedback from cotton trading companies and weaving mills in Guangdong, Jiangsu, Zhejiang and other places, although domestic and foreign cotton futures have fallen violently since mid-June, domesticcotton yarn quotations have collapsed. Prices for foreign yarns such as cargo/bonded goods and port customs clearance have also dropped significantly, but the price of domestic and foreign cotton yarns has once again increased significantly. Except for some export-oriented and OEM enterprises, exports In addition to European and American orders that have to be inquired and purchased from India, Vietnam, Malaysia and other origins, the overall trading volume of imported cotton yarn is very light. Imported OE yarns and low-count ring spinning yarns (including Pakistani 8S-16S siro spinning) whose shipments in May were unsatisfactory have also seen a significant decline in recent inquiries and transactions and even “misfires”.
A medium-sized weaving factory in Zhejiang stated that since the U.S. government not only imposed an import ban on Xinjiang cotton products, but also “dirty hands” on Uzbekistan and Pakistan cotton, shipments and bonded goods from Uzbekistan since June have The price reduction of CNF/CIF quotation of Stan cotton yarn is significantly higher than that of Indian yarn and Vietnamese yarn, but there are still very few cloth factories and middlemen who have taken advantage of bargains and opened warehouses.
It is understood that due to the ICE cotton futures and Zheng cotton prices plummeting in turn, the prices of cotton and cotton yarn fluctuated rapidly, and cotton spinning mills and traders were unable to cope with it. A large number of cotton yarn traders and import and export companies have been dealing with the situation for more than a week. The cotton yarn spot at the port adopts a closed-stock and reluctance-to-sell mode, with no external quotations for the time being (with actual orders, buyers and sellers negotiate), waiting for the market situation to become clearer, resulting in artificially tight inventories of JC32S and JC40S in Jiangsu, Zhejiang, Guangdong markets, India, Vietnam and other producing areas.
According to the survey, considering that compared with cotton yarn from other producing areas in Southeast Asia, Vietnamese cotton yarn has the advantages of slightly lower price, short transportation distance and better epidemic prevention and control, coupled with the escalation of the U.S. ban on Xinjiang cotton imports, therefore In May and June, the shipment and arrival volume of Vietnamese yarn rebounded significantly.
There is not much time left in June, July is coming, and there are still many uncertainties in the upstream and downstream of the pure cotton yarn industry chain:
On the one hand, judging from the fundamentals of cotton supply and demand, the market lacks favorable guidance and the short-term decline is difficult to change. However, currently there are still a large number of high-cost resources in the hands of ginners that have not yet been sold, and the price difference between domestic and foreign cotton is large, which is a serious inversion. Cotton prices may gradually rebound slightly after a sharp drop. Judging from external news, the drought problem in the western United States and whether India’s planting area can be implemented require continued attention, or there may be a preference for stimulation of the market.
On the other hand, from the perspective of the supply and demand of pure cotton yarn, currently affected by the rapid decline of cotton and poor internal and external sales of terminal textiles and clothing, downstream inquiries for pure cotton yarn are rare and sporadic small order inquiries. The price pressure is serious, some companies with high initial cost pressure continue to suffer losses, and some companies may continue to limit production and shut down to avoid risks. The overall start-up level of pure cotton yarn is low and difficult to improve, while inventory levels are still facing the dilemma of slow accumulation, and the contradiction between supply and demand is still prominent. .
Based on the fundamentals of raw materials and supply and demand, the short-term market is dominated by short sellers. Pure cotton yarn may continue its weak downward trend. The off-season market is obvious, but as the market price falls to a certain level, cost and external support It may be highlighted that upstream cotton may experience a slight rebound, but with high inventories of pure cotton yarn, shipments are still the main focus, and the rebound momentum is insufficient. (Source: China Cotton Network, Longzhong Information)</span
