In the first week of March, with the shock adjustment of cotton yarn futures, the downstream cotton yarn market continued to slump despite the tepid start to the year. The price of 10-count Siro spinning second-line yarn of Basha woven yarn has been adjusted to 23,800 yuan/ton (tax included), which is about 3% lower than last week. As domestic yarn mills reduce prices and add accounts (2 months of repayment, non-cash), sales of yarn are still difficult. The knitting yarn market is also sluggish, but the price adjustment is relatively small. The price of 20-count carded yarn is 28,300 yuan/ton (tax included), 2.5% lower than the previous year, with a small amount of transactions. Overall demand is insufficient and inventory is slowly shipped.
This week, the external market price has dropped significantly due to the Russia-Ukraine war, and foreign factories have a strong willingness to ship. Due to the sudden seriousness of the overall foreign trade situation, Pakistani and Indian factories have worked hard to find orders from China, but prices are still upside down. The second-line price of 10 pieces of Basha is about US$3.42/kg, which is 6% lower than the quoted price of US$3.64/kg in the beginning of the year, but it is still 1,000 yuan/ton higher than the spot price in Guangdong, with a small amount of transactions. India has also immediately cut prices to cater to China’s needs. 32 combs were sold at US$4.55/kg, down 5% from last week, but the transaction was weak and the transaction was small.
The overall feeling is that the current market confidence is insufficient, supply chain companies’ shipment speed is about 1/3 of the same period in previous years, export orders are scarce, domestic demand is insufficient, and the market is worrying.
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