Cotton yarn traders in Guangdong, Jiangsu and Zhejiang and other places have reported that compared with inquiries and shipments of Vietnam-made OE yarn and ring-spun yarn (including compact spinning), the transaction performance of Indian/Pakistani cotton yarn has been unsatisfactory since late January, regardless of shipment, bonded or customs clearance. It continues to be weak, but with the support of “remaining high” external quotations of Pakistani yarn and the lack of pressure on imported yarn inventories, trading companies have not lowered their quotations for Pakistan’s 8S-16S Siro spinning yarn and C32S and C40S cotton yarns by much, and are more willing to resist the decline. concentrated.
According to statistics from relevant departments, Pakistan’s cotton yarn export volume in January 2022 was only 19,000 tons, a month-on-month decrease of 32%, and a year-on-year decrease of 40%; while in January, Pakistan’s textile and apparel exports increased by 17.30% year-on-year, and decreased by 4.39% month-on-month. Against the backdrop of the downward trend, the negative consequences of a sharp increase in cotton yarn quotations, a decrease in domestic and foreign sales orders, and an increase in cotton consumption have gradually emerged.
At present, the CNF/CIF quotation of Pakistani cotton yarn is seriously “inverted” with that of domestic yarns from China, Vietnam, Bangladesh, etc., and the export of Pakistani yarn has encountered strong resistance from buyers; some procurement contracts signed in the early stage have been canceled due to Pakistani yarn mills raising prices and delaying delivery. Forced to cancel. As the price of cotton in Pakistan continues to rise in 2021/22, the profits of spinning mills have dropped sharply, and non-standard power supply has caused losses to Pakistani cotton textile enterprises. Therefore, cotton spinning mills have been in a very difficult situation since late January 2022. Pakistan Cotton Inquiry , procurement has also been significantly slowed down or even suspended.
It is reported that Pakistani textile companies continue to increase contract purchases of low- to medium-quality and low-basis American cotton, Brazilian cotton, West African cotton, etc. The substitutability of Pakistani cotton has greatly increased, and the tight domestic cotton supply situation in Pakistan has been alleviated to a certain extent. In addition, there is recent news that Pakistan will introduce high-quality cotton seeds in 2022, significantly increase the cotton planting area, increase the cotton supply capacity in 2022/23, and reduce the dependence on imported cotton (Pakistan’s early-sown cotton areas have good weather, which is conducive to new cotton planting).
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