According to feedback from cotton textile enterprises and traders in Henan, Shandong, Jiangsu and other places, most manufacturers have been on holiday since January 25, and various light textile markets have also closed. Cotton yarn inquiries and transactions have basically stagnated, and logistics and transportation have also been significantly reduced. .
Traders in Foshan, Zhongshan and other places in Guangdong are expected to open their markets from the eighth to the tenth day of the first lunar month. Traders in Shaoxing, Zhejiang, Changzhou and Nantong, Jiangsu also plan to start operations around the tenth day of the first lunar month. Shandong and Hebei will be 1-2 days later. A textile company in Zhejiang said that currently there are only a few yarn mills providing quotations. Considering that ICE cotton futures and other external markets may experience large fluctuations during the Spring Festival, traders are more inclined to light up their positions for the New Year and take vacations in advance.
Judging from the survey, since mid-January, some traders have switched to a pre-sale model for selling imported cotton yarn. Orderers are required to pay a 10-20% deposit after placing an order, and the delivery date is mostly between March and April. Industry analysts believe that at present, cotton yarn produced in India, Pakistan and other places is still significantly inversely related to domestic cotton, and the risk of signing a large number of imported cargo or bonded goods is relatively high. Once the price of cotton yarn in the domestic and foreign markets collapses and falls, traders will be unable to bear the losses. In addition, affected by the surge in cotton and cotton yarn prices in India and Pakistan, the willingness of Indian and Pakistani yarn mills to deliver goods according to the contract has also declined rapidly. Some weaving companies and traders said that after the Spring Festival, they plan to increase the purchase of C32 and C40S cotton yarn from Uzbekistan, Turkmenistan and other producing areas in Central Asia to avoid the risks of operating high-priced cotton yarn from India and Pakistan.
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