According to feedback from cotton yarn traders in Guangdong, Jiangsu and Zhejiang and other places, in the past week or so, inquiries and transactions for imported OE yarn, ring-spun carded yarn and combed yarn (including compact spinning) have remained relatively deserted, with no improvement compared with early December. China Bonded + non-bonded cotton yarn stocks in major ports continue to rise, and some traders have increased cash flow pressure before the end of the year.
A textile import company in Zhejiang stated that the reason for the recent slowdown in imported yarn shipments is in addition to the large number of European and American orders that have returned to Southeast Asian countries since September (such as Vietnam, Bangladesh, India, Pakistan, Indonesia and other countries). level has returned to the level of the epidemic), China-Southeast Asian countries’ shipping freight has skyrocketed and ships are tight, the RMB exchange rate has changed from appreciation to depreciation, and domestic cotton yarn prices have continued to fall, etc., Zhejiang, Jiangsu, Guangdong and other provinces have successively reappeared in the new crown epidemic, and comprehensive prevention and control The upgrading has resulted in textile, printing and dyeing, clothing and other enterprises’ order taking/production/transportation and delivery being greatly affected. Some weaving enterprises in coastal areas have not only reduced or even suspended the purchase of imported cotton yarn, but also delayed shipments and extended delivery in early contracts. goods phenomenon.
Judging from the survey, due to the recent significant decrease in the CNF/CIF quotation of Indian cotton yarn and the continuous rebound of cotton yarn inventory at the port; coupled with the approaching of the end of the year, some weaving companies are less willing to restock before the Spring Festival (5-10 days earlier than in previous years) There are not a few textile and clothing companies on holiday) and other negative factors. Since mid-December, the inversion range of domestic and foreign cotton yarn has narrowed from 700-900 yuan/ton in November to 400-500 yuan/ton. However, traders in various light textile markets, Fabric factories don’t buy it, and most of the cotton yarn is bought as needed, and orders are placed.
A weaving company in Changzhou, Jiangsu said that considering the tight cash flow of downstream companies in December/January, coupled with the recent accumulation of cotton yarn, destocking and return of payment are top priorities. Therefore, some domestic cotton spinning mills and middlemen support buyers 1- There are many ways to pick up the goods, including 3-month account period, domestic letter of credit, and credit. Imported cotton yarns mostly require cash in hand, which restricts traders’ sales and clearance before the end of the year.
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