According to feedback from some weaving companies and cotton yarn traders in Guangdong, Jiangsu and Zhejiang, etc., due to the sharp decline in India’s domestic S-6 cotton spot and MCX futures prices in recent days (the purchase price of seed cotton has also been reduced in response) and India/Pakistan/Vietnam cotton yarn Affected by the cold shipments of cargo, bonded goods and customs clearance, the CIF/CNF quotations of Indian and Pakistani yarn mills and cotton yarn exporters fluctuated and fell.
However, as of now, although customs clearance cotton yarn transactions are sparse, yarn mill supply prices continue to decline slightly, and the price difference between domestic and foreign cotton yarn has narrowed significantly or even stayed flat or upside down, the price of customs clearance cotton yarn at the port It is still mainly stabilizing at high levels, and there is no phenomenon of large-scale price reduction and selling of goods.
Industry insiders analyze that on the one hand, the RMB has been appreciating against the US dollar since the second half of 2021, and the cost of imports of cotton yarn and other products has increased; Inventory, wait and see, sell slowly” operation, the inventories of various textile markets and cotton yarn traders are at medium to low levels, and the cash flow pressure is not great, so they show strong resilience.
Middlemen in Foshan, Zhongshan and other places in Guangdong said that since mid-November, relevant departments have started the release of imported cotton from the state reserve (mainly US cotton, Brazilian cotton, Australian cotton etc.), the grades and quality labels are relatively good (mainly color grades 12 and 13), and are widely concerned and favored by cotton spinning mills. Price increases and bidding are fierce, resulting in weaving mills’ inquiries and purchases of imported cotton yarns. Significantly slowed down.
A medium-sized cotton spinning mill in Jiangsu believes that considering that Xinjiang cotton costs and sales quotations remain high in 2021/22, as well as low-end and low-profit textile and clothing orders, orders for textiles and clothing in Southeast Asia have accelerated. The actual situation of the return of major countries calls on relevant departments to increase the daily input of Xinjiang cotton in 2019 and US cotton in 2020, alleviate the structural contradictions in the cotton spot market, and provide a “quality” for new cotton and old cotton in 2021/22 from price to quality. Provide guarantee for “integration” transition.
It is understood that for more than a week, the transactions of bonded/customs-cleared OE yarn at the ports of Vietnam and Pakistan have been particularly weak. Some traders even have high prices but no market, and have not opened for several days in a row. </p
