According to customs statistics, in May 2021, my country imported 168,700 tons of cotton yarn, a year-on-year increase of 66.24%; from January to May 2021, my country imported a total of 975,200 tons of cotton yarn, a year-on-year increase of 35.82%; in 2020/21 (2020.9 -2021.5), my country imported a total of 1.672 million tons of cotton yarn, a year-on-year increase of 24.67%. This year, my country’s cotton yarn imports and cotton imports have grown in parallel (cotton imports from January to May increased by 70% year-on-year), and cotton textile and apparel production and sales have returned to the level before the outbreak of the new crown epidemic.
However, judging from the feedback from customs clearance cotton yarn traders in Guangdong, Jiangsu and Zhejiang and other markets, the quotations of Indian yarn, Pakistan, Vietnamese yarn C32S, C40S and JC32S, JC40S cotton yarn are the same as those of domestic products. Cotton yarns of the same count and quality are basically in line with each other and even have a price difference of 300-500 yuan/ton (some brand yarns have a larger price difference), such as C32 high-quality packaged bleached yarn: the quotations in the light textile market in coastal areas are concentrated at 25,500-25,800 yuan/ton, while The quotation price of C32 packaged bleached yarn of Indian and Pakistani brands reaches 26,000-26,200 yuan/ton.
Why do Chinese weaving companies and middlemen still actively inquire and purchase prices even when the quotations are upside down? The author’s analysis mainly has the following reasons:
First, since 2021, driven by the Federal Reserve’s continued low interest rates and the successive introduction of strong economic stimulus packages by the US government, including the Indian rupee, The Vietnamese dong and other currencies continue to depreciate against the US dollar, which is beneficial to cotton yarn exports;
Secondly, cotton yarn traders generally use the “high quotation, big discount” marketing method, and the actual transaction price is lower than the listed price It is not uncommon to find prices of 200-300 yuan/ton. Although some traders offer higher prices, they allow various settlement methods such as credit purchases, acceptance bills, and domestic letters of credit;
Third, the medium and high C32/C40S yarns in Vietnam, Pakistan, Indonesia and other countries are mainly high-grade, high-index American cotton/Brazilian cotton/Urban cotton/West African cotton (Australian cotton has also gradually opened up markets in Southeast Asian countries). Compared with domestic cotton yarn, The cotton grade is slightly higher (cotton yarn strength, CV value, nep number and other indicators are better), and the weaving loss is also dominant;
Fourthly, the RMB will appreciate significantly in the first half of 2021 Domestic cloth mills and textile and apparel companies bypass cotton yarn exporters in Southeast Asian countries and large domestic import companies and directly place orders with yarn mills in India, Vietnam, Pakistan and other countries, which will help reduce costs and improve the competitiveness of cotton textiles and apparel. </p
