According to feedback from weaving companies and cotton yarn traders in Jiangsu, Zhejiang, Guangdong, Henan and other places, global trade, economy, exchange and consumption have entered a strong stage due to the joint rise of ICE and Zheng cotton futures since early February and the turning point of the new crown epidemic in Europe and the United States. With good support such as the rebound channel, cotton yarns from India, Pakistan, Vietnam, Indonesia and other origins have all increased in recent days, regardless of shipment, bonded or customs clearance quotations. Among them, the increase in cotton yarns from India, Vietnam and other origins is higher than that of Pakistani cotton yarns.
Weaving companies in Foshan, Zhongshan and other places in Guangdong said that the resumption of work and production after the holiday this year is 3-5 days earlier than in previous years. Most of the surrounding denim, knitted fabrics, and bedding manufacturers are concentrated in Start work before the tenth day of the first lunar month. On the one hand, there are still a certain number of regular orders that have not been completed and delivered before the Spring Festival. With the recent sharp rise in quotations for cotton yarn and other raw materials, end customers hope that cloth and fabric factories will advance the delivery date; on the other hand, from the perspective of epidemic prevention, From the perspective of control, this year all regions and production companies encourage employees to celebrate the New Year in place, which reduces the risk of mobility. Therefore, the attendance rate and resumption rate of production personnel are high.
However, several textile and clothing companies have reported that due to relatively low inventories of cotton yarn, gray cloth and other raw materials before the holiday, the quotations for bonded + customs cleared cotton yarn and domestic yarn at ports have increased sharply after the holiday (some mills have tentatively raised the price of cotton yarn by 500 -1,000 yuan/ton), so gauze price inquiries and effective purchases have not yet started after the year, and the short-term focus is on digesting raw material inventories. After the holiday, “weather vanes” such as Zheng cotton and Zheng cotton yarn guided the spot price to rise. Not only did the profits of domestic sales and foreign trade orders received in December/January decline significantly, or even no profit or loss, but they were also cautious about orders for the second and third quarters of 2021. , worried about difficulties in production and contract performance due to pressure from adverse factors such as sharp fluctuations in the price of raw materials such as cotton/polyester staple fiber and the acceleration of RMB appreciation.
Judging from the survey, consumer terminal companies such as weaving and clothing are waiting to see the sharp increase in foreign yarn quotations. Inquiries and contract signings for ship cargo and bonded cotton yarn are still at a semi-stagnant level, while the port customs clearance cotton yarn transactions have started slowly. According to reports, some traders have raised the spot price of cotton yarn with “big thunder and small rain”, and they have a strong willingness to ship. A large trader in Shaoxing, Zhejiang believes that as the price difference between domestic and foreign cotton yarns has rapidly shifted from “upside down” 100-200 yuan/ton before the Spring Festival to “upright price” 200-300 yuan/ton, the competitiveness of yarns from India, Pakistan and Vietnam has improved. It is conducive to the “destocking” of bonded and customs clearance cotton yarn at the port. </p
