According to feedback from cotton yarn trading companies and middlemen in Jiangsu, Zhejiang, Guangdong and other places, the quotations of imported cotton yarn for cargo, bonded and customs clearance have stabilized for several consecutive days since mid-January (some Vietnamese manufacturers C21, C26S, C32S high-quality packaged bleached yarn have increased slightly) Increase), a few export companies and traders have reduced prices (RMB prices) for varieties with high quotations and slow shipments, such as Pakistani 8S-16S siro spinning, low-count OE yarn, etc. in the Guangdong market, but inquiries , C20S-C40S mid-to-high carded and JC21-JC32S cotton yarns with relatively active transactions. Although domestic cotton yarn quotations show signs of stagflation and a slight decline, yarns from India, Pakistan, Vietnam, and Indonesia have performed relatively strongly (especially in US dollar quotations), and foreign yarns have There is a strong atmosphere among factories and traders to raise prices.
Importing companies in Ningbo, Changzhou and other places stated that due to the sporadic growth of the domestic epidemic, the prevention and control of each country has been upgraded again, and the performance of cotton yarn is “strong externally and weak internally”, the “upside-down” range of cotton yarn prices continues to widen (C32 high-allocation package drifts The price difference between domestic and foreign yarns has expanded to 700-900 yuan/ton); coupled with the approaching Spring Festival, traders, weaving and clothing companies in various light textile markets are less enthusiastic about stocking up, so the shipments of bonded yarns and customs-cleared cotton yarns have been somewhat volatile in recent days. Top and fall.
Why is the quotation of imported cotton yarn still strong despite the decline in trading volume? Industry analysis is mainly supported by the following four reasons:
First, due to the strong domestic consumer demand for cotton yarn, domestic sales and export quotations of cotton yarn in India, Pakistan, Vietnam and other countries have experienced significant increases since mid-January. Domestic demand has accelerated its recovery. The key is that some varieties are even in short supply. According to statistics, the price of Pakistani yarn has increased by more than 2% in the past week, while the price increase of Indian cotton yarn has been even more outrageous (some cotton mills’ C20-C40S conventional yarn has even increased by more than 10%);
Secondly, not only cotton yarn, but also cotton yarn in January In the middle of the month, the quotations of polyester-cotton yarn, polyester-viscose yarn and other blended yarns in Southeast Asian countries such as Pakistan and Vietnam also rebounded strongly (polyester staple fiber, viscose staple fiber and other raw materials rose sharply, and the textile and clothing export equipment to China/Vietnam from Europe, the United States, Japan, South Korea and other countries The restrictions have given India and Pakistan the opportunity to increase both the volume and price of gauze exports), and cotton yarn “rising tide lifts all boats”;
Third, ICE’s main contract briefly fell below 80 cents/pound and then rose again to 80-82 cents/pound. The market is consolidating in a range, and the market sentiment is “easy to rise but difficult to fall”. With Biden taking office in the White House on January 20 and planning to launch a US$1.9 trillion economic stimulus package and US cotton exports in 2020/21 are very strong, it is expected to enter the super market early. Selling status, so ICE stands at 82 cents/pound, and the probability of entering 85 cents/pound is high;
Fourth, the strong support of India’s MSP purchase price and the lower-than-expected growth of CCI cotton inventory have kept India’s domestic cotton prices “ Open low and go high.” It is understood that the current purchase price of seed cotton by some private processing enterprises and traders in Gujarat, Maharashtra, Punjab and other places has been consistent with the MSP price or even slightly higher, but the purchase standards of seed cotton moisture and grade are lower than CCI , to a certain extent, diverts CCI’s acquisition pressure, and CCI’s cotton sales progress has been relatively fast, so the Indian cotton stock price is confident and bold. </p
