According to feedback from cotton yarn trading companies in Ningbo, Guangdong, Qingdao and other places, with the continuous rebound of ICE and Zheng cotton prices and the start of stocking up by some weaving factories and terminal companies before the Spring Festival, not only cotton yarn shipments in February/March/April , bonded cotton yarn quotations have been raised overall (including cotton yarns from Vietnam, India, Pakistan, Central Asia, Indonesia and other origins), and the RMB quotations of port customs clearance cotton yarns have also increased.
Some weaving factories and middlemen in Jiangsu, Zhejiang, Shandong and other places said that since early and mid-December, the supply of highly packaged and bleached C32 and C26 cotton yarn at the port has been relatively scarce. Traders, cloth factories or from Guangdong, Fujian and other places Adjust goods or directly place orders for yarn mills in Vietnam, India and Pakistan to replenish goods; Inquiries and shipments of imported cotton yarns with count C40S and above are also picking up compared with October and November; but OE yarn, C12S and below ring spinning yarn trading is still Relatively light and inactive.
From the survey point of view, since late November, the arrival and delivery volume of cotton yarn imported from China’s Hong Kong has remained relatively strong (statistics from a large import company estimated that the arrival volume of imported yarn in November reached 18.6 million tons, a month-on-month increase of 19%), Vietnamese yarn, Indian yarn, and Pakistani yarn still rank in the top three, but the arrival volume of Central Asian cotton yarn (mainly cotton yarn from Uzbekistan, Turkmenistan and other origins) is also rising, but due to Inquiries and shipments of imported yarn have been picking up in stages since December (C26-C40S yarn traders’ stocks in Foshan, Nantong, Shaoxing and other places have dropped rapidly), so the growth of bonded + non-bonded cotton yarn stocks at ports is not obvious. It is worth noting that as the volume of imported yarn increases and the price rises, traders’ willingness to sell and ship goods has declined, and their reluctance to sell and hold on to goods has increased.
Industry analysis shows that the reasons for the increase in outer yarn quotations are not only the rise of cotton futures in the domestic and foreign markets, following the US stock market, energy oil and chemical commodities, but also the following three bullish factors:
First, not only have sea freight rates skyrocketed in the past month or so, but containers at various ports have become “hard to find”, including CNF and CIF costs for yarns from India, Pakistan, and Vietnam, which have increased significantly; second, since December, domestic cotton yarn has experienced rising raw material prices and downstream demand. Due to the increasing digestion capacity and capital speculation, the quotations have been raised again and again. The current price difference between C32S yarn and Vietnamese yarn has widened to 300-500 yuan/ton, stimulating the imported cotton yarn to make up for the increase; thirdly, due to the global impact of the new crown vaccine With the support of widespread vaccination, the Federal Reserve’s unlimited monetary easing, the U.S. government’s fiscal stimulus package, and the “cheating” increase in black products, textile and clothing companies are full of expectations for the recovery of domestic sales and foreign trade market confidence in 2021, so ” There has been an increase in “buying dips” and hedging at low levels. In addition, judging from the analysis of some institutions and investment banks, the short-term trend of RMB appreciation is difficult to reverse. </p
