According to feedback from cotton yarn traders in Zhejiang, Guangdong and other places, since mid-June, the inquiries and transactions of imported OE yarn, C20-C40S ring spinning yarn and JC21-JC32S cotton yarn have continued to be sluggish and deserted, with C21 and C32S high-end. Shipments of bleached yarn have also shown little improvement; however, compared with the continued decline in yarn prosperity in India and Vietnam, the phased recovery of 8s-21S Siro spinning orders in Pakistan has become one of the few bright spots in the cotton yarn market.
An operator in Foshan said that in the past half month, the inventory of bonded + non-bonded cotton yarn in major ports in China has increased slightly compared with April/May, and the shipment of OE yarn and JC21-JC32S yarn has slowed down significantly. On the one hand, some small and medium-sized weaving factories are unable to maintain production due to the completion of domestic sales orders and processing orders. Therefore, they plan to take a 5-7 day holiday during the Dragon Boat Festival and reduce or even suspend the purchase of cotton yarn and other raw materials one to two weeks in advance. On the other hand, as the United States With the second outbreak of the COVID-19 epidemic in China, Brazil and other countries, domestic and foreign retailers and traders are very cautious about placing orders for textiles and clothing in the spring of 2021. It is common to postpone orders for 15-30 days. Some yarn mills and cloth mills are facing “interruption of orders”. “risks of. According to statistics and estimates from several large and medium-sized cotton yarn trading companies, as of late June, the total inventory of bonded + non-bonded cotton yarn at the port may exceed 125,000 tons or even 130,000 tons, mainly distributed in Ningbo, Qingdao, and Zhangjiagang , Shanghai, Guangzhou and other ports.
It is worth noting that several weaving mills and traders reported that the current “shipping” quotations at Indian cotton yarn ports in July/August are continuously “upside-down” (CNF and CIF) with bonded yarn, and coastal areas Weaving enterprises and middlemen in Henan, Hebei, Hubei and other places are more willing to inquire for prices and place orders for printing yarn with far-month shipping dates, but are not very enthusiastic about purchasing bonded or customs-cleared yarn. Industry analysis: First, under the premise that CCI will sell a large amount of cotton at low prices before new cotton is launched, and the cotton planting area in India may increase significantly in 2020, Indian yarn prices may continue to fall; second, the pressure on the RMB exchange rate has eased, and it is expected to be The “deprecation” turned to “up”, and the cost of cotton yarn for cargo dropped further. The trend of the U.S. dollar and the steady recovery of the economy will also provide support for the trend of the RMB exchange rate. The RMB exchange rate is expected to fluctuate in both directions around “7” in the future; thirdly, the haze of the new crown epidemic “is lingering”, and cash flow is generally tight and new orders are received. When the price is significantly lower than expected, ordering “shipped goods” is not only less risky but also more proactive than purchasing bonded and customs-cleared spot cotton directly. </p
