Exclusive news from China Cotton Network: According to trade feedback from light textile markets such as Guangdong Foshan, Zhejiang Shaoxing and Jiangsu, since the May Day holiday, downstream weaving factories and fabric Enterprises and intermediary links continue to recover in terms of inquiry and delivery of imported cotton yarn. Prices of 8S-16S Siro spinning yarn from Pakistan and cotton yarn from Vietnam, India, Indonesia and other origins have tentatively increased in USD/RMB (the increase for customs-cleared cotton is generally 100-200 yuan) / ton, but for old customers and large-order buyers, the actual price increase is only about 50 yuan / ton or not), and the acceptance and digestion capabilities of the industry chain terminals have been continuously enhanced compared with March/April.
A textile import and export company in Zhejiang said that in the past half month, not only the actual orders and shipments of medium and high-end air-end spinning yarns such as OE16, OE21S, OE26S, etc. The market is picking up, and there are obvious signs of bottoming out and rebounding in the transactions of 40S-60S high-count yarns from India and Vietnam. The resurgence of the COVID-19 epidemic in Southeast Asian countries such as India and Bangladesh has led to increasingly severe shutdowns of spinning mills and clothing companies. Orders for bedding, home textiles, and some mid-to-high-end European and American clothing have returned to China; coupled with the recent appreciation of the RMB against the U.S. dollar Due to the large-scale import ban imposed by the U.S. government on Xinjiang cotton products and some international clothing brands’ attempts to sell Xinjiang cotton, imported cotton yarn has attracted the attention and favor of export-oriented enterprises and OEMs.
A yarn trading company in Guangdong believes that due to the additional issuance of sliding tariff cotton import quotas in 2021, the number of cotton import quotas is only 700,000 tons, and it has 100% non-state-owned trade, The 400,000-ton processing trade import method and the characteristics of special textile mills, therefore downstream terminal companies will expand the purchase of cotton yarn from Vietnam, India, Pakistan and other origins to avoid the risk of receiving orders from Europe and the United States.
Judging from the survey, due to the rapid deterioration of the epidemic in India since late March, some local governments have comprehensively strengthened epidemic prevention and control measures (New Delhi, Mumbai and other economic centers have taken the lead) (implementing city closures), such as Madhya Pradesh, Kerala, Bihar, Maharashtra, etc., have announced complete lockdowns. Therefore, the transportation of cotton and other raw materials, gauze sales, port operations, warehousing and logistics, etc. have been greatly affected. Some areas Even at a standstill.
Affected by the epidemic, the proportion of yarn mills in India, Pakistan, Bangladesh and other countries that have reduced and suspended production continues to increase (such as Surat Textile Shop and Power Weaver in India) (all machines have been shut down), the execution of orders received from February to April 2021 has encountered great difficulties. Some Chinese buyers have received notices from Indian yarn mills and exporters: shipments and deliveries cannot be made as scheduled, and they hope to extend the Cancel the contract during the contract execution period or through negotiation. On the one hand, it is difficult to predict how long it will take for India to fight the epidemic, and it is difficult to determine when gauze and clothing contracts will resume execution; on the other hand, under the epidemic, the shipment of goods at most ports in India has been suspended or even suspended. The cost of transit or other transportation methods is too high, and trading It’s too much for both sides to bear.