According to feedback from cotton yarn trading companies in Ningbo, Foshan and other places, affected by the continuous decline of ICE cotton futures and Zheng cotton since the end of February, as well as the significant slowdown in inquiries and inventory replenishment by downstream weaving, fabric and clothing companies, The wait-and-see mood of downstream terminals has increased, and the quotations of imported cotton yarn both internally and externally have been weak and lowered (except for Indian yarn).
At present, traders and yarn mills in Vietnam, Pakistan, Indonesia and other countries are raising prices and are reluctant to sell. The price of ship cargo and bonded cotton yarn quoted in US dollars has been adjusted slightly. However, due to the tentative decline in domestic cotton yarn quotations by 200-300 yuan/ton, the 5-day depreciation of the RMB by 1.40%, and the expectation that domestic cotton yarn and gray fabric consumer demand will still be strong from March to May (the peak season of the textile market), customs clearance in India, Pakistan, The overall quotation of Vietnamese yarn has stabilized at a high level, but the room for negotiation and profit-making has expanded compared with last week.
A supply chain management company in Shaoxing said that driven by the sharp decline of Zheng Cotton and ICE, the current “short selling” sentiment of cloth factories and downstream demand terminals towards cotton yarn is very strong. Therefore, Even though the external quotations of Vietnamese yarn, Indonesian yarn, and Central Asian cotton yarn have significantly corrected, the buyer still does not buy it. The cargo transaction cooled down relatively quickly from April to June (including Vietnamese yarn). Port air-end spinning, 8S-16S Pakistan competition The shipment of yarn is somewhat deserted. The company reported that due to the expectation that the quotations of imported yarn and domestic yarn will plunge with the high level of raw materials such as cotton and the order situation in the second quarter of 2021 is lower than expected, the payment and delivery pace of some old customers in Jiangsu, Zhejiang, Fujian and other places have slowed down and been delayed. phenomenon, traders are increasingly worried about whether the contract can be enforced.
Domestic spot and CCI round-up transaction prices are stable but relatively strong, which is very different from the trend of ICE; secondly, in the post-epidemic era, India’s domestic cotton yarn demand (cloth mills and clothing companies are panic purchasing) and exports are “flying together”, and some large-scale Orders from medium-sized yarn mills have been scheduled for two months, and yarn prices are very resistant to falling; thirdly, in addition to China, Bangladesh, Brazil, etc. are also actively signing contracts to purchase Indian yarn in large quantities; in addition, with the signing of a ceasefire agreement between India and Pakistan, the two countries Tensions have eased, and Pakistan is considering opening imports of Indian cotton, cotton yarn, etc. Since the total production and quality of Pakistan’s cotton have dropped significantly in 2020/21, directly purchasing cotton yarn production and ordering from neighboring India may be a wise and efficient choice. </p
