According to feedback from cotton weaving mills and cotton yarn traders in Jiangsu, Zhejiang, Guangdong, etc., ICE cotton futures have fluctuated sharply since late January. Although the price of cotton yarn in and out of the country has risen sharply after the Spring Festival, middlemen and weaving companies have significantly increased their purchases of cotton yarn and blended yarn. Slowing down, but in the past week or so, regardless of shipping schedule, bonded or customs clearance, cotton yarn prices have stabilized at a high level and have not been adjusted frequently with the rise and fall of ICE and Zheng cotton. Cotton yarn traders are still very willing to support price increases.
Traders in Foshan, Zhongshan and other places in Guangdong said that after the Spring Festival, domestic and foreign cotton yarn market quotations rose hand in hand, but the increase was “high internally and low externally”. The price difference between C32 domestic cotton yarn and customs-cleared cotton yarn from India and Pakistan narrowed. The price competitiveness of imported cotton yarns of medium and low counts continues to increase. Since 2021, the operating rates of yarn mills in India, Pakistan, Vietnam, Indonesia and other countries have generally been at a high level. After the epidemic, domestic and foreign demand orders have accelerated their return to growth. Therefore, imported cotton yarn prices are relatively strong in both US dollars and RMB.
Due to strong expectations that domestic and foreign cotton prices will continue to increase and cotton yarn demand will rebound sharply, cotton yarn operators and yarn mill offices in India and Pakistan have closed their orders and refused to quote prices in recent days. Some bonded warehouses in Ningbo, Zhangjiagang and other places have reported that cotton yarn inventories continue to grow and storage capacity pressure is gradually increasing. They are negotiating with some trading companies and foreign yarn mill offices to open up storage capacity and other matters, hoping to gain understanding and support from customers. After investigation and calculation, an import and export company in Zhejiang believes that as of the end of February, the cotton yarn inventory in my country’s main ports may reach 16-18 tons, mainly cotton yarn from Vietnam, India, Pakistan and Central Asia. </p