Imported yarn transactions “press the brakes” and port storage pressure gradually increases

According to feedback from cotton yarn trading companies in Zhejiang, Shandong and other places, inquiries and shipments of imported yarn have gradually declined since late January, and the transactions of some medium-high quality, high-matching, and high-price cotton yarns have even “suddenly stopped”, 1/2/3 The monthly shipping schedule for Indian yarn, Indonesian yarn, Uzbekistan yarn and other orders has come to a standstill, and the trading atmosphere of Pakistani 8S-16S siro spinning yarn and C20S-32S carded yarn in the Guangdong market has significantly weakened.
Overall, the preparation of goods by weaving enterprises and middlemen in the light textile market before the Spring Festival in coastal areas has basically ended, and the market has gradually become deserted. Although the quotations of imported yarns have stabilized overall (especially the comparison of quotations of high-count carded and combed yarns from India, Vietnam and other producing areas) Strong), but the customs clearance quotations of a few traders in Shandong, Jiangsu and other places have begun to waver, and the phenomenon of negotiable prices and preferential prices has increased.
A large import company in Ningbo stated that the reasons for imported yarn’s “USD quotations to remain flat and RMB quotations to loosen” include the following points:
First, the price difference between domestic and foreign cotton yarns has widened to 600-600 since mid-December. 800 yuan/ton, the competitiveness of yarns from India, Pakistan, and Vietnam has dropped sharply, and weaving companies and middlemen have shifted their procurement focus to domestic yarn;
Second, with the CF2105 contract price falling from 15,610 yuan/ton to around 15,000 yuan/ton , the cost of domestic cotton yarn has dropped. Although the ex-factory price of yarn mills and the quotation of cotton yarn in the light textile market are “wavering” on the surface, the actual transaction price has fluctuated downward. During the same period, the FOB and CNF prices of cotton yarn in India, Pakistan and other countries have recovered strongly in domestic demand and export sales. It is rising steadily under the optimistic support;
Third, it is difficult to change due to the sporadic emergence of domestic epidemics, the unsustainability of medium and long-term orders, the US’s increased tariffs on Chinese textiles and clothing, and the US’s suppression of Xinjiang cotton. Some weaving factories and middlemen in Hebei, Henan, Jiangsu and Zhejiang are not only not enthusiastic about stocking goods, but also have plans to shut down during the Spring Festival and have holidays ahead of schedule;
Fourth, expectations for RMB appreciation in the first half of 2021 are still relatively strong. The cost of imported cotton yarn is expected to fall further; in addition, the quotations of bonded and customs-cleared cotton yarn have continued to rise for more than a month, traders’ profits have improved significantly, and enthusiasm for discount sales has increased.
According to statistical estimates from several large cotton yarn traders in Ningbo, Qingdao and other places, as of January 25, the cotton yarn inventory in China’s main ports may rise to 150,000-170,000 tons (according to customs statistics, my country’s cotton yarn imports in December were 166,000 tons tons, a year-on-year increase of 3.5%). Considering that there is still a large amount of yarn from India, Pakistan, and Central Asia arriving at the port from the end of January to mid-February, and the inquiry and shipment of foreign yarn is not “powerful”, so the growth of cotton yarn inventory at the port is not strong. reduce. </p