According to statistics, India exported 85,400 tons of cotton yarn in October 2020, a year-on-year increase of 9.7%; this fiscal year (August-October 2020) India has accumulated Exports of cotton yarn were 269,500 tons, a year-on-year increase of 28%. Bangladesh, China, and Peru were the top three exporting countries, accounting for 25.5%, 19.5%, and 8.9% respectively.
According to feedback from cotton yarn traders and weaving mills in Jiangsu, Zhejiang, Guangdong, Shandong and other places, the contracted import volume of yarn from India, Pakistan and Vietnam was still relatively active in November and December. The supply of C26S and C32S high-quality packaged bleached yarn was once tight. Export companies and domestic traders in India and Pakistan have transferred spot goods from ports in Indonesia, Vietnam, Bangladesh and other countries to meet the needs of domestic weaving, fabric and garment factories. A medium-sized cotton yarn operator in Ningbo said that my country’s cotton yarn imports in December are expected to reach 180,000-200,000 tons (customs statistics, my country imported 172,300 tons of cotton yarn in November, a year-on-year increase of 7.62%), of which India and Pakistan’s share is expected to continue to grow. The share of Central Asia (mainly Uzbekistan, Turkmenistan, Azerbaijan, etc.) and Indonesia is expected to decline.
Why do domestic weaving factories and traders increase their efforts to inquire and purchase Indian cotton yarn? After investigating some textile and garment enterprises in coastal areas, the following points are summarized (the sharp rebound in export orders from October to December will be discussed separately):
1. With the recent strong rebound of ICE and Zheng Cotton, , the quotations of domestic cotton yarns are now “retaliatory” rising (the quotations of some varieties of cotton yarns have been increased by more than 1,000 yuan/ton, and the increase is significantly higher than that of cotton), resulting in the price difference between domestic and foreign yarns widening to 300-500 yuan/ton, although the quotations of imported yarns from India and Pakistan have increased. Rising but competitiveness continues to improve.
2. In the past month, the appreciation of the RMB has slowed down, and the exchange rate fluctuations have narrowed significantly. Weaving mills and traders are worried that the “alert” has been lifted, and bonded and shipping goods from origins such as India and Pakistan have The contract purchase of goods has subsequently heated up (especially Pakistan’s C21S, C26S, C32S bonded and spot yarns have performed well).
3. In the third and fourth quarters of 2020, the production capacity of Indian yarn mills has recovered to 80-90%, and the equipment load is running at a high level. It has gradually emerged from the quagmire of the epidemic. It is difficult for domestic demand to improve significantly in the short term. Under the premise, enthusiasm and enthusiasm for exports are rising, and cotton yarn production, shipping and delivery are more timely.
4. In order to complete orders and avoid purchasing Xinjiang cotton, some European and Japanese textile and apparel brands have increased their purchases of yarn from India, Pakistan, and Vietnam.
5. Compared with Vietnam, Pakistan, Indonesia and other countries, the current spinning raw materials are mainly low-quality, low-spinnability American late-stage yarn. In addition to bidding for CCI, Indian yarn mills In addition to the high-quality lint cotton from 2019/20, you can also directly purchase new flowers from 2020/21. The stability of the yarn and single supply capacity are obviously higher than those from other producing areas.
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