According to feedback from imported yarn traders in Guangdong, Jiangsu and Zhejiang, etc., in recent days, the RMB quotations for customs clearance cotton yarn from India, Vietnam, Pakistan, Indonesia, Central Asia and other places have been increased by 100-200 yuan/ton (high-end C26, C32, C40 The price of bleached yarn increased by 200 yuan/ton due to the tight supply and traders’ reluctance to sell). In addition to the inquiry and shipment of OE yarn, C10S and below ring spinning yarn, which continued to have a “tepid” market, prices of C326 and above The transactions of several imported yarns are still relatively smooth, and traders have a favorable attitude and are not impatient.
Industry analysis shows that current actual purchase orders are mainly done by weaving companies and middlemen (including merchants in textile cities in coastal areas) to restock and stock up before the Spring Festival. On the one hand, weaving, clothing, fabrics and other terminals Enterprises are increasingly worried about the resurgence of the epidemic in the first quarter of 2021, so they need to replenish goods in advance to minimize the impact of negative factors such as upstream production, transportation, logistics, etc. on startup and delivery orders after the Spring Festival; on the other hand, due to the spread of the epidemic, the appreciation of the RMB, The direction of China-U.S.-China trade relations, shipping and sea freight, etc. is uncertain. Therefore, a large number of Chinese textile and clothing companies are currently not very willing to accept medium- to long-term or large orders. They will rush to complete orders and deliver goods in December and January. The demand for cotton yarn, gray cloth, fabrics, etc. continues to be active.
For the slight increase in quotations for cargo, bonded and customs-cleared cotton yarn, middlemen and weaving factories in Zhejiang, Shandong and other places generally expressed their understanding and believed that the increase was within an acceptable range. First, since late December, not only has the main ICE contract increased by 77 cents/pound and the CF2105 contract has exceeded 14,900 yuan/ton, but the spot prices of MCX and cotton in India have also risen, and the cost of cotton yarn has forced the yarn price to rise; second, Recently, the price difference between domestic and foreign cotton yarn has widened significantly, and the competitiveness of imported cotton yarn continues to strengthen. Judging from the survey, the current price of Indian-Pakistani C32S yarn in the light textile market in Jiangsu, Zhejiang, Guangdong and other places is 600-800 yuan/ton lower than that of domestic yarn. Some export-oriented and OEM companies have shifted their procurement focus to spot and customs-cleared foreign yarn; thirdly, under the epidemic situation , not only sea freight has skyrocketed, but also due to the strong recovery of China’s export commodities in November and December, port containers are “hard to find”. Direct costs such as cotton yarn imports and textile clothing exports have continued to rise. The rise in yarn prices is beneficial to traders and export companies. Dilute costs and relieve pressure; fourth, as of now, the gauze stocks of weaving factories and middlemen are generally low. Coupled with the central bank’s continued release of liquidity (adopting “MLF + reverse repurchase”) near the end of the year, the capital flow in all links of the industrial chain is relatively abundant. Cotton yarn traders have a strong atmosphere of raising prices. </p
