Since the National Day, ICE cotton futures have risen sharply, and the contracts of Zheng cotton have been “opened”. In addition, the purchase price of Xinjiang seed cotton has continued to open and rise rapidly. Therefore, in recent days, not only domestic cotton yarn, gray fabrics, etc. The quotations of end products have risen accordingly, and some yarn mills have suspended or suspended external cotton yarn quotations while reducing medium and long-term orders from the perspective of risk prevention and holding stocks. The market has entered a deep game and a delicate period.
Cotton yarn traders in Qingdao, Ningbo, Guangdong and other places reported that in the past week or so, not only the quotations of cotton yarn from India, Pakistan, Vietnam and other places from December to February have decreased, but also the quotations of bonded cotton yarn and customs clearance cotton yarn have also decreased. With the sharp increase in cotton and cotton yarn futures, some trading companies are worried that cloth mills and middlemen will have difficulty accepting the increase in yarn prices and will not be able to digest it smoothly, which will affect mid- and long-term cooperation. Therefore, the supply of cotton yarn and polyester-cotton yarn on the shelves has significantly reduced, and even no quotations have been given to customers. .
A supply chain management company in Shaoxing said that since the National Day, the company’s quotations for customs clearance C20S-C40S Vietnamese yarn, Pakistani yarn, and Central Asian yarn have generally increased by 400-500 yuan/ton; a small amount of high-quality blanched bleached cotton yarn has increased by 500-500 yuan/ton. 700 yuan/ton, the increase is basically close to that of domestic yarn; however, current inquiries and delivery of goods by cloth factories and fabric companies are not smooth and there is even some resistance, and they still need to “trade time for space.”
From the survey point of view, although the quotations of bonded and shipped cotton yarn and polyester-cotton yarn continue to be strong and make up for the increase, Chinese weaving companies and cotton yarn traders are still relatively active in contract purchasing (except for OE8S-OE12S air-end spinning yarn (Externally), the main reasons are as follows:
First, the RMB has appreciated sharply against the US dollar, and the cost of imported cotton yarn and other products has dropped rapidly. On October 9, the onshore RMB exchange rate rose nearly 1,100 points against the U.S. dollar; it once rose above the 6.7 mark during the session, setting a new high since April last year (the RMB exchange rate has increased by nearly 6% since June); secondly, it rose by nearly 1,100 points. After November, the U.S. government’s concerns about the widespread import ban on Xinjiang cotton products have led many export-oriented processing companies and foreign trade companies to choose Indian Pakistani and Vietnamese yarns to avoid later export risks; third, domestic cotton supply has entered a period of “gloomy supply” , the state-owned cotton spinning index is not high (dying, strength, neps, etc. are at a disadvantage compared to imported yarn); coupled with the continued recovery of foreign trade orders received by textile and garment enterprises in coastal areas in September (requiring short, flat and fast), Therefore, the transition to purchasing imported cotton yarn is a natural one. Some traders estimate that my country’s imported yarn arrival volume in September may be close to 165,000 tons, a month-on-month increase of more than 5%. This growth momentum continues in October. </p
