According to data from the General Administration of Customs, my country imported 170,000 tons of cotton yarn in July, an increase of 20,000 tons from June, a year-on-year increase of 15%. The imported varieties are mainly ring-spun carded yarn and OE yarn of 40S and below. The import volume of JC32S-JC60S cotton yarn from India, Vietnam and Uzbekistan continues the sluggish trend in the first half of 2020. From the perspective of importing countries, Vietnamese yarn, Indian yarn, Pakistani yarn, and Uzbekistan yarn are ranked “unbeatable”. The import volume of Indonesian yarn, Thai yarn, etc. is far behind the top four.
From a survey of weaving companies and cotton yarn traders in Shandong, Henan, Jiangsu and other places, although the traditional peak season of “Golden Nine and Silver Ten” in the industry is gradually approaching; although orders for mid-to-high-end textile clothing from Europe, the United States, Japan and South Korea are gradually approaching, Slow recovery (spinning mills in coastal areas have reported that since mid-August, inquiries and shipments of high-quality carded yarn and high-count combed yarn have shown signs of starting); although domestic epidemic prevention and control has once again achieved a phased victory, cloth mills and middlemen are still placing orders. , The enthusiasm for stocking up has only been restored to a limited extent, and operations such as buying as you need, purchasing by order, and reducing capital occupancy are the main operations.
Why did cotton yarn imports increase significantly again in July? The reasons analyzed by the industry include the following points:
First, the price difference between imported cotton yarn and domestic yarn has been adjusted from flat or even “inverted” to a difference of 200-400 yuan/ton. On the one hand, the FOB and CNF quotations of Indian and Vietnamese yarns and Pakistani yarns continued to decline weakly in July; on the other hand, the appreciation of the RMB in July led to a decrease in the cost of imported cotton and cotton yarn. According to quotations from foreign yarn mills and traders, in mid-to-late July, the price of Indian 32S medium and high-grade yarn in Qingdao and Ningbo ports was about 200 yuan/ton lower than that of domestic yarn; while the price of C32S high-grade packaged bleached Vietnamese yarn (small factories, not big brands) was It is 300-400 yuan/ton lower than domestic yarn, and the competitiveness is strong;
Second, the production and sales rate of large and medium-sized weaving enterprises has rebounded, and the machine load rate has increased to more than 85%. According to tracking data from the China Cotton Textile Industry Association, 71% of domestic companies had a utilization rate of weaving equipment higher than 85% in July, and gray fabric inventory increased by 2.94% month-on-month; coupled with the foreign trade of cotton textile companies in coastal areas such as Jiangsu, Zhejiang, Guangdong, Shandong, and Fujian, Orders are picking up in stages, and traders are cautiously increasing their confidence in stocking yarn;
Third, various quality indicators of low-count imported yarn are recognized by cloth mills and middlemen. The main raw materials of domestic 32S and below cotton yarn in July/August are state reserve cotton, 2019/20 real estate cotton and low-grade low-quality foreign cotton at the port. The cotton grade and quality of Vietnamese yarn and Indian-Pakistani yarn are significantly higher than those of domestic cotton. Yarn (Vietnamese yarn is mainly spun from US cotton, Brazilian cotton, West African cotton, Central Asian cotton, etc.), so testing indicators such as end breakage rate per 100 meters, CV value, neps, hairiness and other indicators are favored by Chinese buyers. </p
