According to feedback from cotton yarn traders in Qingdao, Ningbo, Guangdong and other places, although ICE futures have risen recently, yarn has entered a rising channel due to the decline in domestic cotton planting area and the recovery of downstream consumer demand. European and American countries have ignored the risk of a second outbreak of the new crown epidemic. Forcibly pressing the “start button” of the economy, the quotations of FOB and CNF including India, Vietnam, Pakistan and other origins have continued to stabilize weakly. Among them, the quotations of Indian OE yarn, 40S and above combed yarn and Pakistan 8S-21S Siro spinning yarn have continued to decline. Holding steady, Chinese cloth factories and middlemen are not active in making inquiries or placing actual orders. Transactions and shipments are still concentrated in C21-C32S medium and high package bleached yarn (including knitting yarn).
An operator in Foshan said that carded knitted yarn shipments from Vietnam and India have improved to a certain extent since July. Inquiries, samples, and transactions are mainly C20, C26S, and C32S cotton yarns, but cloth factories around Guangdong The quantity of goods taken at one time is not large, it is enough to meet the order production, and the inventory of cotton yarn raw materials is reduced as much as possible. The company believes that foreign trade orders have recovered somewhat in June and July, especially textile and clothing exports to Italy, Spain, Japan, South Korea and other countries that have entered the “post-epidemic” period. First, the volume of orders has been significantly reduced compared with before the epidemic, and orders from many processing factories have been cut in half. Second, most of the mid- to low-end orders have been transferred to companies in Indonesia, Vietnam, India, Bangladesh and other countries for production. Third, raw materials have declined, freight rates have increased, and inspection and quarantine have declined. Rising fees and the appreciation of the RMB have become “excuses” for buyers to desperately lower prices. Domestic companies are also resistant or refuse to accept orders that “have orders, no profits, and high risks.”
Cotton yarn middlemen in Zhejiang, Shandong and other places reported that in the past half month, small and medium-sized weaving factories have frequently restricted, reduced, and stopped production. Some weaving companies have taken measures to avoid layoffs, maintain employment, and stabilize production. The start-stop strategy aims to reduce the inventory of raw materials such as cotton yarn as much as possible on the one hand; on the other hand, speed up the disposal of inventory gray fabrics as much as possible to reduce financial pressure. Therefore, inquiries and orders for imported OE yarns, 40S and below ring spinning yarns are all “buy as you go, and make meals as you see fit.” A trader in Shaoxing said that since the order-taking situation of downstream fabric factories and foreign trade companies has not improved yet and they lack confidence, traders dare not hoard imported yarn in large quantities or sign “shipping goods”; once a slightly larger order comes, it is necessary to Two or even several cotton yarn companies must pool their supplies to deliver the order. There will inevitably be differences in yarn quality and consistency.
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