According to cotton trading companies in Ningbo, Foshan, Qingdao and other places, the trading and shipments of bonded ports, customs clearance Indian and Pakistani yarns, Vietnamese yarns and Central Asian yarns have been relatively light over the past week, but market sentiment has continued to increase with ICE futures. The upward breakthrough and the Zheng cotton 2009 contract once again stood at the 12,000 yuan/ton mark and continued to pick up. The phenomenon of traders cutting prices and selling goods was significantly reduced.
A large importer in Qingdao said that the recent inquiries for Pakistani 16S-32S ring spinning yarn and Indian JC32S and JC40S yarn have gradually increased compared with May/June, and the transaction is expected to bottom out. However, cotton yarns from India and Pakistan that have been cleared at the port are reluctant to sell due to high quotations and large losses for traders, or the profit margin is too small. The price difference between domestic and foreign yarns is only 150-300 yuan/ton, and there is not much improvement in shipments. In addition, Vietnamese yarn FOB, CNF and customs clearance RMB quotations have continued to stabilize, but the internal and external “upside-down” trend remains, and traders and weaving mills are not very enthusiastic about making inquiries and receiving goods.
Judging from the survey, the overall market sentiment for imported cotton yarn has improved compared with the previous period. Although weaving companies and middlemen have been slow to buy as they go due to the fall in domestic sales orders and the slow recovery of foreign trade exports. There are no large orders or actual orders, but the following three factors have caused the panic of cotton yarn trading companies to significantly ease and their confidence to rebound:
First, the COVID-19 epidemic in Beijing was quickly controlled (July 6 There are no new confirmed cases of COVID-19 in Beijing. This is the first time in 26 days since the epidemic (zero new cases). The epidemic has been successfully fought again, and the impact on the production and sales of cotton textile, clothing and other enterprises has been minimized;
Second, the sharp appreciation of the RMB is conducive to the reduction of cotton yarn import costs. Driven by a strong rebound in China’s economic data and another two-week low in the US dollar. On the morning of July 9, the offshore RMB rose above the 7.00 mark;
Thirdly, the reserve cotton rotation restarted on July 1. Not only did the daily transaction rate continue to be 100%, but also The “triple jump” in daily transaction prices has led to rising cotton futures and flying red flags. Supported by higher raw material costs and low cotton yarn inventories, textile companies are not expected to cut prices and sell goods. Therefore, the price difference between domestic and foreign yarns continues Narrowing, outer yarn competitiveness has increased. </p
