Based on the feedback from cotton yarn trading companies in Jiangsu, Zhejiang, Guangdong, Shandong and other places, since early May, domestic and foreign price inquiries, transactions, and shipments of imported yarn have continued to be deserted and weak. However, weaving factories and middlemen are not optimistic about Pakistan. Futures and shipping futures contract purchases have rebounded from bottoming out in mid-to-late April (including C32S high-quality packaged bleached yarn and 8S-16S siro spinning yarn); while OE yarns from Vietnam, Indonesia, Thailand, Central Asia and other origins have become more difficult to ship. Traders are facing increasing pressure on capital flows and inventories.
A large cotton yarn import company in Ningbo said that since mid-April, the number of breaches of imported cotton yarn contracts has begun to increase. On the one hand, this is because India has started a “country and city lockdown” mode since March 25, and yarn mill production , sales, port shipments, and deliveries are basically at a semi-standstill. Cotton yarn procurement contracts have encountered large-scale implementation difficulties. Buyers and sellers can only negotiate to terminate the contract or postpone execution; a few contracts have been transferred from India to Pakistani yarn mills; on the other hand, nearly half of the In the past month, the main contract of ICE cotton futures has risen from 52.01 cents/pound to 57.98 cents/pound, an increase of 11.5%. In addition, most Southeast Asian and Central Asian yarn mills have reduced production suspensions, so sellers are more willing to increase yarn prices. Not actively and proactively enforcing the contract. In addition, the recent accelerated depreciation of the RMB has made things worse for cotton and yarn import companies.
According to a survey by the China Cotton Textile Industry Association, as of April 26, the average operating rate of cluster weaving enterprises was around 53%, the average operating rate of enterprises above designated size was around 74%, and the weaving capacity utilization rate was 26%. Around; export orders of cluster weaving enterprises continued to decrease significantly in March and April, and are now basically at a standstill. Affected by the epidemic, domestic demand has dropped significantly year-on-year, and domestic sales orders have also dropped significantly, with the year-on-year decline basically being more than 40%. Due to the lack of domestic and foreign orders, consumer demand for imported yarn has also dropped significantly.
According to surveys and estimates from several large cotton yarn traders, as of the end of April, the total volume of bonded + non-bonded cotton yarn in my country’s ports has exceeded 150,000 tons, ranging between 150,000 and 180,000 tons. , and still showed a slow growth trend in May. </p
