According to feedback from cotton yarn traders in Guangdong, Jiangsu and Zhejiang, etc., the internal and external price of imported yarn has continued to be weak and declining since the end of February. In particular, India-Pakistan OE yarn and Vietnam C20-C32S high-end carded yarn have followed the global stock market, ICE and Zhengzhou Cotton and other disk surface adjustments are slightly larger.
From the perspective of port shipments, the inquiry and transaction prosperity of imported OE yarn, Pakistan 8-16S Siro spinning yarn and JC21, JC32S cotton yarn decreased compared with the previous two weeks, but several importers from Shandong and Zhejiang Enterprises reported that due to the impact of lower export prices, timely supply, guaranteed performance, and relatively stable quality, contract purchases of “futures yarn” in Vietnam have gradually picked up in the past week or so. Some traders are also actively adjusting their business structure, “reducing Indian yarn and increasing Vietnamese yarn.” On the one hand, they are worried about the rebound of ICE and international cotton spot prices in March/April, and Indian yarn mills delaying shipments or even defaulting on contracts; on the other hand, the global outbreak of the new crown epidemic , the impact on maritime and road transportation may become increasingly prominent.
As for the reasons why the price of imported yarn continues to fall, the industry summarizes the following points (the ex-factory price of domestic yarn bucked the trend and reported an increase of 200-500 yuan/ton, mainly due to low inventory of downstream enterprises, rising logistics expenses and epidemic prevention (Pushed by the increased cost of materials, etc.):
First, the world is facing a “big test of the new crown epidemic”, and the impact on the economy, textile and clothing consumption, and market confidence cannot be underestimated;
Second, the recent In the past few days, ICE’s main contract has almost exceeded 60 cents/pound. In addition to the stimulus from the Fed’s interest rate cut, other fundamentals and technical support for the rebound are not strong, and it is difficult for the main contract to make a significant upward breakthrough;
The third is the downstream Small and medium-sized weaving, garment and other enterprises still encounter great difficulties in resuming work and production, and “time changes space” for the procurement and consumption of imported yarn. According to a survey by the China Cotton Textile Industry Association, as of March 2, the operating rate of enterprises in the cotton textile industry has increased to about 80%, and the order recovery volume has reached nearly 70%; while the survey results of the National Cotton Monitoring System show that the operating rate of small and medium-sized enterprises is still less than 30% And the cash flow is under obvious pressure;
Fourthly, although the textile markets in Guangdong, Jiangsu, Zhejiang, Shandong and other coastal areas have gradually “opened”, most traders are in a state of “avoiding the epidemic”, coupled with the logistics problems. Smooth, so the market is sparsely populated and deserted. </p
