According to feedback from cotton yarn traders in Jiangsu, Zhejiang, Guangdong, Qingdao and other places, since early December, due to the increasingly strong expectations that China and the United States will reach a first-phase trade agreement before the end of December, coupled with the exchange rate of the RMB against the US dollar, Driven by factors such as strength, weaving factories, middlemen, and clothing companies in coastal areas have continued to pick up inquiries and purchases of imported yarn. In addition to OE20S and OE21S, the low-count open-end bonded yarn and “futures yarn” transactions have an obvious rebound trend. Especially in the Guangdong market, 8S-16S Pakistani Siro spinning has reversed its decline due to low inventory and rising demand. ; However, the downstream procurement of 21S and C32S imported bleached knitted yarn and C32 and C40S bleached air-jet yarn has not shown much improvement. Traders generally report that the transaction volume of 32S and above carded yarn and combed yarn is “unsatisfactory”.
From the survey point of view, in the past half month, compared with the “peak and twist” of low-count cotton yarn shipments from India-Pakistan yarn, Indonesian yarn and other origins, Vietnam OE8S-OE16S and C21 yarn outsourcing inquiries and transactions not ideal. On the one hand, Vietnamese yarn has been affected by rising ICE, rising labor costs, and frequent positive releases from Sino-US trade negotiations. The increase in export FOB and CNF quotations has led to a decline in competitiveness; on the other hand, Vietnamese yarn will have “zero tariffs” starting from December 1, 2019. “To enter the Chinese market, some buyers negotiate with Pakistani yarn mills, exporters, and traders, hoping to get a share of the tariff reduction to reduce raw material costs.
Recently, although ICE futures and Zheng Cotton have made upward breakthroughs, due to the overall weak performance of the domestic cotton yarn market, In addition, some yarn mills in Henan, Shandong, Hebei, Jiangzhe and other places dumped goods in advance and collected payment. Therefore, the RMB quotations for port customs clearance and bonded cotton yarn not only did not rise with the futures, but continued to fall. As for the reasons for the rebound in imported yarn transactions, industry analysts believe that: first, China-US trade negotiations have made great progress, textile and clothing exports are booming, and weaving mills and traders have plans to stock up appropriately; second, due to Shandong, Henan and other countries this year Small and medium-sized yarn mills in the local area have stopped production or went on holiday relatively early, and are expected to resume work after the new year. This is because some weaving companies in coastal areas with orders have prepared sufficient raw materials in advance. Of course, the appreciation of the RMB, which has led to the decline in cotton yarn import costs, is also one of the factors. </p
