According to feedback from cotton yarn traders in Guangdong, Ningbo, Qingdao and other countries, there has been little improvement in shipping schedules, bonded and customs cleared foreign yarn signings and shipments in the past week or so. Sellers are somewhat reluctant to support prices and are reluctant to sell; among them, Guangdong In the market, 8S-16S Pakistani Dongluo spinning yarn and C21S-C32S Indian-Pakistani knitting yarn have an increasingly obvious trend of price inquiries and transactions peaking and falling.
Some weaving companies and middlemen in Shandong, Jiangsu, Zhejiang, and Henan said that in addition to the recent tight supply of bonded, customs-cleared and bleached self-interlacing C32 Vietnamese yarn, the overall trading volume of domestic and foreign yarns, including OE yarns, has been relatively light. , especially for JC21-JC40S Indian yarn, “there are only a few inquiries, and the market is empty.”
From the quotation point of view, the external US dollar prices of Vietnam and Pakistan cotton yarns are weak (FOB, CNF), and Chinese buyers are relatively aggressive in lowering prices; while Indian cotton OE yarns and ring spinning yarns (including combed yarns) , compact spinning) quotations continue to run on the strong side, and buyers are not very enthusiastic about inquiry and purchase of Indian “futures yarn” and bonded yarn, and even have some resistance.
The reasons for the gradual decline in imported yarn transactions are as follows:
First, since mid-November, the textile industry has gradually entered the off-season, and some cloth and garment factories have increased sales. The intensity of goods and payment recovery; while textile factories in Shandong, Zhejiang, Guangdong and other places have begun to take holidays, cotton yarn procurement has slowed down or even stopped;
Secondly, affected by the recent continuous decline in the price of Zheng Cotton CF2001 contract, Domestic lint spot quotations were subsequently lowered, and domestic yarn quotations and transaction prices began to “divide”;
Thirdly, the second phase protocol of the China-Pakistan Free Trade Agreement came into effect on December 1, 2019, and many cotton yarn varieties in Pakistan Being able to enter the Chinese market with “zero tariff” greatly enhances the competitiveness of Basha. Some traders and fabric factories said that the reduction in import tariffs on muslin yarn will benefit both buyers and sellers, and will help textile and clothing companies reduce costs;
Fourthly, the RMB has recently turned from rising to falling against the U.S. dollar (the RMB against the U.S. dollar on December 4 The central price dropped by 159 basis points to 7.0382), and the import cost of cotton yarn increased. Some institutions and investment banks believe that the trend of the RMB exchange rate since the beginning of the year can be seen that the trend of the RMB exchange rate has not changed, and the data and events to be fermented will promote the depreciation of the RMB. Therefore, cloth factories and traders are becoming more cautious in signing contracts to import outer yarn. </p
