Outer yarn outer trading difficulties traders find their way out

According to cotton traders Qingdao, Guangzhou, Ningbo and other places of feedback, the recent port spot C21S, C32S, C40S package dyeing and bleaching package of inquiry, a library unsatisfactory to the origin Vietnam, Indonesia, India and other mainly; Pakistan C8S-C16S The siro spinning price and transaction price are relatively stable, the inventory is insufficient and the cost is high, which makes the traders negotiate and the space for negotiation is relatively narrow. The transactions of JC21, JC32S India and Vietnam yarn are relatively light. Overall, imports of cotton yarn market continues the three trends: First, India, Pakistan endures disk futures yarn almost no turnover. The price of cotton yarn FOB, CNF and CIF is high and needs to be 40-60 days in advance to make the Chinese weaving factory and traders pay more attention and signing enthusiasm. Secondly, the arrival and bonded quantity of blended yarn continues to increase, especially India. The growth of T/C, CVC and T/R yarns is obvious, and the outer yarn spot is in a pattern of “blending into, cotton retreat”; third, the number of port yarns in the port continues to decline, especially the JC32, C40 and above. The arrival and warehousing reduction of Indian and Pakistani yarns is becoming more and more obvious, while the Vietnamese and Indonesian yarns remain stable.

From the survey, the reasons why the imported cotton yarn is still half-dead are summarized as follows: Firstly, due to the reduction of yarns and the widespread use of cotton wool in cotton mills to reduce the cost, since mid-April, Shandong, Henan, Hubei, Jiangsu and Zhejiang have been large. The price of cotton yarn for medium-sized yarn mills was reduced by 200-300 yuan/ton; while the port bonded, yarn, and Indonesian yarns were relatively stable (the OE21S and C32S bags with a tight supply of individual yarns even reversed upwards by 100-150). Yuan/ton), so the quotation gap between OE8S-C40S inside and outside yarns has widened to 1,500 yuan/ton. Foreign trade companies, garment factories and cloth factories have turned red on imported yarns. Secondly, India and Pakistan are not only insufficiently driven by cotton. Cotton yarn does not have much room for movement. Although the ICE contract has fallen from 77.40 cents to 73.35 cents since the beginning of April and then rebounded out of a V shape, but India's domestic cotton prices have deviated, S-6 in early April ex-factory price broke 88 cents / Pounds, the price difference with EMOT SM 1-5/32〞 is 3.5-4 cents/lb (the Far East main port CNF price), so the Indian mills signed a large number of US cotton and Australian cotton in 2016/17. Although China, Bangladesh Pakistan’s signings have fallen sharply, but the relevant Indian authorities believe that demand for high-count yarns, high-yarn yarns, and combed yarns will increase significantly in India, and confidence in the consumption of printed yarns will be full. Again, the exchange rate with the US dollar will be different. The continued depreciation of the RMB exchange rate is not conducive to the import of cotton and cotton yarn. Since the end of January, the US dollar index has shown a V-shaped trend as a whole, and there has not been any unilateral large fluctuations. In addition, there is not much bad news about the RMB and the data is disturbed. There are obvious signs of stabilization. However, some institutions and economists believe that although the renminbi has recently risen, there is still pressure for depreciation this year, especially the Fed’s interest rate hike and geopolitical risks. The central bank is facing greater challenges, policies need to take into account to avoid further depreciation of the renminbi, to control financial risk and steady growth targets.

In mid-April, the concerns of cotton yarn traders gradually increased, but there has not been a large price drop. The prices of C21 and C32S Indian manufacturers and brand A yarns are still at 22200-22500 yuan/ton and 24700-25000 yuan. / ton (with tickets), JC32S is as high as 26,800-27,200 yuan / ton, because OE yarn, C21 and below low-count yarn compared with domestic yarn is not only a significant decline in competitiveness and operating profit is also very small, but also bear cotton The risk of violent fluctuations in cotton yarn prices, so some traders continue to turn, try or expand imports of JC32, JC40S-JC60S Indian yarn, Vietnamese yarn, reduce the difference between the same count of domestic yarn, the profit is also slightly higher; expand polyester cotton, The import operation of blended yarns such as polyester-viscose yarn and cotton-bonded yarn can not only give full play to the advantages of low labor costs in Southeast Asian countries, but also minimize the risk of pressure on goods; reduce the operation of cotton yarn and cotton, and expand the fabrics of India, Pakistan and Vietnam. imported fabrics in the country through the deep processing for export or domestic sales.