According to feedback from cotton yarn trading companies in the light textile markets in Jiangsu, Zhejiang, Guangdong and other places, driven by the main ICE cotton futures contract exceeding 90 cents/pound this week and the simultaneous rise in domestic cotton yarn spot prices, ship cargo, The quotations of bonded and customs-cleared foreign yarns have generally stabilized and rebounded. The internal and external quotations of OE yarns and C20S-C40S cotton yarns from Vietnam, Pakistan and other places have slightly increased. However, the quotations of high-count cotton yarns such as 50S and 60S produced in Vietnam and India are relatively stable in US dollars and RMB. “There are few prices in the market” and yarn mills and traders are not very enthusiastic about raising prices.
An import and export company in Foshan said that at the end of April, the price of cotton yarn was passively increased by 200-300 yuan/ton due to the joint increase in foreign yarn mills and domestic cotton yarn. For old customers, , the discount rate for large orders has also dropped from 100-200 yuan/ton in the early stage to 50-100 yuan/ton, and it is basically cash and spot, no credit, no acceptance bills, no domestic letters of credit; but although cotton yarn is quoted Although the price of goods has increased, the enthusiasm of downstream cloth factories, fabrics and clothing companies to purchase and take goods has not recovered much. The situation of cloth factories “buying as they please, and eating as they see fit” is still prominent, and terminal stockpiling periods have happened again and again. Three places were postponed. Judging from the survey, most traders are not confident enough to continue to raise cotton yarn quotations, and they still need to “trade time for space” to straighten out the industrial chain, otherwise the recovery of consumption is likely to be “federated.”
Traders in coastal areas do not feel very strongly about the return of orders from India since April. On the one hand, the orders returned are mainly for mid- to low-end products such as home textiles and bedding. , due to generally low contract prices, net profits, and short delivery times, most European, American, and Indian merchants avoid middlemen and directly dispatch orders to production companies; on the other hand, return orders are highly uncertain. Once India, Bangladesh When the country’s epidemic situation reaches an “inflection point” and improves, orders from Europe, the United States and India will quickly be transferred back to Southeast Asia. Domestic companies may “lose their wives and lose their troops” if they are not careful.
It is worth noting that although the return of orders from India is not clear, due to the raging epidemic (in addition to India and Japan, Thailand has also fallen), some ports and logistics industries in Southeast Asia have been shut down ( For example, the Indian container port Kandla announced that it will close its terminal operations from April 24, and other ports in India, Thailand and other ports may be forced to shut down by the epidemic one after another). Therefore, Chinese companies need to pay attention: on the one hand, they need to be very cautious when accepting orders from India, Myanmar and other countries. Due to the epidemic , port shutdowns, logistics delays and other reasons, the buyer is likely to be unable to receive the goods on time; on the other hand, if the epidemic situation in India and other countries cannot be contained and improves in May/June/July, it is likely that medium and long-term return orders from India will face delays , breach of contract, and abandonment of orders. </p
