According to feedback from weaving companies and cotton yarn traders in coastal areas such as Guangdong, Jiangsu and Zhejiang, although ICE futures are consolidating around 60 cents, Indian futures spot prices have continued to rebound slightly, Eid al-Fitr and the end of the blockade have caused yarn mills in India, Pakistan and other countries to The resumption of work and production continues to accelerate (India’s Ministry of Home Affairs issued an announcement to extend the nationwide blockade originally scheduled to be lifted on June 1 for another month to June 30. However, in the face of hunger, locust plagues, heavy rains and floods, India is actually already in the “half-term” state. “Unblocked” status), but the FOB and CNF quotations of cotton yarns from India and Pakistan are still weak, especially open-end cotton yarns. The depreciation of the Indian rupee is also an important reason for the falling US dollar quotations of cotton yarns from India and Pakistan. According to customs statistics, China’s import volume of Indian yarn fell by 73% year-on-year in April 2020, which was much higher than that of Vietnamese yarn, Pakistani yarn, Indonesian yarn, etc.
It is worth noting that in the past week or so, the US dollar quotations for C32S, C40S cargo and bonded yarn in Central Asia such as Uzbekistan and Turkmenistan have increased, mainly due to the rise in ICE futures since early June, The epidemic has led to a decline in cotton yarn production capacity and an increase in transportation costs. Traders in Qingdao, Zhangjiagang and other places said that the recent outsourcing of Vietnamese mid-range and low-range C16S-C32S cotton yarn (not including bleaching and machine loading) has been much more active than that of Indian and Pakistani yarn. Mainly factories and middlemen. On the one hand, the price difference between Vietnamese cotton yarn with high-quality package bleaching and medium-low cotton yarn is relatively large (FOB or CNF), and the buyer has a certain bargaining space; on the other hand, the current focus of weaving and clothing companies is to receive domestic orders, and the requirements for quality have declined. The purchasing principle of manufacturing enterprises is “available, able to deliver orders.”
According to the survey, in mid-June, the price difference between port customs clearance C32S medium and high-end Indian/Vietnamese yarn and domestic yarn reached 400-500 yuan/ton, which is very competitive. According to a medium-sized yarn mill in Gujarat, due to the sharp decline in Chinese buyers’ interest in signing contracts for carded and combed yarns of 40S and above, while inquiries and delivery of mid-range C20S-C32S and OE yarns are unsatisfactory, the yarn mills have experienced a significant decrease The production of high-count yarns has even been suspended, and the production capacity has been adjusted to counts of 32S and below; the second is to lower the standard of cotton yarn blending, reduce the purchase of high-quality raw materials, and give full play to the advantages of low cost, low labor and low freight of Indian yarn. </p
