According to feedback from cotton yarn trading companies in Jiangsu, Zhejiang, Guangdong and other places, not only the quotations for cargo, bonded and customs clearance cotton yarn have continued to be weak since late March (including JC32S, JC40S cotton yarn from India, Vietnam, Indonesia and other origins), but also downstream weaving, Fabrics, clothing and other companies are also not active in inquiry and procurement. Pakistan’s 8S-16S siro spinning and Vietnam’s 20S-32S ring spinning and OE8S-OE16S yarns have signed contracts and shipments have declined significantly compared with February.
A textile import and export company in Zibo, Shandong Province said that in the past half month, except for the unexpectedly poor performance of imported C26S yarn due to seasonal demand, the overall transaction volume of bonded and customs cleared cotton yarn at the port has been relatively light. . On the one hand, the phenomenon of buyers such as downstream fabric factories and textile clothing purchasing at low prices is very serious, and the buyers and sellers fall into a short-term stalemate; on the other hand, terminal textile and clothing enterprises require credit, 1-3 months account period or domestic letter of credit for procurement. There are more and more transaction methods such as payment, but cotton yarn traders and import and export companies are unwilling to accept them, so inquiry transactions are relatively deserted.
From a survey of the light textile market in Guangdong, Zhejiang and other places, the current inventory of cotton yarn in Vietnam, India, Pakistan and other producing areas has increased significantly compared with before the Spring Festival (concentrated between late February and Arrival and delivery around late March), especially 40S and JC32S, JC40S high-quality bale-bleached cotton yarns from India, Vietnam and other places are under great pressure due to slow shipments. A supply chain management company stated that as of late April, hundreds of tons of C32S and C40S imported cotton yarn orders had not yet been delivered to customers, so shipments and port bonded and customs-cleared cotton yarns from May to June would not be quoted externally.
Some domestic cotton yarn importing enterprises reported that as ICE futures fell sharply in March, domestic cotton yarn quotations plunged sharply along with cotton prices, and some manufacturers lowered the prices of C32S and C40S carded yarns by 1200- 1,500 yuan/ton, the price of high-count combed and carded cotton yarns of 50S and above dropped even more. At the same time, downstream cloth factories, fabrics, and clothing companies have become more difficult to receive orders due to various reasons such as the surge in raw materials and the fluctuation of the RMB exchange rate. Some traders or small businesses are facing execution pressure because they only collect 10% or less of the contract deposit. , as the decline of cotton and cotton yarn deepens, the phenomenon of end customers negotiating price reductions (re-signing contracts), delaying delivery or even directly breaching the contract has increased significantly. </p
