According to feedback from cotton yarn importing enterprises and light textile market traders in Guangdong, Jiangsu, Zhejiang, Shandong and other places, domestic textile and clothing enterprises and middlemen have still been relatively low in their enthusiasm for purchasing “futures yarn”, bonded yarn and customs-cleared cotton yarn since late April. Shipments of port OE yarn, Pakistani 8S-16S siro spinning yarn, and high-count yarns above 40S from India, Vietnam, and Central Asia continue to be deserted.
Cotton yarn operating companies in Guangdong, Zhejiang and other places said that in the past week or so, OE yarns from Vietnam, Pakistan, Thailand, Indonesia and other producing areas have been “very low-priced”, and buyers have struggled to make inquiries, inspect goods and ship goods. Inactive, most traders provide relatively large discounts to customers who purchase actual orders. In order to quickly withdraw funds and tide over the crisis period, some sellers offer profit margins of 150-200 yuan/ton. Judging from the survey, some textile and clothing companies in coastal areas have postponed the replenishment period of cotton yarn until after the May Day holiday. Before the holiday, most of them stayed on the sidelines, watching more and taking less action.
For “futures yarn” in June/July/August, weaving companies and traders are more cautious and cautious in signing contracts. Inquiries and orders are mainly based on trial. It is expected that batch procurement will be postponed to March 2020. Quarter or even fourth quarter.
On the one hand, the COVID-19 epidemic in Southeast Asian countries such as India and Pakistan has changed from a “sudden war” to a “protracted war”. It is difficult to estimate when measures such as country closures and city closures will be “unlocked”. Cotton mill production , transportation, port shipping, etc. are highly uncertain. Weaving companies and traders with high resumption rates in Guangdong, Zhejiang and other places said that although some yarn mills in Pakistan, India and other countries have recently begun to resume work and have provided quotations and willingness to continue cooperation, the epidemic is a “black swan” Without flying away, buyers have to be cautious and worried when placing orders;
On the other hand, although Europe and the United States are planning to test the “unblocking” in May, the recovery of economy, trade, transportation, retail and other businesses It may take a long time for my country’s textile and clothing export orders to stabilize and the rebound to be smooth. Enterprise production and raw material procurement are all “step by step”. Recently, a small number of foreign orders have arrived in Jiangsu, Zhejiang, Shandong and other places, and orders postponed in February/March have resumed execution. However, they have not significantly stimulated the overall weak and sluggish textile and clothing market, and it is difficult to form effective support for cotton yarn prices. .
In addition, the current quotation of foreign cotton yarn for customs clearance at the port is nearly 1,000 yuan/ton higher than that of domestic yarn (C32 and above high-quality packaged bleached cotton yarn), the RMB continues to depreciate against the US dollar, and the domestic textile and clothing market has started, and the recovery is “unsatisfactory” It is also an important reason that restricts downstream weaving and importing companies from signing contracts to purchase “futures yarn”. </p