According to feedback from cotton yarn trading companies and weaving factories in Jiangsu, Zhejiang, Guangdong, Shandong and other places, in the past week or so, the external quotations of Vietnamese yarn, Central Asian yarn (mainly Uzbekistan yarn, Turkmenistan cotton yarn), and Indonesian yarn have been weak (CIF or CNF quotation), the number of shipments, arrivals and bonded warehouses of black yarn has increased significantly; while the external quotation of Indian yarn continues to oscillate and strengthen.
According to statistics, since November, the export quotation of Indian JC 30-count cotton yarn has increased by 20 cents, reaching 2.65 US dollars/kg, an increase of 8.2%. The price difference with its main competitors, Vietnamese yarn and Pakistani yarn, has once again widened. Chinese buyers are less interested in signing up for India’s 32S-40S mid-to-high-spec, non-bleached “futures yarn”; while the external quotations of Pakistani cotton yarn have been stabilizing for half a month. As the demand for OE yarn peaked and fell, and the shipment of 8S-16S Siro spinning slowed down, Pakistani yarn mills, exporters and Chinese traders generally feel greater pressure.
A Pakistani cotton yarn exporter said that although China and Pakistan have started the second phase of the free trade agreement and imported Pakistani yarn has zero tariff, due to the significant reduction in Pakistan’s cotton production in 2019/20 Moreover, the cotton quality indicators are not strong, so we can only sign contracts to import high-priced machine-picked American cotton, Brazilian cotton, and West African cotton. Due to the continuous increase in raw material costs, spinning profits have declined, and the enthusiasm of spinners for production and sales is not high. Judging from the survey, since the quantity of foreign yarn arriving at the port was relatively large in October, and the pickup in shipments only lasted a few days, the port inventory pressure increased again (including bonded yarn and customs clearance yarn).
According to statistics, from April to August 2019, India’s cotton yarn exports fell by 36% year-on-year, while in value terms, cotton yarn exports fell by nearly 39%; among them, to China in July Cotton yarn exports fell by 80%; customs statistics show that in October 2019, China imported 150,000 tons of cotton yarn, an increase of 7% year-on-year (imports in September fell 16.09% year-on-year), indicating that China’s weaving factories and middlemen were responsible for imported yarn in October/November. Purchasing willingness, acceptance, and digestion capacity are gradually recovering. However, judging from the feedback from buyers and sellers, Vietnamese yarn, Indonesian yarn, and Uzbek yarn have become the main importers under contract, while Indian yarn has been “marginalized” again due to high quotations, additional tariffs, and unreliable imports. Problems such as package bleaching and difficulty in claiming compensation have troubled Indian yarn as it makes great strides into the Chinese market. </p
