According to customs statistics, my country imported 140,000 tons of cotton yarn in April 2020, a year-on-year decrease of 26.32% (my country’s imports of textile yarns, fabrics and products in April were US$1.14 billion, a year-on-year decrease of 25.4%); since 2019/20 (September 2019-April 2020) my country imported a total of 1.24 million tons of cotton yarn, a year-on-year decrease of 4.62%.
It is worth noting that in March, my country imported 192,400 tons of cotton yarn, a month-on-month increase of 37.05%, and a year-on-year increase of 0.58%. In April, both the import volume and import value of cotton yarn showed a “cliff” drop. Some cotton yarn trading companies in Jiangsu, Zhejiang, Guangdong and other places reported that weaving, clothing, and foreign trade companies were hardest hit by the COVID-19 epidemic in April, and gauze consumer demand declined very significantly (domestic sales basically stagnated in February and March, and export orders were severely hit in March). Canceled or postponed, domestic and foreign sales in April were “mixed doubles”), so cotton yarn imports plummeted from 192,400 tons in March to 140,000 tons. Although it is reasonable, the drop is somewhat larger than expected.
From the survey, as the COVID-19 epidemic in China, Europe, Japan, South Korea and other countries eased significantly from April to May, they all pressed the “restart button” on economy, trade, transportation, etc. Since late April Not only did domestic demand for autumn and winter orders begin to rebound, export orders that were postponed from March to April were activated for the second time, and a small amount of new orders from Europe, Japan, and South Korea gradually arrived. Port bonded and immediate inquiries for Vietnamese yarn and Pakistani yarn, The transaction continues to pick up (including OE yarn, C16S-32S high-quality packaged bleached yarn, but the shipment of 40S and above combed yarn is still sluggish), so April is a “depression” for cotton yarn imports, and the import volume and import value are expected to increase in May. Very significant rebound.
Traders and cotton textile companies believe that in addition to the slow growth of domestic sales and violent shrinkage of export orders caused by the new crown epidemic, there are three reasons for the huge plunge in China’s cotton yarn imports in April (China’s weaving, clothing and It will not be discussed if it is difficult for enterprises to resume work):
First, from March to April, India, Pakistan and other Southeast Asian countries implemented measures such as “locking down countries and provinces” to combat the epidemic. Spin mills, logistics, and port shipments As the shutdown approaches, cotton yarn procurement contracts of Chinese companies are forced to cancel or postpone execution for 1-2 months; secondly, as cotton yarn futures prices oscillated and fell in April (CY2009 fell from 19350 to 17815, down 1535), the spot price difference between domestic and foreign cotton yarn narrowed. The competitiveness of imported yarn has declined; thirdly, the RMB has been depreciating in the past four months, and the lows tend to get lower and lower. According to the analysis of some institutions and investment banks, the current international market is full of high uncertainties, and both the active and passive acceptance of the RMB are greatly restricted, causing the RMB to become a major currency in the short term (especially when the epidemic may last for 1-2 years). time period, putting great pressure on the RMB. </p
