According to feedback from some cotton yarn traders in Zhejiang, Guangdong and other places, since late August, both the US dollar and RMB quotes for imported yarn have been confusing. The price difference between yarns from different countries, different companies, and different processing periods has widened compared with June/July, especially in India. Compact-spinning combed yarn and Vietnam-made CVC polyester-cotton yarn performed outstandingly.
According to analysis by industry insiders, on the one hand, domestic yarns made of American cotton, Brazilian cotton, and Australian cotton not only have advantages over imported cotton yarns in terms of quality indicators and stability, but also have a certain reduction in spinning costs; on the other hand, as of now, Jiangsu and Zhejiang , Guangdong and other coastal areas, cotton yarn import enterprises and intermediaries generally have relatively high inventory levels of imported yarn, and enterprises are under great pressure on capital flow and operation. In addition, the new export/domestic demand orders during the “Golden Nine and Silver Ten” are once again lower than expected, and some of them have the ability to withstand pressure. Weaker traders’ price support sentiment has weakened, their willingness to ship has increased, and the preferential margin has expanded compared with the previous period.
Judging from the survey, not only the quantity of Indian cotton yarn shipped and arriving in Hong Kong from June to August was relatively large and concentrated (mainly C20S and above carded yarn and JC32-JC50S yarn, the proportion of siro spinning and compact spinning yarn continues to rise), and the arrival and storage volume of Pakistani Siro spinning and C20-C32S cotton yarn is not low. The main reason is that the supply of new cotton in 2023/24 has increased significantly year-on-year (as of the end of August, the new year’s launch The volume of lint cotton reached 471,000 tons, a year-on-year increase of 97.5%), and the raw material problem has been solved; coupled with the lifting of the warning of Pakistan’s foreign exchange reserve crisis, some yarn mills have restarted letter of credit business, the operating rate and production capacity continue to rebound, and the enthusiasm and pressure for cotton yarn exports need to be released ; The recent shipments of Vietnamese yarn have been relatively stable. Although the transaction volume of cotton yarn has slowed down due to rising quotations and the rapid growth of Indian yarn imports, the shipment and arrival momentum of polyester-cotton yarn, CVC, etc. is relatively strong.
A large textile import and export company in Ningbo estimates that as of September 5, the inventory of cotton yarn in major ports across the country may have reached 120,000-130,000 tons, of which Vietnamese yarn, Indian yarn, Pakistani yarn and Uzbekistan yarn are the main ones.
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