According to statistics, India’s cotton yarn exports in May 2023 totaled 80,200 tons, a year-on-year increase of 69.87% and a month-on-month increase of 4.79%. It not only continued the year-on-year growth momentum of cotton yarn exports in April (an increase of 5.39% in April), but also export volume and export growth. All showed an explosive rise.
Since early July, cotton yarn traders in Qingdao, Ningbo, Shanghai and other places have reported that although Zheng cotton and ICE cotton futures started a shock rebound almost at the same time, under the premise of cost push and the expansion of spinning losses, the yarn prices of large and medium-sized cotton spinning mills have declined. The price is about to rise; however, the quotation center of shipments/bonded yarns such as Indian compact yarn, C20S-40S carded yarn, OE yarn, etc. continues to shift downward, and the price inversion with the price of domestic cotton yarn of the same count is getting smaller and smaller. Some non-large manufacturers , non-branded yarns have even been flat or hanging smoothly, which has attracted great attention from weaving enterprises and light textile import and export companies in Guangdong, Jiangsu and Zhejiang and other places. The internal and external orders of Indian yarn have rebounded to varying degrees.
A cotton yarn trading company in Hangzhou said that unlike the slight increase in Vietnam’s cotton yarn FOB/CNF quotations due to the main ICE contract exceeding 80 cents/pound, 82 cents/pound and power restrictions and rising electricity prices, in the past week or so, India’s , Pakistan, Uzbekistan, Indonesia and other producing countries, the prices of cotton yarn/blended yarn are all stable and weak. Downstream customer inquiries and contract volume continue to pick up in May/June. However, 50S and above high-count cotton yarns from India, Vietnam and other producing countries are in a stable to weak pattern. The shipment volume has continued to weaken compared with June, the progress of customers receiving and picking up goods has slowed down significantly, and the accumulation rate of high-count cotton yarn among traders has increased. It is understood that some weaving, fabric, and clothing companies in coastal areas use imported high-quality package-bleached OE16S yarn/OE21S/OE26S yarn to replace ring-spun yarn of the same count or even C32/2, C40S/2 and other strands to achieve lower costs. costs and increase profit margins.
A medium-sized weaving company in Suzhou, Jiangsu Province reported that in July, the spot exchange rate of RMB against the US dollar has rebounded by more than 1,000 points. Based on the highest intraday price on July 12, the appreciation reached 1.5%. The cost of cotton yarn imports has further declined. India, Pakistan, The US dollar quotation competitiveness of cotton yarn in Vietnam and other places has been released again. Cotton yarn’s far-month shipments and bonded yarn contracted import volume are expected to perform very well, and the substitution of domestic yarn is becoming stronger and stronger.