The transaction continues to be deserted, and the quotations of imported yarn are bearish.

According to feedback from cotton yarn trading companies in Foshan, Guangdong, Shaoxing, Zhejiang and other places, since last weekend, in addition to the slight acceleration of in…

According to feedback from cotton yarn trading companies in Foshan, Guangdong, Shaoxing, Zhejiang and other places, since last weekend, in addition to the slight acceleration of inquiries/transactions of Siro spinning yarns in Pakistan and Vietnam, the shipments of imported OE yarns and ring-spun carded/combed yarns have been relatively high. There was little improvement in the first half of March. Weaving factories and middlemen were still purchasing goods on demand and were not willing to expand stockpiling. The transaction volume of 40S and above combed yarns from India, Vietnam and other origins continues to be deserted. The main reason is the serious shortage of export traceability orders for mid-to-high-end and high-value-added textile clothing.

Several weaving factories in Foshan, Zhongshan and other places said that new export orders since March are still in an atmosphere of “strong expectations, weak reality”, and there are obviously few large orders, medium and long-term orders; coupled with some purchases from Europe, the United States, and Southeast Asia The “traceability” requirements of merchants have become tighter than in January and February. Fabric factories have taken measures to reduce cotton yarn inventories and finished product inventories to alleviate cash flow pressure. The operating rate shows signs of steady decline.

Judging from the survey, since February, cotton yarn in China’s main ports has been in a state of “destocking”. On the one hand, it is affected by the rebound in domestic cotton yarn consumption demand in India and Pakistan, the decline in export capacity, the depreciation of the RMB against the US dollar, and the continued slow shipment of imported yarn. Affected by multiple factors, the quantity of cotton yarn arriving and warehousing in Hong Kong has been low recently (the forecast arrival volume in January and February is both around 60,000 tons, a year-on-year decrease of more than 40%); on the other hand, the operating rate of cloth factories has fully recovered after the Spring Festival , driven by the timely replenishment of warehouses by middlemen, the transactions of bonded cotton yarn and customs-cleared cotton yarn have temporarily recovered. Trading companies have rushed to ship goods, hoping to achieve peace of mind as soon as possible. In particular, OE yarn and low-count ring spinning yarn have relatively good “destocking” .

Judging from the quotations of light textile import and export companies in Shaoxing, Ningbo and other places, although the USD/RMB quotations of Vietnamese yarn, Indian yarn, Uzbekistan yarn, Pakistani yarn and other yarns have stabilized weakly this week, the profit margin and preferential margin of the actual transaction price It has been significantly enlarged compared with February, and traders’ “black-box” operations have increased. Industry analysis shows that as the main ICE cotton futures contract fell below 85 cents/pound and 80 cents/pound in recent trading days, the downward trend of foreign yarn mills’ FOB/CNF quotations has intensified; while the current volume and price of cotton yarn at ports are both weak. , so traders may only have one option to lower prices and facilitate transactions.

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Author: clsrich