Yarn quotations are gradually decreasing. Where to go after the Spring Festival?

It is understood that since the end of December, weaving factories in Jiangsu, Zhejiang, Fujian, Guangdong and other places have been reducing production and taking holidays in adv…

It is understood that since the end of December, weaving factories in Jiangsu, Zhejiang, Fujian, Guangdong and other places have been reducing production and taking holidays in advance. (left and right), inquiries and orders for imported yarn shipments, bonded goods, and customs clearance goods continue to decrease, and some textile import and export companies and middlemen have suspended external quotations.

A cotton yarn trading company in Zhejiang said that after a brief recovery in imported yarn in early and mid-December (mainly due to the loosening of epidemic control, the resumption of some delayed execution orders in October and November, and the small amount of restocking by cloth factories and middlemen in the light textile market) It has fallen back again. In addition to the increase in holidays for weaving, printing and dyeing, clothing and other terminal sectors near the Spring Festival, the depreciation of the RMB exchange rate and the recovery growth in the quantity of cotton yarn arriving in Hong Kong since December compared with the previous two months are also the reasons for the decline in activity of imported yarn and the sluggish trading volume. important reasons.

However, judging from the quotations of yarn mills, exporters and domestic traders in India, Pakistan, Vietnam and other countries, in addition to the downward quotation of Indian OE yarn and the weak prices of C20S-C40S carded and combed yarn in recent days, Vietnam, Indonesia, Pakistan, Cotton yarns from Uzbekistan and other origins have remained relatively stable regardless of FOB, CNF, or RMB quotations (including knitting yarn), and the sellers’ active discounts and profit margins are not large. On the one hand, driven by the recent shock and rebound of Zheng Cotton contracts, domestic cotton spot quotations and fixed prices have followed suit. The “paper” profits of spinners have declined. Some textile companies have successively raised cotton yarn quotations, and the price of OE yarn has increased slightly. On the other hand, since late December, the RMB has continued to depreciate significantly against the US dollar, and the cost of cotton yarn imports has increased. On December 30, 2022, the onshore and offshore RMB also rose sharply against the US dollar, both rising by more than 600 basis points; on January 3, 2023, the China Foreign Exchange Trading Center released data showing that the central parity rate of RMB against the US dollar increased by 171 basis points The basis point was reported at 6.9475. At the same time, both the onshore and offshore RMB against the U.S. dollar once rose above the 6.9 mark that day, with the highest increase in the day reaching hundreds of points.

A cotton yarn trader in Changzhou, Jiangsu Province has judged that due to the generally low cotton yarn inventories of weaving factories and middlemen, the continuous narrowing of domestic and foreign cotton yarn price inversions, and the passing of the peak of new crown infections across the country, imported yarn is expected to usher in volume and price after the Spring Festival. In the double-rising market, it doesn’t make much sense to cut prices and sell goods at the moment.

As for domestic yarns, according to feedback from textile companies in Jiangsu, Zhejiang and Guangzhou, the prices of most yarn counts have increased recently, except for a few yarn counts. Some low-count yarns have even experienced “three consecutive increases”. The market seems to have ushered in spring. . Some factory leaders said that there has been a significant increase in inquiries from companies recently, but actual orders have been limited, and many companies are preparing for stocking next year.

The polyester yarn market has not increased much recently and has been mainly stable. Recently, the transactions of pure polyester fabrics have declined, and the purchase and sale of polyester yarn has been relatively deserted. As the Spring Festival approaches, polyester yarn in various markets has fallen into slow sales, and the inventory of some companies has risen to about 30 days.

Recently, the sticky short-term market has begun to weaken, with few transactions and no market for prices. Most manufacturers have gone on holiday, and most rayon yarn mills have also gone on holiday. Only some personnel on duty are left. Yarn sales are mainly based on destocking. Generally, we can negotiate based on the quantity. , because few people are interested in it, the actual market is deserted.

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Author: clsrich