According to feedback from cotton yarn trading companies in Guangdong, Jiangsu, Zhejiang and Shanghai, due to the negative effects of ICE cotton futures falling sharply again in the past half month, the signing of foreign yarn exports has cooled significantly, and cotton prices have fallen sharply after the launch of new cotton in India, since late September Cotton yarn shipments from India/Vietnam/Indonesia and other origins, and bonded quotations at major ports in China continue to fluctuate downward (quoted in US dollars), while the prices of customs clearance cotton yarn and domestic cotton yarn only fall slightly by 200-300 yuan/ton. Therefore, the inversion range of domestic and foreign cotton yarns varies with domestic and foreign cotton yarns. Prices continue to narrow all the way.
A textile import and export company in Zhejiang stated that the domestic imported cotton yarn market has recently shown the following three trends:
First, large and medium-sized weaving enterprises are paying more attention to and making inquiries about shipments and bonded yarn from India/Vietnam and other origins. The transactions and shipments of customs-cleared yarn have slowed down compared with the previous period.
Second, due to the insufficient quality of “Golden Nine and Silver Ten”, traceability orders are still mainly short orders, small orders, and urgent orders, and medium and long-term orders are relatively few. Therefore, since late September, imported US cotton/Brazilian cotton/Indian cotton spinning transactions have been used to cool down the transaction. It is obvious that terminals such as domestic cloth factories, clothing and foreign trade companies are more inclined to buy as needed and import cotton yarn according to order, replacing cotton imports.
Third, the market atmosphere of Indonesia/Vietnam OE yarn, Pakistan 8S-16S siro spinning yarn and India/Vietnam knitting yarn, which were not satisfactory in August/September, has been weakening recently, and fabric factories in coastal areas have been unable to purchase. It is understood that before mid-October, the operating rates of small and medium-sized weaving enterprises in important weaving towns such as Zhongshan, Foshan in Guangdong and Xiangshan, Lanxi and Xiaoshan in Zhejiang dropped to 50%-60%, which was slightly larger than the decline in September.