According to feedback from cotton yarn trading companies in Guangdong, Jiangsu, Zhejiang, Fujian and other places, since late July, the inquiry/transaction situation of knitted yarns in Vietnam, Indonesia and other producing areas has been significantly better than that of woven yarns, with 16S-26S yarns being the mainstay; while Pakistan, India Siro spinning/combed yarn from other producing areas continues to experience sluggish shipments and low prosperity. Vietnam’s C32S and above compact yarns are basically in a slow-selling state.
Overall, at present, except for the sales of high-quality, package-bleached OE10S-OE16S imported cotton yarns, which are unsatisfactory, and some knitting yarns are out of stock, other specifications of cotton yarns are difficult to see improvement in the short term. Although some cotton yarn import companies and traders have recently launched a sell-off loan model in an attempt to achieve early recovery Funds and pockets are safe, but the effect is not great. Weaving and fabric companies that have received traceability orders still purchase cotton yarn in batches: on the one hand, they are worried that raw materials will occupy limited working capital; on the other hand, they are worried Orders are subject to change at any time due to factors such as the geopolitical situation, US-European trade barriers, sharp fluctuations in exchange rates and other factors.
Why are cotton textile companies that have received traceability orders not very enthusiastic about importing American cotton/Brazilian cotton/Indian cotton and other spinning yarns, and still directly import cotton yarn from Vietnam, Indonesia, Pakistan and other origins? The reasons analyzed by the industry include the following three points:
First, traceability orders in June and July are still mainly “short orders, small orders, and transitional orders”, and the orders are not sustainable. Imported US cotton, Brazilian cotton and other spinning yarns are costly due to “low quantity and difficulty in ordering” has increased significantly; secondly, compared with directly imported cotton yarn spot, imported cotton yarn has many spinning processes, a long cycle, and a correspondingly long delivery period. Order-receiving companies are worried about changes in market conditions, delaying performance of the purchaser or canceling the contract, resulting in losses; thirdly Unlike most cotton textile companies that purchase imported cotton and place orders for spinning yarn, 100% of the payment is required (the balance needs to be paid upon delivery at the port or even after receiving the shipping order by fax). Cotton yarn imports are almost 100% LC90 days, which is conducive to procurement. to ease financial pressure.