Prices Of Imported Yarn Vary, And Domestic Cotton Yarn Is Boosted Under Quota.

In the past week, the price of cotton yarn has been stable in China, and the market has not been very active. Cotton yarn price has been strong under the support of cotton price and cost.

The raw material inventory of the spinning mill is beginning to be consumed due to the lack of information on the storage cotton wheel.

However, last weekend, China announced that the additional 800 thousand tons of cotton tax quotas would support domestic spinning production. The price of imported cotton is lower than that of domestic cotton, so the cost of raw materials for textile enterprises is expected to decline.

In recent weeks, international cotton prices have continued to rise, and the difference between inside and outside cotton prices has gradually narrowed.

Previously, China's cotton mills were facing competition from various imported yarns, especially Vietnamese cotton yarn. The price of imported yarn in the Chinese market rose, while the price of the internal market fell after the value added tax was cut.

In the short term, the prices of imported yarn in Vietnam, India and Pakistan remain strong. The rise in the India rupee rate will restrain the export of India cotton yarn to China. India mills are also facing the pressure of rising domestic cotton prices.

Extended reading

Import yarn gauze bonded stock increased again, "futures yarn" signed a big drop.

According to feedback from Cotton Traders in Qingdao, Guangdong, Jiangsu and Zhejiang, since the middle of April, except for OE yarn and C21S ring spinning, the price of inquiries and shipments were worse than before. 40S and more ring spinning, compact spinning and combed yarn delivery were significantly lighter than those in 1 and February. C21S, C32S, India and Pakistan and Vietnam produced high shrink bleaching knitted yarn out of the warehouse.

As a whole, the number of contracted purchase of cotton yarn, such as bonded and futures yarn, has dropped to a certain level. The port has cleared some of the RMB quotations, but some of the yarn is still traded, but the price is generally down 200-300 yuan / ton compared with March. Traders are not enthusiastic about selling goods and collecting money, and one side is waiting for the Sino US trade consultation to be successful. The other side is waiting for the new contract arrival and delivery of India, Pakistan, Central Asia yarn, which has continued to rise since March.

In addition, according to the current acceptance price of domestic weaving factories and middlemen, cotton yarn import enterprises basically have no profit or even a slight loss. Therefore, "better not to sell, not to abuse" mentality prevails.

From the survey, by the middle of April, the number of bonded yarn in Qingdao, Ningbo and Guangzhou ports was relatively large. Since mid March, it has been in a state of "multiple warehouses and less shipments", especially the siro spinning, C32S and above count combed yarn.

An import company in Qingdao said that the contract purchase period for imported yarn, such as India, Pakistan and Vietnam, was mostly in the month of 1-2 (when India's domestic S-6 1-5/32 market price was below 80 cents / pound), and now it rose to 85 cents / pound. The CNF quotation of EMOT/MOT SM 1-5/32 rose to 88-89 cents / pound from the 79-80 cents / pound, and the volume was larger, and the profit expectation of importers increased again and again. However, the trend of domestic cotton yarn price deviated from cotton in the middle of March, and it was more than 3-4 yuan.

Some yarn traders believe that with the rise of ICE futures and India cotton prices, the rise of bonded and futures yarn will eventually promote the clearance of yarn.

At present, India, Pakistan and other "futures yarn" signed import volume continues to decline, the domestic factories and traders have strong feelings of resistance. Some buyers have no intention of receiving inquiries and goods in the short term, and are in sharp contrast with the textile mills and export enterprises such as India and Pakistan.

First, in the past two months, the price difference of cotton yarn between home and abroad has significantly contracted by 150-250 yuan / ton, and the supply of domestic low and medium yarn has been shifted from defensive to offensive. Secondly, the national development and Reform Commission announced the issuance of 800 thousand tons of quasi tariff cotton import quotas, which is conducive to the import of cotton from textile enterprises, which is conducive to cost reduction and competitiveness. Thirdly, the price of domestic cotton and cotton yarn in India and Pakistan is rising like a rainbow, and the atmosphere of speculation is heavier.