Import Yarn Sales Decline, Price Return Traders Passive Situation

According to the survey, at present, Qingdao, Ningbo, Guangzhou and other ports imported yarn inventory increased continuously in 2 and March, mainly Vietnam, India, Pakistan, Central Asia yarn (main Uzbekistan, Azerbaijan), Indonesian yarn, C32S and below accounted for more than 80% (including OE yarn); but compared with the relative active arrivals, delivery and bonded warehouses, the sales and outgoing of outer yarn were much lower than that in March.

Because of the large spread of the India yarn, the delayed delivery of cotton mills and exporters, the increase in demand for buyers and even the direct breach of contract are becoming more and more serious. Some textile manufacturers and traders who signed the "futures yarn" in India in February and 1 were in a passive position.

From the perspective of market feedback, since the end of March, the price of imported yarn has been "flat down". The actual paction price of OE yarn and C32S ring spinning has been reduced by about 200 yuan / ton, and the profit of 200-300 yuan / ton after the Spring Festival has basically gone back, and the space for traders to give up profits and concessions has been continuously compressed, and it is facing the risk of being out of balance or even "hanging upside down".

Why did the imported cotton yarn go down?

There are three main points in the industry analysis: first, the supply of domestic medium and low count yarn rises and the selling price falls.

With the Spring Festival, the low price and low quality India cotton, Mexico and Brazil cotton imports and real estate cotton production and marketing are booming. The start-up rate and output of small and medium sized cotton mills have rebounded. OE yarn and C40S domestic yarn are surging on the market and imported yarn is blocked. Two, the yuan has risen from the US dollar to the US dollar, and the cost of imported cotton yarn has increased.

Britain's EU stalemate and European economic worries, the US economic recession and Sino US trade negotiations continue to "see", the US dollar index has been boosted, the RMB devaluation pressure has increased. In April 1st, the central parity of RMB against the US dollar reported 6.7335 yuan (2018 RMB against the US dollar depreciated by over 5%); three, the external yarn quotation was higher and higher, and the buyer's enthusiasm was weakened.

Affected by the rise of ICE futures and India's domestic and foreign cotton prices, the price quotations of India and Pakistan yarn and Vietnamese yarn have been rising, apparently overdrawing the purchasing power of China's cloth factories and traders, and wait-and-see sentiment has heated up.

In addition, some export enterprises in Jiangsu and Zhejiang and Shandong reflect the demand for gauze demand in the off-season or ahead of schedule, and remind cotton yarn importers and middlemen to pay attention to operational risks.