How Will The Domestic Yarn Market Pattern Evolve?

Since 2011, the price difference between cotton and domestic yarn has been expanding continuously due to the influence of relevant national policies, especially the quota policy.

Imported yarn has caused great pressure on domestic textile enterprises. Especially in the field of low and medium yarn, cotton textile companies such as India, Pakistan and other countries enter into an unbounded situation. Small and medium-sized textile enterprises in China are howling. Foreign cotton yarn importing enterprises are also fierce. Importers say that on such a small cake, there are about 300 companies crowded.

The more than 300 companies are struggling for resources.

It can be said that from 2011 to 2015, imported yarn is constantly "swallowing" the Chinese cotton yarn market, and has the trend of "dominating the whole world".

However, there are other worries on the surface. It is undeniable that although the total amount of imported yarn is still growing, but since 2014, the demand for the downstream has not been prosperous and the price is low.

Xiaobian looks at the leopard. It is expected that the imported cotton yarn will weaken in the future. The main reasons are as follows:

In recent years, domestic cotton consumption has gradually declined. According to the national cotton market monitoring system data, domestic cotton consumption in 2015 is expected to be around 7 million 150 thousand tons. Due to the gradual reduction of demand, imported cotton yarn is bound to be affected, especially in the field of low count yarn.

1100 tons of national storage cotton is like a sword hanging on the head of cotton and cotton yarn traders, and everyone is worried about when the sword will fall.

Recently, discussions on dumping and storage have increased and there are various versions of speculation.

cotton

The downside is expected to increase, regardless of the degree, but will definitely impact the import yarn market.

This year

The continued devaluation caused some traders to suffer heavy losses and indirectly brought the reshuffle of traders. Many small and medium traders withdrew from the market.

Insiders expect that the yuan will depreciate to 5-10% next year against the US dollar, which will make many downstream buyers unbearable and choose domestic yarn instead.

The most prosperous period of imported yarn is inside and outside.

When the price difference is the biggest, the price of imported yarn is more than two thousand yuan over that of the same kind of domestic yarn.

Today, as of the end of January, the RMB quotations for India C21S and C32S yarn in the mainland market are 17300-17500 yuan / ton, 19200-19500 yuan / ton (individual factory 21SA yarn 17600-17800 yuan), C32S Vietnamese made C32SA yarn quoted 19500-19600 yuan / ton, and the difference between India yarn and domestic cotton yarn has dropped to 300-500 yuan / ton, which has shrunk to a historical low.