Yarn Market: Low Import Yarn Competitiveness Weakened

It is understood that in September, China's main port cotton yarn bonded volume showed a slight decline, and the decline in C32S and above inventory counts was particularly evident. On the one hand, the sharp rise in import yarn quotas in 6 and July led to strong resistance from Chinese textile factories and traders. 7/8/9 month "futures" yarn purchase decreased substantially, and the warehousing volume continued to be lower than the outgoing stock. On the other hand, the difference between the CNF and CIF quotas of the cotton yarn spot in India, Pakistan and Vietnam reached 0.20-0.25 US dollars / kg on the other hand, which was obviously "upside down" (for example, in late August, Qingdao port traders India C32SA quotes 2.78-2.82 dollars / kg, but the India mill quotes were generally above 3 yuan / kg), and the export intention of India, Pakistan and other cotton mills to Chinese buyers declined sharply.

For short-term India, Pakistan cotton mill FOB, CNF quotation trend, Chinese buyers generally continue to bearish, and did not really go to the bottom of the order.

Cotton has been listed on a small scale, and the price difference between Chen and cotton in 2015/16 will reach 7-8 cents / pound. The cotton price in India will continue to be adjusted downward in depth. The price of S-6 cotton mill is expected to be bottomed near 70-72 cents / pound. Buyers such as China and Bangladesh will not be competitive in bidding for India yarn, and their quotations and quality will not be competitive. In July, the export amount of cotton yarn in India will be reduced by 36% compared with the same period last year. The supply of China's low-grade cotton will be adequate (after March 2017, the reserve cotton wheel will be launched, plus real estate cotton), and the fluctuation range of cotton prices will be narrowed. C32S and below low yarn will become an important way for some textile enterprises to obtain orders and maintain production. It is very difficult for imported cotton yarn to enter the Chinese market without any fear. As long as it's new in India.

According to Qingdao, Shanghai, Guangzhou and other places

Traders said that since the beginning of September, the India air jet spinning C21S and 32S knitting yarn has been declining continuously since the beginning of September. Besides the 8S-16S performance of Pakistan siro spinning, the turnover of low spinning ring spinning and air spinning has declined compared with that in 7 and August. However, the attention and enquiry of the high count yarn of C32S, C40S, JC32S, JC40S and 40S above Vietnam, Vietnam and Uzbekistan are increasing. Some traders are actively associated with importing cotton mills and exporters to adjust the shipment varieties or order the high count yarn for the month of shipment.

On the one hand, the "golden nine silver ten" order is mainly made of fabrics in spring and summer in 2017, and the purchase of weaving factories and garment factories is gradually adjusted to C32S and above. The production of high density and high density wide grey cloth continues to enlarge, while the denim and industrial cloth of OE yarn and low spinning ring spinning need to be gradually reduced.

On the surface of the auction, the supply of 21S and below low grade domestic yarn increased again, and the quotation of cotton yarn FOB, CNF and CIF of India, Pakistan and Vietnam was significantly higher than that of the port traders. Even though the factory price of India cotton ginning factory dropped from 95.2 cents / pound to 82.20 cents / pound (Chen Mian), the CNF price of cotton mill C21S and C32S was only reduced by 0.15-0.20 dollar / kg (the lowest price of India C32SA FOB price in September 10-12 to 2.55 U.S. dollars / kg), and the competitiveness of low import yarn was weakened.

Some textile companies believe that the reason for the increase in the import price of imported yarn is that the principle of cotton rotation is grade and quality from high to low, and cotton in 2015/16 has basically been exhausted, and the processing and listing are in the middle of October.

Because of the large value of horse and the lower strength of breaking, it can only be used for cotton and civilian cotton. It does not meet the requirements of cotton blending in spinning. Therefore, the supply of C32S, C40S, JC32S and JC40S on the market is not sufficient.

Some medium-sized textile enterprises in Hebei, Shandong, Henan and other places indicated that since late August, enquiries for weaving factories and garment factories have increased, and the number of cotton yarn orders above C32S and above has increased. The high count yarn "go to stock" has been quickening in the cotton mill. But considering the recent high grade and high quality cotton supply is tight, the port has a high volume of imported yarn with low bonded volume, so it is very cautious about "short, flat and fast" orders.

Whether or not "bleached" cotton yarn has become the focus of attention and counter offer of buyers and sellers.

A trader in Qingdao has revealed that since June, the supply of high-grade cotton in India is tight and the price is too high. The cotton mill can only temporarily import "American cotton, Brazil cotton" and "West African cotton" and so on. The cotton blending is very complicated. Therefore, the quality of C32S and 40S in 8/9/10 months is not guaranteed at all, nor can it be "bleached". Therefore, weaving factories and traders should be careful in signing contracts, and the difference between cotton batches and batches is very large.