Big Market Turn: India Yarn Exports Drop

According to customs statistics, in July 2016, India exported 17 thousand tons of cotton yarn to China, compared with 66 thousand tons in 2015, a sharp decline of 74.2% over the same period last year. In July, Bangladesh imported more yarn to India than China (two accounted for 18% of India's yarn exports). This indicates that since the cotton price rose 60% in March, not only the spinning profits have dropped sharply, but also the competitiveness of the international market has declined rapidly.

On the one hand, there are

Even abandoning C32S and below low count yarn production, instead of spinning only C40S and above high count yarn, on the other hand, imported yarn coming from mid and late 8 months is facing great losses. For example, the price of C32SA+ ordered in the middle and late 7 months is generally more than 2.95 dollars / kg. The cost of clearing RMB is not lower than 23500 yuan / ton, but the domestic market price is only about 21500 yuan / ton, so it is not possible to exclude buyers and sellers from negotiating to postpone the delivery date of cotton yarn or cancel the purchase contract.

According to the survey, although 8 months later, India futures yarn, spot yarn FOB, CNF, CIF

There is no obvious decline in the high position. The cotton mills and exporters have a strong desire for price. For example, the CNF quotations of JC32S and C32S knitted A+ are still 3.13-3.15 dollars / kg, 2.90-2.95 dollars / kg, but the quotation of the port bonded yarn and the import yarn after customs clearance has been greatly reduced. The quotation and the purchase of the Chinese weaving factories and middlemen have been shrinking continuously because of the quotations from the mills, and the operation of the traders has been greatly reduced in addition to the spot ports.

According to statistics, the export volume of India's cotton yarn in July was only 81 thousand and 300 tons, and the export volume was only 237 million US dollars, down 36% from the same period last year.

August 26-29, Qingdao, Guangzhou, Ningbo and other ports OEC10SA, C21SA, C32SA, JC32SA CNF quotes are 1.53-1.55 dollars / kg, 2.55-2.58 dollars / kg, 2.62-2.65 dollars / kg, 2.85-2.88 dollar / kg, respectively, lower than the first high point in August at the annual high point, respectively, 0.15-0.18 dollar / kg, while the difference between the port spot quotation and the India, Pakistan, Vietnam and other cotton mills quotations extended from the US dollar / kg to US $/ kg, so the sailing date of the Lunar New Year is limited.

Pakistan, Indonesia and other producing yarns are generally rejected by Chinese weaving mills and imported enterprises.

The decline of the US dollar quotations with imported yarn is echoed. The quotation of the import yarn after customs clearance is also fully callback. At the end of August, C21SA+, C32SA+ India brand and Dachang offer 19800-20200 yuan / ton, 21200-21500 yuan / ton, 2000 yuan / ton higher than the previous highs, some traders who sell C32S India yarn and traders who sell 25000 yuan / ton price are tightened up.