Combed Yarn Is Booming, Cotton Market Is Bottoming Up.

It is understood that imports, JC21, JC32S cotton yarn, and imported, compact spinning yarn imported from India, Vietnam and Pakistan in the early March were significantly more active in inquiry, paction and shipment than in 1 and February. However, the import and export of siro spinning C8S and C10S cotton yarn in Guangdong and Jiangsu and Zhejiang provinces were better than that in C21S, C32S and C40S ring spinning.

On the one hand, as India, Pakistan, Indonesia and other Chinese exports declined, Chinese buyers began to raise their cotton yarn FOB, CIF and CNF prices in mid January. The interest in ordering India's futures yarn began to plunge, and the number of bonded cotton outside the port dropped to about 70 thousand tons. In the near future, there was not much action in the replenishment of the cotton yarn, JC21, JC32 and Pakistan's Siro C7S-C10S yarn bonded volume were insufficient; on the other hand, India and Pakistan and other domestic cotton yarn demand was strong, and the product structure was adjusted from 32S and below low count yarn to 40S-80S high-end yarn, and the output of cotton yarn such as J32S was shrinking.

The price gap between export and domestic market keeps narrowing, and cotton mills and traders are not willing to export cotton yarn.

And nearly a week ago

The fall of 200-300 yuan / ton (JC40S and above, high count yarn, combed yarn reduction of 300-500 yuan / ton) "widely divergent" is India, Pakistan, Indonesia and other domestic cotton yarn quotes again "counter trend" to rise, on the one hand, global commodities due to the Fed's March interest rate increase is expected to weaken sharply and hit bottom rebound, especially crude oil breakthrough 40 U.S. dollars / barrel caused PTA, polyester staple fiber, nylon, viscose staple fiber and other raw materials have risen to varying degrees, cotton textile and clothing and other quotations strong performance; on the other hand, the rupee of the dollar reversed the trend of the dollar, triggered the dollar price of India cotton yarn export price rebound.

It is understood that on March 8 and 9, the factory price of S-6 and J34 ginning plants in India was stable at 61.40 cents / lb, 64 cents / lb, and the decline and upward momentum were insufficient.

Qingdao, Zhangjiagang, Shanghai and other places in India, C21S, C32S, JC32S cotton yarn CIF quoted price is 2.12-2.14 US dollars / kg, 2.40-2.42 dollars / kg, 2.64-2.66 dollar / kg, A+ box packaging price slightly higher 0.02-0.03 dollar / kg, the overall increase of 0.01-0.02 dollars / kg compared with the beginning of March; Vietnam yarn because of high-grade machine picking cotton, Brazil cotton, West Africa cotton ratio is slightly higher, the price of C32S, 0.01-0.02, yarn is higher than India cotton yarn US dollar / kg, Pakistan yarn because of low export volume (mainly affected by the tight energy supply and large capacity decline), raw materials mainly purchase India cotton, so the yarn quotation is higher than the India yarn $US / kg.

Some importers said that in 2 and March, the price of cotton and cotton yarn in China decreased substantially, and the exchange rate of RMB continued to rise. The competitiveness of imported cotton yarn dropped again and again. Some of the printing and dyeing factories, such as A+, A yarn and even internal and external prices, were "hanging upside down". The demand of domestic textile factories and middlemen for conventional varieties was weak, such as airflow spinning, C16S-C32S knitting yarn and other enquiries and shipments were sluggish. For rumors that the national restart of national cotton store competition was launched in April, traders mostly believed that a large number of middle and low grade cotton "flooded", and the domestic production capacity of cotton yarn with C32S and below would be restored to a certain extent.

Or in the same race line with foreign yarn competition, a large part of the small and medium cotton mills that will stop production will restart production. Therefore, in order to avoid the risk of homogenization, traders will pay more attention, enquiry and order to 40S and above cotton yarn.