Cotton Prices Rose Wildly, Bringing "A Few Unhappy Families".

Profits have just improved, and immediately faced with the upstream raw material prices, downstream textile mills difficult to accept the embarrassing situation of rising prices.

The price of cotton is about 700 yuan, the price of combed yarn is about 200-300 yuan, and the profit of cotton mill is shrinking again.

On the contrary, imported yarn traders have welcomed a wave of "gratifying" prices.

First, the demand for yarn is quite large in the peak season of textile industry; the two is that the price competitiveness of imported yarn has increased relative to domestic yarn; three, because of the pessimistic pessimism of imported cotton yarn in March, the order volume is generally low.

Several aspects of the joint role of port import yarn almost no shortage of sales, in short supply, to Hong Kong was lifted, individual traders "reluctant to sell", pushing up price expectations stronger.

However, as domestic cotton continues to rise difficult, the price of cotton reserves has a risk of falling after the rounds. Meanwhile, the downstream mills are unable to bear the price continues to rise, so the price of imported yarn is rising again.

Based on the estimated price at April and the current port delivery price, the profit of the ring spun yarn is about 300-500 yuan, and the profit of combed yarn is about 500-600 yuan. The profit is considerable. Only some traders have no food in hand, and can only use the sales channels to make some yarn turnover.

Compared with India yarn, Vietnam yarn has the advantages of zero tariff, short journey and continuous expansion of capacity. It is attracting more and more favors from textile enterprises and traders.

According to customs data, March 2016 Vietnamese yarn (54791.32 tons)

For the first time, it exceeded India yarn (42155 tons).

However, some people do not interpret it as Vietnam's success. After all, there are not many large Vietnamese mills, small factories are too small and the quality is not as stable as the India yarn. Therefore, the "burden beam" is still a long way to go. It is still a substitute for India yarn. When India yarn price is too high, we have to choose.

Imports will even exceed India's yarn, but once India yarn quotations decline, people will prefer India yarn.

Affected by India's domestic cotton prices and domestic demand improvement, India's external offer has gone up all the way. Since the Shanghai exhibition, conventional 21S and 32S quotations have risen by more than 10 cents.

Some agents said that at present prices only some large cotton mills that pursue quality stability and large traders who go through the financing market can accept and continue to follow up. Other small and medium factories and small and medium-sized traders often suspend their wait-and-see prices due to excessive price increases, resulting in quotations outside the market "no price without market".

At the same time, we also consider that when the order is arrived, the arrival time is in June, and the cotton reserves have been put out and put into use. The yarn pattern of the market may have changed. If the price of the domestic yarn is reduced due to the lower cost, the imported yarn will inevitably fall.