India'S Cotton Yarn Prices Are Hard To Recover And Supply May Tighten.

The latest market analysis of TT company in India thinks that the export of cotton yarn in India has fluctuated a lot recently. The export of cotton yarn has just recovered in the first few months, and the rupee's sudden sharp appreciation against the US dollar led to a slack export of cotton yarn in April this year.

Affected by the appreciation of India rupees 5% and the rise in cotton prices, India cotton yarn is not competitive in the global market, especially in the Chinese market, which immediately caused domestic oversupply, and domestic cotton yarn prices fell rapidly 5-7%, the US dollar quoted price also fell by 1-2%.

At present, India's cotton yarn is difficult to return to the level of stimulating exports, and domestic sales are generally at normal level. However, due to the sharp decline in exports, it is still unable to digest the excess supply.

From now on,

The price of cotton yarn is hard to recover, and the recent decline in yarn prices has made textile mills in trouble.

At the same time, the supply of high-grade cotton in India is tight, sellers are reluctant to sell cotton, and cotton prices are hard to relax.

Judging from the current situation, it is very difficult to judge the market trend, but there are some situations that need market attention.

First, India's domestic cotton consumption has returned to its normal level after the India waste note policy.

At present, the increase of cotton yarn supply in India is mainly due to a 90% reduction in China's demand. The question is how long it will take for China to not import India yarn (it has not imported India yarn for two months).

Second, although the India rupee exchange rate is strong and international

But the cotton prices in India are still at a high level and will remain at a higher level in the future.

Third, it is also the biggest problem at the moment. From July 1st, India will adopt a unified tax system (GST, namely commodity tax). The GST of yarns is at least 5%, reaching a maximum of 12%. The government of India is expected to announce the result in mid May.

This is likely to stimulate the demand of downstream enterprises and digest the excess supply of cotton yarn.

At present, the yarn of some states in India is zero tax rate, so as to reduce the cost and profit loss as far as possible. Exporters, unorganized garment factories and cloth factories may purchase ahead of schedule before July 1st.

The specific level of demand recovery depends on the final standard of unified consumption tax.

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Cotton prices are improving in the near future.

Reasons: first, the recent part of the textile enterprises to open up the replenishment mode, not only the reserve cotton turnover rate rose, even the spot is also well supported; two, the social idle capital is eager to move.

It is understood that from the end of 2016 to March 2017, domestic real estate was fired at a new height. Some of the funds were taken out and began to look for the next year's goal. Cotton was also its hunting target.

Three, cotton growth is limited this year.

In view of the above situation, it is estimated that the price of India cotton yarn will recover after the end of May and will last until the end of June, and there may be short supply in June.

Some 200 small factories also take the opportunity to ship.

Some small factories in Hengshui and Cangzhou in Hebei have a small number of small cotton bags, and the mainstream offer price of 28, 3, and 4 grade cotton is 15000 yuan / ton, 14500 yuan / ton, which is stable compared with the previous few days.

"Now small cotton is not very good to sell."

On the same day, a small plant owner of 200 said that because of the shortage of small and medium-sized textile enterprises in the lower reaches, the demand for small cotton bags weakened, especially that some small textile enterprises were relying on traders to bid for cotton reserves, and also squeezed small cotton space.

During this period, the quality of Xinjiang cotton increased considerably.

On the 28 day, an enterprise in Shandong introduced that the Xinjiang hand picked cotton with a fiber length of 30mm, a horse value of B2 and a fracture strength of S3 reached the price of 16700-16800 yuan / ton; the length of the machine picked cotton with a length of 29mm, a horse's value of B2, and a crack ratio of S3 to the factory price of 16500 yuan / ton rose by 200-300 yuan / ton compared with last week.

According to some manufacturers, the quality of Xinjiang cotton is now "fragrant meat and potatoes", many spinning enterprises quietly "eat in".

For more information, please pay attention to the world clothing shoes and hats net report.