Vietnamese Yarn Began To Go Downhill In The Deep Stalemate Of Imported Yarn Market

Since Jiangsu, Zhejiang, Guangdong, Shandong and other markets imported cotton yarn inquiry, spanaction has not been improved, C40S and below the number of cotton yarn delivery is relatively light, C40S yarn shipment slightly better than C32S yarn; outer dish India, Vietnam, Pakistan, Indonesia yarn trading atmosphere is lighter, the entire import yarn Market in deep stalemate, dilemma. Overall, since mid June, Pakistan's low side siro spinning, C21-C32 imported bleached yarn and other external quotes have risen by 0.02-0.03 US dollars / kg, and other yarns have stabilized. Industry analysis:

First, although the ICE futures contract fell from 87.18 cents to below 76 cents, or more than 13%, the price trend of India's S-6, J34 and MCU5 deviated from that of ICE. The factory price has been slightly adjusted in the range of 85-86 cents / lb for two consecutive weeks (10 / 11 June, S-6's far east main port offer 87.90-88 cents / pound, higher than EMOT SM 1-5/32 quotations, 0.20-0.30 cents / pound), spinning mill cost, export and spanportation costs are stable.

Second, the currencies of India rupee and Vietnam shield continue to strengthen against the US dollar. The price of cotton and cotton yarn CNF (CIF) denominated in US dollars is easy to rise and fall. From a technical point of view, the US dollar index fell to the level of parallel support in the early January, and it has been supported and stabilized by 96.50. However, the US dollar index still has a callback pressure within the day, focusing on the 97.10 supporting role.

Third, since May, the number of bonded cotton yarn has continued to decline, and the supply of C21, C26S, C32S and other high-quality bleached yarns and high quality Siro spun yarn has been tightened. Traders are feeling heavy.

Customs statistics, April China Imported cotton yarn 141 thousand tons, a decrease of 22.73% compared to the same period, a decrease of 14.35% compared with the same period last year. This rapid decline has aroused great concern from the cotton related yarn enterprises and the relevant government departments. From the rough statistics of some large cotton import enterprises, foreign businessmen and textile enterprises, China's cotton yarn imports will still show a marked decline in May 2017, or less than 125 thousand tons (down by more than 12%), of which Vietnamese yarn still occupies the first place in China's cotton yarn imports, and is far ahead of Pakistan yarn and India yarn. However, the crisis is getting closer and closer, and it is not ruled out that India catch-up will be catch-up gradually and bend overtaking may be caused by the following reasons:

First, since July 1st, the GST bill has been introduced in India. Cotton spinning industry The relevant GST rates were adjusted to cotton and cotton yarn (5%), textiles (5%), ready-made garments (12%), silk hemp (0%). Industry analysis 5% of GST (goods and services tax) will reduce costs for enterprises, encourage cotton growers to grow more cotton, make India textile industry regain competitiveness in the international market, promote the development of the whole industry chain, and have positive effects on the long-term development of India cotton textile industry.

Secondly, with the sale of US cotton in 2016/17, Vietnamese yarn The difficulty in cotton blending, quality stability and timely delivery is increasing. According to USDA monthly report, Vietnam's cotton imports in 2016/17 will reach 1 million 176 thousand tons, of which more than 65% are cotton, but as of June 1st, the total net sales volume of cotton in the US 2016/17 reached 3 million 284 thousand tons in the year of June 1st, up 63% over the same period last year. In the month of 6-9, there were very few cotton varieties selected by China, Vietnam, Indonesia and India buyers, and Vietnam's cotton mills did not have the habit of accumulating grain widely. Therefore, the purchase of cotton and West Africa cotton would inevitably lead to the fluctuation of cotton yarn quality and insufficient supply capacity.

Again, Vietnam's yarn price advantage is gradually fading, and market acceptance has declined. Since mid May, the base price of domestic cotton yarn has been lowered in the reserve cotton liner, and the decline of the contract slipped (CF1709 decline 8.13%). By the middle of June, the factory price of OE yarn, combed yarn and high count combed yarn had generally dropped by 300-500 yuan / ton, while the price of the Vietnamese yarn cleared was steadily rising, and the yarn price was reversed. In addition, over the past month or so, the price of India yarn FOB, CNF and CIF has been reduced by 0.12-0.15 US dollars / kg. The difference between C21-C40S and Vietnamese yarn has slipped from the previous 0.20-0.30 US dollar / kg to 0.08-0.15 US dollars / kg, and the printed yarns have gradually become superior.

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