Sino US Trade Leads To The Fact That Imported Yarn Is Not Well Shipped, And Sales Are Imperative.

According to the feedback from Ningbo, Guangdong, Qingdao and other port cotton yarn traders, since late April, the import and export of bonded yarn and customs clearance were not satisfactory, especially the imports of combed yarn of 32S and above have fallen more than expected (mainly from India, Indonesia and Vietnam); OE yarn, low Siro siro spinning and C16S, 21S high package bleached yarn were also affected by the storage of cotton wheels, domestic consumption demand in the off-season, and domestic yarn price reduction, but they could still be "unsatisfactory".

A large import yarn enterprise in Qingdao has indicated that since May, India's JC32S, 40S and 50S external quotations have generally been lowered by 5-10 cents / kg. The price of high yarn in cotton mills of Vietnam, Central Asia (Uzbekistan, Turkmenistan, etc.) has also been adjusted downwards with the quotation of ICE cotton and India yarn, but buyers in Guangdong, Jiangsu, Zhejiang and Shandong do not seem to buy it.

As for the reasons for slow import of port customs clearance, bonded and futures yarn, the industry analysis is nothing more than the following three points: "blocking":

First, since China launched 1 million tons of cotton reserves in May 5th, and has a certain amount of high-quality and high index Xinjiang cotton resources, it can meet the actual cotton matching needs of spinning 40S and below carding and combing yarn, and effectively reduce the cost of raw materials.

Two, the quotation of cotton yarn inside and outside is gradually closing, and the competitiveness of imports of India, Indonesia and Vietnam yarn has been declining.

From the quotation of imported yarn of customs clearance, India and Vietnam C32S package bleached yarn concentrates 22800-23000 yuan / ton. The domestic textile enterprises of Jiangsu, Zhejiang, Guangdong and other domestic textile enterprises offer C32S price of 23000 yuan / ton, and the price of domestic and foreign yarn is basically flat.

The three is the revival of Sino US trade negotiations. It worries about the decline in orders for textiles and clothing exported to the US and Europe, and even cuts, even suspends the purchase of cotton yarn, such as weaving, clothing and foreign trade companies.

In response to Trump and the US government, it announced that it would increase the tariff of US $200 billion to China from 10% to 25% in May 10th. (the US customs broker has issued a notice to suspend all clearance of goods from China in May 10th); the Chinese Ministry of Commerce subsequently responded that if the US tariff measures were put into effect, the Chinese side would have to take the necessary counter measures.

The four is that the recent RMB exchange rate depreciation is not conducive to imports of cotton and cotton yarns. Traders consider from the perspective of cost, profit and periphery.

According to a number of large and medium-sized cotton yarn traders, because of the larger shipment of cotton yarn and the larger port arrivals in Pakistan, India and Vietnam in the 3-4 months, the pressure on the storage capacity of each port's bonded warehouse continued to rise. And with the decline of the quotations of FOB and CNF of India yarn and the continuous weakening of domestic yarn prices, the traders who were waiting to sell and reluctant to sell were becoming more and more embarrassed.

It is predicted that the number of imported cotton or more than 200 thousand tons in April will exceed 10% over the same period.