Imported Cotton Yarn Market Is Concerned About The Failure Of Ba Yarn Contract

According to the cotton and yarn trading enterprises in Jiangsu, Zhejiang, Shandong and Guangdong, since the end of May, the import and export of yarn, JC21/JC32S/JC40S, and so on have been declining. JC21/JC32S/JC40S, C32S/C26S/C21S and Vietnam yarn are basically unsalable, and only OE yarn, 16S and below ring spinning shows "bad intentions". Some domestic cowboy cloth factories, home textile enterprises, towel factories and other production and demand are relatively stable.

On the one hand, the domestic and foreign markets have significantly increased the range of internal and external yarn upside down.

With the CF1909 breaking 14000, 13000 (the lowest since June 2016) and the sharp decline in export orders and the rapid growth of gauze inventory, the price of domestic yarn has fallen fiercely in the past half a month. The C32S bleed yarn has dropped from 23300-23500 yuan / ton to 22000-22200 yuan / ton, down 1200 yuan / ton. At present, the price of the yarn of C32, India, Vietnam and Indonesia is higher than that of domestic yarn 500-800 yuan / ton at present.

On the other hand, worries about the overall escalation of Sino US trade war have led to a sharp fall in the consumption demand of Chinese spinning and weaving yarn imported cotton yarn.

First, August and after the pfer of orders to Southeast Asian countries more and more prominent; second, the United States buyers asked Chinese manufacturers and trade enterprises to bear and digest the losses caused by the United States government's tariff increase. Most Chinese enterprises did not make a "loss making and shouting" business. Thirdly, some Chinese enterprises pferred their orders to overseas subsidiaries in order to avoid the risk of origin.

Judging from the survey, the recent situation of foreign trade default in Pakistan is more prominent. The shipment and delivery volume in 4/5 months is obviously lower than expected. (Customs Statistics) in April 2019, China imported 13 thousand and 900 tons of Pakistan yarn, accounting for only 7.24% of the total 192 thousand tons of cotton yarn imports in the month, a record low since 2016.

The book is expected to take effect in June, and the Pakistan cotton yarn can enter the Chinese market with zero tariff. Therefore, the negotiations between the buyer and the buyer on the part of the Brazilian yarn import contract have been postponed to 6/7 months after the implementation of the protocol. The contract is not destroyed but postponed. Secondly, since May, the spot price of Zhengzhou, the reserve cotton and the spot price of 2018/19 have collapsed, and the domestic yarn has dropped sharply. With the depreciation of the RMB, the competitiveness of Pakistan has obviously declined, and some Chinese buyers have contracted or even defaulted. First, China and Pakistan, the People's Republic of China government and the Islamic Republic of Pakistan government's agreement on the revision of the free trade agreement.