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    It Is Difficult For Traders To Survive. The Imported Yarn Is Sold Out And The Buyer's Default Is Increasing.

    2019/8/14 15:55:00 0

    Imported Yarn

    According to Qingdao, Jiangsu, Zhejiang, Guangdong and other places of cotton yarn traders, since August, in addition to OE yarn and 8-16S siro spinning, some of the inquiries and shipments were strong, and C21-40S and JC21-40S cotton yarn turnover continued weak and light, especially in India, Vietnam, Indonesia and other cotton mills, 40S and above high combed, compact spinning almost "crowded", traders and manufacturers offices complain incessantly.

    From the survey, since the middle of July, the cotton yarn inventory of various ports has continued to rise slightly. Some traders and weaving enterprises have to coordinate with foreign mills or manufacturers to delay delivery for 15-20 days, lengthen the contract performance period, reduce sales risk and capital payment pressure; under the influence of the sharp reduction of cotton and cotton yarn prices, it is not uncommon for buyers to default on their own initiative, negotiate cancellation or sell party buybacks.

    A certain enterprise in Zhejiang has about 1500 tons of cotton yarn in Zhangjiagang, Shanghai, Ningbo, Qingdao and Guangzhou ports, plus 900 tons of cotton yarn at the spot and 8-9 months (mainly Vietnamese yarn, Pakistan yarn, and small amount of India yarn). On the one hand, the quotations of the cotton mills dropped sharply, and traders could hardly survive. Since April 2019, the ICE cotton main contract has dropped from 77.45 cents / pound to 57.26 cents / pound, down 19.89 cents / pound, or 25.48%. India, Pakistan, Vietnam and other cotton mills slashed the price of cotton yarn FOB, CNF and so on. Traders "lost the goods before they first lost money", and the more they lost, the other hand, the trend of domestic yarn and imported yarn upside down became more and more prominent. The price of domestic yarn has been reduced more vigorously by the reduction of the cost of cotton production, the supply and demand of domestic cotton and the escalation of Sino US trade disputes.

    Since mid August, the price of Qingdao India C32S bleached yarn has been quoted at 21750-21950 yuan / ton (less than 22000 yuan / ton), while the price of the domestic C32S yarn is only 21200-21500 yuan / ton, and the internal and external upside down is 300-500 yuan / ton. In addition, the RMB exchange rate suddenly broke 7 in the near future, and the influence of the import yarn of the weaving factories and traders on customs clearance should not be underestimated.

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