Rising Port Stocks, India Yarn Price Rises Ignored

According to the feedback from cotton yarn trading enterprises and weaving mills in Jiangsu, Zhejiang, Guangdong and Shandong, Vietnam's yarn, Central Asia yarn (mainly Uzbekistan yarn, Turkmenistan cotton yarn) and Indonesian yarn external quotation are weak (CIF or CNF quoted price) over the past week, and the number of shipping, arrival and import tax collections of the yarn has increased obviously, while the quotation of India yarn's external quotation continues to oscillate.

According to statistics, since November, India's JC30 cotton yarn export quotas have risen 20 cents, reaching 2.65 US dollars / kg, or 8.2%, and widening the gap between Vietnam's main yarn and Pakistan yarn. The Chinese buyers signed up for a high interest in "India futures yarn" in India 32S-40S. The price of Pakistan's cotton yarn has been steadily stabilized for half a month, with the demand for OE yarn falling down and the shipment of 8S-16S siro spinning slowed down. Pakistan mills, exporters and Chinese traders generally feel more pressure.

A cotton yarn exporter in Pakistan said that although China and Pakistan started the second stage of the free trade agreement and imported zero tariff on Pakistan yarn, because cotton production in Pakistan decreased significantly and cotton quality index was not strong enough in the year of 2019/20, it was only possible to sign imported high priced machines to pick up American cotton, Brazil cotton and West African cotton. From the survey point of view, due to the large number of yarn arrivals in October and the warmer shipments lasted for only a few days, the pressure on port inventory rose again (including bonded yarn and clear yarn).

According to statistics, from April 2019 to August, the export of cotton yarn in India decreased by 36% compared with the same period last year, and the export of cotton yarn dropped by nearly 39%. In July, the export of China's cotton yarn declined by 80%. The customs statistics showed that the import cotton yarn of 150 thousand tons in October 2019 increased by 7% compared with the same period last year (the ratio of imports in September decreased by 16.09%), indicating that China's weaving factories and middlemen picked up the purchasing intention and acceptance and digestion ability of imported yarn gradually in the month of 10/11. However, from the perspective of buyers and sellers, Vietnamese yarn, Indonesian yarn and Wun yarn were the main importers of the contract. India yarn was also "marginalized", and the problems such as high price, increased tariffs, no package and drifting, and difficult claims, troubled India yarn to enter the Chinese market.