Export Spun Apparel Orders Slipped, Cotton Yarn Breach Increased Significantly

According to feedback from cotton yarn trading enterprises in Guangdong, Jiangsu, Zhejiang and other places, imported yarn has been fragmentary for nearly a week, regardless of futures, spot and bonded. The inquiry and shipment continued to be sluggish and deserted. Compared with the shipping date of 5/6 months, Vietnamese textile and Pakistan gauze still had some factories and trade enterprises to pay attention to and ask for quotations. Some imported enterprises have large stocks of yarn in India, Pakistan and Indonesia, and the funds for short term shipments and withdrawal of funds are basically lost, so cash flow is frequently in urgent need.

There are two reasons for the unpopularity of India futures yarn: first, since March 25th, India has closed the country for 21 days, leading to the production, trade and port shipments of cotton mills totally suspended. With the increasing prevalence of new crown pneumonia in countries such as the global and Southeast Asian countries, there is little hope that India will be able to close the country in 4/5 months. Therefore, enterprises dare not risk putting it to India cotton mill. Two, India yarns are subject to price constraints such as high domestic cotton prices, labor costs, taxes and other factors, which have no advantage over Vietnam and Pakistan yarns. Judging from the survey, since late March, the prices of Pakistan 8S-16S siro spinning and C20S-32S matching high and low prices were basically the same. Some cotton mills and export enterprises indicated that they hoped to expand exports to China, Bangladesh and Vietnam in India to seize market share.

It is worth noticing that half a month ago, the trade easy enterprises reflected that the downstream factories and garment factories were breaking up or even breaking up. Some import enterprises were in a state of worry because of the large stockpile in January, the low margin of the contracts, even the serious credit account. Some customers suddenly cancelled the 50% purchase agreement, while the other 50% contracts were not postponed until they were postponed. Businesses are in a dilemma.

First, the pattern of direct and indirect exports of textiles and clothing collapsed in March, and weaving, clothing and foreign trade enterprises were in trouble. According to the China Cotton Association statistics, as of the end of March, the number of orders for direct exports of some products in the cluster fell by 50-70%. The two reason is that the domestic textile enterprises continue to face the pressure of the new crown pneumonia outbreak. The small and medium-sized textile and garment enterprises are cautious about whether to buy orders in the summer and autumn and winter (after the resumption of production has to be cut down again), the domestic orders rebounded and the rebound intensity is much lower than expected; three, although the central bank dropped. Quasi interest rate cuts release liquidity, but because most textile, clothing, foreign trade enterprises 1-3 months of production and marketing stagnation, but workers wages, rents, loan interest and so on expenditure can not be less, cash flow of enterprises in a comprehensive emergency (loose environment, small and medium enterprises pocket tight), cotton yarn breach significantly increased.