Two Cases Of Yarn Signing And Default Under The Epidemic Situation

According to the cotton yarn trade enterprises in Jiangsu, Zhejiang, Guangdong, Shandong and other places, over the past week or so, the spot price and customs clearance of the bonded area continued to fade. In accordance with the usual practice, the sales of C20S-C32S high grade bleached yarns in the 3-4 months of this month were also significantly reduced. Some weaving factories and middlemen continued to break contracts or postponed the shipment of the 12/1 month purchase contracts. The situation of "lost contact".

However, from some Pakistan, Vietnam, India cotton mills and exporters, it is known that the Chinese buyers' enthusiasm for signing the contract for the 6/7 month's outward shipment is warmer than that in March. The focus is on C21, C32 and C40S bleached yarns (rapier or jet, water jet looms), and 8S-21S Siro spinning and JC21S/JC32 yarn and OE yarn remain weak. It is worth noting that some Vietnamese mills said that the recent contract breach of air spinning contracts increased significantly compared with 1 and February. Some buyers hoped that the export enterprises would choose two in the "price reduction contract or direct irresponsible breach".

The reasons for the slow rebound of the futures yarn are as follows: first, the spread of the epidemic has led to the implementation of the measures of "sealing the country" and "sealing the city" in India, Pakistan and other countries. The sales and transportation of the cotton mill are basically stagnant. The increase in inventory results in the pressure of funds, so the willingness to reduce prices and run goods is high. Bullet;

Two, China entered the post epidemic period. Weaving, clothing, foreign trade and other enterprises continued to accelerate their work and resumed production. Despite the large scale cancellation or delayed implementation of export orders, the domestic market was "going out of the way" and actively transforming enterprises gradually "climbing to shore", and enhanced the expectation of "gold five silver six".

Three, there is sustainability and support for RMB appreciation. In March, the depreciation rate of currencies against the US dollar averaged more than 6% in March, while the value of the RMB against the US dollar only depreciated by 2.4%. Moreover, China's capital account may face some degree of capital inflow in the two quarter from the sharp improvement of China's epidemic situation and the interest rate gap between China and the US.

Four, since March, the small and medium size mills in Jiangsu, Zhejiang, Henan, Shandong and other places have been slow to resume production, and under the premise of high cost of raw materials, lower prices and pressure reduction, the production capacity has not kept up, and the enthusiasm for receiving low and medium yarn orders is not high.