Outer Yarn: Breach Of Contract Continues To Happen.

From the feedback of cotton yarn trading enterprises in Jiangsu, Zhejiang, Guangdong and Shandong, the import and export of imported and exported yarn has been kept low and low since early May. However, the contract purchase of spot and ship futures by Pakistan looms and middlemen is warmer than that in the middle and late 4 months (including C32S high package bleaching yarn and 8S-16S siro spinning). And Vietnam, Indonesia, Thailand, Central Asia and other places OE yarn is difficult to ship, traders capital flow and inventory pressure is growing.

A large cotton yarn import enterprise in Ningbo has said that since the middle of April, the breach of import cotton yarn contract has begun to increase. On the one hand, India has opened the mode of "sealing the country and sealing the city" since March 25th. The production, sale, port shipment and delivery of the cotton mill are basically at a halt, and the cotton yarn purchase and purchase contract has encountered a lot of difficulties in implementation. A few contracts have shifted from India to Pakistan mills. On the other hand, the ICE cotton futures contract has risen from 52.01 cents / pound to 57.98 cents / pound in the past half a month, or 11.5%. In addition, most of the Southeast Asian and Central Asian mills have been cut down, so the sellers have strong desire to raise the yarn price, and are not actively and actively implementing the contract. In addition, the recent accelerated depreciation of the renminbi, for cotton and cotton yarn imports enterprises, such as "add insult to injury".

According to the China Cotton Textile Industry Association survey, as of April 26th, the average operating rate of cluster weaving enterprises was around 53%, with the average operating rate of enterprises around 74%, and the utilization rate of weaving capacity was about 26%. In 3 and April, the export orders of cluster weaving enterprises continued to decrease significantly. Affected by the epidemic, domestic demand decreased substantially compared with the same period last year, and domestic orders also declined significantly. The year-on-year fall was basically over 40%. Due to the lack of internal and external orders, the consumption demand for imported yarn has also dropped dramatically.

From the survey and the estimation of several large cotton traders, as of the end of April, the total volume of China's Port Bonded + non bonded cotton yarn has exceeded 150 thousand tons, between 15-18 tons, and it still showed a slow growth trend in May.