The Market Is Slowly Recovering, And The Yarn Market Is Booming.

The price of cotton yarn is limited this week, although it continues to brush the new low in the new year, it fell by only 8 yuan / ton compared with last week. As of May 21st, the domestic C32S average price was closed at 18732 yuan / ton, narrowing the decline in the ring ratio.

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Cotton spot transactions this week are relatively active, price shocks upward. As of today, CC3128B reported 11900 yuan / ton, up 385 yuan / ton compared with the same period last week, or 3.34%. Thanks to the support of raw materials, the price of yarn has stabilized and the market has been slightly warmer. From the profit point of view, if the current cotton is used as the theoretical cost, profits will turn surplus into deficit. Some market participants responded: "we still do not have much confidence in the current market, and shipments are still difficult to scale up."

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From the whole industry chain inventory, the current upstream and downstream goods are relatively warmer, stock is mainly backlog in the raw material end. As of 21 days, China's yarn stock index closed for 28.8 days, and grey fabric inventory closed for 30.9 days. At present, most of the orders for textile enterprises are small orders, but still mainly to inventory. The export of cotton yarn has improved. Although the volume is not large, the overall improvement is better than that in the early stage.

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In terms of starting up, this week maintained a slight upward trend. As of 21, China's yarn load index was 50.7%, and grey cloth was booting for 49.8%. Affected by the epidemic, many orders have been cancelled or delayed this year. However, at present, 34 countries around the world have been unsealed. As more and more countries open up and open ports, many of the original goods that have been transported by the sea have arrived at the port of destination successfully. Some foreign trade enterprises have received orders for autumn and winter clothing, while some enterprises have begun to "share" orders, and have reported heating. To jointly complete the export list, the foreign trade market seems to be improving.

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Entering the May, imported yarn almost opened a "drop and burn" mode. As of May 21st, the spot price of FCY Index C32S was 18595 yuan / ton, which was 5.9% lower than that of the beginning of the month. This also directly led to a negative correction of the price difference between the inside and outside yarn. According to traders feedback, since mid May, import and export of cotton yarn inside and outside the inquiry, see goods, transactions have a clear bottom rebound.

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Pakistan's domestic cotton yarn production, transportation and port business are basically at a halt in 3 and April. Therefore, it is common for buyers and sellers to cancel the contract or unilaterally break the contract. But in early May, Pakistan cotton, cotton mills, weaving enterprises have pressed the "restart button", plus nearly half a month to Pakistan cotton yarn export quotes fell sharply, so Chinese buyers "breach of contract and then signed" operation more. A 2-3 million spindles mill in Pakistan reflects that because of the slow production and low demand of textile and garment enterprises in China, the cotton mills will make breakthroughs in exports to China, Bangladesh and other Southeast Asian countries, and the competition in price and quality is fierce. And India is not so lucky. The endless period of "sealing the country" has made India's society and economy almost crushed. Although India is advocating the resumption of production and resumption of production in a small area, the closed roads and ports have impeded the liquidity of the entire cotton textile industry. This explains why the price of cotton yarn in India in recent days is the most ruthless compared with those in Pakistan and Vietnam. However, in China, as Japan and South Korea and Europe started economic, trade, retail and transportation, export orders such as textiles and clothing slowly arrived, and the newly halted contracts were re implemented. However, India, which can not wait for the release, eventually erodes the patience of many Chinese buyers, and instead shifts its focus to Vietnam and Pakistan.

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? On the whole, traders lost a lot earlier. Although they are still not optimistic about the market outlook, they have basically adjusted their mindset. Most of the importing yarn merchants are thinking about where to climb up, so they continue to order when the time is right. They think the market will fluctuate, but in the long run, they can always get the average industry. Profits.