Why Did Cotton Yarn Import Plunge In April?

According to customs statistics, China imported 140 thousand tons of cotton yarn in April 2020, a decrease of 26.32% compared to the same period last year (in April, the import amount of China's textile yarn, fabrics and products was 1 billion 140 million US dollars, down 25.4% compared with the same period last year). Since 2019/20 (April September 2019 -2020), China has imported 1 million 240 thousand tons of cotton yarn, down 4.62% compared to the same period last year.

It is worth noting that in March, China imported 192 thousand and 400 tons of cotton yarn, an increase of 37.05%, an increase of 0.58% over the same period last year. In April, the import volume and import amount of cotton yarn were all down. Some cotton and yarn trading enterprises in Jiangsu, Zhejiang and Guangdong reflected that the weaving, clothing and foreign trade enterprises were most seriously affected by the new crown epidemic in April. The demand for gauze consumption dropped significantly. (2/3, the domestic market basically stagnated; in March, export orders were largely cancelled or postponed; in April, it was "mixed doubles" inside and outside the export market, so the import of cotton yarn was 192 thousand and 400 tons straight from March. Falling to 140 thousand tons, though reasonable, the drop is bigger than expected.

From the survey, with the sharp easing of the new crown disease in China, Europe, Japan and South Korea in the month of 4/5, and pressing the "restart key" such as economy, trade and transportation, since the end of April, domestic demand and autumn and winter orders have started to rebound. The 3 and April postponed export orders have been activated two times, and a small number of European, Japanese and Japanese new ones have arrived. South yarn, Pakistan yarn inquiry, transaction continued to warm up (including OE yarn, C16S-C32S high package bleached yarn, but 40S and above combed yarn shipments are still relatively low), so April is the cotton yarn imports "depression", May is expected to import volume and import amount will have a very significant rebound.

Traders and cotton textile enterprises believe that in addition to the slow growth of domestic sales and the shrinking of export orders, the reasons for the great diving of cotton yarn in China in April are three points. (April, Chinese textile and garment enterprises resumed their work and resumed production without resuming production).

First, 3/4, Southeast Asian countries such as India, Pakistan and other countries in Southeast Asia, which had implemented "sealing the country and sealing the province" and other measures in the Southeast Asian countries such as the countries of the Republic of China, such as the Pakistan, the Southeast Asian countries, and so on. The cotton mills, logistics and port delivery were close to a halt. The cotton yarn procurement contract of Chinese enterprises was forced to be cancelled or postponed for 1-2 months. Two, in April, the price of the cotton yarn futures fell down (from 19350 to 17815, down 1535), and the inside and outside cotton yarn was in stock. The price gap narrowed and the competitiveness of imported yarn declined. Three, the RMB has been depreciating in the past 4 months, and the low point is getting lower and lower. Some institutions and investment banks analyze that at present, the international market is full of high uncertainty. The acceptance and acceptance of the RMB are greatly restricted, resulting in a short period of time (especially the epidemic may last for 1-2 years), forming a very small time cycle, which constitutes a great pressure on the RMB.