Import Yarn Shipment Finally Recovered, Traders' Confidence Recovered

According to the feedback from Cotton Traders in Jiangsu, Zhejiang, Guangdong, Shandong, Qingdao and other places, the inquiry and shipment of Vietnam yarn, Pakistan yarn and c32s and below Indian yarn in Port Bonded and customs clearance in the past week are warmer than those in July. The transaction focuses on c20s-c40s medium high configuration self winding (or electro-cleaning) cotton yarn, c32s and c40s knitting and bleaching yarn is still light; while Vietnam, India and Pakistan produce OE yarn; 8s-16s low count yarn "Less" and "more yarn", more yarn.

A large import and export company in Zhejiang said that due to the continuous rise in inventory of some mills in Vietnam since the middle of July, the prices of cotton yarn FOB and CNF are lower and more attractive than those of India yarn / Pakistan yarn (the "upside down" trend of Pakistan yarn domestic and export continues), so the contract mainly focuses on Vietnam 20s-40s yarn (including jc21, jc32s and jc40s yarn) with spot and shipping date.

There are several factors leading to the recovery of cotton yarn competitiveness in recent years

First, although the recovery of foreign trade orders received by weaving enterprises, clothing factories and foreign trade companies in coastal areas was lower than expected, it was still gradually improving, and the situation was improving continuously, and the demand for medium and high-end imported yarn hit the bottom and rebounded;

Secondly, compared with reserved cotton and local cotton spinning, the common carding of c40s and below is weaker, and Vietnam, India and Pakistan have certain advantages in cotton blending grade and some quality indexes (such as strength, dyeing uniformity, CV value of cotton yarn and NEP number, etc.);

Third, the short-term sharp appreciation of RMB, the cost of imported cotton and cotton yarn decreased significantly. On August 11, the onshore RMB exchange rate against the US dollar jumped by more than 100 points, once regaining the 6.95 level. At the same time, offshore RMB rose against the US dollar in the short term, rising to 6.9443 as of 2pm;

Fourth, due to the slow "de Stocking" of some Vietnam and India Pakistan cotton mills, the operating capital is occupied seriously, and there is a large range of low-cost selling and attracting customers, which has a impact on the whole cotton yarn import and export market.