Market Dynamics: Tight Spot Supply Of Compact Spinning Shows A Slow Upward Trend In Price

According to customs statistics, in October 2024, China's cotton yarn import volume was 111100 tons, flat month on month, down about 34.77% year on year. Vietnam yarn, Pakistan yarn, Uzbek yarn, Indian yarn and so on occupy the top share, among which the import volume of Indian yarn still lags behind that of its main competitors, Vietnam yarn and Pakistan yarn, making it difficult to catch up in the short term.

Compared with August and September, the proportion of coarse count cotton yarns such as rotor spinning and 8S-16S ring spinning among imported cotton yarns rose rapidly in October, accounting for about half of the total import volume of the month. According to the industry analysis, on the one hand, since September, the inventory of domestic imported low count siro spinning yarn has been low and the demand has been relatively active. Jeans, children's clothing, etc. have played a stimulating role in Christmas orders and "scramble for exports" in the United States/EU; On the other hand, due to the continuous strengthening of the US dollar, including the devaluation of the RMB and other currencies against the US dollar, we are worried about the rise of FOB/CNF cotton yarn prices in Vietnam, Pakistan, India and other places. Weaving mills/cotton yarn traders in some coastal areas have stockpiled OE yarn, low count ring spinning, and compact spinning. 　　

According to the survey, in the past half a month or more, domestic cloth factories/middlemen have continued the weak market of inquiry/transaction of Central Asia yarn represented by Uzbekistan cotton yarn. The main reason is that the demand for C32S, C40S combed yarn and JC21, JC32S yarn is insufficient, the performance of new export orders is poor, and the FOB/CNF quotation of Uzbekistan cotton yarn is inferior to that of Vietnam yarn and Pakistan yarn, Competitiveness needs to be restored.

Although the domestic cotton price in Pakistan has been weak and stabilized recently, the quality of cotton on the market in the middle and later stages is poor (affected by weather factors, the lint grade and quality indicators have significantly declined compared with August/September). Therefore, on the one hand, the FOB/CNF quotation of Siro spinning of Pakistan's medium and high quality cotton and package bleaching is still high, and the mills and exporters are in a strong mood to support the price; On the other hand, in order to stabilize the quality of cotton yarn and improve the export competitiveness of products, Pakistan Cotton Mill has been constantly making efforts to inquire about/import foreign cotton such as American cotton, Brazilian cotton and Australian cotton.

Although the quotation of Indian rotor spinning is not volatile, there is a big gap between the quotation of cotton yarn of big and brand yarns and that of small and medium-sized yarn mills, and the supply of goods and price are in chaos. The buyer needs to repeatedly confirm the quality indicators and delivery date with the yarn mills and cotton yarn exporters. India combed 32S and above count high assorted cotton, good quality cotton yarn quotations remain high, yarn mills are not in a high mood to cut prices. It is worth noting that the spot supply of C21S-C40S compact spinning in Guangdong, Jiangsu and Zhejiang provinces has been slightly tight in the past week, and the quotation has shown a slow upward trend.