According to the feedback from cotton yarn trading enterprises in Shaoxing, Foshan, Guangdong, Qingdao, Shandong and other places, although the main contract of ice cotton futures has broken through the integer levels of 66 cents / pound, 65 cents / pound and 64 cents / pound in recent days; although the inventory of bonded + non bonded cotton yarn in China's main ports is high, it includes Indian yarn, Pakistan yarn, and Central Asian cotton yarn (mainly Uzbekistan yarn Tajikistan yarn), Vietnam yarn and other internal and external price fluctuations are strong, especially Pakistan cotton yarn, India cotton yarn FOB, CNF rise is more obvious.
A cotton yarn trade in Foshan Merchants said that since the end of August, the inquiry and shipment have focused on c21s, c26s, c32s high-end package bleaching yarn, Vietnam yarn, India Pakistan yarn; low count OE yarn, Pakistan 8s-16s siro spinning, jc40s and above import yarn are still trading light, oe21s, oe26s yarn weaving mills and middlemen have a phased procurement demand, but most of the traders have low inventory or the mills need to order "fixed spinning", so it has been more than a week The imported yarn market is in the overall pattern of "calm, occasionally bright spots". The market sentiment and traders' mentality are better than those in May / June, and the operations of raising prices and reluctant to sell are increased.
Why is the price of imported cotton yarn rising steadily against the trend? The industry analysis is as follows:
First, India CCI recently increased the bidding base price again and again due to the rapid increase of cotton contract sales in 2019 / 20; in addition, driven by the gradual recovery of costs and downstream consumer demand, cotton yarn FOB and CNF prices were increased; second, the resumption rate of cotton textile enterprises in Pakistan increased significantly in July / August, and the cotton planting area decreased significantly in 2020, and the continuous rainfall led to the increase of cotton production rate in Pakistan Third, in the past week, due to Zheng cotton cf2101 contract breaking 13000 yuan / ton, 13100 yuan / ton and the arrival of "gold nine silver ten" in the textile and clothing industry, the domestic yarn prices of some large and medium-sized textile enterprises have increased by 300-500 yuan / ton (the increase of high count combed yarn and combed yarn is slightly larger), leading to port customs clearance and insurance Fourth, the RMB continued to appreciate, and the cost of purchasing shipping time and bonded cotton yarn decreased. Foreign mills and exporters increased the US dollar quotation to take a share of the fluctuation of exchange rate. On September 1, both offshore and onshore RMB rose above 6.82, a new high since mid May 2019, with an appreciation rate of more than 5% compared with the beginning of June.