The sharp increase in the price of domestically-made cotton yarn led to the active purchase of imported yarn

July 4-5 Qingdao, Ningbo and other places in Indonesia C32SA +, C21SA +, OEC20S RMB take-off price of 21,000 yuan / ton, 19,600 yuan / ton, 16,500 yuan / ton; India OEC21S, Vietnam OEC21S offer is only 14,500 yuan / ton, RMB 14,300/t; On July 4th, CNF quotes for JC32S, C32S, and C21SA from India were US$2.76-2.80/kg, US$2.56-2.58/kg, US$2.27-2.30/kg, Vietnam C32S, Uzbekistan C32S (Turkmenistan, etc.) ) The CNF quotes are 2.58-2.60 USD/kg and 2.59-2.61 USD/kg, respectively.

It is understood that the yarn mills in Indonesia, Vietnam and other countries mainly use US cotton, West Africa cotton, and Australian cotton with 2015/16, and the cost is high. Therefore, the FOB, CNF and CIF prices of yarns are higher than those of India and Pakistan by 0.02 US dollars/kg and 0.08 respectively. -0.10 USD/kg, Indonesia's cotton yarn offer is significantly higher than other origins. In India, Pakistan, Vietnam, and other regions, the increase in imports of cotton yarns slowed down sharply in May and June, although the ex-factory prices of Indian S-6 and J-34 ginning factories have risen to 80.65 cents/lb and 80 cents/lb. However, India and Pakistan not only experienced a rapid decline in domestic demand for cotton yarn, but also buyers in China, Bangladesh, Egypt, etc., were meticulous in purchasing futures cotton yarn. According to statistics, as of the end of June, China’s main ports maintained a stock of about 8.2-8.5 million tons of bonded yarns, with Vietnam Yarn, India Yarn, Central Asia Yarn (Uzbekistan, Turkmenistan, Azerbaijan, etc.) and Yarn stocks in Indonesia being larger. The number of spinning, carded yarns, and OE yarns continued to decline.

According to traders from Guangzhou, Jiangsu, Zhejiang and Qingdao, the inquiry in late June, the goods in the bonded warehouse at the port, the enthusiasm of domestic cloth factories and intermediate dealers under orders for orders, and the enthusiasm of the middlemen were significantly warmer than in the middle and early June. Digestive ability and willingness to accept increased steadily, but the focus was only on India, Pakistan, and Vietnam yarns that were already in port or on-time shipments, and there was little interest in far-month shipping cotton yarn or long-term contracts. On the one hand, since June 15, Zheng cotton futures rebounded strongly in bulk agricultural products, speculative funds borrowed from the state reserve cotton, and the weather disasters in the main cotton producing areas were frequent, and traders were bidding on the state reserve cotton to “hoard up”. With the help of the role played by the State Reserve, the auction price of the State Reserve Bank of Cotton was broken by 14,000 yuan/ton, and the spot price of domestic cotton soared. Under the impetus of rising costs, the price of domestic cotton yarn could not increase passively by 300-1000 yuan per ton, and the difference between cotton yarn inside and outside the market was widened. The competitiveness of domestic yarns has shrunk rapidly. Orders of OEC10S-C40S that have returned to the country have to turn to Southeast Asian countries again (some trading companies that took orders in May and May, and the cotton mills have suffered heavy losses and failed to do so). Cloth manufacturers and middlemen are To reduce losses, we can only purchase Indian, Pakistani, and Vietnamese yarns. On the other hand, domestic weaving and garment companies have substantially increased the average daily turnover of state-owned cotton by the relevant national departments, increased the import quota for cotton for processing trade, and established the state reserve cotton. There was a strong voice in bidding for "textile special events" and combating malicious speculation of funds, and it was widely believed that under the circumstances that cotton prices had jeopardized the entire industry, the country To “strengthen your hand and make a drastic leap forward,” you can't let the situation develop. The unexpected phenomenon of the shortage of cash on the market is expected to continue, and the cotton price will be adjusted back. Therefore, the current purchase is only for Indian spot yarns and spot shipments. Vietnam yarn is not too aggressive for Pakistani yarn orders, mainly because Pakistani FOB, CNF, and CIF yarn prices are generally higher than Indian yarns by 0.02-0.03 US$/kg. At the same time, quality, supply stability, and cotton distribution level are required. Lower than the mills in Vietnam, India and other countries.

Several weaving companies in Henan, Shandong, and Jiangsu stated that due to the shortage of high-quality and high-grade cotton supplies from countries such as India and Pakistan since May, the raw material purchases in mills have turned to Australian cotton, US cotton, West Africa cotton, Brazilian cotton, etc., C20S, C21S, C26S, C30S, C32S, C40S cotton grade increase, yarn CV value, strength and other indicators even stronger than the domestic large and medium-sized cotton spinning mill products, coupled with funds in the domestic cotton market "fights", resulting in a sharp increase in domestic cotton yarn prices However, production has declined. Therefore, purchasing spot yarns to reduce order risk is also a frustrating move. It is understood that the yarn mills in India, Vietnam, Indonesia, Pakistan and other countries are very active in the inquiry and purchase of Australian cotton in 2016. The price of 81-83 cents/lb is acceptable in the mill, and the domestic C40S and below are affected. Tests and shocks are getting bigger and bigger.  


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