Analysis Of Imported Cotton Yarn Quotes Warmer Factors

According to traders from Jiangsu, Zhejiang, Guangdong, Shandong and other cotton yarn traders, the import and export of imported cotton yarn in the past week has been increasing, and the contract has continued to pick up. In addition to Vietnam, India and Pakistan, the C21-C32S high package bleaching knitted yarn or air jet and rapier cotton yarn are relatively active. Besides, the OE10S-OE21S yarn in India, Thailand and other places also bottomed out, and some weaving enterprises and middlemen went to the bonded area to see the goods and make inquiries.

As the main contract of ICE cotton futures continued to consolidate in the narrow range of 70-72 cents / pound, the price of domestic cotton yarn has been reduced by more than 300 yuan / ton since December. Moreover, the willingness to make up stocks for downstream weaving, clothing and foreign trade enterprises before the festival is not strong. Therefore, although the "futures yarn" and the "tax protection yarn" sign contract is "a good start", the quotation for the outer yarn and the renminbi is still weak and stable.

From the quotation, 8, 9 days in January, Qingdao, Ningbo and other ports customs clearance C32S India bleed from the winding price quoted at 22700-22800 yuan / ton (including tax), lower than the domestic market share price C32S 300-500 yuan / ton; and C32 Vietnam, Pakistan knitting yarn quoted price 22500 yuan / ton, less than the same quality homemade yarn 500 yuan / ton; imported OE yarn and domestic yarn price difference expanded again in December, especially the "futures yarn" quotation competitiveness.

Why did the short term yarn deal "fog and haze dissipate and spring is harmonious"?

Some institutions and cotton related enterprises can be summed up in three points: first, the renminbi depreciated to the US dollar and the cost of imported yarn slipped.

Breaking 6.90, 6.85, the rise is obvious, short of the RMB was "beat the dog", not only failed to "break 7" but stronger and stronger, and conducive to the import of cotton and cotton yarn; two, some coastal areas, weaving enterprises and middlemen need a small amount of replenishment, purchasing the main products in the bonded warehouse, striving for the delivery and delivery before the Spring Festival; three, compared with the need for 100% cash cash before and after the Spring Festival, the imported yarn can be used for LC90 days, locking the high quality and high index sources in advance, easing the pressure on the cash flow of 1/2 months; four, some European and American orders for Southeast Asia "return", and the contract stipulates the use of India Pakistan yarn, Vietnamese yarn, Indonesian yarn and so on. Since December, the RMB exchange rate has been linked.

Of course, the price difference between inside and outside cotton yarn has generally reached 300-500 yuan / ton, and the hope of short term narrowing is not very significant, which is one of the key factors that some buyers choose to import yarn.