According to feedback from cotton yarn traders in Jiangsu, Zhejiang, Guangdong and other places, since last weekend, the CIF/CNF quotations and customs clearance RMB quotations of cotton yarns from India, Pakistan, Vietnam and Central Asia have remained stable. Sellers are interested in knitting yarns, OE yarns, and low-count ring-spun yarns. The price sentiment of yarns is strong, while most high-count carded/combed yarns of 40S and above have a certain degree of bargaining space, and shipments are mainly negotiated in small quantities.
A textile import and export company in Ningbo said that the recent shipments of bonded cotton yarn and customs-cleared cotton yarn have continued to be relatively flat, with almost no bright spots. However, the quotations of Vietnamese yarn and Indian yarn have been affected by the ICE cotton futures market, which continues to consolidate at 80-85 cents/pound. Compared with India’s domestic S-6 spot quotation and MCX futures, which are weak due to the downward adjustment for several days in a row, Pakistan’s siro spinning and ring spinning quotations are on the strong side. On the one hand, Pakistani banks have refused letter of credit business since January 10, 2022, which has not only affected the shipment and delivery of some early cotton yarn contracts, but also Chinese cloth mills and traders are also very cautious in placing later orders. Traders judge the supply of cotton yarn On the other hand, comparatively speaking, the quotations of Pakistani yarn in US dollars and RMB are still slightly lower than those of Indian cotton yarn and Vietnamese yarn, and have a certain price advantage. However, due to the color grade and quality indicators of Pakistani domestic cotton in 2022/23, The price has declined, and buyers prefer cotton yarns made from US cotton, Brazilian cotton, Australian cotton, etc.
Judging from the survey, compared with the operating rate of domestic cotton spinning mills that has generally returned to 70%-80% since early February (the operating rate of some companies even reached 90%-100%), the performance of weaving companies, printing and dyeing companies in coastal areas is relatively low. Recovery will accelerate in November/December 2022, but is still overall lower than expected. For example, the current operating rate of cloth factories in Foshan, Zhongshan, Guangdong, Xiaoshan, Xiangshan, Lanxi and other places in Zhejiang is generally 50%-60% (slightly higher for large factories). Inquiries and replenishment of imported cotton yarn have gone through a short period before mid-February. Cool down again after the active period.
A trader in Foshan reported that so far, the operating rate of circular knitting machines in Guangdong, Fujian, Zhejiang and other places is not ideal. The majority of knitting yarn orders are short orders, small orders, and spring and summer rush orders, while there are fewer large export orders and long-term orders. Therefore, The procurement strategy for knitted yarn from places such as India and Vietnam is still to buy as you use it and replenish the inventory as needed; while the trend of recovery of orders for jeans, bedding, home textiles, etc. after the Spring Festival is relatively strong, the trend of non-tracing orders and domestic sales orders is still relatively strong. The proportion is relatively high, and cloth factories selectively purchase imported yarn at a price that is inversely related to the price of domestic yarn. It is understood that since February, the sales of domestic yarns using American cotton, Brazilian cotton and other cotton blends have continued to slow down. The main reason is that there are few high-count, high-value-added traceable orders. Some textile companies have increased the production and order arrangement of Xinjiang cotton yarn.
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