Domestic cotton yarns are picking up steadily, and the price difference between internal and external yarns has narrowed

Recently, the overall market of cotton yarn market is relatively flat, the transaction is generally not large, and the price is stable and consolidating. As of August 9, the average domestic C32S price closed at 24,017 yuan/ton, which has basically risen to the level of the same period last month. There is no obvious strong variety in the market. Relatively speaking, the market of conventional yarns is slightly stronger than that of other varieties, but this is not enough to support the entire market. Cotton spinning manufacturers mainly focus on the shipping mentality, and there are not many downstream orders. Basically, they mainly rely on internal orders. The actual consumption of yarn is not large, and the demand for weaving mills is not enthusiastic.　　 The hot weather in July and August caused limited power outages in some areas, so the overall start-up load rate dropped. Although the inventory of the pure cotton yarn industry was still accumulating in July, the finished product inventory level of textile enterprises was still low compared with the same period last year. From the perspective of product adjustments, C32S shipped better than 40 yarns in July. In addition, some imported yarns are demanded exclusively for domestic yarns. Therefore, some spinning companies switched to C32S. Overall, the output of pure cotton yarns has declined.　　 In terms of imported yarn, the market has remained off-season recently. Although the external price of imported yarn has fallen by a few cents since the end of July, it is still upside down with the domestic spot price and transactions are scarce. As of the 9th, the spot price of FCY Index C32S discounted to RMB closed at 24,362 yuan/ton, which was finally a callback. However, traders who have not locked their foreign exchanges have suffered large losses, so they are more cautious about renewing imported yarns. Some traders have transformed to make domestic yarns, but domestic yarns do not have the financing convenience of imported yarns, and require higher capital thresholds. In addition, due to slow spot shipments but relatively strong financial strength, some traders temporarily convert the spot into inventory, hoping to use the 'dongfeng' of the golden autumn season to sell.　　 On August 3, the Customs Tariff Commission of the State Council of China announced that it would impose additional tariffs ranging from 25% to 5% on 5,207 tariff lines originating in the United States and about 60 billion U.S. dollars. Among them, a 25% tariff will be levied on cotton yarn originating in the United States (two of which are subject to an additional tariff rate of 20%). Compared with the previous 5% tariff, it is 4-5 times higher. Judging from the statistics of cotton yarn imports in June, my country's total imports of cotton yarn in June were about 200,000 tons, and the year-on-year growth rate dropped significantly. But the main reason is also the sharp rise of the RMB exchange rate and the upward adjustment of outer yarn prices. According to statistics, my country imported 35,600 tons of cotton yarn from the United States in 2017, accounting for 1.8% of the total cotton yarn imports that year. Therefore, the announcement of additional tariffs has limited impact on cotton yarn imports. Article Keywords: 　Cotton Yarn Price Quotes