Downstream orders are picking up, and the arrival of outer yarns increases

According to customs statistics, in October, my country’s textile and apparel exports amounted to US$22.868 billion, a year-on-year decrease of 1.7% and a non-slippery 6.74% month-on-month. Compared with September's textile and apparel exports, the year-on-year decrease was significantly narrowed, but the month-on-month decrease was significantly expanded. From January to October 2019, my country’s textile and apparel exports totaled 224.87 billion U.S. dollars, a year-on-year decrease of 3%. The 13.2% drop in imports in terms of quantity was a key factor that led to a 7.85% year-on-year decline in my country's textile and apparel exports in September). Some weaving companies and traders in Guangdong, Jiangsu, Zhejiang and other places reported that since October, orders exported to developed countries and regions such as Europe, America, Australia, Canada, etc. have gradually recovered (still mainly short orders, small orders, and multiple batches). -C40S mid-to-high package bleached yarn and JC32, JC40S compact spinning are also more active than August/September; OE yarn, C8S-C16S Siro spinning bonded warehouse shipments, and 'future yarn' signing The continuous decrease in the volume shows that the terminal situation of China’s cotton textile, clothing, and foreign trade companies in October and November finally ushered in an opportunity to stabilize and rebound after experiencing the 'dark moment' of August/September. From the statistics and estimates of several large traders and importing companies, it is expected that cotton yarn will arrive in Hong Kong in October at about 160,000 to 170,000 tons, an increase of more than 20% year-on-year (an agency estimates an increase of 23%-25%), India yarn, Pakistan The growth of yarn is more obvious, followed by Uzbekistan yarn and Vietnamese yarn. Moreover, the proportion of cotton yarns with counts of 16S and above has increased significantly compared to before September, and the arrival of OE yarns and low-match yarns has dropped rapidly. On the one hand, affected by the recent rise in export orders, the supply of high-quality packaged and self-winding C21S and C32S yarns in coastal areas is locally tight. Exporters and traders are rushing to transfer or purchase spot foreign yarns from other ports; on the other hand, the RMB continues to appreciate. Import costs such as cotton yarns continue to fluctuate, and since November, domestic yarn mills have generally raised their quotations by RMB 300-500/ton, and the competitiveness of imported yarns has increased. On November 5, the central bank lowered the one-year MLF interest rate by 5 basis points for the first time. The signal was of obvious significance and clearly opened up the domestic interest rate cut space. Equity asset valuation and domestic liquidity environment are expected to improve. It is expected that there will be two more adjustments to the MLF interest rate next year, with a reduction of about 10 basis points each. Article keywords: 　Outer yarn