Outer yarn transactions are unsatisfactory, middlemen are bullish and stock up

According to the feedback from cotton yarn traders in Guangdong, Jiangsu and Zhejiang, recently imported OE yarn, 16S-32S ring spinning and JC21, JC32S cotton yarn inquiries and transactions showed a weak and declining trend, especially the 'main force' OE shipped in December. Yarns and 21S and C32S covered knitting yarns cool down quickly; Pakistan’s 8S-16S Siro spinning and India’s 32S and above cotton yarns have poor sales. Industry insiders analyzed that on the one hand, affected by the combined increase in ICE cotton futures, domestic cotton prices in India, and domestic cotton yarn ex-factory prices, not only the FOB and CNF quotations of outer yarns were significantly increased (including bonded, spot and cargo), but also the port clearance cotton yarn sales Prices have also risen sharply in response. Under the condition that the downstream and terminal orders have not improved much, the willingness of cloth factories and garment factories to take goods has declined; on the other hand, in the first ten days of January, Jiangsu, Zhejiang, Guangdong, Fujian, Shandong, etc. Weaving companies (including denim factories, knitting factories, etc.) and garment factories in coastal areas have holidays and rest. The enthusiasm for hoarding raw materials and stocking before the holiday is not high. They still plan to 'buy as you use them, see more and store less'. According to the survey, since late December, the traders who have been willing to stock up imported yarn and contracted to purchase cotton yarn for February and March shipments are mainly traders rather than weaving companies. 　　 First, as the first phase of the Sino-US trade agreement is about to be signed, the United States and Iran are tense. The situation has obviously eased, global trade and economic development will return to the right track, and China's textile and apparel export confidence has quickly recovered; 　　 Second, it is strongly supported by the 'turning around' of external news, the more neutral USDA cotton report, and the purchase and storage of cotton in China and India. ICE cotton futures continue to rise, and spinning mills in various countries are facing pressures such as rising raw material and labor costs. Cotton yarn prices can only be reported to rise to relieve pressure; 　　The third is the 'three twists and turns' of the Sino-US trade war in 2019. Most cotton yarn trading companies and weaving mills In order to avoid risks and reduce the pressure on cash flow, garment factories have drastically reduced the low raw material inventory (cotton yarn, grey cloth). In theory, they will usher in the start-up and purchasing peak after the Spring Festival; 　　Fourth is affected by the slightly larger increase in domestic yarn quotations, in January Since the port customs clearance, the price difference between C21S and C32S India-Pakistan yarns and domestic Chinese yarns has continued to narrow or even be in line. However, the index of imported yarn and cotton grade, 100-meter breakage rate, tube dyeing and other indicators are relatively good, and the intermediary stocks goods. It prefers imported yarn (some domestic yarn mills with C32S and below count cotton yarns still mainly use 2018/19 old cotton, state-owned cotton and low- and medium-quality foreign cotton as raw materials). Article keywords: 　Outer yarn