Pre-holiday transactions stagnated, yarn mills reported a rise

Judging from the feedback from the Guangdong, Jiangsu and Zhejiang markets, as weaving factories and intermediaries have been closed for holidays, the inquiries and sales of imported cotton yarns have become weaker and even stagnant (some cloth factories will be closed on January 22 at the latest, and work will resume in early March). Merchants mainly focus on recovery of payment, settlement of wages and inventory, but they are still more concerned about the quotations of cotton yarn from India, Pakistan, Vietnam, and Central Asia in February/March. They hope that there will be opportunities for 'bargain hunting' around the Spring Festival. Several cotton yarn companies in Shandong, Zhejiang and other places said that since January, Vietnam’s spot, bonded and customs clearance cotton yarn shipments have been sluggish, and their performance is significantly weaker than that of India-Pakistan yarn. On the one hand, the main contract of ICE cotton futures has broken 70 US dollars. Driven by the integer mark of cents/pound and 71 cents/pound, the domestic sales and export prices of Vietnamese cotton yarn have increased significantly, and their competitiveness has weakened. On the other hand, due to the continuous production and sales of Vietnam’s C32S and above carded yarns and combed yarns, the yarn Factory output and enthusiasm for receiving orders declined. In particular, it is not uncommon for some cotton yarn mills with less than 20,000 spindles to reduce their cotton blending grade and yarn count. In addition, the influence of Vietnamese spinning mills on the Spring Festival holiday on orders is also affected by Jiaotong University.　　India, Pakistan, Vietnam and other countries' yarn mills and exporters are generally optimistic about the cotton yarn export market in 2020, so most of the cotton yarn quotations are stable and strong, and there is little room for bargaining such as CNF and CIF. First, the cost and price of cotton yarn are 'easy to rise but hard to fall' due to the large number of acquisitions by CCI and the statement that it will not sell at a loss and the 'rising and thunderous' of ICE and Zheng Qi; the second is the signing of the first phase of the trade agreement between China and the United States (US vs. 3000 China’s export tariffs will be lowered from 15% to 7.5%), which will stimulate Chinese textile and apparel companies to take orders and their exports will rebound significantly. Cotton yarn consumption is expected to rebound strongly; third, the depreciation of the rupee, Vietnamese dong and other currencies against the US dollar stimulates cotton yarn, grey fabrics, and clothing Waiting for exports; fourth, the second phase of the China-Pakistan Free Trade Agreement came into effect on December 1, 2019, and the tax reduction arrangements will be implemented on January 1, 2020. Pakistan’s cotton yarn is exported to the Chinese market with zero tariffs, and its market competitiveness will be greatly enhanced. Fifthly, the domestic downstream weaving mills, garment factories and terminal links cotton yarns and other raw materials inventory are low (only a few middlemen have hoarding goods), so after the holiday There is a rigid demand for centralized procurement and replenishment. Article Keywords: 　Cotton Yarn