Traders suffer from the expansion of internal and external upside down

According to the feedback of cotton yarn trade in Qingdao, Zhangjiagang, Guangdong and other places, following the significant increase in the quotations of bonded yarns and 'future yarns' in Vietnam yarn ports, the quotations of Pakistan and Indian yarns in U.S. dollars have also started to fluctuate and rise since late September, especially C8S-C16S Siro spinning, C20S-C32S Pakistan yarn mills, and exporters increased relatively significantly. According to industry analysis, first, the main ICE cotton futures contract continued to consolidate above 60 cents per pound, and global cotton prices temporarily stabilized; second, due to the continuous hot and humid weather, not only the volume of new cotton listings dropped significantly year-on-year, but also the parties concerned about 2019/20. Concerns about the output and quality of new cotton in Pakistan are rising, and spinning mills are not allowed to purchase Brazilian cotton, Indian cotton, and West African cotton at high prices. As of September 15, Pakistan’s new cotton market was 315,000 tons, a decrease of 113,000 tons or 26.4% from the same period last year. Third, since August, the renminbi has continued to depreciate, and the export profits of India, Pakistan, Vietnam and other countries have declined. Can increase the U.S. dollar quotation response. According to statistics, the renminbi depreciation in August exceeded 4%, and the renminbi was still in a depreciation channel due to the two interest rate cuts by the Federal Reserve, the European Union’s interest rate cuts and the restart of QE. What made cotton yarn importing companies and traders 'leak in the night rain' is that in the past week or so, Zhengqi, the 2018/19 old cotton spot, and the state reserve cotton round transaction prices have once again started a sharp decline mode, and the CF2001 contract has been broken. 13000, 12500, 12000 and other support levels (low 12240, 12010, low 11970 before opening), the decline reached 9% in just half a month; Xinjiang’s 'Double 29' machine picking cotton picking price fell below 12,000 yuan/ton (regular ), the ex-factory quotations of cotton gauze and the retail prices of the textile market also violently declined (raw materials have fallen sharply, terminal consumption such as clothing and foreign trade has not improved, and the spinning mills have suffered from the enemy), which has caused the 'upside down' range of internal and external cotton yarns to expand again. The goods have become more deserted (except for some OE yarns that are out of stock). A trader in Qingdao said that the current market conditions are 'tortures' for cotton yarn importers. On the one hand, they are worried that the yarn prices in India and Pakistan and other countries will default and delay the implementation of the contract; on the other hand, the domestic and foreign yarns are 'upside down'. -800 yuan/ton, shipment and delivery can only be put into the bonded warehouse, which not only increases the cost but also intensifies the pressure on the port's cotton yarn inventory. Article keywords: 　Outer yarn