Yarn mills delay shipments, traders worry intensified

According to cotton yarn traders in Jiangsu, Zhejiang, Shandong and other places, although ICE cotton futures have broken through 70 cents/pound and 67 cents/pound since late January, in the past half month, yarn mills in India, Pakistan, Vietnam and other countries However, the quotations of cotton yarn FOB and CNF remain high or not quotations, and the sellers are not willing to lower their orders. A large spinning mill in Vietnam stated that the spinning mills had resumed production before the end of January, mainly C21S-C40S yarns, but considering that most of the Chinese weaving mills and traders postpone the resumption of work after February 9, the cost of cotton yarn is still at a high level and the exchange rate Due to other reasons, no external quotation will be made for bonded, spot or ship futures before mid-February. Several Indian and Pakistani yarn mills and export companies also said that since mid-January, Chinese buyers’ inquiries and orders have hardly increased, and demand has been weak. However, domestic cotton prices, labor, taxes and other costs have caused a lot of room for price cuts by yarn mills. Limited, can only stick to it. According to an import company in Shandong, due to the 'turning point' of the new pneumonia epidemic has not yet arrived, not only has the shipment of foreign yarn mills slowed down, but some domestic purchasers have also asked suppliers to extend the contract execution period and postpone shipment by 15-20 days. Recently, some domestic cotton yarn traders have intensified their concerns: First, as the CF2005 contract prices have successively fallen below 14,000 yuan/ton, 13,500 yuan/ton, and 13,000 yuan/ton, the price of domestic cotton yarn will inevitably plummet, regardless of whether the stock yarn is still 11 /December contracted purchases of cotton yarn are all facing a greater risk of loss; second, when downstream weaving mills and middlemen will resume work and when they will start yarn procurement is still unpredictable; third, affected by the short-term impact of the epidemic and the continued rise of the dollar, 2 Both offshore and onshore RMB depreciated and fell below the 7th mark on the 5th, and the cost of foreign yarn imports accelerated. Article Keywords: 　Cotton