Imported Yarn It Is Still Difficult To Raise The Price Of Unsealing In Guangzhou

According to feedback from cotton yarn traders in Jiangsu, Zhejiang and Shandong, except for stable OE yarn quotation (Indian OE yarn FOB/CNF quotation slightly rose) around the end of November, Pakistan Siro spinning and C32S and above count cotton yarn quotation continued a small downward trend (inquiry/transaction of JC40S and above cotton yarn from India, Indonesia and other places almost stopped, and the quotation had no reference value), most of the imported yarn shipments were single talk, and traders’ confidence and price support were weak.

Although the panel price of the main contract of ICE cotton futures rose from 77.50 cents/pound to 87.23 cents/pound (up 9.73 cents/pound, up 12.55%) this week, the cotton yarn export quotations of Vietnam, India, Pakistan, Uzbekistan and other countries were generally stable, and only a few large brands tentatively raised their quotations to test the reaction of downstream customers.

A light textile import and export company in Ningbo, Zhejiang, said that in the past half a month, due to the gradual reduction of Christmas replenishment, the decline in demand for medium and low grade denim, clothing and bedding, and the impact of the epidemic on the Guangdong, Jiangsu and Zhejiang markets and Shandong markets, the shipment of imported OE yarn has slowed down; The consumption of 8S-21S Siro spinning shows signs of bottoming out and rebounding, which is mainly supported by the orders of ASEAN, EU, the Belt and Road countries and other markets in the spring of 2023. In addition, the “transfer order” business of traders in Southeast Asia, South Asia and other countries plays a greater role. However, the operating rate of cloth factories in Jiangsu and Zhejiang is still low (small and medium-sized enterprises are even below 40% for more than a month in a row), and the demand for C21-C40S imported woven yarn continues to be weak and sluggish. Some traders reduce the inquiry/purchase of ordinary combed yarn, combed yarn and compact spun outer yarn, and instead expand the operation of low count siro spinning factories and OE yarns.

It is worth noting that Guangzhou has recently optimized its prevention and control measures, unsealed many temporary control areas, suspended nucleic acid testing, and resumed production, transportation and consumption in light textile markets, weaving and garment enterprises in Guangzhou, Foshan, Zhongshan and other places. Confidence at the end of the industrial chain has rebounded. However, according to the survey, most weaving enterprises and cotton yarn traders are less willing to increase the purchase and stock of imported cotton yarn before the Spring Festival. On the one hand, the demand side lacks medium – and long-term orders, and the profit margin is also very low; On the other hand, there is still some uncertainty about the development of the epidemic. Moreover, the fluctuation of the RMB exchange rate is relatively large, which is difficult to grasp under the expectation that the Federal Reserve will slow down the pace of interest rate increase.

Post time: Dec-05-2022