Low Count Yarn Transaction Rebound Vietnam Yarn Fall Behind?

Since the first ten days of December, due to the strong feedback from both sides, such as the exchange rate between China and the United States, cotton mills in the coastal areas of China and the United States have reached stronger and stronger agreements on cotton imports from the coastal areas of China and the United States since the end of December. In addition to oe20s and oe21s, the trend of low count rotor spun bonded yarn and "futures yarn" reaching the bottom and rebounding is obvious, especially for 8s-16s Pakistan siro spinning yarn in Guangdong market due to low inventory and rising demand; however, the downstream purchase of 21s and c32s package bleached knitting yarn and C32, c40s packet bleached jet yarn has not improved significantly, and traders generally reflect that 32S and above carding yarn and combed yarn Yarn transaction "unsatisfactory".

From the survey, in the past half a month, compared with the low count cotton yarn from India Pakistan yarn and Indonesia yarn, Vietnam oe8s-oe16s and C21 yarn external inquiry and transaction are not ideal. On the one hand, affected by the rise of ice, labor costs and frequent release of favorable Sino US trade negotiations, Vietnam yarn's competitiveness declined due to the increase of FOB and CNF quotations; on the other hand, since December 1, 2019, Pakistan yarn will enter the Chinese market with "zero tariff". Therefore, some purchasers negotiate with BA yarn mills, exporters and traders, hoping to take a share of the tariff reduction, so as to reduce the cost Material cost.

Recently, although ICE Futures and Zhengzhou cotton have made a breakthrough upward, due to the overall weak operation of the domestic cotton yarn market, as well as some cotton mills in Henan, Shandong, Hebei, Jiangzhe and other places have dumped goods in advance and recovered the payment for goods, the RMB quotation of port customs clearance and bonded cotton yarn has not followed the upward trend of futures, but has continued to decline. As for the reasons for the recovery of import yarn transactions, industry analysis shows that: first, Sino US trade negotiations have made great progress, textile and clothing exports are in favor, and textile mills and traders have the intention of moderately hoarding goods; second, because small and medium-sized cotton mills in Shandong, Henan and other places stop production or have a holiday earlier this year, they are expected to return to work or late this year, because some weaving enterprises with orders in coastal areas have prepared enough in advance Raw materials. Of course, the appreciation of RMB is also one of the factors leading to the import cost of cotton yarn.