Market Driven Sentiment Import Yarn Demand Recovery

According to the reports of cotton trading enterprises in Ningbo, Foshan, Qingdao and other places, the trading and shipment of Port Bonded, customs clearance, India Pakistan yarn, Vietnam yarn and Central Asia yarn were still relatively light in the past week, but the market sentiment continued to warm up with the continuous breakthrough of ICE Futures and the Zhengzhou cotton 2009 contract standing at 12000 yuan / t again, and the phenomenon of traders selling goods at reduced prices was greatly reduced.

A large import from Qingdao said that the inquiry of Pakistan 16s-32s ring spinning yarn and India jc32s and jc40s yarn from India increased gradually compared with may / June, and the transaction is expected to hit the bottom and rebound; however, due to the high quotation and large loss of traders, the cotton yarn of India and Pakistan has been cleared at the port, and the space for selling or selling the cotton yarn is too small, and the price difference between the internal and external yarn is only 150-300 yuan / ton, and the goods are not much improved. In addition, the price of FOB and CNF in Vietnam is still high, but the price is not stable.

According to the survey, the overall market atmosphere of imported cotton yarn is better than that in the earlier stage. Although weaving enterprises and middlemen buy as they use due to the decline of domestic sales orders and slow recovery of foreign trade exports, there are no large orders and actual orders falling down, but the following three factors lead to a substantial easing of panic and a rise in confidence of cotton yarn trading enterprises

Since July, the new epidemic situation has been reduced to the lowest in Beijing textile enterprises, which is the first time that the new epidemic situation has been controlled in Beijing;

Second, the appreciation of RMB is conducive to the reduction of cotton yarn import cost. Driven by a strong rebound in China's economic data and another two-week low in the US dollar. In the morning of July 9, offshore RMB rose above the 7.00 level;

Third, since July 1, the resumption of reserve cotton shipping, not only the daily turnover rate continued to be 100%, but also the daily transaction price "three-level jump", leading to the rising voice of cotton period and the red flag fluttering. Under the support of high raw material cost and low cotton yarn inventory, textile enterprises did not have strong expectation of reducing price and running goods. Therefore, the price difference between internal and external yarn continued to narrow, and the competitiveness of external yarn increased.