According to the recent survey of coastal areas in Guangdong, Jiangsu, Zhejiang and Shandong, with the release of the “new ten” measures for epidemic prevention and control, cotton mills, weaving and clothing enterprises quickly had new trends. According to the interview of the reporter of China Cotton Network, the start-up rate of enterprises showed a trend of recovery. Some weaving enterprises and printing and dyeing plants that planned to have the Spring Festival holiday in advance in October and November showed signs of resuming production.
A light textile import and export company in Zhejiang said that since the end of November, the inquiry and demand for imported cotton yarn by cloth mills and middlemen have improved. Due to the low inventory of JC21 and JC32S cotton yarn from the main ports of India, Vietnam and other places, the short-term spot supply has tightened. The company believes that the reason for the return of imported yarn trading is not only the gradual loosening of epidemic control, but also the significant appreciation of the RMB exchange rate against the US dollar since December. The cost of enterprises signing contracts to purchase bonded yarn and ship cargo cotton yarn has decreased significantly. On December 6, the central parity rate of the RMB against the U.S. dollar was 6.9746 yuan, an increase of 638 basis points per day, officially returning to the era of “6″ after the onshore RMB and offshore RMB against the U.S. dollar exchange rates both recovered the “7″ threshold on December 5.
It is understood that the quotation of bonded yarn and customs clearance cotton yarn at the port for more than a week continued to stabilize. Supported by ICE futures, the rebound of Zheng Mian’s oscillation and the substantial decline of cotton yarn arrivals from July to October, as well as the high production reduction and suspension of cotton mills in India, Pakistan and other countries, traders did not give much preferential treatment to real and small orders, In particular, the price of C32S and above cotton yarn was firm (in October, the proportion of imported yarn arriving at Hong Kong was 80% below 25, and only a few 40S and above cotton yarns).
From the quotation of some traders, the price difference between the high configuration C32S cotton yarn and domestic yarn in customs clearance was about 2500-2700 yuan/ton on December 7-8, 300-500 yuan/ton smaller than that in the first half of November. As the current price difference between domestic and foreign cotton is more than 2500 yuan/ton, it is judged in the industry that weaving enterprises with traceability orders and rigid demands prefer to directly purchase external yarn to shorten production and delivery periods, so as to reduce risks and costs.
Post time: Dec-14-2022