Shipments Of Imported Yarn Are Cold, And Buyers' Default Is Increasing.

According to Qingdao, Jiangsu and Zhejiang, Guangdong and other places of cotton yarn traders, since August, in addition to OE yarn, 8S-16S siro spinning some enquiries, shipments were strong, unexpected, C21S-C40S and JC21-JC40S cotton yarn trading continued weak and light state, especially India, Vietnam, Indonesia and other cotton mills 40S and high combed, compact spinning almost "open doors", traders, manufacturers offices complain incessantly.

From the survey point of view, since the middle of July, the cotton yarn inventory of each port has continued to rise slightly. Some traders and weaving enterprises have to coordinate with foreign cotton mills or manufacturers to delay delivery for 15-20 days, lengthen the contract performance period, reduce sales risk and capital payment pressure; under the influence of the sharp reduction of cotton and cotton yarn prices, it is not uncommon for buyers to default on their own initiative, negotiate cancellation or sell party buybacks.

A certain enterprise in Zhejiang has about 1500 tons of cotton yarn in Zhangjiagang, Shanghai, Ningbo, Qingdao and Guangzhou ports, plus 900 tons of cotton yarn at the spot and 8/9 months. On the one hand, the quotations of the cotton mills dropped sharply, and traders could hardly survive. Since April 2019, the ICE futures contract has fallen from 77.45 cents / pound to 57.26 cents / pound, down 19.89 cents / pound, or 25.48%, and India and Pakistan, Vietnam and other cotton mills slashed the price of cotton yarn FOB, CNF and so on. Traders "lost the goods before they first lost money", and the bigger the deficit, the more the trend of the other side of domestic yarn and imported yarn upside down. The price of domestic yarn has been reduced more vigorously by the reduction of the cost of cotton production, the supply and demand of domestic cotton and the escalation of Sino US trade disputes.

Since mid August, Qingdao port C32 package bleached India yarn has been quoted at 21750-21950 yuan / ton (less than 22000 yuan / ton), while domestic C32 has only 21200-21500 yuan / ton of yarn, and 300-500 yuan / ton inside and outside. In addition, the RMB exchange rate suddenly broke 7 in the near future, and the impact of customs clearance on imported yarn of weaving factories and traders can not be underestimated.