As the old saying goes, “Ten years in Hedong, ten years in Hexi”, with the further decline of domestic cotton prices, imported yarn has gradually lost its former glory, and the passive situation of being beaten in the past few years has completely changed. As the saying goes, things are changing. If you look at the current inventory of imported yarn at the port, you will know how confident the domestic yarn is.
After experiencing a sharp rise and fall in October last year, the price difference between domestic yarn and imported yarn gradually widened, and the advantage of imported yarn appeared again. However, due to the upward trend of the two after November, the cumulative increase of imported yarn was greater than that of domestic yarn, resulting in the price difference between the two gradually narrowing, the advantage of imported yarn declining, and the advantage of domestic yarn gradually becoming prominent. At the same time, the price of imported yarn has also been rising overall. Judging from relevant monitoring data, the Indian Jet C32S has increased by about 7.6% since November. The current mainstream transaction price of this variety including tax is about 23,700 yuan/ton.
In March, cotton yarn profits in China, India and Pakistan varied, mainly affected by yarn production costs and downstream demand. According to statistics, China’s cotton yarn prices increased by 1.5% in March, and spinning profits further increased, mainly because China’s domestic cotton prices have been relatively stable in the past few months. In the past three months, cotton prices in India and Pakistan have continued to rise. In March, they increased by 3.45% and 1.37% respectively. Cotton yarn prices dropped by 1% and 5% respectively. The spinning profits of India and Pakistan declined due to the increase in cotton prices. is compressed.
In the past year, in order to stabilize cotton production, cotton prices in China, India and Pakistan have all increased simultaneously. Among them, the price of 328 cotton in China has increased by 34.06% year-on-year, the price of S-6 cotton in India has increased by 31.98% year-on-year, and the spot price of Kachira in Pakistan has increased by 29% year-on-year. %.
The reserve cotton was officially rotated out on March 6, 2017. It has been 5 weeks since then. Due to the sufficient supply of domestic commercial cotton, the reserve cotton rotation transaction rate has not remained high. Although the spot market price is relatively strong, it is affected by domestic and foreign factors. Affected by the impact, the reserve cotton reserve price continues to fall, and this week the reserve price dropped to 15,381 yuan/ton.
According to the March monthly report released by the National Cotton Market Monitoring System, as of March 31, 2017, the national cotton price B index was 15,935 yuan/ton, the international cotton index (M) was 15,413 yuan/ton, and the Indian cotton price was 15,130 yuan/ton. Yuan/ton, Pakistani cotton is 13,906 Yuan/ton. Judging from the above prices, the price difference between domestic and foreign cotton has further narrowed, winning market space for domestic yarn.
According to statistics released by China Customs, from January to December 2016, my country imported a total of 1.9721 million tons of cotton yarn and exported a total of 349,400 tons, a year-on-year increase of 3.70%. In 2015, my country imported a total of 2.3452 million tons of cotton yarn, which shows that the advantages of domestic yarn are gradually increasing and the quantity of imported yarn is declining. The March monthly report shows that as of March 31, the price of 32-count carded cotton yarn in China was 23,780 yuan/ton, the price of 32-count carded cotton yarn in India was 25,333 yuan/ton, and the price of 32-count carded cotton yarn in Vietnam was 23,928 yuan/ton. Yuan/ton, the price of 32-count carded cotton yarn in Indonesia is 23,847 Yuan/ton.
It can be seen that under the condition that the cotton price and cost are not much different, China’s textile efficiency advantage is highlighted. Especially compared with Indian cotton yarn, the price is about 1,500 yuan/ton less, and the price difference with Vietnamese yarn is also more than 100 yuan/ton. Both of these countries are major exporters of cotton yarn to China.
It is reported that my country’s cotton yarn market has long been impacted by low-count yarns from Pakistan and medium- and high-count yarns from Vietnam, India, and Indonesia. In 2016, my country imported 416,000 tons of Indian cotton yarn, down 40.8% from the same period last year. From January to December 2016, 625,000 tons of Vietnamese yarn were imported, and the total import volume of the two reached 1.041 million tons, accounting for half of the country.
Today, the price of cotton yarn in these two countries is higher than that in China. Coupled with the technical and quality advantages of domestic yarn, if this situation continues to develop, imported yarn will encounter tremendous pressure. Taking 32-count cotton yarn as an example, based on the cotton ratio of 1:1.05, if the import volume of cotton yarn can be reduced by half in 2017, then the domestic cotton production will increase by more than 500,000 tons, which is almost equivalent to the domestic import volume in one month. After experiencing the pain of high price differences between domestic and foreign cotton, domestic cotton yarn is indeed living a comfortable life.
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