According to feedback from some cotton yarn traders in Jiangsu, Zhejiang, Guangdong, Shandong and other places, due to the recent sharp rise in cotton yarn prices in India, Pakistan and other producing areas, and the large-scale global outbreak of mutant strains of COVID-19 (increased impact on shipping, logistics and other links) Due to the impact of various factors such as high sea freight rates from various ports in Southeast Asia to China, the amount of imported cotton yarn arriving and warehousing has declined significantly since mid-to-late December. An organization estimates that the amount of imported yarn arriving at the port in December is about 13.7 10,000 tons, a year-on-year decrease of 17.5%. Therefore, cotton yarn traders “sell down but not up” and their reluctance to sell continues to heat up. The quotations of bonded and customs cleared cotton yarn at ports have decreased compared with November and December.
A raw material import company in Shaoxing stated that considering that the high domestic cotton costs and selling prices in 2021/22 and the substantial increase in Xinjiang cotton public inspection quality indicators compared with the previous two years have led to textile companies turning their focus to the production of medium and high-count yarns, downstream weaving factories and traders There is a slightly higher willingness to restock OE yarns and siro spinning 8S-16S and ring spinning yarns below 32S from countries such as Pakistan, Vietnam, and Central Asia, while carded/combed yarns with counts of 40S and above from countries such as India and Vietnam are slightly higher. Yarn is not very “cold”, and the transactions of cargo, spot and port spot are relatively deserted.
Several cloth mills and traders reported that due to the sharp rise in cotton yarn FOB/CNF/CIF prices, the Indian cotton yarn contracts signed and purchased from August to October 2021 faced implementation difficulties and even the supplier defaulted. Some Indian yarn mills and exporters have raised prices on the pretext of a sharp increase in the price of cotton and other raw materials, high sea freight and tight shipping, and a possible increase in Indian textile and clothing taxes from 5% to 12%, requiring purchasers to either increase the contract price or indefinitely. Due to delays in order placement and shipment, the quantity and price of Indian cotton yarn originally planned to be sold in Hong Kong in December/January/February are subject to great variability. Some traders with large stocks of imported cotton yarn and low costs are eager to stock up on goods before the holidays. In addition, some weaving companies in coastal areas have been on holiday one after another, so the shipment of imported yarn has gradually cooled down.
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