According to the cotton traders of feedback in guangdong, jiangsu and zhejiang , such as India, Pakistan, Vietnam since early march origin cotton continue to fell more than outside dish quotation, inquiry, clinch a deal "Coldness In The Late Spring" signs of obvious, especially the Indian cotton yarn the substantial depreciation of the rupee against the dollar, weak domestic cotton consumption and imported cotton price fell sharply cause a downturn of the mills cost factors, such as the FOB and CNF price cut slightly larger.
Although nearly for more than a week, main ICE cotton futures contract fell below 62 cents/pound, close to 60 cents per pound mark, import yarn "futures" quotation "drop down", downstream weaving, clothing and foreign trade companies in China to return to work and production progress accelerated, but traders signing 4/5/6 month shipment outside yarn are still hesitant, timid, only C20S - C32S high match cotton needs periodic warming (including knitting, jet and rapier yarn), December/January shipment of better OE yarn,8s-16s siro spinning "volume proce" double drop.
Why are Chinese weaving factories and traders not interested in signing "futures yarn"? Industry analysis has the following points:
First, with the outbreak of COVID - 19 in more than 100 countries, China's textile clothing exports suffered another round of "big test" after the war of sino-american trade. According to a Shanghai foreign trade company, customers from Italy, Germany and Spain first reduced the order quantity by 40% to 50% in February, and then informed them to delay the delivery of the order, because the shops were closed.
Second, although weaving, printing and dyeing and other downstream enterprises return to work rate is relatively high (especially in jiangsu, zhejiang, shandong and other coastal areas), but the return to production ratio is generally low, and since the middle of February, mainly to complete the Spring Festival orders before the main, new orders are few, medium - and long-term orders are very few;
Third, OPEC + to expand production and the outbreak of the new champions league lead to the collapse of negotiations of the global economic uncertainty by a sharp increase in global cotton, cotton yarn, such as facing larger shrinking consumer demand, ICE storage below 60 cents per pound or low risk before 58.84 cents/lb, buyers worry about copy is not at the bottom of the yarn price but the waist shoulder, even so would rather wait and see, still.