Domestic Cotton Yarn Traders Worry More

 

A large textile mill in Vietnam said that before the end of January, the cotton mill had resumed production and the C21S-C40S yarn was the main product. However, considering that the Chinese textile factories and traders were postponed until February 9th, the cost of cotton yarn was still high and the exchange rate and other reasons.

 

Several India, Pakistan cotton mills and export enterprises also said that since mid January, Chinese buyers had hardly increased their inquiries and orders, and their demand was weak. However, the cost of domestic cotton prices, labor and taxes had led to a very limited price reduction for the mills, and they could only stick to it. An importing company in Shandong said that because of the "turning point" of the new pneumonia epidemic, the shipment of the foreign cotton mill was slow, and some domestic buyers also asked the supplier to extend the execution period of the contract and postpone shipment for 15-20 days.

 

Recently, some domestic cotton traders' concerns intensified: first, with the price of CF2005 contracts falling below 14000 yuan / ton, 13500 yuan / ton, and 13000 yuan / ton, the price of domestic cotton yarn will inevitably plummet. No matter whether the yarn is purchased or contracted for 11/12 months, the cotton yarn purchased by contract is facing greater risk of loss. Two, it is hard to predict when the downstream weaving factories and middlemen will return to work and when to open the yarn. The three is the short-term impact of the epidemic and the continued high impact of the US dollar. In February 5th, both offshore and offshore RMB devalued at the 7 level, and the cost of external yarn imports accelerated.