Domestic Cotton Prices Are Relatively Weak Since Late October.

According to the traders in Guangdong, Zhejiang and Shandong, the domestic cotton yarn prices are relatively weak since late October, and the cotton spot market has been depressed. The price of CIF, CNF and the RMB quotas after customs clearance has been stable. Foreign exporters and importers are relatively calm, and wait-and-see sentiment is the main body.

On the one hand, India CCI launched large-scale cotton purchase and storage in various production areas, and MSP price rose 50 rupees / BPL (compared to 2014) (at the current rupee exchange rate, MSP acquisition price is about 64.5 cents / pound), plus rainfall in the main producing areas of the United States, the slow progress of cotton picking and the decline of total cotton production in China's Xinjiang cotton area, and the supply of high-quality lint at least reduced by more than 30%, leading to ICE's continuous consolidation in the 61-64 cents / pound compartment; on the other hand, it was affected by the closure of 30% cotton mills in Pakistan and the strike of enterprises (Pakistan government increased 10% of the tax on imported cotton yarn).

Factories and exporters want to raise the export price of cotton yarn, leading to difficulties in implementing some advance orders. However, the TPP agreement has made Vietnamese enterprises get the same treatment as Japan and New Zealand. The barriers to export to the United States have been swept away. Therefore, Vietnam's cotton mills, cloth factories and garment factories have begun to deploy a larger "bureau". Some Chinese traders predict that the "consignment volume" of the outer yarns will gradually decrease after December.

An importer in Guangzhou analyzed that the yarn market also showed a pattern of "strong inside and outside weak" in the same way as the cotton market. CCI, India cotton and domestic cotton.

Although the firm is strong, it will ultimately depend on the trend of cotton prices in China and the affordability of the Chinese buyers.

It is understood that as of the end of October, the number of bonded yarn outside China's main ports will exceed 100 thousand tons, and some foreign businessmen and middlemen will estimate 10.2-10.5 million tons.

At present, 32S, 40S, 50S Combed Yarns and high spun yarns in port or spot shipment are still mainly products of Chinese enterprises set up in Southeast Asian countries. The proportion of foreign cotton mills without Chinese background is not high. According to statistics, the quality, CV value and indexes of combed and carded yarn below 40S and below 50% are not lower than those of domestic yarn, and India and Pakistan are the same.

The characteristics of easy dyeing and high strength are relatively prominent, so the cotton yarn position below 40S will not be occupied long enough.

The price of cotton yarn is better than that of India and Pakistan for 200-300 yuan / ton, while the price of domestic cotton yarn is adjusted by 100-200 yuan / ton, while the price difference between domestic and foreign cotton yarn is about 800-1000 yuan / ton. The whole market has two obvious characteristics: first, the arrival rate of JC21, JC26, JC30 and JC32S yarn is more obvious than that of earlier growth; however, the delivery volume of cotton yarn arriving in Pakistan, Thailand, Indonesia and other places is lower; secondly, the willingness of Chinese importers and middlemen to clean their cotton yarn is not strong, and the quantity of cotton yarn quoted by the renminbi is reduced. The main reason is that the RMB exchange rate fluctuates more frequently and buyers and sellers' "no tickets" pactions increase. In late October, China's main ports, India, Pakistan, C21S and C32S prices were stable at 17200-17500 yuan / ton, 18800-19200 yuan / ton; Vietnam origin C21S, C32

On 25 and 26 October, CIF quotations from OE10S, C21S, C32S and JC32S in India port of Qingdao concentrated on 1.53-1.55 dollars / kg, 2.12-2.15 dollars / kg, 2.42-2.45 dollars / kg, 2.68-2.72 dollars / kg, the quotation was relatively strong, and the enthusiasm of the mills and exporters to adjust prices was not high.