Outer Yarn: Spring Is Getting Stronger. India Yarn Has Lost Its Chain.

According to the cotton and yarn trading enterprises in Guangdong, Ningbo and Qingdao, with the rebound of cotton futures and domestic cotton spot prices since late December, Sino US trade consultation has frequently released positive and positive news. Pakistan, Vietnam and other futures yarn, spot and bonded yarn have been turning back and forth, and winter has gradually faded.

In the past week or more, apart from the smooth delivery of C21S, C32 and self winding yarn, the inspection and delivery of the cotton blended yarn with high air distribution in each port were also turned from cold to hot, especially OE16S and OE21S yarn with relatively low inventory.

From the survey point of view, although the main contract of ICE cotton futures has stabilized from 80 cents / pound to 70.65 cents / pound in the past month or more, it has been stabilized at 73-75 cents / pound in the narrow compartment, waiting for the direction of USDA, policy and peripheral markets. But the quotation of cotton yarn outside India, Pakistan, Vietnam, Indonesia and other places does not follow ICE's footsteps, which shows the weak and steady state of the company.

High quality, high cotton blending, no three silk, Vietnamese or Indonesian yarn are even stronger.

According to statistics, in November 2018, India's cotton yarn export volume decreased by 14.5% compared with the same period last year, and its exports to China decreased by 36%. In the first eight months of this fiscal year, India's cotton yarn exports to China increased by 60% (mainly by the rupee exchange rate and the increase of India's high yarn production). However, from the feedback of port cotton yarn trading enterprises, the signing and closing of India yarn in January and January were not as active as other Southeast Asian and Central Asian yarns (mainly Uzbekistan, Turkmenistan and Azerbaijan).

The main reasons are: since December, the price of ICE cotton futures, US cotton and Australia cotton, Brazil cotton and West Africa cotton has dropped sharply. The cost of cotton yarn in Vietnam, Indonesia, Turkey and other countries has declined significantly, and the price of cotton mill has increased. As a result of substantial reduction in production, quality decline and MSP high support, India cotton price has continued to be high and the adjustment range is relatively small.

According to statistics, in the past month, the price of India cotton S-6 1-5/32 has only dropped by 1-1.2 cents / pound, or less than 1.4%, while the decline of ICE main contract, American cotton EMOT/MOT and Brazil cotton quotation has reached 12.21%, 5.6% and 5.07% respectively, and the competitiveness of printed yarn prices has continued to decline.

On the other hand, with the influx of high quality cotton, Brazil cotton and West African cotton into Vietnam, Indonesia, Bangladesh and Pakistan market, with the upgrading of national mills and the improvement of new equipment and skilled workers, cotton yarn quality, stability and supply capability have already challenged India yarn. 32S and below have high yarn index and dyeability even stronger than printed yarns. A textile factory in Guangdong indicates that 26S and below India yarn have no price advantage or quality advantage compared with other Southeast Asia yarn.