Market review
The price spread between Chinese cotton yarn and imported yarn narrows again as imported ring-spun yarn prices move down fast. Downstream buyers are not interested in the sales with discounts, and actual trades are still mostly with scattered orders, so the actual traded prices move down slowly. Market participants haven’t expected good sales in the future. The transportation of Chinese cotton yarn out of Xinjiang hasn’t recovered totally, and the delivery of yarn mills in places like Shandong is sometimes cut off. Traders replenish a few to keep the demand of regular customers, and the profit space is relatively not good.
Market Outlook
The sales are not expected to be good in the short term.
Forward yarn market
Market review
At present, forward imported yarn prices differentiate. Indian cotton yarn prices rise a little as Indian cotton prices gain support from the rebound of ICE cotton futures. Vietnamese cotton yarn hasn’t followed to rise, and Pakistani cotton yarn prices continue to be weak. In terms of shipment, forward imported yarn mills see most shipments of Vietnamese, Indian and Pakistani yarns in December.
Market outlook
Forward imported yarn prices differentiate. ICE cotton futures rebound much, and forward traders reflect differently on the market. Cotton price’s support for cotton yarn price may end the falling market.
$1=CNY7.25
Posted on 7/11/2022
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