Why Should We Be Vigilant Against The Impact Of Imported Blended Yarn On China?

According to China Customs statistics, in 2016, China's yarn imports amounted to 7 billion 390 million US dollars, down 16.9% compared to the same period last year, of which pure cotton yarn imports amounted to US $5 billion 130 million, down 19.5% compared with the same period last year, and the import volume was 1 million 557 thousand tons, down 12.7% over the same period last year.

It is worth noting that since 2016, Indonesia, India, Vietnam and other blended yarn (mainly polyester cotton, polyester sticky, cotton sticky, etc.) to China's exports continued to rise, while India cotton and cotton yarn FOB, CNF, CIF high prices (by India rupee continued strong against the US dollar, 3 months later, S-6, J34, MCU5 and other ginning factory price and shipping price to a new high), some exporters and traders 5/6 futures yarn orders or even 2 or 3 weeks without consultation and paction, so India textile enterprises were forced to increase the operation of blended yarn.

In Guangzhou, Ningbo, Qingdao, Zhangjiagang and other places, the number of blended cotton yarn such as polyester cotton, polyester viscose and so on is increasing, and the proportion of bonded yarn is also rising.

According to statistics from relevant departments of India, the output of cotton yarn in India from April 2016 to January 2017 decreased by 2.2% compared with the same period last year. However, the yarn output has not only remained stable and slightly increased due to some spinning mills turning to blended yarn production (blended yarn output increased by more than 6%), but the percentage of pure cotton yarn is still about 71.4%.

At present, the domestic cotton inventory in Pakistan has reached a low level. The cotton prices in Pakistan have risen with the recovery of New York futures prices, and the price of polyester staple fiber has dropped. The textile enterprises in Pakistan have begun to adjust their product mix and pfer from pure cotton to blending.

Current tradition

Export power Indonesia, Vietnam's T65/C35 21S, T65/C35 30S, T60/C40 30S, T65/JC35 21S, T65/JC35 32S and other varieties gradually inflow into China.

In contrast, Indonesian cotton mill leading varieties of yarn are higher, such as T65/C35 45S, T65/JC35 32S and so on, while India, Pakistan, Vietnam and other blended yarns are mostly concentrated in 32S and below.

So what are the advantages of imported blended yarns? Why should we be vigilant against the impact of imported blended yarns on China?

1. Due to the large number of cotton reserves coming out in China in 2016 and 2017, and the actual paction price is much lower than that of the new cotton spot, the effect of "reducing costs and raising competition" in the cotton mill is obvious. (for example, since the end of March, the average daily paction price of the reserve cotton has been set at 14600-14800 yuan / ton, less than 1000 yuan / ton of cotton in the 2016/17 year), which has strongly impacted and resisted the import of cotton yarn in India, Pakistan and Vietnam.

Imported cotton yarn can be reduced in terms of cost, pportation, taxation and so on, so the compressing space is very limited. Therefore, the conversion of blended yarn is inevitable.

Two, affected by the sharp decline in recent crude oil, PTA and 1.4D polyester staple fibers, the cotton mill has reduced the pressure on raw material procurement funds and avoided the impact of some small mills in Bangladesh and central and Southeast Asian countries. India, Vietnam and other large factories and brand factories have expanded the production of blended yarn simultaneously.

And other countries buyers pre sale efforts.

Three, Indonesia, India, Vietnam and other cotton mills mainly use cotton, West African cotton, Central Asian cotton, cotton in length, breaking strength, color level, foreign fiber content and other aspects are significantly stronger than the reserve cotton, so some Chinese weaving factories and middlemen believe that imported polyester cotton 40S and below yarn index is stronger than domestic yarn.

Four, imported blended yarn has a slight advantage in price, but there is still room for price reduction.

For example, the current price of domestic T65/C35 45S and T65/JC35 32S is generally 18600-18800 yuan / ton, 18800-19000 yuan / ton, while Indonesia,

The quotation after customs clearance is generally 200-300 yuan / ton lower than that of domestic yarn, and imported cotton blended yarn should have larger space compared with the "inverted" 1000 yuan / ton of cotton yarn at home and abroad.

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