China's February Yarn Imports Weaken

Market News

China's February Yarn Imports Weaken

According to industry estimates, China's cotton yarn imports in February this year have touched 141.6kt, down by 10.2% month-on-month, and down by 9.8% compared to CPLY. The Chinese Spring Festival resulted in a slowdown in imports and consumption of cotton yarn. According to foreign shipment data, cotton yarn imports of China from Vietnam in February are estimated at 64kt; from India 20kt; from Pakistan 23kt, from Uzbekistan 16kt, from Indonesia 6kt, and from other regions and countries at 13kt. Imported yarn stocks and supply and demand outlook in March Trading sentiment for imported cotton yarn was weak till the first half of February. In late February, market activities improved, but downstream weavers ran at a low rate and procured limitedly. In addition, traders pre-sold and delivered a lot of previous orders. Therefore, the stocks of imported cotton yarn were at a low level in fact. In terms of varieties, spot ring-spun cotton yarn was in tight supply in February, especially 32S, 21S and 16S; supply of siro-spun sources was tolerable and open-end one was adequate with slow sales.?? Weaving operations resumed by February end, with operating rate of weavers a little over 60%. Before Spring Festival, prices of spot and forward imported cotton yarn both weakened, especially those of forward Indian and Pakistani cotton yarn. Buying in China increased somewhat and the shipments were mostly in March and April. During Spring Festival holiday, international cotton price including US cotton and Indian cotton surged and the transactions in the world performed well except for China. After the holiday, forward imported cotton yarn price had moved up to high level and ordering in China increased a little, but due to high price, the purchasing was not much and the shipments were mostly in April-May. Therefore, arrivals in March were mostly ordered in January and early February in fact, and included some delayed cargoes. The costs of arrivals differed a lot. It is predicted that March arrivals will be a bit more than February.