Outer Yarn: Breach Of Contract Continues To Happen.

From the feedback of cotton yarn trading enterprises in Jiangsu, Zhejiang, Guangdong, Shandong and other places, the import and export of yarn inside and outside the market has been questioned, traded and outgoing continuously since the beginning of May. However, the looms and middlemen contracted to purchase spot and ship futures in Pakistan in the middle and later 4 months of the month. They kept bottoming up (including C32S high package bleaching yarn and 8S-16S siro spinning), while Vietnam, Indonesia, Thailand, Central Asia and so on. OE yarn production difficulties increased, traders capital flow, inventory pressure is growing.

A large cotton yarn import enterprise in Ningbo has said that since the middle of April, the breach of import cotton yarn contract has begun to increase. On the one hand, India has opened the mode of "sealing the country and sealing the city" since March 25th. The production, sale, port shipment and delivery of the cotton mill are basically at a halt, and the cotton yarn purchase contract has encountered a lot of difficulties in implementation. The number of contracts has shifted from India to Pakistan cotton mill. On the other hand, the ICE cotton futures contract has risen to 57.98 cents / pound from 52.01 cents per pound for nearly half a month, up 11.5%. In addition, most of the Southeast Asian and Central Asian mills have been cut down, so the Sellers have a strong desire to raise the yarn price, and are not actively and actively implementing the contract. In addition, the recent accelerated depreciation of the renminbi, for cotton and cotton yarn imports enterprises, such as "add insult to injury".

According to the China Cotton Textile Industry Association survey, as of April 26th, the average operating rate of cluster weaving enterprises was around 53%, with the average operating rate of enterprises around 74%, and the utilization rate of weaving capacity was about 26%. In 3 and April, the export orders of cluster weaving enterprises continued to decrease significantly. Affected by the epidemic, domestic demand decreased substantially compared with the same period last year, and domestic orders also declined significantly. The year-on-year fall was basically over 40%. Due to the lack of internal and external orders, the consumption demand for imported yarn has also dropped dramatically.

From the survey and the estimation of several large cotton traders, as of the end of April, the total volume of China's Port Bonded + non bonded cotton yarn has exceeded 150 thousand tons, between 15-18 tons, and it still showed a slow growth trend in May.