Why The Import Of Ring Yarn Increased In June?

According to the customs statistics, in June 2020, China's cotton imports increased by 29% on a month on month basis and decreased by 44% on a year-on-year basis; while in June, China's cotton yarn import volume was 150000 tons, a year-on-year decrease of 6.5% and a quarter on month increase of 50%.

Obviously, from the perspective of import, cotton yarn consumption recovery, competitiveness and other performance is better than cotton. The import volume of cotton and cotton yarn increased significantly on a month on month basis, indicating that China's textile, clothing, foreign trade and other industries have gradually stepped out of the trough of the impact of the new global epidemic situation, and began a difficult "climb". The confidence of the industry and enterprises continued to rise compared with March / April.

Why did cotton yarn import increase by 50% month on month in June? The industry analysis mainly includes the following factors:

First, market demand. In May / June, China's domestic sales orders postponed due to the epidemic situation were fully released, and the consumer demand for 40s and below cotton yarn (including OE yarn) rebounded briefly. However, due to slow resumption of production and high cost of raw materials, some small and medium-sized domestic yarn mills were short of medium and low count yarn production and inventory. Therefore, Vietnam yarn and India Pakistan yarn were purchased at the spot, bonded or customs clearance The inevitable choice of inter business;

Second, the competitiveness of imported yarn has been restored to a certain extent. Domestic and foreign cotton prices fell from $300 to $300 / FOB, including domestic and foreign cotton prices fell from $300 to $300 / month, including domestic and foreign cotton prices fell from $300 to $300 / T;

Third, the appreciation of RMB in June, breaking 7 consecutive times, is conducive to the import of cotton and cotton yarn. With the spread of the global epidemic in June, the risk aversion nature of RMB bonds rose again. Among them, foreign investors increased their holdings of RMB bonds by 83 billion yuan (the Federal Reserve released the signal of maintaining extremely low interest rates for a long time, which made global capital transfer to the arms of emerging markets), which led to the continued appreciation of RMB even though the US dollar bottomed out and rebounded;

Fourth, the quality and stability of imported cotton yarn have reached or even exceeded the level of some domestic mills. Vietnam, India, Pakistan and other large factories OE yarn, c40s and below cotton yarn due to the high level of cotton blending, equipment constantly higher, workers' level progress, so the cotton yarn indicators are not inferior to domestic yarn, even better quality, more stable and cost-effective than some small factories in Henan, Hebei, Shandong, Jiangsu and other places.