Why is cotton yarn import still very strong in March?

Posted 2021-05-01 DaYaoTextile

According to customs statistics, in March 2020, China imported 190,000 tons of cotton yarn, which was the same as the same period last year; the cumulative import of cotton yarn in the first quarter of 2020 was 470,000 tons, which was only lower than the same period in 2019 of 0.6 million tons, a year-on-year decline of 1.26%; while 2019/20 (2019.9-2020.3) The cumulative import of cotton yarn is 1.1 million tons, a decrease of 110,000 tons from the same period in 2019/20, down 9.09% year-on-year. If we only look at the data, the imports of cotton yarn from Chinese traders and weaving enterprises from January to March 2020 will not be affected by the new crown epidemic situation, and can even be ignored.

In the first quarter, Vietnam, India, Pakistan, Uzbekistan, Indonesia, etc. are still the main source countries of cotton yarn imports, but it is worth noting that since February, India and Pakistan have successively implemented "closing countries and sealing provinces" to make textile mills Production and port shipments are in a “half-shutdown” state (Punjab, Pakistan, Sindh “closed city”), so the proportion of Vietnamese yarn, Indonesian yarn, and Thai yarn in cotton yarn imports increased in March. According to statistics, Vietnam exported 152,500 tons of yarn in March, a month-on-month increase of 4.5% and a year-on-year increase of 5.7%. The main growth came from China.

With factors such as the Spring Festival and the outbreak of the New Crown epidemic, leading to the large-scale postponement of the resumption of production and production of trading companies, weaving and apparel companies, and the continued cancellation or postponement of export orders in February / March, why did cotton yarn imports remain high in March? Industry analysis mainly includes the following factors:

First, considering the relatively long production cycle of cotton yarn, most of the yarn factories in India, Pakistan and other countries need to place orders 2-3 months in advance (Vietnamese yarn mills generally 1-2 months in advance), so the signing period of imported cotton yarn in Hong Kong in March Focused on December and January, both cotton yarn traders, weaving and apparel terminal foreign trade companies were looking forward to the cotton cotton textile market in the first half of 2020 (the first phase of the Sino-US trade agreement "landed"), and were ready to "pull up their sleeves." "Come on", because cotton yarn signing enthusiasm is relatively high;

Secondly, in terms of time, India has been "closing the country" since March 25. Pakistan has only two provinces with severe epidemics. The production and sales of cotton yarn have not been affected too much. Therefore, India and Pakistan yarn arrived in Hong Kong in March. Cargo and contract execution have little impact; the real impact will be from April to June; in addition, due to the obstruction of exports to Japan, South Korea and European countries, Vietnamese yarn mills have increased quotations and exports to Chinese buyers.

Since the beginning of the blockade of Asian countries in March and the full outbreak of European and American countries, the decline in cotton yarn import data will lag, and the import data in the next few months will be impossible to read.

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