Ordering time and price gap change of mainstream imported cotton yarn
December arrivals of Indian cotton yarn into China were mainly ordered in end-October and end-November, and price gap between forward and spot Indian cotton yarn in China slightly expanded during that period. Given price disparity, arrivals of Indian cotton yarn inched up in December compared with November. December arrivals of Vietnamese cotton yarn were mainly procured in early-November & early-December. Price gap between forward and spot goods expanded compared with last cycle. Thus, arrivals of Vietnamese cotton yarn in December showed a slight increase on the month.
December arrivals of Pakistani cotton yarn were mainly ordered in early-October & early-November. Price disparity between forward siro-spun 10S and spot goods in China obviously narrowed. Based on price gap, arrivals of Pakistani cotton yarn in December have fallen slightly on the month.
Profit change of mainstream imported cotton yarn
Profit of December arrivals of Indian cotton yarn showed slightly better compared with November arrivals, and the margins of Pakistani and Vietnamese cotton yarn still declined. Imports of Indian cotton yarn in December thus rose slightly while those of Pakistani and Vietnamese cotton yarn fell.
Inventory change at major China ports
Inventory of spot imported cotton yarn declined in December. Cotton grey fabric sales turned better in some areas with some varieties even out of supply. Arrivals of some varieties of imported cotton yarn may slip slightly, yet the whole picture is to be watched.?
Summary and outlook
According to survey made by CCFGroup and combined with profit and price gap change, imports of cotton yarn are likely to reflect a drop of around 6.24% on the month to 181.8kt in December, and imports of cotton yarn containing more than 85% of cotton is expected to be around 172.7kt.