Cotton yarn price moved down and more trades were done with thin profit

In terms of later market, the pandemic in Vietnam remained severe in Aug. The soaring sea freight rate and unexpected improvement of downstream orders in China burdened cotton yarn market. Cotton yarn price moved down and more trades were done with thin profit. The spot stocks of imported cotton yarn was at a medium level and the high price of forward price lent some support to spot one. However, if downstream demand keeps poor and traders of Chinese cotton yarn undersell, spot imported cotton yarn will be under pressure. Looking from previous ordering, the arrivals of Sep will be mainly ordered in Jul when the pandemic in Vietnam was serious and a large amount of production was cut in the South. Therefore, Sep arrivals of Vietnamese cotton yarn is likely to drop, those of Indian and Pakistani one will be limited and those of Uzbekistan will be a bit better. On the whole, Sep arrivals of cotton yarn imports will keep around medium level or less.