The risk of ordering imported cotton yarn gradually diminished

The risk of ordering imported cotton yarn gradually diminished after a reduced gap between imported and domestic cotton yarn. Domestic cotton yarn price has experienced waves of rise during the course of year end stock-up. As shown in chart below, mainstream ring-spun C32S and open-end or siro-spun yarn was offered at similar level. Still it is too early for imported cotton yarn to remove its highly priced label. Besides, it would also take downstream weaving mills some time to alter current consumption habit. Therefore low-cost imported cotton yarn could not avoid sales pressure when arrived after Spring Festival. Indian cotton price temporally dropped to 13,500yuan/mt and then rose to 14,700yuan/mt, stronger than ZCE cotton futures. Pakistani cotton fluctuated at around 14,000yuan/mt. Whether imported cotton yarn could regain price advantage would be decided by future trend of the price gap. Indian yarn would likely to become the dark horse if Indian cotton supply increases sand its price drops further.