Weekly Market Dynamics (April 20, 2020 -4 25)

Raw materials: cotton prices rise, polyester staple prices fall, raw material inventory of spinning enterprises is consumed orderly.

Product end: orders continue to shrink, gauze prices continue to fall, and inventory keeps accumulating.

　　 cotton

In April 20th, the US crude oil futures contract fell to negative in May, which undoubtedly became the focus of attention in the Zhou Dynasty. The international commodity market was slightly affected by this effect, cotton futures prices rose slightly, and spot prices rose less than futures prices. Cotton spinning enterprises have ordered consumption of cotton stocks, and some enterprises have intention to replenishment. According to the China Cotton Association Research Association, cotton textile enterprises accounted for 47.7% of cotton stocks in more than 1 months, 5 percentage points lower than the previous week.

Chemical fiber staple

The impact of crude oil futures on the price of polyester staple fibers is "critical". When the chemical market atmosphere was bad in the week, the price of polyester staple fiber dropped sharply, and fell to 6000 yuan / ton again. The viscose market was relatively stable, and the factory quotations were intentionally increased, but the actual turnover was mainly negotiated. According to the Research Association of China Cotton Association, when the week, cotton textile enterprises accounted for more than 15 days of chemical fiber stocks accounted for more than 59% of the total, down 9 percentage points from the previous week.

　　 Cotton yarn

In the week, the cotton yarn market remained unchanged. The overall trend of the cotton market was light. It is understood that the scope of cancellation of textile export orders has gradually expanded, and cotton spinning stocks continue to increase. Judging from the coordination research situation of China Cotton bank, the proportion of cotton textile enterprises in stock for 1 months and 2 months is 51% and 14% respectively, which is 1 percentage points higher than that of the previous week. In terms of imported yarn, Vietnam's 32 Cotton Combed Yarns fell more than India and domestic cotton yarn during the week. It is reported that the current export situation of Vietnam's textile industry is not optimistic, and business operations are beset with difficulties.

Grey

In the week, the gray fabric market remained weak, and the turnover atmosphere was lighter. The new orders in the market are relatively small, basically domestic orders, mainly based on small bills and short orders. The price of grey cloth is rising, and it keeps falling. With the increase of inventory, the pressure of weaving factory funds is increasing, and May 1 holiday is approaching. Some enterprises have the intention to extend their vacation.

Outlook for the future

Although the growth rate of confirmed cases of new crown pneumonia has slowed down in other countries except the United States, some countries plan to gradually lift the blockade restrictions, but there are still many uncertainties as to whether the epidemic will rebound and when the global economy will recover. It is expected that the market will be less likely to be better in the short term, and the fluctuation probability of cotton will be larger than macro factors, and the price of gauze products will continue to remain weak.