Yarn market slow down, domestic demand orders insufficient, inventory small increase, the price is e
Yarn market slow down, domestic demand orders insufficient, inventory small increase, the price is expected to be stable and weak operation
Abroad, due to the outbreak of the epidemic, the international demand for cotton has changed greatly. In early 2020, USDA estimates showed that cotton consumption in 2019 / 20 (to July 2020) would be 26.2 million tons, similar to cotton consumption in the previous two years. Since then, all USDA reports have lowered consumer expectations, down 5.1% in May and 2.2% in June. India's attitude towards China has deteriorated sharply since the military conflict between China and India broke out on the border, causing casualties. India has banned 59 kinds of Chinese mobile applications at home and obstructed the goods imported from China. However, the price advantage is no longer the main driving force for China's import and export of cotton. In addition, due to the influence of factors such as China's domestic dumping of reserves and squeezing of Indian cotton transactions, India's attitude towards China has deteriorated dramatically, Therefore, the change of Sino Indian relations has little impact on China's cotton import. According to the official foreign exchange reserve currency composition (Cofer) data released by the International Monetary Fund on Tuesday, the total amount of RMB foreign exchange reserves in the first quarter was 0.22 trillion US dollars, achieving five consecutive quarters of growth. The proportion of RMB in global foreign exchange reserves also rose to 2.02%, a new record high.
In domestic situation, the announcement of delivery of reserve cotton will be implemented on June 30, 2020, and the national legal working day will arrange a total of 500000 tons of reserved cotton in the national legal working days from July 1, 2020 to September 30, 2020, and implement balanced delivery. In principle, about 8000 tons of reserved cotton will be sold every working day. Since the end of June, the pure cotton yarn market has entered the off-season. At present, the overall inventory level of textile enterprises is lower than that of last year's inventory peak, but it has increased significantly compared with the previous period. The inventory level of general small and medium-sized textile enterprises has reached the level of 10-15 days, the inventory level of large-scale textile enterprises is more than 25 days to 1 month, and the inventory of some unsalable varieties has reached the level of January and half to two months. However, due to the lack of orders, the cotton yarn purchased is basically on demand, and the market is pessimistic.
Upstream: Cotton spot price continued to rise this week, cotton spot overall trading weak. In 2020, the base price of standard grade cotton in the first week (July 1-3) of central reserve cotton is 11837 yuan / ton. From July 1 to July 3, a total of 2413200 tons were planned to be delivered, and 2413200 tons were actually traded, with a transaction rate of 100%. This week, crude oil raw materials are weak, direct spinning polyester short, the price of a small periodic decline. Viscose staple trend weak this week, slow delivery.
Yarn: this week pure cotton yarn market basically maintained the trend of last week, the overall market is weak, the quotation is more stable. Pure polyester yarn transaction center of gravity down, inventory accumulation. People cotton yarn Market Trading atmosphere is weak, factory sales pressure is greater.
Downstream: in this week's cotton grey fabric market atmosphere trading poor, the overall operating rate of the weaving mill continued to decline, the current starting level is 45.3%, lower than the same period in previous years. Foreign trade orders recovered less than expected, domestic market weakened, weaving mill pressure.
Generally speaking, the price of pure cotton yarn decreased slightly this week, with the price of pure polyester yarn, polyester viscose yarn and polyester cotton yarn stable, while the price of human cotton yarn and cotton viscose yarn decreased.
Therefore, many polyester yarn factories take measures to reduce production to recover some losses of the factory, hoping that Xinguan epidemic situation will end soon.