Weekly Market Dynamics (June 8, 2020 -6 14)

Raw material end: international cotton price drops, domestic cotton price rises first and then falls, viscose staple fiber price disadvantageous downward, polyester staple fiber price falls;

Product end: the off-season phenomenon has increased, cotton prices have basically remained stable, and the price of grey fabrics has been lowered.

cotton

With the intensifying domestic demonstrations, the US new crown has rebounded and new cases are increasing. The US Treasury Secretary said that the US should not stop the economy again even if the new crown infection cases increase again. As the restrictions on various states continued to loosen, there were signs of a second round of epidemics in the United States. The market was worried. The price of intra American cotton futures gradually declined and the CotlookA index gradually declined. On the domestic side, Zheng cotton futures first rose and then fell, and cotton spot prices followed the trend of futures prices. Cotton textile enterprises still had less willingness to purchase large quantities of cotton.

Chemical fiber staple

At the beginning of the week, the price of viscose staple was slightly lower. As the downstream demand is weak, factories are difficult to ship and the price center of gravity keeps falling down. Affected by the decline in viscose staple fiber prices, cotton textile enterprises purchase intention is not high, more cautious wait and see trend. At the beginning of the week, the price of PET staple fiber was increased, and then the crude oil and polyester raw materials were adjusted to shake, and the price of polyester staple fiber rose steadily, and sales dropped significantly.

Cotton yarn

In the week, the cotton yarn market was weak, with the exception of individual varieties, while the rest of the varieties were sold lightly. Cotton spinning enterprises lack of overall orders, inventory continues to increase, some enterprises have reduced production. According to different varieties, conventional yarn is still a relatively good shipment, and combed yarn and high count yarn demand has not yet fully recovered, and shipments are more difficult. In terms of import yarn, the weekly price trend is rising, mainly due to the increase in local purchasing volume, and domestic demand for imported yarn is still relatively low. In the week, 32 Cotton Combed Yarns in India were less than 390 yuan / ton of domestic cotton yarn. Vietnam's 32 pure cotton combed yarn was lower than the domestic cotton yarn 370 yuan / ton.

Grey

During the week, the market of grey fabric continued to weaken, and some factories began to cut down, and the phenomenon of holidays increased. Only a few large factories still maintained high load. Weaving factory said that subsequent orders to undertake ineffective, inventory levels continue to increase, in order to reduce inventories, increase capital flows, reduce sales is normal.

Outlook for the future

At present, the US general election is coming, and the demonstrations continue to escalate. Nearly 20 states in the United States have rebounded, and the market has again seen panic. This has increased the uncertainty of the international financial market and enhanced the volatility of international cotton prices. On the domestic side, Beijing's epidemic has rebounded, and all regions and departments concerned have responded quickly and precisely controlled and killed the epidemic before the disaster. The precise prevention and control and timely disposal of the epidemic situation in Beijing will not affect the overall prevention and control strategy. It will also be the norm for prevention and control throughout the country after this year. In June 15th, a spokesman for the National Bureau of Statistics said that the steady recovery of the domestic economy was obvious. The resumption of industry and resumption of business resumed business was effective and effective. The industrial services sector was growing. The decline in consumption and investment continued to narrow. The market was expected to remain stable overall, providing a good foundation and conditions for promoting sustained economic recovery.