Index Weekly Review: Demand Is Difficult To Boost Cotton Spinning Continues To Slump

Last week (6.04-6.08)

Continue to be vulnerable, subject to external and internal and external cotton.

The impact of domestic cotton spot sales slow, generally textile mills inquiry is also high-grade cotton, and because the price can not agree, the actual turnover is not much.

Last week, the Central Bank of China cut interest rates unexpectedly, leading to the ICE cotton trading in New York. The domestic market also rose slightly every other day. However, as the Federal Reserve did not further clarify whether to issue EQ3 and Spain also had problems, the whole market continued to be depressed.

The price of raw materials is rising, the order is insufficient, the profit is squeezed seriously, the confidence of the textile factory is not high, the construction of the textile factory is low, and the shutdown phenomenon is rising.

The weekly average price of China's cotton price index (CC Index328) was 18558 yuan / ton, 208 yuan lower than the previous week, 229 yuan 19715 yuan / ton, or 297 yuan; 527 level 16256 yuan / ton, or 177 yuan.

Last week, the volume of trading was increased, and the center of gravity continued to move downward.

Last week, domestic spot prices continued to fall, which has widened compared with the previous week, and the actual turnover is still weak.

The downstream market is sluggish, and when the spinning enterprises are in high inventories, the price of cotton is easy to fall, and the market confidence is obviously insufficient.

As the price of domestic electronic discs is lower than spot quotes, many enterprises begin to pick up goods on electronic discs, but the downstream is uncertain, and the pace of purchasing raw materials is very slow.

The overall market of the yarn market is still weak, and the market continues to decline. In general, volume and price continue to slide. The sound of falling prices is constantly falling, and it is almost in a doldrums.

The prices of raw materials are rising, orders are insufficient, profits are squeezed seriously, weaving factories are not confident, weaving mills start to operate at a low level, and downtime is increasing.

In the early June, most cotton pplanting in China basically ended.

According to the China cotton information network production survey at the end of May, in 2012, the total acreage was 71 million 950 thousand mu, and the estimated output was 6 million 660 thousand tons.

In the early June, the weather was basically suitable, and the precipitation in some areas decreased. In Bazhou cotton area of Xinjiang Province, it was attacked by a rare hail in June 4th. The cotton was affected by 30874 acres (10000 mu).

The Yangtze River Basin has entered the rainy season, and cotton field management should be timely.

Two, matching pactions: the European debt crisis hinder demand, and cotton prices continue to slump.

When 6.04-6.08 (week), the cotton trading market in the national cotton trading market reached 79940 tons, an increase of 9960 tons over the previous week.

Weekly orders increased by 10140 tons, and cumulative orders increased to 147700 tons.

There are the following characteristics in the week: first, volume enlargement. Besides the MA1208 contract and the MA1210 contract, the other contracts are stronger. The MA1211 contract in the far month is the most active week, which is 8180 tons higher than the previous week. It can be seen that traders' confidence in the far moon market has been restored.

Two, the order quantity will continue to increase.

When weekly orders increased by 10140 tons compared with last week, contract positions continued to decrease in recent months, and MA1206, MA1207 and MA1208 contracts were reduced by 2980 tons, 2300 tons and 120 tons respectively, compared with the previous week. The amount of orders far ahead increased substantially, of which the largest increase in MA1211 contracts was 7400 tons compared with the previous week, while MA1209 and MA1210 contracts also increased 5100 tons and 3040 tons respectively.

Three, the average price continues to slide.

When the market rebounded, but due to the early week of a larger decline, the average price of the contract still fell sharply compared with the previous week, the MA1211 average price fell the largest, was 569 yuan; the average price of other weekly contracts fell 406-563 yuan / ton.

Four, technically, there are signs of rebounding in the weekly contract market, and we still need to pay attention to macroeconomic factors in the future.

Three, the international market: the short term rally of cotton futures is difficult to continue. The drought in Dezhou has improved.

Last week (6.4-6.8), the mid term ICE cotton has been weakened since May, and it has been trading for two consecutive trading days. However, due to the bad fundamentals and macro faces, the cotton futures failed to continue the rally. The spot market price first fell and then rose, and the inquiry of textile enterprises was not active. The market stabilization period was expected, and there appeared a default phenomenon in the market, including Chinese buyers.

The drought in Dezhou, the largest cotton producing area in the United States, has been greatly improved. Cotton prices in India have risen substantially in the late weeks, and the pace of sowing new flowers in Pakistan has slowed down.

The weekly Cotlook A index averaged 80.72 cents per pound, down 1.77 cents from the previous week, and the average price of ICE's recent contract was 70.42 cents / pound, down 0.54 cents from the previous week.

Four, outlook for the future

The macroeconomic data just released last weekend showed that China's import and export rebounded sharply in May. But looking at the data, we found that the export growth of China to the EU was still very low. The rebound of only one month did not show anything.

Chen Deming, Minister of Commerce 11, said that although China's import and export data rebounded in May, the trend of the latter stage remains to be seen.

Affected by the European debt crisis and other factors, China's foreign trade situation is still grim at the later stage. If it is lucky, it will achieve an annual growth of about 10%.

In the recent survey, most of the surveyed textile enterprises did not have much expectation for the future market.