Textile Prices Stabilize Cotton Yarn Price Increase Is Not Large.

It is reported that since April, cotton prices rebounded, India yarn export prices rose sharply, this week JC30S price FOB2.58 U.S. dollars / kg, up 13 cents, or 5.3% higher than last week.

Recently, as domestic cotton and cotton yarn prices have increased, some traders began ordering late imported yarn recently.

All cotton yarn market has been better, but generally changed.

Not much help to the spot market, the market is still on thin ice, and more cautious.

The price increase of manufacturers is also modest, which is a technical increase and has little effect on the overall market.

JC40S of a factory in Shandong quoted 27500 yuan / ton, JC50S quoted 29500 yuan / ton, 500 yuan higher than the previous period, and actually discussed concessions.

Generally speaking,

A slight increase, some large factories reflect orders to about the end of May, the large plant started relatively well, there is a slight increase in the trend, around 70-80%, but the long list is still relatively scarce, and quality specifications are gradually changing with the weather, thin summer fabrics better.

Most specifications are relatively stable and partial prices of some varieties decline.

A factory in Yangxin C 21x21 108x58 63 "twill price 6.60 yuan / meter, compared with last week fell 0.2 yuan / meter, another local factory T65/C35 45x45 110x76 63" plain cloth price 4.30 yuan / meter, compared with last week fell 0.1 yuan / meter.

A factory in Shandong C 40x40 133x72 63 "flat cloth quoted price 6.50 yuan / meter, compared with last week fell 0.3 yuan / meter.

A factory in Hebei T65/C35 45x45 110x76 63 "flat cloth quoted price 4.35 yuan / m, 0.05 yuan / m lower than last week.

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In April, USDA's monthly supply and demand report showed that global cotton production decreased slightly from 91 thousand tons to 21 million 729 thousand tons, of which India produced 5 million 835 thousand tons, still the world's first cotton producing country, and global consumption increased by 82 thousand tons to 23 million 860 thousand tons, of which China's consumption increased by 109 thousand tons; the end of the world inventory decreased by 245 thousand tons to 22 million 255 thousand tons.

In addition, China's output and imports remained on the forecast of last month, consumption increased by 109 thousand tons, and terminal stocks reduced by 109 thousand tons. The reduction in final inventory was all due to the increase in consumption. China's output in the new year was 5 million 182 thousand tons, 7 million 76 thousand tons in consumption, 1 million 894 thousand tons in production and sales, and 805 thousand tons in the 1 million 89 thousand tons of imports.

Next, we will focus on the market changes of cotton in the past two weeks.

First, before the start of the cotton market, raw material inventory of textile enterprises has been relatively low, with stocks for about 1-2 weeks. Futures first started to rise under the help of funds, resulting in the relative shortage of spot goods, the increase in the proportion of upstream orders, and the increase in sales prices, which led traders to improve their sales profits. Most traders reflected that the "bottom line and no bargaining" had gradually become a taste of seller's market, and this situation was only a few years ago.

Second, driven by the rise in futures, the spot price of cotton rose by about 100~300 yuan / ton this week. With the rise of the day before yesterday, several companies raised the price of 200 yuan / ton, and the Xinjiang cotton Corps increased the price of cotton by 500 yuan / ton, but the downstream gauze was not obvious, the price remained unchanged and the inventory was relatively high.

Third, the recent textile enterprises processing profit has also changed, from the previous loss to profit of about 300, and recently changed back to losses, mainly the upstream lint price increase, resulting in increased cost, but the downstream yarn price or the cost of pmission failed.

At present, yarn is greatly influenced by imported yarn, and the price pmission is more difficult. With the rise of domestic spot price and the import or revival of yarn, it will impact domestic market.

Fourth, the day before yesterday, the NDRC convened the relevant departments to study the problem of the abnormal rise of cotton futures prices in the near future. The meeting clearly stated that the amount of reserve cotton in the 2015/16 year will ensure market demand. In the case of market demand, the amount of input can be increased on the basis of the original 2 million tons. In addition, the quota discussion is also involved. The policy of not issuing additional tax quotas will probably be adjusted according to the market supply and demand situation. The market will be over-the-counter funds and may misread the news of the NDRC.

Fifth, it is understood that the selling price of reserve cotton is weekly pricing based on the weighted price of the index of internal and external price, adjusted on Monday. At present, with the rising price, domestic and foreign index weighted price increase has surpassed spot gains, while the reserve cotton has 600-1400 yuan / ton discount, but the price relative competitive advantage is weakened, and the attractiveness of the docking cargo side decreases.

In short, with the rise of cotton futures prices in the near future, the price of spot lint has increased by 200-600 yuan per ton. Because of the unsmooth conduction of yarn costs in the downstream, no increase has been seen, and the consumption season is coming.

Pakistan's consumption has increased by 109 thousand tons, resulting in an increase of 131 thousand tons of imports. The rest of the world's indicators have not changed significantly. The global supply of cotton is still loose in the new year, but it has begun to stock up.