What Are The Changes In The Cotton Yarn Market? Rising Or Wait-And-See?

Market brief

The US $300 billion tax collection list starts the elimination process, which is good for the cotton market. Zheng cotton futures opened up a concussion. The main contract and the far month contract were small and enlarged. The technical side performed well, but the pressure at the top was bigger, and the short-term Zheng cotton or before the impact were high. The supply of spot market is stable, the sales pressure of lint cotton is large, the price of lint is steady and strong, the cotton market in the mainland is stalemate, short term seed cotton is not enough, and cotton enterprises are cautious to enter the market. Xinjiang North Xinjiang cotton seed purchase progress is relatively fast, the southern Xinjiang steadily and slowly picking, seed cotton harvest is acceptable, at present, hand picked cotton is still dominated by medium flowers, and the machine picked cotton in North Xinjiang has come to an end. Linen processing capacity is gradually increasing. At present, downstream orders are insufficient, volume is limited, seed cotton prices continue to rise, cotton enterprises cost high, cotton prices will continue to rise slightly in the short term under cost support, but new cotton processing capacity will steadily increase, short-term supply will be difficult to change, new cotton sales pressure will continue, cotton prices will rise without dynamic momentum support, and short term difficulties are expected to rise sharply.

Acrylonitrile prices remain weak, and the mainstream factories reach 11300 yuan / ton per month, which is basically in line with market expectations. However, at present, business confidence is not enough, and the market is still dominated by market traders. The trading paper continues to be weak, some businesses contract sales, and the market takes more notice of new information guidelines. It is expected that the short-term acrylonitrile price will continue to be weak. Acrylic fiber prices remained stable, demand side performance in general, downstream factory bearish mentality continued, and affected by raw material decline, downstream users have little interest in goods, market trading remains light, but the factory cost and profit pressure, short term acrylic fiber prices are expected to remain stable.

As at 24 hours in October 21st, Xinjiang processed 903 thousand and 500 tons, representing a decrease of 13.91% from 1 million 49 thousand and 400 tons in the same period last year. At present, the average daily processing volume is less than that of the same period last year, and the cumulative processing volume is lower than that of the same period last year. According to feedback from some cotton traders and ginning mills, late October, the inquiry and purchase situation of new cotton in Chen cotton and 2019/20 in 2018/19 was significantly slower than that in early October. Among them, Bachu, Akesu and other regulatory warehouses also showed a cooling down mode, and spot quotas began to stabilize.

On the afternoon of October 16th, the twenty-third ten thousand people's labor competition in Haimen city was held in Nantong Big Island Textile Co., Ltd. This competition is divided into two kinds of skills testing, namely computer embroidery and package packaging. The employees of the enterprises in the park are actively participating in the exhibition, displaying excellent skills. Fan Huijuan of Nantong Big Island Textile Co., Ltd. won the first prize in the computer embroidery competition. Li Chengying and Luo Tairun won the first prize in four sets of finishing competitions.

Recently, the China Federation of textile industry issued a document, awarding ten products of the 85 categories of products, "the ten category of textile innovative products in 2019", which are awarded by the Shenzhen city's Clothing Co., Ltd. - "wave point shadow" net print dress and so on.

2019 Ningbo Fashion Festival and the twenty-third Ningbo International Fashion Festival will be held on -27 October 24th. This fashion festival takes the theme of "colorful and beautiful future" as the theme. It has organized 15 major activities, namely, brand exhibition, industry forum, fashion creativity, fashion consumption, and so on. The four major events. This fashion festival brand exhibition uses 6 exhibition centers of the Ningbo International Convention and Exhibition Center, with an exhibition area of 40 thousand square meters, with 2000 booths, 15% more than the previous one. A total of 285 brands from the United States, Britain, Italy and 12 other overseas countries (regions) and 285 domestic brands have been exhibiting. In addition to the previous textile and apparel products, this year's exhibition has added clothing and accessories, luggage and leather goods, home textiles and home furnishing, covering four major fashion industries, focusing on the five major functions of Ningbo's fashion achievements, fashion brands, fashion support, fashion consumption and fashion base.

The Jiangsu industrial prosperity survey was launched in the fourth quarter of 2019, which was jointly carried out by the Jiangsu development and Reform Commission and Jiangsu information center. The survey covers 41 industries, including machinery, electronics, textiles, chemicals, food, new energy, new materials, Internet of things, energy saving, environmental protection, biotechnology and new medicine. In the three quarter, the macroeconomic value of Jiangsu's macroeconomic environment was -0.03, and the business value was still in a weak recession. In the same period, the overall business climate reached a relative boom, and the business value reached 0.16, up 0.16 from the previous quarter. The macroeconomic environment in the fourth quarter is expected to remain relatively stable, and the overall business climate will decrease slightly.

In August 2019, Jialin Jie, a textile company, announced that it planned to buy 260 million stake in the Arctic photoelectric 100% yuan to cut into the optical communications industry. This acquisition was strongly valued by investors. After the stock resumption, three "one word" limit plates were ushered in, and Jia Linjie also became a hot 5G concept stock. However, Jialin Jie's 5G dream was shattered two months later. On the evening of October 22nd, Jialin Jie announced that the company issued shares to purchase assets and raised matching funds and related transactions. The company's stock has resumed since its opening in October 23rd.

As of October 15th, the cotton market in Pakistan dropped by 26.5% to 755 thousand tons over the same period in 2019/20. On the one hand, due to the untimely rainfall and extreme hot weather in the main cotton producing areas of Pakistan, all kinds of bacteria and viruses attacked the main cotton producing areas this year. The attack of white flies and pink globose worms destroyed the existing crop crops and suffered irreparable losses. Farmers were disappointed that they had harvested the crops ahead of time. On the other hand, cotton production has been affected by the use of unqualified seeds and pesticides. Farmers think they have suffered huge losses and will not sow cotton next year. Because of the low cotton output in China, large textile mills are meeting their needs by signing foreign import agreements. Because of the increase in production costs, this year's textile mills are facing a financial crisis. However, because the state levying a 10% business tax on cotton, levying a 7% tax on cotton yarn, the federal income Commission has not fulfilled its promise and delayed the payment of business tax refund. The financial crisis of Pakistan's domestic cotton textile industry is likely to intensify in the future.

India's exports of cotton yarn have been hit in the past few months. High prices make the product lose competitiveness in overseas markets. From April to August, the export of India's cotton yarn decreased by 36% compared with the same period last year, while cotton yarn exports decreased by nearly 39% according to the value. There are other reasons for the slowdown in yarn exports. Due to the ongoing trade war with the United States, orders for China's textiles, knitwear and garment factories have dried up, which has had a chain impact on the textile sector of Bangladesh, and Bangladesh has always been the main destination of cotton and yarn in India. Generally speaking, weak demand has brought India yarn prices below the level of production costs, thus hitting India's yarn exports. Indonesian and Vietnamese demand also declined for the same reason. China has entered the second phase of the free trade agreement with Pakistan, which includes cotton yarn directly competing with India.