As China And The US Will Sign, Cotton Prices Continue To Rise, Yarn Prices Will Not Rise. Is There A Risk Of Falling Cotton Prices In The Near Future?

Market brief

In January 2, 2020, China Cotton Reserve Management Co., Ltd. planned to purchase 7000 tons of Xinjiang cotton and 0 tons actually. No transaction has been made for four consecutive trading days. In from December 2nd to 26th, the total turnover of Xinjiang cotton reached 37000 tons, of which 3160 tons were accumulated in the Xinjiang warehouse, and 33840 tons were accumulated in the mainland warehouse, and 52 enterprises were competing for sale.

Thanks to the good news from China and the United States, Zheng cotton's main force has dropped to a higher level. Short positions have been boosted up. The pressure on the high position is bigger. It is expected that the short term Zheng cotton will shock the callback, with a target of 13600-13700 yuan / ton. Spot cotton prices continue to rise, but cotton mills have a wait-and-see attitude towards cotton prices, the demand for incremental replenishment is not obvious, and a small amount of transactions are mainly based on solid pricing resources. This year, the risk of high risk of inventory is lower than that of last year. At present, enterprises can choose to pay for storage, hedging, spot price or fixed price sales, so as to achieve ample profit margins. In addition, the Spring Festival holiday is gradually drawing closer. At the end of the year, the traditional replenishment store is cautious. The trend of spot cotton prices rising is not sustainable under the influence of poor demand.

The price of acrylonitrile oscillates sideways. At the beginning of the month, factory listing prices continue to be high, with small increases and decreases. The middle business is cautious. This month, the supply of the market is still increasing. The industry is looking at the thick air. Near the Spring Festival, there is still demand for stocking in the downstream factories. Due to the Spring Festival holiday, the transaction time is shorter this month, and the downstream purchase time is more concentrated. The price of acrylic fiber keeps stable, the downstream factories have optimistic expectations for orders, and the supply volume of acrylic fiber market is limited in recent years. With the Spring Festival holiday, the market delivery time is relatively short, the downstream plant stocking cycle is coming to an end. At present, the cost pressure of acrylonitrile plant is not decreasing, the operation of factory equipment remains low, the enthusiasm of manufacturers is not high, and the price of acrylonitrile is mainly changed in the short term, and the price of acrylic fiber will be stabilized temporarily.

According to the regulations of the China Cotton Association on the management of domestic cotton quality difference scales, the quality difference price list of fine quality cotton with sawtooth processing, the difference table of quality of cotton wool processed by roller and the quality difference sheet of long staple cotton (unit: yuan / ton) are officially promulgated in January 2020. According to the quality data of cotton inspection in December 2019, the sales price of cotton processing enterprises collected by the cotton quality difference automatic generation system of China Cotton Association, the data collected from the monitoring points of textile enterprises and the Chinese cotton price index in the month, the adjustment data of the quality difference of fine quality cotton in zigzag processing in January 2020 were generated accordingly, and the opinions of relevant experts in the industry were sought. The following adjustments were made (unit: yuan / ton): 1. The table of quality difference of sawtooth processed fine staple cotton 1, length class. Compared with last month, the difference between the length 29mm and the base level 28mm expanded from 170 to 250; 2, the remaining quality index difference remained unchanged. Two, "leather roller processing fine staple cotton quality difference price list" 1, length class. Compared with last month, the difference between the length 29mm and the base level 28mm expanded from 170 to 250; 2, the remaining quality index difference remained unchanged. Three, compared with last month, the price range of "long staple cotton quality difference price list" remains unchanged.

Reporters learned yesterday from the China Light Textile City Construction Management Committee that in 2019, China's textile city group realized a turnover of 200 billion 30 million yuan, an increase of 10.61% over the same period, of which the fabric market turnover was 137 billion 917 million yuan, an increase of 13.61% over the same period last year. At the same time, the textile market realized 52 billion 659 million yuan in the online market, an increase of 25.26% over the same period last year. The two market transactions of the textile city "online and offline" amounted to 252 billion 689 million yuan. Keqiao is the world's representative textile industry cluster and China's 100 billion textile industry cluster. It not only sets up a trading platform for nearly 1/4 textile products all over the world, but also constructs an exchange platform for the global textile economy.

In December 31, 2019, the market supervision and Administration Bureau of Shanghai released the inspection results of the quality inspection of feather and down products in Shanghai in 2019. Recently, the Bureau inspected and inspected the quality of the 30 batches of feather and down products produced and sold in the city, and the quality of the 1 batches was not qualified. The sampling found that the formaldehyde content and the decomposable carcinogenic aromatic amine dye and other items related to the safety index all meet the standard requirements. The 1 batches of products produced by the Jiangsu Sheng Fulai household textiles Co., Ltd. are not in line with the quality requirements of the enterprises, and the unqualified items involved are: Velvet content. The amount of cashmere is not up to standard, which will directly lead to a serious decline in the thermal performance of down products, which will affect the wearing effect and at the same time cause consumers to buy some low quality or inferior products at a high price.

According to Urumqi, Bachu, Korla and other cotton regulatory database, in late December 2019, Xinjiang cotton road transport continued to improve, the main transportation direction is Henan, Jiangsu, Shandong and Sichuan, freight increased slightly, other non key transport lines slightly reduced freight. The enthusiasm of local cotton traders and traders to move to the mainland has bottomed out. Judging from the survey, Xinjiang cotton has been rising sharply with the main contract of Zhengzhou cotton regardless of the basic bid or the price at a time. The rising sentiment of processing plants and cotton traders has been increasing, and the mood of selling high quality lint is aggravated. But in contrast with cotton enterprises, the downstream textile enterprises, trade consultation and procurement are becoming more and more deserted. Several cotton ginning factories in Bachu and other places reflected that they had not signed a contract for several consecutive days. On the one hand, cotton prices rose and buyers needed time to digest. On the other hand, at the end of the year, the enthusiasm of the downstream enterprises to store cotton before the harvest was relatively low. Due to the impact of the first stage agreement between China and the United States, there was still a big uncertainty about the termination of the terminal, the export situation and the exchange rate.

In December 29th, the 2019 Shandong brand annual meeting was held in Ji'nan. At the meeting, we commended the enterprises listed on the brand name of Shandong business card and the related enterprises that won the famous brand (products) of 2019 in Shandong in the year of TOP. Shandong Wei Qiao venture group came to the list of "beautiful Shandong brand power" TOP list of brand name of Shandong brand; "Wei Qiao" brand cotton cloth produced by Wei Qiao textile Limited by Share Ltd; "Hongqiao" brand tank material produced by Shandong Hongqiao New Material Co., Ltd.; Shandong Jia Jia Jia Textile Co., Ltd. produced "Jia Jia textile" brand bedding; it was identified as "Shandong famous brand" in 2019.

Recently, the Ministry of industry and information technology has completed the fourth batch of industry standard revision and foreign language project plan in 2019. In 2019, the fourth batch arranged 397 industry standard projects. Among them, 342 items were revised, 55 items were revised, 82 key items were specified, 52 basic public welfare standards, 263 general standards, 300 product category standards, 2 engineering construction standards, 93 energy saving and comprehensive utilization standards, 1 safety production standards, and 1 1 standard samples. There are 83 projects in the foreign language version of the industry standard, among which 65 are translated into existing industry standards, 18 are in line with the industry standard revision plan and the other is the foreign language version. Among them, there are 10 textile industry standards, including "textile flax yarn", "textile silk blanket", "textile silk bedding", "textile regenerated polyester staple fiber", "textile knitted casual wear", "textile knitted maternity dress", "textile outdoor sunscreen leather skin", "textile waterproof and breathable clothing", "textile sheet, clothing clip", "textile dress, skirt sleeve".

To support the development of the real economy and reduce the actual cost of social financing, the people's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points in January 6, 2020 (excluding financial companies, financial leasing companies and auto financing companies). The people's Bank of China will continue to implement a prudent monetary policy, maintain flexibility and moderation, not flood irrigation, balance the internal and external balance, maintain a reasonable and abundant liquidity, increase the growth of monetary credit and social financing scale, adapt to economic development, stimulate the vitality of market players, and create an appropriate monetary and financial environment for high-quality development and supply side structural reform.

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