Acrylonitrile Has Reached A New Low Of 4 Years. Will Acrylic Fiber Fall? Sticky Short Prices Continue To Loose, Will It Fall Sharply?

Market brief

In March 3rd, the difference between domestic and foreign cotton prices was 614 yuan, which has dropped to 800 yuan / ton, and in March 4th, the recovery of cotton reserves was in turn. In March 4th, China Cotton Reserve Management Co., Ltd. planned to purchase 15000 tons of Xinjiang cotton, and the enthusiasm of cotton enterprises involved in storage was higher. The actual turnover was 14280 tons, with a turnover rate of 95.2%, and the average price was 13549 yuan / ton, of which 14280 tons were in the mainland. This week (March 2-6), Xinjiang cotton entered the bid price (discount standard grade 3128B) 13565 yuan / ton, down 151 yuan / ton.

The Fed has cut interest rates by 0.5 percentage points. However, investors are worried about the economic downturn. Zheng cotton has gone on a low and low position. At present, the trend of Zheng cotton futures has been out of the fundamentals, and the short term Zheng cotton amplitude will increase with the long and short message, suggesting that the industry should be cautious of risk and prudent operation. Spot cotton prices continue to be stable, terminal demand is still in a weak position, the industrial chain operation is still not smooth, some textile enterprises continue to wait and see, reusing enterprises mostly use the original stock, and the lint market is not warm, but the road transport continues to warm up in the near future, and the lint and cotton yarn transportation is increasing, but the weaving rate of the downstream weaving and garment enterprises is still at a low level, and the short-term cotton and cotton yarn demand is still in place. In the weak market, the purchase and sale of imported cotton market is flat. A small number of transactions are mainly made of Brazil cotton and India cotton. Short term cotton price rise is not good enough to boost up, and low volatility consolidation is expected to be the main trend.

The price of acrylonitrile continued downward, and some factories actually traded at a price of 8500 yuan. The price has reached a new low since June 2016, and the supply is expected to increase. The acrylonitrile market is looking at the atmosphere, and the middlemen's confidence is not enough, the offer continues to decline, the terminal factories are slow to resume work, and the capacity of the downstream industries is still running low. Poor atmosphere, short term acrylonitrile prices are expected to be weak shocks. The acrylic fiber staple market remained stable, the downstream demand recovery was slow, the load of the acrylonitrile plant was not high, and the overall productivity of the plant remained relatively low, at around 54%, and the price of acrylonitrile continued to decline in the near future, and the cost of acrylic fiber support was weakened, and the factory mentality was stable. With the slow recovery of downstream demand, it is expected that the price of short acrylic fiber staple fiber will continue to be stable.

On the 3 night of Beijing time, the Federal Reserve announced a 50 point cut in interest rates to 1.00%-1.25%, the largest rate cut since 2008, in order to combat the economic impact of the new crown pneumonia epidemic. At the same time, the excess reserve ratio (IOER) will be reduced by 50 basis points to 1.1%. The Fed said the fundamentals of the US economy remain strong. However, the new coronavirus has brought the evolving risks to economic activities. The Fed is closely monitoring developments and their impact on the economic outlook, and will use their tools to act as appropriate to support the economy.

In order to promote the prevention and control of new crown pneumonia and economic and social development as a whole, we should further grasp the prevention and control measures to ensure the safety and health of workers in the key industries. Recently, the provincial chamber of Industry issued the "guidance on sub sectors to strengthen the prevention and control measures for enterprises to resume production and re production" precisely, and set up 9 industries and projects for food, textiles and clothing, household appliances and so on. The area has set out precise and specific epidemic prevention and control measures. Clear opinions, focus on key areas, according to the characteristics of the industry, precise measures to strengthen epidemic prevention and control. The textile and garment industry should carry out online office work, rationally adjust the production process and strengthen ventilation and ventilation in the workshop.

Since the donation of the joint foundation of the textile technology education foundation in February 7th, a number of enterprises have contributed generously through the textile science and technology education foundation, giving love to win the epidemic prevention and control. As of March 3rd, the foundation has received more than 1 thousand yuan of clothing and home textile materials, and has been sent to 18 hospitals in Wuhan, Xiaogan, Jingzhou, Shiyan and other places in Hubei to send warmth to front-line medical staff in a timely manner. They include 2976 Bosideng down garments, 1826 Eral down garments, 2302 thermal underwear of an Li Fang, 639 emoudues fabrics of dynamic group and 3600 pieces of Ellen home textiles bedding.

According to the cotton textile industry association of China cotton textile enterprise epidemic prevention and control and recovery production survey, in February 14th -3 2 cotton textile industry in 1880 participated in the survey, the results show that the proportion of enterprises has started to rise to 80% or less, the number of workers who have resumed work accounted for the proportion of the number of workers in normal production, the recovery is more significant, from the initial less than 20% to 70% or more. In March, the order recovery amount of cotton textile enterprises was around 70%. Large enterprises in Shandong and Jiangsu and Zhejiang provinces have better orders, with orders reaching more than 80% of normal level, export orders recovering slightly slower, basically returning to the 50%-80% interval, and it takes a certain time to restore orders to small businesses with normal products. A small number of enterprises are producing at full capacity to complete the order before the festival, and some enterprises choose to start part of the production to ensure continuous production.

Collect the information that the enterprise is in line with the returning staff, arrange special person and special car to pick up the employees and return to work. Akesu textile industrial city (Development Zone) through these point to point assistance measures to help enterprises resume work and re production, to ensure that the epidemic prevention and control and enterprise resumption, double production, two hard, two not wrong, double victory. As of March 1st, the Akesu textile industry city (Development Zone) spinning enterprises had a 60% yield rate, 1 million production capacity was resumed, and 4056 industrial workers were redeployed to employment. As of March 1st, the Akesu textile industry city (Development Zone) spinning enterprises had a 60% yield rate, 1 million production capacity was resumed, and 4056 industrial workers were redeployed to employment.

The monitoring results of the circulation of China Textile Federation show that in 2020 1-2, the national textile and apparel professional market managers' prosperity index was 16.13, down 33.82 percentage points from 49.95 in December, and the professional market business climate index was 36.40, 14.06 percentage points lower than that of December. Data show that 1-2 months, the textile and garment professional market managers and business climate index has a significant decline.

In response to the new crown pneumonia outbreak and the partial cancellation of the EU's "total tax exemption from weapons" (EBA) to Kampuchea's economy, Hong Sen, Prime Minister of Kampuchea, announced in February 24th that the garment enterprises would be exempt from six months to one year's profits tax. During the period of downtime, enterprises could stop the package of economic stimulus, such as tax relief, employment training and financial support for workers' work-related injury insurance and health insurance. Case.

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