Weekly Market Dynamics (March 2, 2020 -3 8)

Raw material end: cotton price interval oscillation operation, viscose staple fiber prices remain stable, polyester staple fiber prices downward;

Product side: the downstream market is gradually recovering, and the price of gauze has risen slightly.

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Cotton: In recent years, the global financial market has increased, and the stock market in Europe and the United States has been substantially adjusted. The yield of us 10 year treasury bonds has reached a new low, and the impact of the new crown pneumonia epidemic has caused the global macroeconomic pessimism to intensify. New York cotton futures oscillated sharply in the previous week, and the CotlookA index oscillated at a low level. On the domestic side, Zhengzhou cotton futures began to rebound and cotton spot prices rose, but the overall average price was lower than the previous week. In the enterprises participating in the China Cotton Association questionnaire survey, the proportion of cotton inventories in more than one month in the week was 57.1%, an increase of 3 percentage points compared with the previous week.

　 Chemical fiber staple: According to the investigation of China Chemical Fiber Industry Association, at present, the chemical fiber industry as a whole returns to work better, and the data of resumed enterprises and reemployment workers are gradually improving. However, due to the incomplete recovery of downstream market, the backlog of products in chemical fiber plant is more serious. When the week, viscose factory less orders, cotton spinning enterprises just need to purchase, some manufacturers have price intention. Polyester staple fiber, crude oil and polyester raw materials rebounded at the beginning of the week, cotton textile enterprises concentrated replenishment, factory prices cut goods, market activity increased.

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Cotton yarn: According to the results of the coordination survey conducted by China Cotton bank, 88.2% of textile enterprises returned to work in March 8th, and the recovery rate increased by 7 percentage points compared with the previous weekend. In addition, the survey showed that textile companies accounted for 47.86% of the week's demand for customers, an increase of 8.4 percentage points from the previous week. When Zhou has entered the traditional textile peak season, with the downstream enterprises gradually resuming production and resuming work, rigid demand increases, some cotton spinning enterprises have the intention of increasing prices, but it is more difficult. In terms of imported yarn, the market atmosphere is relatively light, local market has resumed, the volume of goods has increased, and prices have been stable and falling.

　　 Grey: At present, the recovery rate of weaving factories is lower than that of the spinning mills, and the resumption of production and production continues to move forward. Industrial chain terminal clothing, home textiles and other commencement rates are relatively low, and the opening rate of several major market stores in China is less than half. Therefore, the weaving factory has a slow sales speed, although the price has risen, but the actual turnover is not as good as expected.

Outlook for the future

Last weekend, Saudi Arabia sharply reduced the price of crude oil sold to Europe, the Far East and the United States. The discount rate was the largest in more than 20 years. The sharp fluctuation of oil price will bring more unstable factors, and the probability of cotton price fluctuation is expected to increase. At present, the recovery of the industrial chain is still in an orderly manner, and market enquiries and new orders have increased earlier than before. However, it still takes a while for the market to pick up. It is expected that the price of gauze will remain stable in the short run.