Cotton Plummeted, PTA Down, Yarn Price Down, And Bloody Oil Price War?

Market brief

In March 9th, China Cotton Reserve Management Co., Ltd. planned to purchase 15000 tons of Xinjiang cotton, and the actual turnover was 9040 tons, with a turnover rate of 60.27%. The average price was 13135 yuan / ton, of which 9040 tons were in the mainland bank. This week (March 9-13), Xinjiang cotton entered the bidding price limit (discount standard 3128B) 13144 yuan / ton, down 421 yuan / ton; last week (March 2-6), the total purchase of 45 thousand tons, 32560 tons of actual transactions, the transaction rate of 72.35%, the highest price of 13565 yuan / ton, the lowest price of 13495 yuan / ton.

Affected by the collapse of crude oil, foreign merchandise generally fell, the cotton market hit a downward trend, the cotton market pessimistic atmosphere strong, the price of base point prices fell, low prices stimulate the purchasing activity of downstream cotton mill, yesterday, the lint turnover has improved significantly, but the market sentiment is low, the impact on cotton prices is bigger, spot cotton price trend is still weak, but cotton reserves into the bottom cotton price, cotton prices fall. The space will be narrowed, the order of the downstream yarn enterprises is not ideal, and the demand recovery is slow. It is estimated that the cotton price will continue to be low. The import cotton market is also showing a desolate market. The new port has more cotton in India. The spot stock of the port continues to rise, and the supply pressure is increasing. It is also difficult to rebound the import cotton price in the short term.

Acrylonitrile prices continue to be weak, mainstream factory prices close to 8300-8500 yuan, a lower part of the quotation, international crude oil slump, acrylonitrile supply side is still relatively relaxed, the market is watching the atmosphere is not reduced, the overall market wait-and-see atmosphere is strong, some businesses decline, the downstream purchasing enthusiasm generally, the market waits for new information guidance mainly, after market, propylene prices are still back. Expected, acrylonitrile cost support is expected to weaken, the price of acrylonitrile is expected to be weak. Acrylic fiber market stabilization and finishing, raw materials acrylonitrile prices continue to be weak, acrylic fiber cost support continues to weaken, the market bearish mentality is the main, but at present, the slow pace of downstream reemployment, acrylic manufacturers trader mentality is stable, it is expected that the short-term acrylic fiber prices will remain stable.

In March 5, 2020, the United States Trade Representative Office (USTR) announced the first 300 billion US dollars to exclude products under the list of tariff products. This excludes a total of 8 products: 3401.19.0000, 3926.90.9910, 4015.19.0510, 4015.19.0550, 4818.90.0000, 6210.10.5000, 6307.90.6090 and 6307.90.6800, including 5 tax labels for textile and clothing products. 。 The excluded products will no longer be subject to a 301 tariff when they export to the United States. The validity of the excluded products specified in this notice is from September 1, 2019 to September 1, 2020.

Zhongda textile business circle will be restored to the market. In March 9th, the Guangzhou textile and light trading garden, which had passed the inspection, was officially restored to the market and became the first unit to resume the market in the China textile business circle. Next, Zhongda textile business circle will advance the market in an orderly way according to "mature one, duplicate market". In addition, the CMC also issued the "guide to the resumption of market work of China Textile Corporation". Haizhuqu District will further enhance the planning orientation of the China textile business circle and introduce targeted policies and measures to promote the transformation and upgrading of the entire textile industry to customization, high-end and intelligence, and strengthen the functions of headquarters economy, technology incubation, creative research and development, fashion publishing and business matching. Strive to make the textile business circle of China and Haizhu become the "fashion capital" of Guangzhou, and also create the "fashion capital" of the city.

Learned from the international textile purchasing center of China Textile City, the market has attracted many domestic and foreign purchasers since its trial operation in March 1st, and its turnover has reached 218 million yuan a week. It is reported that as of now, China Textile City International fabric sourcing center has successfully inviting more than 2200 to the third floor, and four foreign trade franchised areas, including Fumily, 72 foreign trade companies, have been settled, and the market plan is officially opened in March 15th.

On the morning of March 6th, Guangxi Yulin (Fumian) eco textile and garment industrial park standard factory building project (phase I) started. It is understood that the Yulin (Fumian) ecological textile and garment industrial park is a major construction project in the autonomous region and Yulin. The total investment is 500 million yuan, with a total construction area of about 130000. This year, the main structure of the standard workshop and the construction of the business premises and the dormitory building will be completed. According to the introduction, Yulin (Fumian) eco textile and garment industrial park area is based on creating a special industrial gathering area, becoming the forefront of Rural Revitalization and industrial integration, promoting the 123 industry to create a win-win situation and common development, creating a gathering area of brand clothing enterprises, attracting more clothing and other industries to enter and gather in the park, forming group advantages, resulting in agglomeration effect and radiation. Drive the effect; explore the road of mutual win and win between state-owned capital and private enterprises, create conditions for the development of private enterprises, achieve mutual win and win between state-owned capital and private enterprises; build up a hatching platform for upstream and downstream products of garment industry, form a complete garment industry chain, and effectively stimulate the economic growth of Fuyang and even the whole city.

Recently, Guali Town, Xiaoshan District, Hangzhou, has published 10 major categories of 60 key tasks, 35 government investment projects and 35 enterprise technical transformation projects. Among them, 3 textile projects known as the "Shin Yu" worsted special yarn project are planned: the total investment is about 200 million yuan, the introduction of the new rotor spinning and vortex spinning production line, specializing in the production of special yarns, and the project will improve the products. Technical and high added value. Promoting the textile technology differential yarn project: the total investment will be about 70 million yuan, and the introduction of Murata latest vortex spinning equipment will be introduced. After the completion of the project, it is expected to add 7000 tons of differential yarn production capacity. Ruifeng Han Yi high-speed computer jacquard production line project: total investment of about 65 million 500 thousand yuan, the introduction of advanced high-speed computer jacquard looms and other equipment, the project has been completed after the formation of an annual output of 20 million meters of textile fabric production capacity.

In March 8th, we learned from the State Council SASAC that in the face of the blowout demand for the core material of masks, the SASAC of the State Council instructed the relevant central enterprises to speed up the construction of the production line, put the production into production as soon as possible, and expand the supply of the melt blown cloth market, so as to provide protection for the epidemic prevention and control. As the largest supplier of health care materials in China, Sinopec is the most upstream producer of polypropylene raw materials in the mask industry chain. After the outbreak, the Sinopec decided to fully intervene in the production of melt blown materials, melt blown fabrics and masks in order to guarantee the stable price of the melt cloth and the supply of downstream mask products. A few days ago, Sinopec's Yanshan Petrochemical 2 melted spray production line was successfully launched at a time, and it will be put into production as soon as possible. In Jiangsu, Sinopec, Yizheng chemical fiber and 8 melt spraying production lines are being speeded up, and it is expected to be put into operation in mid April. It is understood that the total investment of the 10 melted fabric production lines is about 200 million yuan, and the output can reach 18 tons after the commissioning, which can be processed into 18 million medical flat respirators. As at 24 hours in March 6th, the volume of melted cloth produced by the central enterprises reached about 26 tons.

8, reporters learned from the Chinese Embassy in Kampuchea that China's related parties are rapidly taking action to help solve the shortage of raw materials in Cambodia, and a large number of raw materials will arrive at Cambodia on the 9 day. It is reported that a number of companies including China Ocean Shipping Group, Orient Overseas Container Shipping Co., Ltd. and China Foreign Trade Transportation Corporation will form joint guarantee force to ensure the transportation of textile raw materials, and the relevant liner will arrive at the port one after another. Among them, the liner carrying more than 60 containers of textile raw materials is expected to arrive first and arrive at Sihanouk port on 9, which will help the Cambodian garment and footwear industry to tide over the difficulties as soon as possible. Kampuchea Textile Association of China Chamber of Commerce said that the textile and garment processing industry is one of the main economic pillar industries of Cambodia, providing a large number of jobs. More than 60% of the industry's accessories are imported from China.

In March 6th, the US government announced tariff exemption from medical supplies such as China masks. The updated documents of the US Trade Representative Office showed that 27 American businesses had 100 tariff exemption for medical products imported from China. Most of these companies were related to medical materials, and submitted applications as early as January 31st, but they were not approved by the US government until March 5th. Some enterprises' exemption applications are still in the audit stage. Medline Industries, the largest private medical supplier in the United States, applied tariff exemption to 103 goods imported from China, 30 of which were granted, such as masks, gloves, disinfectant wet towels, sample collection utensils, etc. In addition, the regulations on masks have been released in the near future, so long as the non-profit purposes such as self employment, ambulance, donation and so on can be exempted from the recommendation procedure by using mask import conditions.

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