When The Order Is Fulfilled, Will The Risk Be Reduced? Supply Exceeding Demand, Yarn Price War Intensified?

Market brief

In March 26th, China Cotton Reserve Management Co., Ltd. planned to purchase 20000 tons of Xinjiang cotton, and the actual turnover was 7560 tons, with a turnover rate of 37.8%. The average price was 12443 yuan / ton, which was 14 yuan / ton higher than the previous day's average price, of which 7560 tons were in the mainland warehouse, and 5 were in storage. From December 2nd to March 26th, the total turnover of Xinjiang cotton reached 338560 tons, of which 12480 tons were accumulated in the Xinjiang warehouse, and 326080 tons in the mainland stock market. A total of 100 enterprises were auctions. There are only three working days left in the reserve cotton rotation. I hope that the relevant cotton companies should not miss the opportunity to sell.

Zheng cotton open concussion, small amplitude up, the main contract gradually shift positions for months, 05 contract long reduction, short short added 09 contracts, short-term Zheng cotton rebound strength gradually decline, there are still callback pressure. Domestic demand recovery is slow, and the demand for lint spot market has entered a sluggish time. Some cotton prices have continued to decline slightly, and the overall market prices of the industrial chain have been poor. There are few enquiries in the downstream industry, and the selling companies have basically suspended sales. Some enterprises have gradually transferred the lint to the mainland. In addition, near the May delivery month, it also accelerated the movement of cotton merchants' shifting library, and the market mentality was pessimistic. Cautiously, the pressure of cotton ginning plants and traders in the sale of lint is very high, and the risk of enterprises with less insurance and lower proportion of hedging is increasing. It is suggested that cotton enterprises should sell cotton linen at the base price point, and the cotton price of short-term spot cotton does not have continuous rising kinetic energy, so the low concussion is the main factor.

The price of acrylonitrile is running sideways. At the end of next month, the mainstream factory announced that the market is waiting for other factories to report the monthly information, and the intermediaries are trading with the market. The recovery of terminal demand is slow. The downstream is still mainly taking the demand for goods, but the purchasing mentality is still cautious. The acrylonitrile plant maintenance and production plan coexist, and the market looks at the continuation of the air atmosphere. It is expected that the short-term acrylonitrile price will remain weak. The price of acrylic fiber is weak down, the northeast big factory offer temporarily stable, Sinopec price down, 1.5D acrylic fiber temporary reference 12200-14200 yuan / ton, the market trading center weak shock, downstream factory inventory accumulation, and the market order is not good enough, raw material procurement enthusiasm is not high, acrylic fiber demand support is insufficient, heard next month northeast big factory maintenance plan, acrylic fiber price supply surface support. But the cost is insufficient, and the market atmosphere is still normal. It is expected that the price of acrylic fiber will be weak.

From 2017 to 2019, the state deepened cotton target price reform in Xinjiang, and the results of the reform continued to show. While ensuring the benefits of cotton producers, it further played the role of the market mechanism and helped to push forward the structural reform of the supply side of agriculture and the development of the whole cotton industry chain in Xinjiang. It played an important role in promoting the steady development of Xinjiang's economy and society. In order to implement the spirit of the Central Document No. 1 in 2020 and approved by the State Council, the target price policy of cotton has been perfected in Xinjiang since 2020. The target price level is 18600 yuan per ton, which is evaluated every three years. According to the assessment results, the target price level is adjusted according to the situation.

In 2019, the output value of the textile and garment industry in Ganzhou was 75 billion yuan, and the textile and garment industry in Ganzhou entered the fast lane. Ganzhou issued the "support and promotion work plan for Ganzhou shoes and clothing". It proposed to speed up the development of Ganzhou's local shoe and clothing enterprises, promote the development of the Ganzhou textile and garment industry with high quality, and strive to achieve 100 billion yuan industrial clusters in 2021. Goals. The plan puts forward 13 refinement measures from 4 aspects: encouraging local brand selection, promoting exhibition activities, enriching exhibition platform and launching brand promotion action.

On the afternoon of March 19th, the fifth research group of Shanghai Federation of industry and Commerce went to the textile and clothing trade association to conduct a special investigation. At the meeting, Zhong Hao, knitted, style costumes, Jia Linjie textiles and other participating entrepreneurs resumed their work and resumed their market situation. The implementation of the "Shanghai 28" policy on the implementation of preferential policies, difficulties in the supply of raw materials, logistics chain, financing and so on, and how to prevent the epidemic during the epidemic situation. And how to enhance the confidence of enterprises' survival and development, etc., and exchanged experiences and suggestions. Several entrepreneurs also exchanged information on how to give full play to the advantages of the textile enterprises in the light of the epidemic situation, and promptly change the production lines and the production of transformation masks and protective clothing for machine and equipment.

In the newly issued "Shantou Development Zone master plan", the Chaonan printing and dyeing center will take textile printing and dyeing as the leading industry, develop towards the economic and Technological Development Zone and the provincial industrial transfer industrial park, and create a super 100 billion level cluster of textile and garment industry. The total planning area of textile dyeing and environmental protection industrial park in Shantou is 250.13 hectares. Based on Chaonan District of Shantou industrial transfer industrial park, according to the mode of "centralized development and unified pollution control", combined with the comprehensive improvement of the river training area, the existing printing and dyeing enterprises that are approved to be incorporated into the regulation and preservation will be integrated into the construction of the park. To achieve transformation and upgrading of the printing and dyeing industry. At present, the printing and dyeing park has completed 93.5% of the PPP project's environmental protection facilities and other public projects. 127 enterprises have entered the park construction, and 25 of them have been built.

On the afternoon of March 24th, the signing ceremony of the textile production and melting platform project in Southwest (Lushan) was held in Lushan, marking the Southwest (Lushan) textile production and melting platform project officially settled in Lushan. In recent years, relying on good location advantages, policy conditions and business environment, Lushan county has vigorously developed the green textile industry. The textile industry has grown from scratch and from small to large, and has become one of the three pillar industries. In order to help textile enterprises to resume production as soon as possible, efforts should be made to solve the production and operation difficulties of spinning and weaving materials, weaving defects, selling cloth and selling money and making loans difficult to make loans. Further expand and strengthen the green textile industry and create a modern green textile industrial cluster. Lushan county relies on the textile industrial park, and Sichuan cotton and hemp Group Co., Ltd. and Ya'an branch of the Agricultural Development Bank of China. Set up the Southwest (Lushan) textile production and financing platform including central warehouse, information platform, logistics distribution system and so on. After the completion of the platform, it will provide one-stop, standardized and comprehensive services for textile enterprises such as financial intermediation, trading matching, exhibition marketing, logistics distribution, technology support, risk monitoring and so on. Based on Lushan, southwest and the whole country, we should strive to become a textile production and financial center in Southwest China.

In March 26th, 70 major projects in Zigong, Sichuan province were concentrated on construction, with a total investment of 28 billion yuan and an annual investment of 12 billion 340 million yuan. As the representative of this centralized project, Sichuan long Kai high end textile production project will mainly develop and produce high-end functional materials such as clothing, medical and so on, with a total investment of nearly 3 billion yuan. The project is divided into two phases. The first phase is planned. The planned land is 120 mu, the construction area is 60 thousand square meters, the total investment is 1 billion 150 million yuan, the main construction of the weaving production line is 1002, and the annual production of high-end fabrics is 84 million yards. The two phase will be 165 mu of planned land, with an annual output of 90 million yards of high-end fabric production lines. After the completion of the project, the annual sales revenue will be about 3 billion 500 million yuan, and the annual tax rate will be no less than 70 million yuan, which will drive more than 600 people to work. According to introducing, Sichuan dragon Kai Textile Co., Ltd. is the first high-end textile fabric enterprise introduced by Zigong high tech Zone. Based on this, it will build "high-end textile industrial park in southern Sichuan".

In March 24th, Jingwei Textile Machinery released the annual report in 2019. The announcement showed that the revenue of the company during the reporting period was 4 billion 687 million yuan, down 22.44% compared with the same period last year. The net profit attributable to shareholders of listed companies was 490 million yuan, down 35.23% compared with the same period last year, and the basic earnings per share were 0.70 yuan, compared with 1.08 yuan in the same period last year. Statistics show that Jingwei Textile machinery, as an advanced technology supplier of cotton textile whole process and chemical fiber, weaving and twisting equipment, has actively promoted the integration of industry and finance while deepening the textile machinery industry. The growth of financial trust business has promoted the development of textile machinery industry. The double main business pattern of "textile machinery + finance" has been formed.

Jiangsu AB group Limited by Share Ltd released the 2019 annual report. During the reporting period, the company achieved operating income of 478 million 875 thousand yuan, down 19.89% from the same period last year, and realized net profit of 35 million 890 thousand and 300 yuan, an increase of 338.45% over the same period last year. The AB group adopts a mixed sales mode that combines direct sales with franchising. The main sales channels include many years of distributors and famous chain supermarkets such as Beijing lottery and life dress. Meanwhile, the company also sells through the electronic business platform. Overseas OEM business segments, the company has become a Haas Corporation of the United States and the US Jockey company by borrowing low cost and high quality competitive advantages. The long-term stable product suppliers of famous knitted underwear brands or retailers only exceed 2 hundred million of the US Hans supply.

With the global impact of the new crown pneumonia epidemic intensifying, a large number of orders were cancelled in Bangladesh's garment processing and exporting enterprises. Bangladesh's main export destination for garment exports is the European Union and the United States. Affected by the epidemic, EU and US importing and dealerships have cancelled or delayed Bangladesh's export orders. Pressure and uncertainty faced by local garment exporters in Bangladesh are increasing. Bangladesh clothing manufacturers and Exporters Association 22 said that orders for orders have reached US $927 million, while Bangladesh Knitting Manufacturers and Exporters Association also indicated that the relevant orders for exports amounted to US $480 million. As the situation continues to deteriorate, further losses are also increasing. Businesses demand that the government introduce stimulus policies to alleviate the situation.

According to the 25 day message from the customs office of Korea (customs), from 2 to 24 this month, the number of masks imported was 21 million 450 thousand, and the import amount was 11 million 394 thousand US dollars. After 18 days of this month, 509 batches of imported masks for sale, donation and rescue were applied to zero tariff. The number of imports increased from 50 thousand per day in the first week in March to 2 million 740 thousand in the fourth week. From the point of view of the source of imports of masks, the largest proportion of imports from China was 66.4%, followed by Vietnam (21.9%), the United States (3.3%) and Singapore (2.6%). According to Yonhap reported in March 19th, the export volume of other textile fiber products, such as South Korea masks, doubled in February to US $15 thousand and 713. Among them, exports to China increased by more than 200 times. According to the data released by the Korea trade association in March 19th, the export of the project increased sharply after the outbreak of the new crown. It exported 70 million 220 thousand US dollars in January this year and increased to US $15 thousand and 713 in February, up nearly 22 times compared with the same period last year. Among them, exports to China amounted to US $135 million 150 thousand in February, accounting for 86% of the total exports of the category. Other textile fiber products include fiber products such as respirators.

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