Propylene Has Risen Sharply, And Acrylonitrile Plants Have Suffered A Lot Of Losses.

Market brief

Zheng cotton opened up and left low, the market was unable to rise. After the concussion, the late trading began to fall, and the main contract was short. It was expected that the short term Zheng cotton shock adjustment would be the main trend. From 14 to 17, the rainy weather in Xinjiang would interfere with the cotton market and pay close attention to the latest news in the market. Lint prices continued to stabilize, Zheng cotton continued to rebound, cotton business confidence increased, some of the raw materials low inventory of cotton mill purchasing enthusiasm has been restored, the base point price transaction increased slightly, but the downstream textile enterprises due to insufficient orders, raw cotton procurement is still cautious, terminal needs weak, upward to cotton yarn, grey cloth market, cotton yarn, gray cloth slow down, the price continues. Weak, short-term demand side pressure continues, in addition, domestic commercial inventories are at a high level, market confidence is underperforming, short term cotton price rise kinetic energy or difficult to continue, there is still a risk of falling, concerned about changes in the external environment and cotton planting in the new season.

The acrylonitrile market has no definite price reference. The price of raw propylene has gone up sharply over the weekend, the acrylonitrile plant has made a big loss, individual factory quotas have been raised, the middleman wait-and-see mentality is mainly, the offer is scarce, and the downstream enquiries have increased, but the business trader's cautious mentality is aggravated, the market is limited, the fundamentals are lacking in good support, and the market is concerned about the news of the changes in the plant installations, which is expected to be short. The price of acrylonitrile is running sideways. Acrylic fiber prices remain stable, terminal demand is not optimistic, acrylic fiber market is generally traded, some acrylic fiber plant to reduce production and reduce production plan implementation, industrial device load continues to decline, early digestion inventory, focusing on raw material price changes guidelines, short-term acrylic fiber prices are expected to stabilize.

A number of media reports in Saudi Arabia said that the countries at the OPEC conference were finally able to reach a production reduction agreement. The first phase will reduce crude oil by 9 million 700 thousand barrels per day in May and June this year, which is also the largest scale reduction agreement reached since the establishment of the OPEC + mechanism. According to the agreement, the production reduction plan will be implemented in May 2020 for two years and will be re examined by the relevant countries in December 2021. The plan is divided into three stages. From May 2020 to June, the production will be reduced by 10 million barrels per day, and 8 million barrels per day in July 2020 -12, and 6 million barrels per day from January 2021 to April 2022. The reduction in Saudi Arabia and Russia is based on 11 million barrels per day, while the reduction in other countries will be based on their respective October 2018 production. The OPEC + mechanism was established in 2016, and is composed of 23 countries, including Saudi Arabia's leading OPEC and Russia's non OPEC oil producing Kuomintang, but the United States, the world's largest producer of oil, did not take part in the mechanism.

Ministry of agriculture and Rural Affairs: in April, the cotton planting area in China was predicted to be 3 million 300 thousand hectares in 2019/20, 1758 kg per hectare per unit area, and 5 million 800 thousand tons gross output. The situation of domestic epidemic prevention and control continues to improve, but the rapid spread of foreign epidemic situation, the world's economic development is facing important challenges. In early March, OECD estimated that the global economic growth rate in 2020 dropped to 2.4%. The demand for global cotton trade and textiles and clothing has been significantly affected. In 2020 1-2, China's textile and apparel exports were 29 billion 830 million US dollars, down 21.8% from the same period last year. Domestic and foreign cotton prices are under pressure. Cotton consumption fell 500 thousand tons to 7 million 230 thousand tons this month. The final inventory was raised to 7 million 430 thousand tons, an increase of 500 thousand tons from the previous month. The forecast range of the international cotton price is adjusted to 65-75 cents / pound, and the forecast range of domestic cotton price is adjusted to 12000-14000 yuan / ton.

In 2020, the Akesu branch of the agricultural development bank increased credit input through expanding credit scale, optimizing credit structure and innovating financing mode, supporting the development of textile industry and driving the textile industry out of poverty. As of April 8th, Akesu branch has approved a total of 644 million yuan in textile category this year, with a total of 466 million yuan. Akesu branch also successfully issued 311 million yuan loan through the use of fixed assets acquisition loan mode to support the Akesu Textile City water supply and drainage company to purchase the fixed assets of fixed assets under the name of textile industrial city. Next, the Akesu branch will continue to increase its support for the textile industry, strive to market and cultivate high-quality customers on the choice of customers, expand customer groups, optimize customer structure, and support textile enterprises which are in line with the state's industrial policy, strong operational capability and high management level. In the allocation of credit resources, it will expand the support field, in addition to continuing to meet the needs of enterprises. The demand for mobile capital will also support technological transformation projects, cotton production base construction projects and industrial transfer projects.

It is reported that, in the home textile workshop of Xiangzhou Interdistrict China 3542 Textile Co., Ltd., six employees are busy working overtime to produce disposable medical isolation clothing and bedding products, and rush to make orders on hand, so that 240 workers are busy working overtime. Since the resumption of production in March, Jihua 3542 Textile Co., Ltd. has played an advantageous role and boosted confidence. While doing epidemic prevention and control, it has switched to the disposable medical isolation clothing, fully loaded, full load production, Nissan isolation clothing 1200 sets, Nissan bedding more than 5000 sets, to meet the domestic and foreign market order needs. At present, the newly opened disposable medical isolation clothing line can increase sales by 10%. At the same time, Jihua 3542 is also actively adjusting its product mix, adding high-end and antibacterial yarn and cloth products to the market, thus making up 10% of sales.

"Compared with conventional melt blown masks, the quality of nanofiber membrane KN95 respirator filter material is more stable and can be reused many times. Water washing will not change the filtration effect." In April 7th, at the docking meeting of export and supply of anti epidemic materials in Shishi, Fujian Da Hong Industrial Development Co., Ltd. held a press conference on "nanofiber membrane KN95 mask put into production", and released the application of electrospinning nanofiber membrane in the production of KN95 mask and its production. The mask produced by electrospinning technology has many advantages and characteristics. First, the product is light and thin with high filtration accuracy. Used as a medical respirator can effectively intercept the isolated virus, and breathe easily and comfortably. Two, the performance is stable and can be reused. Compared with conventional melt blown materials, nano materials do not need static electret. After washing, the filtration effect will not be changed. This filter material will extend to the high performance liquid filter element, protective clothing, medical accessories and other fields besides the medical level mask materials.

On the afternoon of April 10th, the China Textile Import and Export Chamber of Commerce convened the Mexico anti dumping investigation network of polyester processing silk. Wang Yu, vice president of China Textiles Import and export chamber, attended the meeting. He Yujie, deputy director of the Ministry of Commerce, trade and relief Bureau, director of the Department of Commerce of Zhejiang, director of the Department of Commerce of Jiangsu Province, director of Tao Li, director of Jiangsu business hall, representatives of Shaoxing and Hangzhou Business Bureau, representatives of enterprises involved in Zhejiang, Jiangsu and Fujian, and lawyers attended a total of 29 people. The "four body linkage" mechanism provides a guarantee for enterprises to respond to litigation; the chamber of Commerce set up a professional and formal platform for coping with the case; the huge market demand in Mexico and other factors provide the foundation for enterprises to sue and defer; the products involved have been launched anti-dumping investigations by different countries many times, which shows that the products involved are familiar to everyone, and the enterprises concerned have attached great importance to it. All of these provide important reference for enterprises to actively participate in case response.

In April 7th, Ningbo Jia sang company and Egyptian Euromed company jointly launched the medical surgical mask production line project. The total investment amount of this project is about 3 million 500 thousand US dollars. The whole process is sterile workshop, producing non sterile medical surgical mask. At present, there are 4 production lines, with capacity of 500 thousand days / day, and planned to expand to 10 production lines, with capacity exceeding 1 million per day. It is understood that the Egyptian market mask production capacity of 600 thousand days / day, the project will put the mask production capacity doubled after the project, greatly relieving the Egyptian market masks gap, for the Egyptian people to fight the new crown pneumonia epidemic contribution.

In April 9, 2020, the US Department of Agriculture released the global cotton supply and demand monthly report. The decline in global consumption resulted in a reduction in trade volume in 2019/20 and an increase in final inventory. Consumption of all major cotton producers has been reduced, and global consumption has dropped by 1 million 656 thousand and 800 tons this month, down 6.4% from last month. Total consumption in 2019/20 is expected to be 24 million 110 thousand tons, 8.1% less than that in 2018/19. This will be one of the biggest annual drops since record.

The US Department of agriculture's latest report shows that cotton planting area in Brazil was 1 million 700 thousand hectares in 2020/21, an increase of 1.2% over the same period last year. Affected by the global economic downturn and the new crown epidemic, Brazil's cotton exports are expected to be 1 million 850 thousand tons, down 4.5% from the same period last year, and domestic consumption is expected to be 697 thousand tons, down 3% from the same period last year. The growth rate of cotton planting area in Brazil is much lower than that in previous years. The reasons are as follows: 1) the scale production efficiency reaches the highest value, and cotton growers are hesitant to expand their production. 2) the global demand for cotton will be reduced and China's demand for us cotton will expand. 3) cotton demand and prices are declining, and cotton yields have decreased. 4) in addition to the traditional main production areas, there is little potential for expansion in other areas. According to the above area forecast, cotton production in Brazil is expected to be 2 million 940 thousand tons in 2020/21, an increase of 4% compared with the same period last year, a new record high. The average yield per unit area of cotton is estimated to be 115.3 kg / mu in the past ten years.

The European Commission's official website recently announced that the EU agreed with the 15 WTO members of China, Canada, Norway, Brazil, New Zealand, Switzerland and Singapore on the agreement on multilateral interim appeal arbitration arrangements. Hogan, a trade commissioner of the European Commission, said that the agreement reached on that day fulfilled the political commitments made by the parties at the Ministerial Conference in Davos in January. Although the agreement is only an expedient alternative to the WTO dispute settlement appeal mechanism, it fully demonstrates the common belief of the European Union and many members that the best choice in crisis is cooperation. The European side will continue to work with all parties to give priority to the resumption of the operation of the WTO dispute settlement mechanism, and also hopes that other WTO members can join the open arrangement temporarily. The arrangement ensures that trade disputes can be resolved through a fair and independent ruling, which is crucial to a rule-based multilateral trading system. The EU firmly supports the rule-based trading system and has always been the dominant force in establishing the interim emergency measure in WTO. The European side expects that the agreement will be formally notified to WTO within the next few weeks and will take effect after participating in the completion of its respective internal procedures.

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