Foreign Orders Are Fragmentary And Textile Enterprises Are Gradually Purchasing Cotton.

Since April, the price of domestic and foreign cotton has been steadily consolidated, and the ICE performance has been slightly stronger. As of April 29th, the main contract price of ICE was about 57 cents / pound, and its total price rose by about 12% in April. The price of Zheng Mian's main CF2009 contract was around 11500 yuan / ton, and the total price rose by about 5% in April.

After visiting a dozen textile mills in Huixian, Henan, Yanjin, Weishi and Taikang, some market participants told reporters that some textile enterprises in Shandong have resumed normal purchase of cotton raw materials, and the cotton stocks of enterprises are also in the normal month level, in about 2 months. However, the price of the lint is still chaotic. In the range of 11500-12200 yuan / ton, the overall price of the lint has increased by about 400 yuan / ton compared with the end of March. It is understood that although the price of cotton has rebounded, it is still relatively low, and the number of cotton enterprises purchasing lint as a whole has increased slightly. First, the order situation of textile enterprises has been restored, and a small amount of replenishment has been started. Two, the market generally thinks that the cotton price will rise in the future. To a certain extent, it reduced the business risks brought to the enterprises when the cotton prices rose sharply in the future. Three, the psychology of buying and selling of the textile enterprises was generally low. In addition, the narrow rise of Zheng cotton futures also reflected the anticipation of the economic environment.

It is understood that the market participants visited the production of compact spinning mainly, at present, 32 and 40 yarn compared to other specifications, poor sales, mainly due to the low and medium end yarn overcapacity, but the demand is still limited; 60 high count yarn is in short supply, but also reflects the high-end cotton consumption market demand larger space. As of the end of April, the yarn stocks of textile enterprises visited in Henan, Shandong and other places were generally over 20 days, still at a relatively high level. Enterprises said that when yarn inventories continued to increase by more than a month level, they would reduce production and stop production.

With the slowing down of the outbreak of the new crown pneumonia, the multinational government has announced a cautious recovery and unwinding plan to reduce the economic impact. It plans to "restart" the economy in an incremental manner in May. This plan not only gives the domestic cotton market psychology a strong heart, but also gives the overseas purchasing enterprises the confidence to open trade. 4 beginning in mid and late June, some foreign textile enterprises in Yanjin, Shandong province have resumed their foreign trade orders.