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    Weekly Market Dynamics (May 6, 2020 -5 10)

    2020/5/12 17:00:00 96

    Market Dynamics

    Raw material end: international cotton price has dropped compared with that before May 1, and domestic cotton price has steadily increased, and the price of chemical fiber staple has been rebounded.

    Product side: downstream demand is weak, prices remain weak.

       cotton

    During the May 1 holiday, the price of US cotton futures declined. After the holidays, the international oil market restarted and rebalanced, the market confidence rose and the US cotton futures prices rose. At home, cotton prices are stronger and stronger, but the actual turnover is still relatively light. Some cotton spinning enterprises make proper replenishment before the festival. Due to the no improvement in downstream orders after the festival, and the pressure of funds, cotton textile enterprises are cautious about raw material procurement.

    Chemical fiber staple

    During the May 1 holiday, the price of viscose staple fiber remained stable. After the holidays, some manufacturers offered a rise in price. However, because some cotton spinning enterprises had already purchased before the festival, there were not many new signing entries after the holiday, and the price increase was more difficult. After the May 1 holiday, the price of the polyester staple fiber has been rebounded by the rise in oil prices. However, it remains to be seen whether the future rally can be maintained.

       Cotton yarn

    When the downstream market remained slack, the foreign trade orders showed no signs of recovery, and the competition for domestic orders was fierce. Textile enterprises said that they could only seize the market by cutting prices, and most enterprises were in a state of loss. In order to reduce pressure, many textile enterprises have to limit production internally, reduce vehicle speed, reduce costs, sell at low prices, and protect cash flow. Inventory, more than half of the enterprise inventory in more than a month. In terms of imported yarn, the trading atmosphere was generally low, and the price remained low, with a decrease of about 100 yuan / ton during the week.

    Grey

    In the week, the gray fabric market maintained a weak trend, the regular products were shipped slowly and the prices were rather chaotic. Some enterprises indicated that the enquiry increased after the holiday, but the actual order was still less. Some enterprises are looking at online sales, especially foreign trade to domestic enterprises, and online sales are increasing.

    Outlook for the future

    According to the latest statistics of the General Administration of customs, China's textile and clothing exports increased by 9.77% over the same period last year, of which textile exports increased by 49.36% compared with the same period last year, while garment exports dropped by 30.31% compared with the same period last year. In 1-4 months, the total export volume of textiles and clothing in China decreased by 12.06% over the same period last year, of which the cumulative export volume of textiles increased by 2.90% compared with the same period last year, and the total export volume of garments decreased by 22.3 compared with the same period in April 2020. 3%. The main reason for the increase in textile exports is the surge in exports of masks. At present, the European and American countries have gradually lifted the blockade, but there is no sign of recovery yet. The market recovery is still proceeding slowly. It is expected that the downstream demand will remain weak in the short term.

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