Weekly Market Dynamics (May 11, 2020 -5 17)

　　 Raw material end: International cotton prices kept rising, domestic cotton prices fluctuated slightly, and prices of chemical fiber staple began to rebound.

　　 Product end: Downstream procurement slightly improved, gauze price reduction narrowed.

　　 Cotton

When the US cotton futures continued to rise, the CotlookA index rose steadily. On the domestic side, Zheng cotton futures continued to operate smoothly, with a slight concussion in the range and a slight fluctuation in cotton spot prices. Some cotton spinning enterprises needed to replenishment, and some enterprises increased their stock of raw materials. When the weekly turnover increased, especially the large cotton traders, the spot trading volume was better.

Chemical fiber staple

In the week, viscose market is still relatively low. Although some viscose factories hold a certain amount of advance order, the quotation is raised by 300~500 yuan / ton, but terminal demand is still weak, and the state of oversupply has not been changed. Polyester staple fiber continued to decline at the beginning of the week. On Friday, polyester raw materials prices rose, direct spinning polyester and short prices stopped, sales improved.

　　 Cotton yarn

When the atmosphere of cotton yarn market was improved, cotton yarn prices slowed down, while conventional yarn and air spinning were relatively good, and combed yarn and high count yarn remained weak. At present, the price of cotton yarn has dropped to a historical low, and the profits of cotton spinning enterprises are not good. Most enterprises are in a state of loss, but in order to reduce inventory, they have to sell at a low price. In terms of imported yarn, the price of goods was slightly improved during the week and the price continued to be weak. The price of 32 Cotton Combed Yarns in Vietnam and India was lower than that of the domestic cotton yarn of 383 yuan / ton.

Grey

When Zhou said, some textile factories indicated that downstream purchases increased slightly, but mostly for traders, and there was no significant improvement in terminal demand. Although the mill has increased its inventory, its inventory remains high. According to the China Cotton Association, more than half of the enterprises are in stock for more than 1 months.

Outlook for the future

The executive meeting of the State Council, held in May 13th, called for "six guarantees" as the focal point of the "six stabilization" work to stabilize the basic economic market; in May 14th, the Standing Committee meeting of the Political Bureau of the CPC Central Committee was held, and it was pointed out that we should deepen structural reform of the supply side, give full play to China's super market advantages and domestic demand potentials, and build a new development pattern of domestic and international double circulation and mutual promotion. 。 At present, the weak trend of downstream demand has not been effectively changed, and the market is in a state of oversupply. It is suggested that enterprises should actively explore market opportunities while taking a smooth ride through difficult times.