The Domestic Demand For Yarn Market Is Still Good, But The Profit Is Not Good. The Market Is Not Optimistic About The Market Outlook.

Pure cotton yarn market is stable, domestic demand orders are still affordable, and prices are weak. It is reported that the domestic demand net sales order is better, which mainly corresponds to the common comb 21/32/40 and other varieties, the remaining varieties are relatively light trading, and stocks are rising slightly. Textile enterprises overall orders are still lacking, and profits are generally poor. The market is not optimistic about the market outlook. It is expected that the cotton yarn price will remain weak in the short run.

[market overview]

　　 Today cotton spot trading has improved slightly. Only a few Cotton Traders lock base sales are sold more than a large number of cotton, and mostly for traders to purchase. Today, the number of mainstream stores moved slightly up to 09 contracts 11500-11750 yesterday. Today, Zheng cotton futures have fallen far and wide, CF2009 has received 11790 yuan / ton, or 10, while CF2101 received 12320 yuan / ton, up 15.

Direct spinning polyester and short prices rose slightly, negotiated goods, half light 1.4D mainstream trading center maintained at around 5700-5900 yuan / ton. Zhejiang area pure polyester yarn price stability, T32S mainstream newspaper 9700-9900 yuan / ton nearby: Fujian polyester cotton yarn quotation stability, TC65/35 32S mainstream 14000-14200 yuan / ton.

Viscose staple fiber continued to stabilize, part of the pre order payment period has expired, viscose factory inventory decline trend slowed down. The price is supported by the previous orders, and the whole is stable.

　　 The market of cotton yarn market is light and the market sentiment is not high. At present, the cotton mill is still focusing on pre production orders, and its stock is stable. From the perspective of the downstream market, it is still pessimistic, with weak expectations for future orders. Overall, yarn market prices are weak and price rises are weak.

　　 The spot market of imported yarn is still in operation, and the downstream factories continue to resume operation. The traders, traders and domestic and foreign factories have a good turnover and the market sentiment is better. At present, the market price is stable, some traders have a price increase speculation, the actual cotton yarn price rise is more difficult.

The price of imported yarn is mainly on the outside market, while prices have risen locally in India. The price of India's external market is stable, with a slight increase in local prices. It is reported that domestic demand for cotton yarn has been restored in India, but the number of factories started is not large, and man-made problems have occurred. Therefore, some traders and cotton mills have already raised their prices. Traders JC32S $2.45 USD / kg, and RMB 20 thousand and 800 yuan / ton after tax. The main price of Vietnam's external market is stable, and the loss of cotton mill is serious. The OEC16S price of cotton mill is about 1.6 US dollars / kg, and RMB after tax is about 13 thousand and 200 yuan / ton. Pakistan's external price is more chaotic, and local enquiries are increasing. The price of siro spinning C12S is US $345-360 per piece, RMB after tax 1.56-1.63 million yuan / ton.

　　 According to the volume statistics of China Textile City, the total sales volume of grey cloth today is 7 million 520 thousand meters, which is 590 thousand meters lower than that of yesterday. Among them, 4 million 740 thousand tons of chemical fiber cloth were sold today, accounting for 63% of the total sales, and 540 thousand tons of cotton cloth, accounting for 7.1% of the total sales, and 840 thousand tons of cotton cloth, accounting for 11.1% of the total sales.

Pricing structure and arbitrage analysis

　　 As of May 21st, the domestic CY C32 price was 18700 yuan / ton (0), the India C32S price was 18300 yuan / ton (0), the price difference was 400, there was no arbitrage opportunity.

[technical analysis]

　　 In May 21st, the price of cotton yarn 09 contract rose. The highest price is 19455 yuan / ton, the lowest price is 19260 yuan / ton, closing price is 19360 yuan / ton, compared with the previous trading day, it increased by 20 points, and the position was 8984, which was 77 less than that of the previous trading day.

[outlook]

Recently, cotton yarn CY009 contract price shocks rose, cotton yarn spot trading has improved, but the profit is not good, textile enterprises orders are still scarce, it is estimated that short-term spot prices are still weak. It is advisable for speculators to wait and see. (for reference only)