Domestic Cotton Prices Rise Slightly Downstream Cotton Yarn Prices Stabilized (18-22 May 2020)

This week, news was relatively calm, domestic cotton prices rose slightly, downstream demand slowly recovered, cotton yarn prices stabilized.

First, the domestic spot price rises, Zheng cotton futures are down.

This week, the futures market continued to be in a calm period. After a slight rebound from ICE and Zheng cotton futures, the spot price of domestic cotton rose. Zhengzhou cotton futures contract settlement price of 11695 yuan / ton, compared with the previous week rose 125 yuan / ton, or 1.1%; on behalf of the mainland standard grade lint market price of the national cotton price B index average price of 11522 yuan / ton, compared with the previous week rose 89 yuan / ton, or 0.8%. New York cotton futures contract settlement price of 57.61 cents / pound, compared with the previous week fell 0.64 cents / pound, or 1.1%, representing the average price of the international cotton index (M) on behalf of imported cotton, China's main port, the average price is 68.90 cents / pound, up 0.48 cents / pound compared with the previous week, or 0.7%, and the cost of import RMB 12173 yuan / ton (calculated by 1% tariff, including port and freight) increased by 83 yuan / ton, or 0.7 percent. %, the price difference narrowed 5 yuan / ton compared with the previous week.

Two, domestic cotton yarn prices stabilized, polyester staple rose slightly

This week, domestic cotton yarn prices have stabilized, cotton yarn inventory level is relatively stable, downstream businesses are not enthusiastic about buying yarn, and with the continuous rebound of international crude oil prices, polyester staple fiber prices have recovered. The conventional yarn is less than 686 yuan / ton of domestic yarn, and the price of PET staple is 160 yuan / ton to 5790 yuan / ton.

　　 Three, outlook for the future

This week, the "two sessions" on the government work report did not explicitly put forward the annual economic growth target, but to focus on "six stability" and "six guarantees" as the focus of work, indicating that under the impact of the epidemic, the global economic situation is uncertain, and the domestic macroeconomic policy insists on advancing steadily and bottom line thinking. The US Department of agriculture report shows that Southeast Asian countries have cancelled contracts greatly, and China continues to purchase. With the continued implementation of the first stage agreement between China and the United States, the import of cotton at domestic ports is also increasing. The recent stoppage of production and shutdown has seriously impacted the cotton textile industry in India, Vietnam and other countries. The price of China's imported cotton yarn has plummeted, and the inventory pressure of domestic and downstream products has not been reduced. Generally speaking, cotton prices have been continuously oscillating in the current interval for more than a month. The market is gradually digesting the negative effects of the epidemic, and the possibility of a fall in the short term is decreasing. However, the continuous flash of imported imported cases shows that the epidemic prevention work may be normalized and long-term. In view of the time and geographical differences of the outbreak, the recovery of the textile and garment industry chain at home and abroad is stagger, and the recovery of cotton consumption needs still some time.