Domestic And Foreign Spreads Continued To Increase Sales Of Cotton Fabrics (18-22 May 2020)

First, cotton yarn spot fell slightly, futures prices rose.

This week, domestic yarn spot prices continued to decline and hit a new low in the year. The national cotton market monitoring system yarn index CNCotton C32S average price 18761 yuan / ton, compared with last week fell 10 yuan / ton, yarn cotton price difference of 7239 yuan / ton, compared with last week reduced 99 yuan / ton; cotton yarn futures clearing average price 19332 yuan / ton, compared with last week rose 433 yuan / ton, higher than spot 571 yuan / ton, the price difference increased last week 443 yuan / ton.

This week, the typical "all cotton grey fabric" 63 "40*40 133*72" average price of 8.16 yuan / m, unchanged from last week.

Two, international cotton yarn prices continue to fall, the internal and external spreads continue to be positive.

(1) 32 cotton yarn

This week, the average delivery price of India port was 18580 yuan / ton, down 320 yuan / ton compared with last week. The price difference between China and India [1] [1] expanded 310 yuan / ton to 181 yuan / ton compared with last week, and the average price of Vietnam port delivery was 18550 yuan / ton, down 190 yuan / ton compared with last week, and the difference between China and Vietnam was 180 yuan / ton to 211 yuan / ton last week.

(two) 21 cotton yarn

This week, the average delivery price of India port was 17490 yuan / ton, down 410 yuan / ton compared with last week. The difference between China and India was 340 yuan / ton to 310 yuan / ton last week. The average delivery price of Pakistan port was 17340 yuan / ton, down 250 yuan / ton compared with last week, and the price difference between China and Pakistan increased by 180 yuan / ton to 460 yuan / ton last week.

(three) 10 rotor spinning

This week, the average delivery price of India port was 12400 yuan / ton, down 6 yuan / ton compared with last week, and the price difference between China and India narrowed 8 yuan / ton to -525 yuan / ton compared with last week.

In recent weeks, with the recovery of domestic textile and garment production, domestic prices of India cotton yarn have stabilized, export prices have continued to slide, domestic and export prices of cotton yarn in Pakistan have continued to decline, and downstream processing enterprises have been slow to return to work, and demand is still very weak, which can not support cotton yarn price.

Three, chemical fiber prices rise

At present, European and American deregulation begins to resume, foreign trade order enquiries increase, early part of the suspended orders to resume production, have a certain support for the polyester and short market, but the continuous upward momentum is temporarily insufficient. This week, the national cotton market monitoring system chemical fiber index, CNCotton PS (1.4D direct spinning polyester short) average price of 5790 yuan / ton, compared with last week rose 160 yuan / ton, cotton polyester price difference narrowed 71 yuan / ton to 5732 yuan / ton last week; CNCotton VS (mainstream viscose staple fiber) average price 8800 yuan / ton, up 300 yuan / ton last week, cotton sticky price difference fell 211 yuan / ton to 2722 yuan / ton last week.

Four, outlook for the future

1, the monthly electricity consumption is the first positive growth this year, and the economic recovery is obvious.

A few days ago, the National Bureau of statistics and the State Energy Bureau released the national economic operation data and the whole society power consumption data in April 2020. The data show that the growth rate of electricity consumption in the whole society has been changed from negative to positive, and a number of economic indicators have continued to improve, releasing the obvious signal that economic and social development is accelerating recovery. In April, the total electricity consumption of the state grid operation area increased by 0.7% over the same period last year, the first monthly positive growth since this year.

2, since April of this year, sales of cotton fabrics in China Textile City have increased significantly compared with the previous 2 months.

According to the statistics of China Textile and light city statistics, in late 2020 1 months, the sales of Chinese textile products were affected by the new crown pneumonia epidemic, and the sales stopped. After the effective control of the epidemic situation in China, the enterprises resumed and resumed production, and sales began to pick up at the end of February. Especially since April, the sales volume of cloth increased significantly compared with the previous 2 months. Cotton and polyester cotton cloth (see Figure 1 and Figure 2).

　　 3, there is no indication that the worst period of Global trade has passed.

Although China's epidemic situation has been effectively controlled and shows signs of recovery, there is no obvious indication that the worst period of Global trade has passed. South Korea's exports in May, 1-20, fell by 20.3% compared with the same period last year, mainly for exports to the US and EU. In May, Japan's JIBUN BANK manufacturing PMI fell to 38.4, indicating the strongest contraction in manufacturing activity since March 2009.

4, the uncertainty of the economic situation holds the "six guarantees" bottom line and stable economy.

Taking into account the uncertainty of the global epidemic and the economic situation, China's development faces some unpredictable factors. The government's work report at the third session of the Thirteenth National People's Congress did not propose specific targets for the whole year's economic growth, and indicated that the "six guarantees" is the focal point of this year's "six stable" work. Holding the bottom line of "six guarantees", we can stabilize the basic economic market so as to ensure steady and steady progress.

At present, with the lifting of blockade by more and more countries abroad, the market demand has slowly recovered, and the inquiry price of textile enterprises has increased at the stage. However, the continuous rising power is affected by the high inventory of domestic downstream enterprises, the shortage of orders and funds, the effect of foreign epidemic prevention and control and the speed of global economic recovery remain to be seen.

The price difference in [1] is the difference between domestic yarn price and foreign yarn price.