Domestic Cotton Prices Rose Sharply, Hua Fu Zi Company Was Listed In The Entity List By The United States

I. market quotation

　　 1, domestic cotton prices rebounded sharply

Last week, Zheng cotton futures fell sharply, cotton spot rebounded sharply, but the sales pressure of downstream gauze did not decrease, and cotton price rise failed to transmit effectively. The national cotton price B index, representing mainland standard grade lint sales, was 11900, up 385 yuan / ton compared with May 15th, or 3.34%. The settlement price of Zhengzhou cotton futures contract was 11695 yuan / ton, up 125 yuan / ton compared with May 15th, or 1.08%.

2, international cotton prices fall

Last week, the US cotton export data were poor, coupled with a continuous rise in profit margins, and ICE futures were callback. Under the situation that the global epidemic has not been improved, the international normal trade has been challenged, the global economy has been down sharply and the consumption has obviously decreased, the US cotton continues to go up and face pressure. The international cotton index (M), which represents the average price of China's main port on the import cotton, is priced at 67.97 cents / pound. The price of RMB converted to RMB 1% yuan is 11814 yuan / ton, down 120 yuan / ton from May 15th, or 1.08%.

3, polyester staple fiber rebounded sharply

Most of the staple fiber staple manufacturers in Jiangsu and Zhejiang have increased their quotations, and the manufacturers haven't talked about the discount reduction. 1.4D's mainstream offer is about 6000-6200 yuan / ton, or about 5850-6000 yuan per ton. Most of the staple fiber prices in Fujian have risen, and the center of gravity has risen slightly. The 1.4D offer is 6200 yuan / ton short distance, or 5950-6050 yuan / ton. The price of polyester staple fiber in Shandong and Hebei has risen slightly, and the trading atmosphere is generally normal. 1.4D half light talks or near 5900-6100 yuan / ton. In May 22nd, the polyester staple price index closed at 5880 yuan / ton, up 280 yuan / ton compared with May 15th, or 5%.

4, viscose staple fiber prices stable

Viscose staple factory prices remain, orders performance is dull, waiting for a new round of replenishment cycle downstream, but the demand for terminal is not large, weak expectations continue, the market outlook continues to wait and see. At present, the price of mid end viscose staple fiber is 8800-9000 yuan / ton, and the price of high-end viscose staple fiber is 9300-9500 yuan / ton. Viscose staple fiber price index for May 22nd was reported at 8800 yuan / ton, unchanged from May 15th.

5, domestic yarn stabilizes, outer yarn continues to fall.

Last week, domestic cotton yarn fell narrower, cotton yarn inventory level was relatively stable, the price of cotton yarn stabilized, and the purchasing power of downstream businesses was not high. The market price of the combed 32S pure cotton yarn was 18700-18800 yuan / ton, down 30 yuan / ton, 30S cotton yarn ending the decline, the price index closed at 12300 yuan / ton, unchanged from the previous period; the price of the 32S polyester yarn was 9830~10000 yuan / ton, up 30 yuan / ton. International cotton yarn prices continue to dive, India and Vietnam 32S cotton yarn import costs fell by 560 yuan / ton, 208 yuan / ton, conventional yarn is lower than domestic yarn 686 yuan / ton.

Two, the operation of the industry

1, production and sales slowed down in April, inventories increased, production and revenues narrowed year-on-year.

According to the data of China Cotton Textile Industry Association in April 2020, since April, domestic enterprises have speeded up the resumption of production and production, and the global anti new crown epidemic situation, the textile industry export orders were blocked, and the cotton textile production and marketing situation slowed down overall.

　　 Accession In 1 and April 2020, the procurement of raw materials for enterprises was reduced by 4.41%, of which about 57% of raw material purchases decreased. Raw material cotton purchase volume decreased by 4.8%. The purchase volume of imported cotton in raw cotton decreased by 5.27%. The purchase amount of non cotton fiber in raw materials decreased by 3.73%.

　　 Accession 2, in April, the raw material consumption of tracking enterprises decreased by 3.25%, and about 60% of enterprises decreased. As of the end of April, raw material inventories decreased by 3.75%.

　　 Accession 3, 1~4 months tracking enterprise yarn production, cloth production year-on-year decline of 19.12% and 17.96%, respectively, the cumulative decline for two consecutive months narrowed.

　　 Accession 4, in April, sales of yarn and cloth decreased by 14.87% and 10.13% respectively. As of the end of April, the yarn inventory increased by 11.96%, and the inventory of fabrics increased by 6.51%. In the past month, in order to stabilize employees and ensure employment, enterprises have gradually shifted from order production to inventory production, resulting in a substantial increase in inventories.

　　 Accession 5, as of May 15th, the average operating rate of the tracking cluster was around 54%, and the utilization rate of spinning and weaving capacity was below 40%.

2, 1~4 cotton textile industrial cluster output fell sharply compared with the same period last year.

According to the economic operation data, compared with the same period last year, the output and output value of the cluster in 2020 1~4 months decreased significantly. In terms of output, the output of all kinds of yarns in the cluster enterprises decreased by 34.1% compared with the same period last year, and the output of the enterprises decreased by 37.8% compared with the same period last year. In terms of economic indicators, the business income of the cluster enterprises decreased by 25.7% compared with the same period last year, and the total profit decreased by 55.4% compared with the same period last year.

According to investigation and research, most enterprises are on holiday during the May 1, some enterprises extend their vacation, and the current production gradually returns to pre holiday level. According to the enterprises, the order after the festival continued to decrease, and there has not been any improvement. As of May 15th, the average operating rate of the tracking cluster was around 54%, of which 75% of the enterprises started to operate, and the enterprises were under construction. The start-up rate of the start-up enterprises was not enough, and the utilization rate of spinning and weaving capacity was below 40%.

3, 14 weeks before USDA:5, the total export volume of us upland cotton increased by 249 thousand and 100 packages.

On May 21st, the US Department of agriculture (USDA) released its export sales report on Thursday. In the week ending May 14th, the US 2019/2020 annual export sales of mainland cotton increased by 128 thousand and 900 packs, 46% less than the previous week, and 51% lower than that of the previous four weeks.

During the week, the US 2020/2021 export volume of mainland cotton increased by 120 thousand and 200 packages.

When the United States exported 252 thousand and 200 packages of land cotton, 4% increased compared with the previous week, but fell by 11% compared with the previous four weeks.

During the week, the US 2019/2020 sold 186 thousand and 400 new cotton bags. The US 2020/2021 sold 120 thousand and 200 new cotton in the year.

4, Pakistan cotton yarn export prices continue to fall.

In recent weeks, domestic and export prices of cotton yarn in Pakistan continued to decline, and downstream processing enterprises were slow to return to posts and work, and demand remained very weak, which could not support prices.

In the week, 1.06% of the 30 domestic Combed Yarns in Pakistan were gradually resumed, and the yarn sales in the future may recover slowly. In addition, the rebound in market activity after Eid al Fitr (the first week of June) may also provide support for prices. Pakistan imports US cotton prices down, Karachi spot price has not changed, BCI and organic cotton prices also fell, because the cotton mill start up rate decreased.

Three. Industry policies and trends

1. Global color spinning leader Hua Fu Zi is listed in the entity list by the United States.

Huafu fashion Limited by Share Ltd announced in May 24th that the company's wholly owned subsidiary, Akesu Huafu color spinning Co., was included in the entity list by the US Department of Commerce in May 22nd.

Hua Fu believes that the decision of the US Department of commerce is irresponsible and irresponsible. The company is against politicizing the industry. Since its foundation, Huafu, Akesu, is committed to not only being an enterprise but also a good company. It has faithfully fulfilled its social responsibilities, adhered to the concept of sustainable development, adhered to relevant laws and regulations, adhered to commercial codes of conduct, and fully respected the rights of employees.

Huafu fashion said that the company is one of the largest new yarn businesses in the world, investing in Xinjiang based on superior resources such as high quality cotton, energy prices, industrial workers, and the future opportunities for development along the way. The company invested and invested in Akesu Huafu, creating many jobs and contributing to the local economic and social development. Akesu Huafu's raw materials, equipment and technology can circumvent products originating in the United States. Being included in the entity list will not have a substantive impact on the daily operation of the company.

2, the United States released $200 billion tax products fourteenth batches exclusion list

In May 21, 2020, the United States Trade Representative Office (USTR) announced the fourteenth batch of product exclusionary announcements under the list of 200 billion tariff products, adding 78 products, including 5 textile products tax numbers.

The textile description and HS code excluded are as follows:

　　 Accession 1.5603.14.9090: other non woven fabrics of rayon, other fabrics other than floor coverings, which are not impregnated / coated / covered, weighs more than 150 grams per square metre.

　　 Accession 2.5603.92.0090: other non woven fabrics other than man-made fabrics, except for floor coated fabrics, non impregnated / coated / covered fabrics, 25g< square meters heavier than 70g;

　　 Accession 3.5603.93.0090: other non woven fabrics other than man-made fabrics, except for floor coated fabrics, non impregnated / coated / covered fabrics, 70g< square meters heavier than 150g;

　　 Accession 4.5701.90.1010: nylon and polypropylene handcrafted carpets, at least 1.2 square meters.

　　 Accession 5.5901.90.4000: the painting canvas panel is made. Each panel contains 50% of the canvas (except man-made fiber) and 50% of the paper. The size is at least 9 cm, but not more than 29 cm, the width is at least 14 cm, but the height is not more than 37 cm. The thickness is not more than 0.6 centimeters, but not more than 3.5 centimeters. It is packaged in a retail mode, and each package contains no more than 12 wooden boards.

3, Jingwei Textile Machine Lazi Lushan total investment 12 billion yuan green wisdom spinning garden contract

On May 21st, the signing ceremony of the official cooperation agreement of Lushan green wisdom spinning garden was held in Lushan, Ya'an, Sichuan. The total investment of the project is 12 billion yuan, covering an area of 1200 mu. It will be divided into four phases. The first phase of the project will be completed in 2021. After the completion of the project, the scale of production will reach 2 million spindles. The annual output value is 16 billion yuan, and the profits and taxes will reach 8 to 1 billion yuan.

In recent years, Lushan county has made the textile industry one of the three pillar industries of county economy, covering 580 thousand spindles of the county's total yarn, accounting for 33% of the province's total, ranking the forefront of the southwest, and successfully establishing the provincial Economic Development Zone taking textile as the leading industry, and has been listed as the "national textile production transfer pilot park". The signing of the project is the concrete embodiment of Lushan county's continuous promotion of the construction of billions of textile industrial clusters and the introduction of key investment projects. The project is located in Lushan, will boost the transformation and upgrading of Lushan's textile industry and the development of high quality, and further start the industrial brand of "Southwest textile in Lushan".

4. China Xiajin green textile industry development forum held.

In May 21st, China Xiajin green textile industry development forum was successfully held in Xiajin County, Shandong. Zheng Jiewen, vice president of China Cotton Textile Industry Association, Han Guangting, director of Shandong textile engineering society, and Professor Qiu Yi Yi, an expert of Donghua University, attended the related activities.

At the same time, the signing ceremony of key projects in Xiajin county was held. The Xiajin County People's government signed a contract with Shandong Hao Sen Tek Environmental Protection Technology Co., Ltd. to invest in the construction of the commercial vehicle core parts supporting industrial park project of Shandong Hao Sen Tek Environmental Protection Technology Co., Ltd., and the Xiajin Economic Development Zone Management Committee and Shandong Rong Pin Electronics Technology Co., Ltd. signed the annual output of 12 million mobile phone data lines. "Project"; the government of Su Liu Zhuang town of Xiajin County signed the project of "the ancient mulberry Cultural Industrial Park" with the Guang Han Shen Xi (Shandong) eco tourism development Co., Ltd., signed by the government of Zhengbao town of Xiajin county and Shandong Hongye Auto Parts Co., Ltd., "the air filter element project of Hongye Auto Parts Co., Ltd."; the government of song Lou town of Xiajin county and Tianrun Group signed the project of building an annual output of 3000 tons of high quality yarn. 。

5, investment 6 billion, an annual output of 100 thousand tons Lesel, Heng Tian Group and Hong Tai Ding strong joint efforts

Recently, China Hi-Tech Group Corporation signed a strategic cooperation framework agreement with Shandong Hongtai Dingxin Mstar Technology Ltd. It is reported that Shandong Hongtai Ding business is Lesel short fiber production and sales, will invest 6 billion yuan in the Xiajin County Economic Development Zone Planning, construction of an annual output of 300 thousand tons of Lesel fiber project. The project is implemented in three phases. At present, an annual production of 100 thousand tons of the project is currently being implemented. It is planned to be put into operation at the end of 2020.

Four, oil price or adjustment expectation

Mid term rise remains optimistic

　　 The oil market has been strong in recent years, but the strength of last week's rise has failed, with overbought buying at the daily level and a slight pullback in the market. Basically, OPEC+ countries are committed to fully implementing the production reduction agreement. According to Reuters data, crude oil exports in 13 member countries of OPEC decreased by 4 million 850 thousand barrels per day in the first half of May compared with April figures. In the US, EIA's commercial crude oil inventories have been reduced for two consecutive weeks, and crude oil output has steadily declined. However, the price difference between gasoline and diesel is still at a low level, and the operating rate of the refinery is in the doldrums. The economic recovery is expected to remain cautious. The ECB and the Fed have indicated that it is unlikely to achieve a rapid V recovery. China has not set up the official growth target of GDP this year. Sino US trade relations have also become tense recently. The expected rebound in oil prices will depend on the recovery of the economy and the accumulation of previously accumulated stocks.

Five, repeated Sino US relations

Continued depreciation of RMB

　　 Last week, the US dollar index showed a downward trend overall, with a record 99.7794 on Friday. The following reasons make the US dollar index weaken: first, the preliminary positive results of the US new crown vaccine test, the market temporarily put aside worries; two, the euro, the British mirror strengthened, the US dollar index under pressure; three, Powell declared that during the epidemic period, the Fed was ready to take all necessary measures to help the United States to boost the economic prospects. On the domestic side, the RMB exchange rate as a whole has depreciated, down 0.593% compared with last week. The main reasons are as follows: first, the United States upgraded the sanctions measures against HUAWEI, the Sino US economic and trade relations were once again tense and the RMB was under pressure; two, the information transmitted by the two sessions of China will affect the mood of the market to a certain extent. In the government work report, China did not propose specific targets for the annual economic growth, mainly because of the uncertainties in the global epidemic and the economic and trade situation. The development faces some unforeseen factors. In the short term, we expect that the RMB exchange rate will probably continue to fluctuate in the current range, and the possibility of a sharp rise or fall will be less likely. In the long run, the trend of China's economic stability and long-term improvement has not changed. The statement of the government's work report on the RMB exchange rate has not changed. "Stability" is still the main keynote, indicating that the basis for stable operation of the foreign exchange market will continue to exist.