Weekly Market Dynamics (May 18, 2020 -5 24)

　　 Raw material end: Domestic and foreign cotton prices rose first and then fell, viscose staple fiber prices were blocked, polyester staple prices rose slightly during the week.

　　 Product end: The export market has slowly recovered, and the domestic market has continued to warm up. The price of gauze remains weak.

　　 Cotton

From the present point of view, the market fundamentals in May are better than in April, and the futures market is basically in a stable state. In the first half of the week, domestic and foreign cotton futures prices rose slightly, driving cotton spot prices up. In the second half of the week, cotton futures prices fell slightly, and spot prices followed a slight decline, but the overall average price was higher than the previous week. At present, the recovery of the downstream market is slow. Cotton spinning enterprises mainly consider the problem of capital occupation, and raw material procurement is prudent. Most cotton spinning enterprises keep cotton stocks for about 15~30 days.

Chemical fiber staple

When the viscose market was still low in the week, there was no significant improvement in downstream demand, and the price of viscose staple fiber was blocked, and it began to drop slightly in the second half of the week. Polyester staple fiber, in the context of rising oil prices, the week before the continuation of the first week of price rise, the increase is obvious, within a slight increase in the week. For chemical fiber raw materials, cotton spinning enterprises have always followed the buying habit of buying and using, and the stock time is shorter, mostly within 3 weeks.

　　 Cotton yarn

The cotton market was relatively stable during the week. According to the research and understanding of China Cotton Association, with the gradual lifting of measures in Europe and the United States, enterprises said that the export market was in a state of arrest before there was signs of recovery, and domestic orders increased in May. According to the varieties, regular combed yarn is relatively good, and combed yarn and high count yarn demand is slightly insufficient. In terms of imported yarn, the price of India cotton yarn has been rising steadily, and the price of cotton yarn is generally stable in Vietnam. The average 32 cotton combed yarn in China is 408 yuan / ton higher than that of Vietnam and India cotton yarn.

Grey

In the week, the sales of grey fabric market improved earlier, and the price of individual varieties rose. Other varieties of prices remained weak. According to China Cotton Association Research and understanding, when the weekly weaving plant started a slight rise in the rate, the market orders also increased earlier, but the order volume decreased compared with previous years, most enterprises inventory in 1 months or so.

Outlook for the future

In May 22nd, Premier Li Keqiang made a government work report at the three session of the thirteen National People's Congress, pointing out that China's development is facing unprecedented risks and challenges at present and in the future. It is proposed that under the premise of normalization of epidemic prevention and control, we must concentrate our efforts on "six stability" and "six guarantees" and stabilize the economic operation. Therefore, enterprises should gradually absorb the impact of the epidemic, prepare for long-term response to the epidemic situation, rationally plan production and operation strategies, and carefully arrange production load, raw materials inventory and investment projects.