The Difference Between Internal And External Yarn Increases The Price Of Lint Cash Is Very Difficult.

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According to business statistics, as of May 26th, the average price of the domestic lint spot market was 11850 yuan / ton, up 291 yuan / ton on Tuesday, or 2.51%, down 19.03% from the same period last year. Last week, the epidemic in Europe eased, and the American epidemic still remained under control. The recent series of operations by the US side has increased the risk of Sino US trade relations, and the international trade environment is not optimistic. The market is generally short term and cotton prices are low.

Last week (18-22 May), domestic cotton prices rose 384 yuan / ton, or 3.33%, while imported cotton fell by about 50 yuan / ton last week. From the current domestic table, we can see that the lint spot is showing a continuous upward trend; Zheng cotton has turned a corner in May 20th, and the US cotton export weekly data are not satisfactory. The market is more concerned about the trend of Sino US relations. The mindset has changed. Cotton prices have been cautious and cotton prices have been callback.

　　 China signs up for us cotton to lose money, but cancel contract to become mainstream 。 According to the US Department of agriculture report, on May 2020 8-14, the net contracted volume of US cotton in 2019/20 was 29 thousand and 200 tons, 46% less than the previous week, and 51% lower than that of the previous four weeks. From the date, the weekly data released by the US cotton export Weekly has been delayed for a week. On May 8-14, the release of Sino US trade relations is good. Although China has signed up 34 thousand and 800 tons of new cotton products to the US, the recent US approach has worried the market. The market is on the sidelines. Zheng cotton has been blocked up, and the main contract has been consolidated at 11500-12000 yuan / ton.

Cotton yarn price changes at home and abroad on 18-22 May 2020

(source: national cotton market monitoring system, China cotton net)

According to customs statistics, China imported 140 thousand tons of cotton yarn in April 2020, a decrease of 26.32% compared to the same period last year. Since 2019/20 (September 2019 -2020 April), China has imported 1 million 240 thousand tons of cotton yarn, a decrease of 4.62% compared to the same period last year. In April, weaving, clothing and foreign trade enterprises were most seriously affected by the new crown, and the demand for gauze consumption declined significantly.

As can be seen from the above table, last week, domestic and foreign cotton yarn prices have been reduced, the biggest decline is Uzbekistan and India. Uzbekistan 32S cotton yarn weekly decline of 500 yuan / ton, India 32S and 21S cotton yarn port average delivery price fell 320 yuan / ton and 410 yuan / ton respectively, Pakistan cotton yarn downstream job back to work slowly, cotton yarn demand in general, prices fell softness. Domestic yarn prices have dropped slightly, the price difference between domestic yarn and imported yarn has widened, and cotton yarn price is expected to weaken.

One week after the ICE week, the domestic zhengmian concussion and consolidation were the main ones. The risk of Sino US trade relations is increasing, and the market is cautious about rising. Business analysts believe that the difference between domestic and foreign cotton yarns has been widened, and that domestic cotton yarn has been further reduced. On the other hand, the price difference between yarn and cotton has been narrowed, yarn costs have been raised, and downstream demand is still in the recovery stage, which is difficult to support cotton prices up. The current differential was widened and cotton prices were expected to fall.