Sticky Short Narrow Talk, Again Low Concentration In April? Yarn Enterprises Increased Losses, 7, August How To Endure?

Market brief

Zheng cotton main callback to 11800 near the "V type" reversal, the main contract slightly reduced positions, from the technical point of view, hour level callback has basically ended, pay close attention to Zheng cotton main performance near 11800. The spot market of lint cotton is limited, the order of the downstream cotton mill is insufficient, the demand for cotton is weak, the enthusiasm of the market is restricted, the turnover of base point price resources continues to decline, the atmosphere of purchase and sale is extremely cold, the spot inventory of cotton lint is high, the situation of basic oversupply is not changed, and the traditional textile off-season, the cotton mill reflects the reduction of orders compared with May, and the industry's confidence is insufficient. It is difficult to find a clear guide message. It is expected that spot cotton prices will return to the market.

Acrylonitrile market price high standoff, the recent mainstream downstream performance is stable, acrylonitrile factory price mentality is obvious, middlemen with market operators mainly, short term, supply side support weakened, but the market for factory settlement is expected to be high, some businesses low price reluctant to sell, downstream users in the circulation field just need to pick up the goods, the price lacks the power to continue to rise, it is expected that the market price will continue to narrow. Amplitude concussion. Acrylonitrile staple fiber prices are stable, and the price of acrylonitrile continues to be high. Under the pressure of cost, the price of acrylic manufacturers continues to rise. The load of the acrylic fiber plant is relatively stable recently, and the rhythm of some manufacturers' production and marketing is acceptable. However, there is no obvious improvement in the real demand of the terminal. Stable and focus on raw materials and downstream digestion trends.

In June 10th, through the investigation of textile enterprises in Xuchang, Luohe and Zhoukou, we know that at present, the textile enterprises of Henan province are more polarized, and most of the middle and low end cotton yarn enterprises have returned to normal. Someone in charge told us that the sale of combed yarn was rather slow, and the combed yarn was very fast. Therefore, in order to transform the product line in time and produce a large demand for yarn products, the rate of commencement was low after the Spring Festival. With the stable domestic situation, the operating rate increased steadily. Now the demand for workers has increased, and the gap is around 200 now. In view of the fact that the industry is going to enter the off-season industry is worried about the reduction of orders, the person in charge said that the quality of the high quality cotton yarn is good, and the downstream customers are stable. Another company said that the domestic low-end cotton yarn market was stable, resulting in a rebound in cotton prices compared with the previous stage, but relatively low in previous years. There are three main reasons for the serious differentiation of enterprises: first, the different ways of enterprise management; the two is the difference of product positioning; the three is the reduction of downstream consumption and the occurrence of consumer demotion.

On the morning of 11, the press office of the Shandong Provincial Government Information Office held a press conference to introduce the situation of top 100 foreign trade enterprises in Shandong Province in 2019 and to answer questions from reporters. Turning to the export situation of Shandong's textile and garment enterprises, Zhang Jingzhou, head of the Qingdao customs and statistical analysis department, pointed out that in 2019, as one of the major textile and garment production and export areas in the country, Shandong textile and garment enterprises continuously improved their production processes and product research and development, and exported 155 billion 810 million yuan for the whole year, an increase of 2.4%, an increase of fourth consecutive years. Over the past year, under the pressure of constant trade friction, RMB exchange rate fluctuations and rising domestic production costs, Shandong's textile and garment exports have been actively expanding overseas markets. It exported 32 billion 830 million yuan to Japan for the whole year, an increase of 3.1%, and maintained a two digit growth in exports to Korea, ASEAN and the Middle East. In addition, with the help of the "one belt and one way" initiative, Shandong textile and garment enterprises actively develop the market along the border and achieve good results. In 2019, the number of countries along the "one belt and one road" export was 28 billion 100 million yuan, an increase of 10.9%.

In June 11th, 2020, the Shandong Provincial Textile and garment industry association president will hold a meeting in Shandong Kangping group. From more than 60 experts and business representatives from Shandong provincial industrial office, Shandong textile and Garment Association, Kangping Naxi group, Lu Tai textile, Ruyi technology, Dixie group, Qingdao instant hair, Shu long group, Shandong Dai Yin, Wei Qiao textile, cheerful home textile, Huaxing Textile, Fu Tian Group, Dezhou Hengfeng group, Nanshan Zhi Shang, Jimo International Trade City, Ji'nan Kou Kou garment city and so on. We will conduct in-depth exchanges and discussions to guide the future development of Shandong's textile and garment enterprises. The theme of this conference is "conspiracy to make good plans and overcome difficulties". Participating entrepreneurs and industry experts will share and discuss the ideas and measures of high quality development under the normalization of epidemic situation.

On the afternoon of 10, the Wuhan Textile University issued a notice that the 2020 graders (including undergraduates and postgraduates) and those with scientific research tasks who are currently in residence can return to school in batches in accordance with the principle of "voluntary application" since June 15th. For graduates in Wuhan, schools require "returning to school on the same day, leaving school on the same day" and not staying. The graduates of Wuhan's surrounding cities in principle return to school on the same day and leave school on the same day, and do not recommend accommodation. The graduates from remote prefectures and other provinces in the province return to school within 2 days in principle, that is to say, they can stay in the former dormitory for one night, and the school enters the principle of "one person, one room" and single accommodation. Line arrangement. Other non graduating students who are overseas students will not return to school. The specific time to return to school will be notified later.

In June 9th, Huaxi shares announced that the company controls the Shanghai Kai LAN enterprise management consulting partnership (limited partnership) plan to spend $135 million (about 968 million yuan) to acquire the DiamondHill, L.P interests of the counterparty. After the completion of the transaction, Huaxi shares will indirectly hold the 54.68% stake in Sowers photoelectric, becoming the largest shareholder. Huaxi shares said that the holding of the company is a symbol of the company's "self controlled technology" characteristics of the industrial transformation took a substantive step. It is worth mentioning that this transaction is an overseas investment. It is necessary to apply to the antimonopoly Bureau of the State Administration of market supervision for the implementation of the centralized antitrust declaration. It is necessary to apply for the overseas investment record (ODI) to the business department and the development and Reform Commission of the main body of the acquisition.

In June 10th, investors questioned the Jingwei Textile Machinery (000666). 1. famous textile and Jingwei Textile machines signed 300 thousand smart spinning large sheets, with a total investment of 1 billion 200 million and 2. Jingwei Textile Machinery signed a "Jingwei Lushan green wisdom spinning garden project cooperation agreement" with the Lushan county government. The total investment of the project is 12 billion yuan. I would like to ask: are these two projects transmitted by network really something? If so, why did the company not issue a notice? Is the contract amount up to the standard of announcement? Thank you! The Jingwei Textile Machinery Company replied that the company did not sign 300 thousand spindles of intelligent spinning orders with the famous textiles. The company has participated in the "Jingwei Lushan green wisdom spinning garden project", but has not invested heavily. In the future, it will actively sell textile machinery equipment to the garden enterprises, and support Lushan county to develop the modern green textile industry. There are no major issues that should be disclosed and not disclosed.

Shanghai Shenda Limited by Share Ltd (600626) announced in the evening of June 10th that the company's overseas holding subsidiary PFIHoldings, LLC had been seriously affected and sustained losses due to Sino US trade friction and outbreak. At the eighth meeting of the tenth board of directors held today, the company adopted the motion on the bankruptcy liquidation of the subsidiary company PFIHoldings and LLC, and agreed to submit an application for bankruptcy and liquidation by the PFI company to the local court. The announcement shows that in 2015, Shanghai Shenda import and Export Co., Ltd., a wholly owned subsidiary of Shenda group, indirectly acquired 100% equity interest in the US PFI company through CROSSRIVER LLC, an overseas subsidiary, and the project was completed in November 2015, and the purchase price was $31 million 710 thousand and 800, equivalent to 202 million 527 thousand yuan. PFI company is mainly located in Sherlock, North Carolina, USA. Its business involves bed products and home textiles, heating products and handmade yarns. Its main customers include well-known department stores and business customers in the United States.

The 2020 annual contribution award of the China Textile Product Development Organization: (1) contribution award for product development: according to the evaluation criteria of the China Textile Industry Federation's product development award, it comes from the research and development and production enterprises such as fiber, yarn, fabric, clothing, household textiles and industrial textiles, dyeing auxiliaries, textile machinery and other research and development enterprises. (two) Product Development Promotion Award: Based on the evaluation criteria of the China Textile Industry Federation's product development award, it comes from the declared textile intermediaries, industrial cluster areas and textile specialized markets. Declaration time: June 9, 2020 - August 15th.

As consumption and trade were hit during the new crown pneumonia epidemic, global cotton stocks will reach the highest level in 5 years, and cotton prices will fall to a 12 year low at the end of the year. Since the beginning of 2020, the closure of global retail outlets and the drop in orders of textile mills have led to a 30% decline in cotton futures prices. Consumption is expected to be 23 million tons in 2019/20, 11.3% less than last year. It is expected that output will grow by 2% to 26 million 200 thousand tons, and inventories may surge to 21 million 750 thousand tons, reaching the highest level in 5 years. China is the largest cotton producer in the world and is expected to drop 12% to 7 million 250 thousand tons. India is expected to fall 12% to 4 million 750 thousand tons. Other countries that experience pain index include Pakistan (-7%), Turkey (-8%), Vietnam (-8%), Brazil (-11%) and Bangladesh (-25%). It is estimated that the volume of global cotton trade in 2019/20 will drop to 8 million 340 thousand tons, down 9.6% from the previous quarter. According to the IMF's prediction of the current economic recovery, it is expected that the recovery of the upcoming 2020/21 season will remain stable.

Sri Lanka's "daily finance" reported on June 10th that Sri Lanka clothing industry did not have 8-9 month autumn orders, and warned that the impact of the new crown epidemic on the garment industry may extend and increase revenue losses. In August 2019, the clothing industry in Sri Lanka earned $473 million, an increase of 6.62% over the previous year's US $444 million. Of these, 215 million came from the United States and 199 million from the European Union. In September 2019, although demand from the US decreased, the industry earned $427 million. The JAAF predicted that the industry's revenue in 2020 would be reduced by 30-40%. In the 1 quarter of 2020, clothing exports in Sri Lanka declined by 1 billion 160 million US dollars from 1 billion 370 million US dollars in the 1 quarter of 2019, down 15.2% from the same period last year. According to the latest report of the central bank, the garment industry income in March dropped from 494 million US dollars in March 2019 to US $294 million, down 40.6% from the same period last year. In the first quarter, the overall revenue of textiles and clothing industry dropped from US $1 billion 470 million in 2019 to US $1 billion 250 million, down 14.9% from the same period last year.

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