Weekly Market Dynamics (June 29, 2020 -7 5)

　　 ? ? ?? Cotton: When the international financial market rose in the week, market sentiment began to repair. In June 30th, the data released by the US Department of agriculture showed that the sown area of US cotton in 2020/21 decreased by 11% compared with the previous year, which stimulated New York cotton futures prices and the spot price of international cotton increased. Domestic, when Zhengzhou cotton futures rose, driving the spot price of 3128 cotton rose. In June 30th, the policy of reserve cotton rotation came to the ground, and the enthusiasm of enterprises to auction was higher. The spinning enterprises that made low and medium cotton yarn shifted their attention to cotton reserves, plus the majority of cotton spinning enterprises before the Dragon Boat Festival.

　　 Chemical fiber staple: After the Dragon Boat Festival, the human cotton yarn market continued to slump, and the downstream textile enterprises slowly moved goods, so the purchasing intention was low. The price of viscose staple fell slightly during the week, with a drop of around 60 yuan per ton during the week. Polyester staple fiber, affected by the decline in the price of upstream oil, direct spinning polyester and short prices continue to decline, bottom polyester factory stocks continued to increase, and preferential efforts continue to expand, the price of 1.4D direct spinning staple in the week fell by around 115 yuan / ton.

　 　 Cotton yarn: Week, cotton yarn market maintained the trend of the previous week, the overall market is weak, prices are stable or down. According to the investigation of China Cotton Association, after the Dragon Boat Festival, the demand for medium and low spun yarn with relatively good delivery has also slowed down, plus the recent rise in cotton prices, while the consumption of terminal textiles and garments has not improved. Orders and prices have not improved significantly. Therefore, the profits of cotton spinning enterprises have been reduced or even been in a state of deficit for a long time, and the pressure of enterprises is greater. In terms of import yarn, Vietnamese yarn and India yarn quotation remained the week before, but the domestic import yarn market was slack, and the actual transaction price fell by 200-300 yuan / ton. When the price difference between cotton and domestic yarn continued to shrink at home and abroad, the price of 32 Cotton Combed Yarns in India was lower than that of the domestic cotton yarn 190 yuan / ton. Vietnam's 32 pure cotton combed yarn prices were lower than the domestic cotton yarn 240 yuan / ton.

　　 Grey: In the week, the order of the fabric market is still less, some factories have shut down some machines, and the start-up rate of the weaving mill has decreased slightly. At present, the sale of grey fabrics is mainly based on the low thickness thick cloth, and the subsequent orders are obviously insufficient. The inventory of the weaving mill is increasing, and most of the mill inventory is maintained for about 1-2 months. Enterprises say that capital reflux is difficult and business pressure is high.

Outlook for the future

At present, the US epidemic situation is grim. The chairman of the Federal Reserve said the prospect of US economic recovery is "highly uncertain". A number of experts have also indicated that the possibility of a rebound in the autumn and winter is relatively large and there are many unstable factors in the global economic recovery. Entering the July, the downstream market showed a further weakening trend. The reserve cotton throwing and storage increased the supply of cotton in the market. It is expected that cotton price volatility will increase in the short term and the price of gauze will remain weak.