Orders Full, Upstream Raw Materials Soar, Textile Clothing Next Tuyere?

October 19 news, in preparation for the "double 11" and the increase in fabric demand in autumn and winter, the transfer of Indian orders, the expectation of extremely cold weather, and the increase of orders in spring and summer of 2021, the textile and clothing market has opened a round of price rising and goods grabbing tide. Affected by this, the upstream raw material market also rose.

On Friday, the main cotton contract 2101 closed at 14560 yuan / ton, up 9.51% from the previous week. At the same time, the textile raw material market, polyester, spandex, viscose and other chemical fiber prices rose. After the national day, viscose staple fiber rose by 1000 yuan / ton.

Recently, yarn, grey cloth, fabric and other products are in short supply, and the textile and clothing industry is also in the "order queuing" market. According to the survey of the business agency, orders of some garment enterprises in Guangdong, Jiangsu and Zhejiang provinces have increased rapidly since the middle of September, and the scheduling period has been extended to the middle of November, and the machines are running at full capacity during the national day. After the "cold winter" in the first half of 2020, China's clothing industry is in the "golden period of consumption".

Jin Yiteng, an analyst at Kaiyuan securities, said that at the current time point, it continued to be optimistic about the "silver 10" market of polyester filament and staple fiber, viscose staple fiber, spandex and other chemical fiber products

(1) The price of viscose staple fiber continues to rise, and the fundamentals continue to improve. The "silver 10" market is expected. At the current price of 10500 yuan / ton, Sanyou chemical's Viscose gross profit has nearly 1000 yuan, which will reverse the loss situation in the past two years and is expected to make profits in Q4. Beneficiary subject: Sanyou chemical.

(2) The "silver ten" of polyester filament will come as scheduled after the long holiday. Optimistic about polyester filament will benefit from the sustained recovery of textile and clothing demand; the price of polyester staple fiber will rise sharply, and it is expected that it will still fluctuate upward in the short term. Beneficiaries: Hengyi petrochemical, xinfengming, Sanfangxiang.

(3) Spandex double raw material cost support, the market trading atmosphere is good, the spot supply is slightly tense, enterprises have strong willingness to stand up. Benefit target: Huafeng spandex.

According to a number of media reports, China has recently stopped domestic textile mills from using Australian cotton, and the Australian cotton industry is preparing to deal with the "devastating blow" that may come. According to a source, Chinese textile mills have been warned not to use Australian products, or they will face the risk of quota reduction. It is reported that China is the largest buyer of Australian cotton, and imported a $900 million Australian cotton in 2018 / 19.

The listed companies in cotton plate include Xinjiang local shares Xinnong Development Co., Ltd. and Xinsai Stock Co., Ltd.