Current Futures Market Downturn, Lint Prices Fall This Week (3.1-3.5)

According to statistics, on March 1, the average price of domestic lint spot market was 16576 yuan / ton, while on March 5, the average price of domestic lint spot market was 16362 yuan / ton, down 1.29%.

In terms of futures, the settlement price of Zheng Mian's main contract fell below 16000 yuan / ton on March 5. Since this week, the main contract price of Zheng cotton has been falling continuously; internationally, the fall of the US stock market has brought negative effects on the cotton market, the quotation of China's main port for imported cotton has fallen sharply, and ice futures have fallen continuously.

Downstream: in the early stage, with the continuous rise of lint price, downstream spinning enterprises have begun to accept orders cautiously, and wait-and-see mood increases. At present, the textile industry as a whole is still in the peak season, cotton yarn prices remain stable, most cotton textile enterprises yarn inventory is still at a relatively low level. From the survey, after the Spring Festival, cotton textile enterprises in Shandong, Jiangsu, Zhejiang, Guangdong, Henan and other places have a very high rate of returning to work. In addition to completing the early orders, enterprises began to receive short-term domestic and foreign trade orders in March to April. On the one hand, textile and clothing enterprises are worried that cotton, polyester staple fiber and other raw materials continue to fluctuate violently, leading to a substantial adjustment in the cost of cotton yarn, polyester cotton yarn and grey cloth, and the production, list arrangement and profit are greatly affected; on the other hand, most of the cotton textile enterprises' gauze inventory is still at a relatively low level. Under the expectation of global economy, trade and textile consumption rebound in 2021, textile enterprises have appropriately increased cotton yarn Plan of grey fabric inventory.

Analysts believe that after the year, cotton prices have been rising all the way, the cotton yarn market is rising at the same time, there is a great pressure on the downstream of textile raw materials, production and scheduling, profits are greatly affected, this adjustment is not necessarily a good thing for the whole industry. At present, cotton prices are not good support, it is expected that there will be a wave of decline in the short term.