Cotton And Polyester Showed Different Trends In The Continuous Fermentation Of Russia Ukraine Event

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Since February 24, Russia carried out military operations on Ukraine, Zheng cotton prices were cautious, and the shock was lower. In addition to the direct impact on domestic textile export to Ukraine, the continuous fermentation of Russia Ukraine incident is more reflected in the side correlation of the impact of crude oil price rise on downstream polyester fiber. Driven by the soaring crude oil prices in the upstream, although polyester factories have not substantially increased the price of polyester filament, the market is generally bullish on the future crude oil prices. In order to avoid the rise of purchasing cost in the later stage, the atmosphere of transaction of polyester filament in Jiangsu and Zhejiang is hot at this stage, or the situation of high inventory in polyester factory can be reduced.

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With the polyester market transaction warming performance is different, cotton cotton yarn market take goods flat. Cotton prices remain high, the overall profits of the downstream spinning disk have been facing a loss situation, the profit space of textile enterprises has been further compressed, making the market more in a wait-and-see state. Due to the high cost of cotton, downstream orders are not smooth, so the new cotton sales in 2021 is significantly slower than in previous years.

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The total sales volume of lint cotton in China was 1.997 million tons, a year-on-year decrease of 1.906 million tons, and 1.096 million tons less than the average of the past four years; Sales volume achieved 35% of the output (5.801 million tons), 65% in the same period last year, and 49% in the past four years. This year, Xinjiang cotton sales progress continued to be slow, cotton export volume continued to be significantly lower than the same period in previous years. This year, the total cotton output in Xinjiang was 950000 tons, a decrease of 41% over the same period of last year. According to the data released by the 98th USDA Agricultural Outlook Forum, China's total cotton production in 2022 / 2023 is expected to increase to 6.1 million tons, an increase of 3.7% year-on-year. But the outlook for Chinese consumption is not optimistic. In the long run, cotton production increased in the new year, while consumption was less than expected, which was not conducive to the long-term operation of high cotton prices.

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