Weekly Market Dynamics (February 24, 2020 -3 1)

Raw materials: domestic and foreign cotton prices plummet, viscose market gradually recovered, polyester staple prices fell slightly;

Product side: the downstream market has recovered more than half, the price of cotton yarn has increased, and the price of grey cloth has remained stable.

First, domestic and foreign cotton prices both fell.

Recently, the spread of overseas epidemic has been rapid, the number of infected cases has been rising, the market risk aversion has been warming up, and domestic and foreign cotton futures prices have fallen continuously, and spot prices have dropped. However, as the number of domestic cotton textile enterprises increased and the situation of logistics disruption improved, cotton procurement gradually opened, and cotton trading increased during the week. According to the coordination survey of cotton and cotton mills, the cotton textile enterprises that have returned to normal logistics have increased 21 percentage points compared to the previous week, while cotton textile enterprises with cotton stocks for more than 1 months have increased 3 percentage points compared to the previous week.

Price data, domestic 3128 spot cotton spot average price 13030 yuan / ton, compared with the previous week dropped 496 yuan / ton, Zhengzhou cotton futures contract settlement price 12260 yuan / ton, compared with the previous week, 1040 yuan / ton; CotlookA index average price 74.95 cents / pound, compared with the previous week 2.6 cents / pound, New York cotton futures contract settlement price 61.49 cents / pound, compared with the previous week dropped 7.51 cents / pound.

　　 Cotton price trend at home and abroad since 2019

Two, viscose market gradually recovered, polyester staple prices fell slightly.

During the week, the number of resumed workers in chemical fiber enterprises continued to increase, and the rate of resumption of work gradually accelerated. However, due to the need for segregation observation, the problem of employment still existed. However, with the strong support and assistance of local governments, the operating rate of enterprises has increased. With the gradual recovery of the market, downstream procurement is slowly on the right track. The average price of viscose staple fiber was 9608 yuan / ton during the week, up 38 yuan / ton compared with the previous week, and the average price of PET staple was 6530 yuan / ton, which was the same as that of the previous week.

　　 Price trend of chemical fiber staple since 2019

Three, cotton yarn prices rise, gray cloth prices remain stable

According to the results of the coordination survey conducted by China Cotton bank, 81.3% of textile enterprises returned to work in March 1st, and the recovery rate increased by 17 percentage points compared with the previous weekend. In addition, the survey showed that enterprises that could meet customer's purchase needs increased 14 percentage points in the previous week, while sales prices increased by 11 percentage points over the previous week. It can be seen that along with the gradual implementation of the policy of resuming work everywhere, the downstream market is recovering rapidly. The price of the 32 cotton combed yarn was 20490 yuan / ton, and the price rose 70 yuan / ton compared with the previous week.

Import yarn, India cotton yarn prices have signs of loosening, Vietnam cotton prices remain stable. According to specific data, the average price of 32 Pure Cotton Combed Yarns in India is 20570 yuan / ton, which is 30 yuan / ton lower than the previous week, which is higher than that of 32 cotton combed yarn 32 yuan / ton, and the average price of Vietnam 32 cotton pure carding yarn is 20400 yuan / ton, which is the same as that of the previous week, and the average price difference between domestic and 32 pure cotton combed yarn is 90 yuan / ton.

During the week, the number of small and medium sized mills resumed, but the rate of return to work was slow. Downstream demand is weak, small and medium-sized enterprises started most of the insufficient orders, market prices remained stable. Specific data, pure cotton grey fabric (32*32 130*70 2/1 47 "twill) average price of 4.80 yuan / m, and the price of the previous week was unchanged.

　　 Price chart of cotton yarn at home and abroad since 2019

　　 Price chart of gauze products since 2019

Four, outlook for the future

Recently, foreign epidemic sounded the alarm, and the global stock market collectively fell sharply due to the risk aversion. At home, due to the difference between domestic and foreign cotton prices has been more than 800 yuan / ton for three consecutive working days, the relevant departments issued a notice. In March 2nd, Xinjiang cotton was suspended from the listing transaction, and the transaction was restarted until the difference between the inside and outside cotton price dropped to 800 yuan / ton. In the short term, the probability of cotton prices fluctuating at home and abroad is greater, cotton yarn prices continue to maintain a steady and strong trend, gray cloth prices remain stable.