Market Brief
On March 12, China Reserve Cotton Management Co., Ltd. planned to purchase 15,000 tons of Xinjiang cotton, and the actual transaction was 2,680 tons, with a transaction rate of 17.87% and an average transaction price of 13,143 yuan/ton, of which Inland warehouses traded 2,680 tons. This week (March 9-March 13), the maximum bidding price is 13,144 yuan/ton (standard grade 3128B price), a decrease of 421 yuan/ton from the previous week. From December 2 to March 12, a total of 215,160 tons of cotton were traded in Xinjiang, including 12,480 tons in Xinjiang warehouses and 202,680 tons in mainland warehouses. A total of 92 companies completed auctions.
Affected by the renewed decline in crude oil, Zheng Cotton revisited its previous low, and the market deviated from fundamentals. Investors expected that the economy might turn to recession, and the market had a strong wait-and-see atmosphere. Zheng cotton fell sharply, and the pessimistic atmosphere of the lint spot market returned. Cotton prices fell again. Some downstream cotton spinning companies purchased a small amount at low prices, and fixed-price resource transactions stagnated. The resumption of work of downstream textile companies continued to improve, but the production capacity load was still lower than that of the same period in previous years. , and there are insufficient follow-up orders, raw cotton can be harvested as needed. However, under cost pressure, ginners have a calm mind, and the market has not seen significant price cuts and dumping of goods. The short-term lint supply is still sufficient, and downstream demand has not yet been released in large quantities, and the external market is still There are unstable factors, and the rebound in cotton prices lacks effective support. It is expected that cotton prices will continue to fluctuate at a low level.
Acrylonitrile prices continue to consolidate weakly, downstream demand is slowly recovering, the market’s bearish atmosphere remains unabated, low prices continue to be heard in the circulation sector, middlemen are cautious in trading, but the price of raw materials is declining slowly, and the market price of acrylonitrile has been Falling below the factory cost line, manufacturers have accumulated inventory, and traders are cautious. In the short term, it is expected that acrylonitrile prices will be weak and difficult to change, but the decline will be limited. The price of acrylic staple fiber continues to be stable. The price of raw material acrylonitrile is weak. The cost support of acrylic fiber is insufficient. The theoretical profit of manufacturers is considerable. However, downstream factories mainly wait and see the price changes. The purchasing mentality is cautious. The market trading atmosphere is average. Acrylic factories have inventory accumulation. It is expected that The price of short-term acrylic fiber is mainly stable for the time being, and may be adjusted around the end of the month.
The resumption of work of textile enterprises has improved significantly, but the start of terminal operations is still delayed. In addition, logistics has not yet fully recovered, and actual orders in the yarn and raw material markets still need to be restored. The polyester industry is gradually resuming work, PTA supply and demand pressures have eased, polyester staple fiber market production and sales are poor, and factory inventories have increased. Will quotations still decline under the pressure of accumulated inventories? Downstream construction has gradually resumed, and short-term companies are mainly operating on firm prices. However, the actual trading on the market is still limited. How will the subsequent market change? Raw material prices fluctuate, how to seize market opportunities?
As of 24:00 on March 10, Xinjiang had processed a total of 5.0095 million tons of lint cotton, a decrease of 1.96% from 5.1098 million tons in the same period last year. The cumulative processing volume of the autonomous region was 3.1687 million tons, a year-on-year decrease of 9.8%; the cumulative processing volume of the XPCC was 1.8408 million tons, a year-on-year increase of 15.2%. Currently, the average daily processing volume this year is lower than the same period last year, and the cumulative processing volume is lower than the same period last year. A total of 4.8807 million tons have been inspected in Xinjiang. The public inspection work of Xinjiang’s regulatory warehouses and warehousing has gradually returned to normal. Logistics and transportation within the region have resumed. Railway shipments out of Xinjiang are basically normal. Some warehouses’ truck outbound operations have not yet resumed. It is understood that in parts of Kashgar Bachu County and Aksu, surrounding roads have begun to resume limited traffic, and a small number of ginning factories have begun to resume work.
At the end of February 2020, the China Cotton Association conducted the third 2020 cotton planting intention area survey on a total of 2,425 designated farmers in 12 provinces and cities in the mainland and the Xinjiang Autonomous Region. The results showed that the national cotton planting intention area in 2020 was 45.7357 million acres. , a year-on-year decrease of 5.03%, a decrease of 0.33 percentage points smaller than the previous period. Among them, the decline in Xinjiang narrowed compared with the previous period, and the decline in the Yangtze River Basin and Yellow River Basin expanded compared with the previous period. Mainland cotton farmers reported that the main reasons for the decrease in area are: first, low cotton prices, second, less implementation of cotton subsidies in 2019, and unclear cotton subsidy details in 2020.
Ministry of Agriculture and Rural Affairs: Forecast in March 2020, China’s cotton production will not be adjusted in 2019/20. Affected by the COVID-19 epidemic, downward pressure on domestic and foreign economies has increased, and textile and apparel consumption has experienced a significant periodic decline. From January to February 2020, China’s textile and apparel exports were US$29.83 billion, a year-on-year decrease of 20%. Taking into account factors of later consumption recovery, annual cotton consumption this month will be reduced by 300,000 tons to 7.73 million tons, imports will be reduced by 100,000 tons to 1.7 million tons, and ending stocks will be increased by 200,000 tons to 7.13 million tons. The global cotton supply and demand pattern is loose. Affected by concerns about the development of the epidemic, domestic and foreign cotton prices will remain low and fluctuate, and the forecast range for cotton prices in the new year will remain unchanged.
On March 3, the office of Sichuan Chengdu Textile College received a heavy gift of 10,000 masks from Fujian Jinyuan Textile thousands of miles away. Party members of Jinyuan Textile Company also put forward several suggestions to the students: maintain good hygiene habits after the start of school, wear masks, wash hands frequently, and maintain a peaceful mind; cooperate with the school’s management and epidemic prevention work, and respond promptly to all problems Report to the teacher; after school starts, I hope that students will seize the day, live up to their time, make study plans, and learn professional knowledge well. Sichuan Chengdu Textile College is closely related to Changle Textile. According to incomplete statistics, Changle Textile has nearly a thousand graduates from the school. Most of them have grown into the backbone of production and are working in various positions in Jinlun, Hengshen and other companies. superior.
The State Council executive meeting held on March 10 determined new measures to deal with the impact of the epidemic and stabilize foreign trade and foreign investment; it deployed plans to further smoothen the capital chain of the industrial chain and promote the coordinated resumption of work in all links.��; It is required to better leverage the role of special re-lending and re-discount policies to support epidemic prevention and control, guarantee supply and corporate relief and development. Mainly to provide timely and full tax refunds for export products, increase foreign trade credit, carry out short-term export credit insurance business and reduce rates, prepare for the Spring Canton Fair, open up chokepoints in the industrial chain and supply chain, maintain smooth international supply chains, and increase working capital loan support. Accelerate the progress of loan disbursement, etc.
The Vietnamese government has just promulgated Resolution No. 20/ND-CP on the implementation of a mechanism for issuing export licenses for medical masks during the prevention of the Covid-19 epidemic. According to the above agreement, the Ministry of Health of Vietnam will implement a mechanism for issuance of export licenses for medical masks during the prevention of the Covid-19 epidemic, and exports can only be carried out for assistance purposes and international support implemented by the Vietnamese government (the export limit is 25% of output, 75% The output is used for domestic epidemic prevention work in Vietnam). The above regulations do not apply to processing export manufacturers or manufacturers that signed medical mask OEM export contracts with foreign customers before March 1, 2020. The Vietnamese government has tasked the Ministry of Health to take charge and cooperate with the Ministry of Industry and Commerce and the Ministry of Finance to promulgate relevant documents, procedures and procedures, and provide guidance on the standards for medical masks.
According to a March 11 report from Rodong Sinmun, the official newspaper of the Workers’ Party of Korea, Jeongju City, North Pyongan Province, which borders China, mobilized fabric and clothing factories to produce masks, and the Health and Epidemic Prevention Office and Pharmaceutical Management Office will also further increase disinfection. Hydraulic productivity. From the production site pictures published by Rodong Sinmun on the same day, we can also learn that soap factories in Pyongyang City are also engaged in the production of various disinfection supplies. The report also stated that vehicles such as ambulances and trucks are on standby to fully ensure and transport medical equipment and epidemic prevention materials at any time. Market curve
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