This week, the news is relatively calm. Domestic cotton prices have risen slightly, downstream demand has slowly recovered, and cotton yarn prices have stabilized.
1. Domestic spot prices rose while Zheng cotton futures fell higher and fell
This week, the futures market continued to be in a calm period, with ICE and Zheng cotton futures rebounding slightly. After encountering resistance, it fell back, and domestic cotton spot prices rose. The settlement price of the main cotton futures contract in Zhengzhou was 11,695 yuan/ton, an increase of 125 yuan/ton or 1.1% from the previous week; the average price of the national cotton price B index, which represents the market price of standard grade lint cotton in the mainland, was 11,522 yuan/ton, an increase of 89% from the previous week. Yuan/ton, an increase of 0.8%. The settlement price of the main New York cotton futures contract was 57.61 cents/pound, down 0.64 cents/pound or 1.1% from the previous week; the average price of the International Cotton Index (M), which represents the average CIF price of imported cotton in China’s main port, was 68.90 cents/pound. pounds, an increase of 0.48 cents/pound, or 0.7%, from the previous week. The import cost in RMB is 12,173 yuan/ton (calculated based on 1% tariff, including port miscellaneous goods and freight), an increase of 83 yuan/ton, or 0.7%, from the previous week. , the price difference narrowed by 5 yuan/ton compared with the previous week.
2. Domestic cotton yarn prices stabilized and polyester staple fiber rose slightly
This week, domestic cotton yarn prices stabilized, cotton yarn inventory levels were relatively stable, and downstream companies The enthusiasm for buying yarn is not high. Driven by the continuous rebound of international crude oil prices, the price of polyester staple fiber has rebounded. Conventional outer yarn is 686 yuan/ton lower than domestic yarn; the price of polyester staple fiber has increased by 160 yuan/ton to 5,790 yuan/ton.
3. Outlook for the market outlook
This week, the government work report at the “Two Sessions” did not clearly propose a full-year economic growth target, but instead focused on ” “Six Stabilities” and “Six Guarantees” are the focus of the work, indicating that the global economic situation is highly uncertain under the impact of the epidemic, and domestic macroeconomic policies adhere to the pursuit of stability and bottom-line thinking. A report from the U.S. Department of Agriculture shows that due to the epidemic, Southeast Asian countries have canceled a large number of contracts, while China continues to purchase. As the first phase of the Sino-US agreement continues to be implemented, the inventory of imported cotton at domestic ports is also increasing. The recent production shutdown has seriously impacted the cotton textile industry in India, Vietnam and other countries. The price of imported cotton yarn in my country has plummeted, and the pressure on domestic upstream and downstream product inventories has not diminished. Overall, in the past month or so, cotton prices have continued to fluctuate within the current range. The market is gradually digesting the negative impact of the epidemic. The possibility of another sharp decline in the short term is reduced. However, the continuous emergence of sporadic imported cases in the country indicates that the epidemic prevention work may be normal. ation and long-termization. In view of the timing and geographical differences of the outbreak, the recovery pace of the domestic and foreign textile and apparel industry chains is misaligned, and it will still take some time for cotton consumption demand to recover. </p
