Weekly Market Dynamics (June 22, 2020 -6 28)

Raw materials: cotton prices in foreign countries have been slightly concussion, and domestic cotton prices have dropped. Viscose staple fiber prices remained weak and polyester staple prices decreased slightly.

Product side: market recovery is slow, off-season continuation, gauze price weak downward.

　　 cotton

Recently, 36 new states of the United States, the new crown pneumonia epidemic rebound, at least 12 states announced the suspension of the economic restart plan. When the United States resumed its trade war with Europe in the week, it threatened to impose tariffs on goods valued at $3 billion 100 million. European and American stock markets have fallen across the board amid concerns over the epidemic and concerns over the tension in international trade. Domestic, Zheng cotton fell a high level, 3128 cotton spot prices fell. Cotton purchasing intention of cotton spinning enterprises was stronger than before. Some enterprises just needed to replenishment and increase cotton stocks.

Chemical fiber staple

When the price of viscose staple fiber was maintained at 8800 yuan / ton, there was no loosening. Due to the slow recovery of downstream demand, coupled with the hot weather and the reduction of some cotton mills, the purchasing intention of cotton textile enterprises is not strong. Polyester staple fiber, when the polyester raw materials shocks, coupled with the continued downturn in downstream demand, polyester staple fiber prices fell, 1.4D direct spinning staple prices fell by 100 yuan / ton.

Cotton yarn

During the week, the phenomenon of off-season in the market was obvious. According to the investigation of China Cotton Association, the start-up rate of cotton textile enterprises in June was lower than that in May, especially for enterprises with high branches and combed products, which was affected by the continued downturn of downstream demand. Some enterprises adjusted their starting up situation, and some enterprises began to "downgrade" and turn to low cost products. Import yarn, Vietnam yarn and India yarn prices are stable, India cotton mill production returned to 5-6, Vietnam cotton mill start up little change. The domestic import yarn market is still relatively cold, and the actual transaction price has declined. When the price difference between cotton and domestic yarn continued to shrink at home and abroad, the price of 32 Cotton Combed Yarns in India was lower than that of the domestic cotton yarn 200 yuan / ton. Vietnam's 32 pure cotton combed yarn prices were lower than the domestic cotton yarn 250 yuan / ton.

Grey

Since mid June, orders for downstream garments and home textiles are few, and the stock of upstream grey fabrics has increased slightly. Although the quotation of the weaving factory maintained early stage, the actual transaction price fell, the profit reduced, even at a loss. Due to the lack of follow-up orders, part of the weaving factory takes advantage of the Dragon Boat Festival to extend the holiday to a week, and there is also a textile factory's intention of reducing production or shutting down.

Outlook for the future

With the resumption of the US economy, the US new crown pneumonia outbreak has rebounded again, with more than 40000 new confirmed cases on the day and continuing to increase. Coupled with the escalation of trade wars between the US and Europe, the volatility of the international financial market has intensified, and cotton price volatility has increased. At present, China's textile and garment trade order recovery is far lower than expected, and the domestic market competition is fierce, which is in the traditional textile off-season. It is expected to maintain a weak market in the downstream market in the near future.