Weekly Market Dynamics (June 15, 2020 -6 21)

Raw materials: domestic and foreign cotton futures prices first fell and then rose, and spot prices fell overall. Viscose staple fiber prices remain stable, polyester staple prices are weak downward;

Product side: the downstream market is light, the price of cotton yarn falls down, and the price of grey cloth remains weak.

　 　 Cotton: When the United States released its retail sales figures in May, it rose by 17.7% over the previous month, a record high, far exceeding market expectations. Data from the US Census Bureau showed that sales rebounded in May by a rebound in clothing and accessories stores, with sales increased by 188%. But with the rebound in the US epidemic, the US economic recovery is under pressure. During the week, domestic and foreign cotton futures first fell and then rose, but the macroeconomic impact was impeded. On the spot side, the price fluctuated slightly during the week, the overall decline compared with the previous week. At present, cotton textile enterprises maintain a low level of inventory, and in the wake of the continued downturn in downstream demand, the purchase will decline.

　　 Chemical fiber staple: The price of viscose staple remained stable during the week before last week. The downstream cotton textile enterprises are mostly just needed replenishment, and the viscose factory is actively shipping. The market has changed little and pessimism is relatively strong. Polyester staple fiber, the polyester market continues to oscillate throughout the week, polyester staple fiber gradually concessions, 1.4D mainstream transaction price down to 5650-5800 yuan / ton, cotton textile enterprise procurement generally.

　　       Cotton yarn: Entering the June, the traditional textile off-season is coming, the cotton yarn market overall confidence is insufficient, small and medium-sized enterprises are under great pressure, some enterprises are facing production cuts, downtime or holidays. At present, the market orders are seriously insufficient and the competition is fierce. There is no lack of rush tickets. The price quoted by enterprises is more chaotic, especially the combed yarn and high count yarn. The sales are slow, and the price drop is higher than that of the combed yarn. In terms of imported yarn, India and Vietnam's cotton mills are better off than before, and their stocks are dropping. The domestic import yarn market was deserted, and the quoted price fell by 100-200 yuan / ton. When the price difference between cotton and domestic yarn was narrowed at home and abroad, 32 Cotton Combed Yarns in India were less than 260 yuan / ton of domestic cotton yarn. Vietnam's 32 pure cotton combed yarn was lower than the domestic cotton yarn 300 yuan / ton.

　　 Grey: In the week, the market of grey fabric was not good enough, and the foreign trade market still did not improve. The sale of thick fabrics is acceptable, but the overall order is not large. From the downstream market, the order of home textiles is slightly higher than that of the previous stage, and the price of the conventional grey cloth is still good, but the price increases are difficult to maintain weak stability. Part of the mill inventory backlog, there is a holiday plan.

Outlook for the future

Currently, confirmed cases of new crown pneumonia in Brazil and India have increased, the US new crown has been rebounded, and the volatility of the international financial market has increased. Domestically, after more than 10 days of fighting, the epidemic in Beijing has been effectively controlled and the domestic economic recovery has been proceeding steadily. With the deepening of textile off-season, market activity declined, small and medium enterprises cut production and holiday increase, it is expected that cotton prices will fluctuate slightly in the short term, and the gauze Market will maintain a weak trend.